Various Functions Of Payroll Management

Quickbooks Training

Quickbooks TrainingPayroll is an extremely important function of any business – whether you have one employee or an entire workforce. But payroll is a complicated process and involves much more than simply ensuring that each employee is paid on time. Payroll management involves various functions to ensure employees are paid correctly in compliance with government regulations.

1. Processing Paychecks

Processing paychecks is the primary function of payroll management. Make the smallest error in one paycheck and it will quickly become apparent just how negatively this can affect the entire workforce and operation of a business. A payroll manager therefore needs to ensure that each employee’s compensation is calculated correctly in accordance with their employment contract.

Aspects of compensation that need to be verified include:

– The net salary of an employee.
– Their hourly work rate.
– Compensation for overtime
– Commission
– Incentives
– Any other amount that is a form of income

Additional factors that need to be taken into account include:

– Vacation time
– Sick leave
– Maternity leave
– Compassionate leave
– Holiday pay

Common deductions that need to be factored in include”

– Federal income tax
– Health or dental insurance contributions.
– Pension fund contributions
– Repayment of a company loan
– Any other deductions or contributions that have been agreed upon between employer and employee.

Additional Bonuses And Perks

– A car allowance
– Housing allowance
– Mobile phone allowance
– Clothing allowance
– Entertainment allowance
– Any other perk or added incentive offered to the employee by the company.

2. Payroll Taxes

It’s not just your employees who are going to be seriously unhappy when your payroll is not processed correctly. The IRS receives 70% of its annual revenue from payroll taxes. Your company can face severe penalties that could be very costly for failure to pay payroll taxes or by paying erroneous taxes. The IRS penalizes businesses with billions of dollars every year.

A payroll manager needs to be aware of the different tax rates that apply to different regions in the country and make the correct deductions from an employee’s income. They also need to fill in various forms to record and document payroll taxes including W-2’s for every employee by the end of January each year. Form 941 also needs to be completed and submitted every quarter detailing employment taxes that are withheld for contributions. These documents need to be completed accurately and on time to avoid penalties. Training, skills and experience are therefore critical in a payroll manager.

3. Record Keeping

The Fair Labor Act requires that an employer keep accurate records for each employee that is not exempt. The following information in employee and payroll records are required:

– Full name and surname of employee and social security number
– Physical or residential address including the zip code
– Date of birth for employees under the age of 19 years
– Gender and occupation
– The day of the week and time when an employee’s work week starts
– The hours that are worked every day
– Total work hours that are completed each workweek
– Rate at which the employee is paid – hourly, daily, weekly or monthly including the amount.
– The regular pay rate per hour
– The total weekly or daily straight-time earnings.
– The total overtime income for each workweek.
– All deductions from and additions to employee’s wages or income.
– The total wages that are paid over each pay period.
– The date when payment is made and the pay period that is covered by that payment.

The FLSA regulations also require that all payroll records should be kept for a period of at least three years. Records showing wage calculations need to be held for two years – for example, work timetables, time cards and other relevant documents. The payroll manager should ensure that these documents are stored electronically and backed up to be inspected by the Department of Labor at any time.

4. Employee Accessibility

While it is a legal requirement for payroll records to be made available to the DOL, employees should also be granted access to their personal payroll information upon request. A secure online portal provides a means for employees to access their personal information including:

– Summary of benefits
– Summary of pension fund or 401(k)
– Summary of deductions and history
– Details of direct payments
– Time clocks
– Paid leave or time off work

UptoDate Bookkeeping solutions also provides employees with the ability to download and print documents such as W-2s, make changes to tax settings and make online payroll inquiries. This empowers your employees with the knowledge that they need when tax season arrives.

5. Simplifying Payroll Management

Payroll is complicated and a dedicated HR department to handle all the responsibilities that come with payroll simply isn’t in the budget for every company. Outsourcing payroll management and administration with UptoDate Bookkeeping is a convenient and affordable solution to provide business owners with the peace of mind that every aspect of their payroll is being handled expertly and in compliance with the required regulations.

Why Invest In A Bookkeeper As A Business Organization.

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisToday, every business institution needs a bookkeeping department or outsource their bookkeeping to run successfully. That is because this department plays the role of recording accurate financial records that are made by the company. These records contain valuable information such as purchases made at a specific time as well as the sales and receipts.

Unfortunately, bookkeeping is mostly practiced by large business organizations, since the small-scale organizations focus more on marketing activities to generate more revenue. Bookkeeping helps you maintain the correct recording of all your financial transactions. You can use this information to come up with a business plan that will help you succeed in the future.

If your company does not have a bookkeeping department, then you can choose to hire a bookkeeping specialist. Below are the benefits of hiring a bookkeeping specialist.

Allow You To Concentrate On Other Business Matters.

Working in small-scale organizations is challenging. That is because employees are always overburdened with responsibilities. But, by outsourcing the bookkeeping tasks, the workload with automatically reduce. As a result, employees will have enough time to complete their assigned tasks.

Moreover, outsourcing the bookkeeping task also helps in improving the efficiency of a business organization. That is because the company will no longer lose time on certain business activities such as overseeing workers and recruitment.

Help Save Money.

By outsourcing the bookkeeping task to a qualified team, you will be saving money on payroll and infrastructure.

Furthermore, the cost of hiring a third party for bookkeeping services is less compared to training the current employees.

Access To A Bookkeeping Specialist.

Many companies that offer bookkeeping services have a team of specialists who are experienced in this type of work. That makes it easy for them to fulfill the client’s requirements on time.

Therefore, you can be sure that you bookkeeping task with be handled by a certified bookkeeper. That is why it is convenient to outsource this particular task.

Quick Results.

Another reason as to why business organizations should outsource bookkeeping tasks is because they can expect quick results.

It does not matter how much work needs to be done, after outsourcing the bookkeeping task, clients are given the results after a short period.

Access To Modern Tools.

Companies specialized in bookkeeping services use modern tools to deliver quality services to their clients. By outsourcing bookkeeping task to one of this company’s, you can gain access to some of these modern tools.

The points mentioned above prove that outsourcing the bookkeeping task can benefit both small and large business organizations. Moreover, the services are easy to find affordable.

Fall In Love With Better Business Habits

payroll services minnesota

payroll services minnesotaEvery new season brings with it an element of change, and hopefully a few seasonal specialties you can look forward to. For the fall season, your mind might fill with sweaters, changing leaves, trips to pick apples, pumpkin spice everywhere, and of course, the winter holidays coming on fast. Quite a bit happens in the year’s closing months, so it often seems like only the blink of an eye separates Labor Day from New Year’s Eve.

Fall is an optimal time to take more charge over your business, where you focus on everything that you have accomplished, as well as what still has room for improvement, all before calendars get flipped into a new year.

Before you’re able to any sort of fruitful planning for the future, you need to take the previous year into perspective and go back over everything that you’ve done in those 12 months. Do you remember what you first set out to accomplish? Do your actual accomplishments stack up very well to the original expectations?

The last four months of the year fly right by, especially when you consider how many events and holidays are mixed up in it all. Start considering holiday promotions now. Considering how many specials and sales are going to happen, you need to think ahead in order to stand out among your competitors.

You need to do other things that aren’t nearly as fun as getting ready for year-end promotions, which includes handling tax items and payroll tasks. You might want to send out reminders to your employers that they need to verify their W-4 information right away so you can process their W-2s promptly with the right information. The final quarter of the year is also an ideal time to start gathering up all the information, receipts, and documents you might need to file taxes in the new year. If all of this overwhelms you, or you just need professional advice on handling taxes, this might be a great time to partner up with UpToDate Bookkeeping in order to have help before things get too busy.

It’s really never too early to begin looking at your new year goals and where you want to make your business better. When you reflect on the accomplishments of the previous year, you have an analysis you can use to jumpstart the next year. Maybe you’d like to grow your customer base by 300, or perhaps you want 110% of your current ROI. Regardless of your goal, it’s good to plot them out in advance so you have time to start mapping out your strategies to get them done.

Fall is as fresh a start of a season as any other, so use it to bring some breathe some fresh air into your business. Even if the back-to-school frenzy is still hanging in the air around you, it’s a great time to do your own homework, study, and testing so you can teach the new year who is boss in your business.

The Importance Of Maintaining Accurate Financial Records For Your Business

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisAccuracy and precision are essential when it comes to keeping financial records for your business. Tracking your financial picture provide you with valuable information that can help guide your decisions as your business grows. Knowing exactly where you stand financially at all times is essential if you want to achieve success.

Precision Matters

When dealing with financial data, precision is essential. Even the tiniest numbers need to be carefully tracked. Your company’s assets begin to depreciate the minute that you buy them. Tracking this depreciation is an important part of keeping up with your financial records. You also need to keep detailed records of all of your income. That doesn’t mean just writing down how much money is coming in. Instead, your income needs to be split out into cash receipts and accounts receivable so that you have an accurate idea of exactly where your money is.

Staying On Top Of Taxes

Businesses of all sizes are responsible for paying taxes on their earnings. The tax rates can be quite high – especially for businesses that are bringing in a lot of money. If you don’t accurately track and pay your taxes, you could find yourself facing a huge tax bill at the end of the year. To avoid this problem, pay your taxes as you go.

Catching Mistakes

One of the best things about keeping accurate financial records is that it allows you to catch mistakes or errors early on. That way, you can correct them before they grow into a significant problem for your business.

Keeping Investors Happy

If people have invested money in your business, keeping good financial records is even more important. Records like these are an essential component in the trust-building process and can help ease any worries or fears for investors.

Staying On Top Of Payment Cycles

Keeping detailed, accurate financial records is also important when it comes to keeping up with your accounts payable and accounts receivable cycles.

Tasks like tracking your inventory, paying out wages, and managing your bills all need to be taken care of in a timely manner. Without detailed financial records, keeping up with these duties is far more difficult. A good example can be seen with a business loan. Instead of just sending in your monthly payment, it is important to figure out how much of that payment is going to the loan’s principal and how much is going to interest. To do that, you need to accurately track the data.

Guiding The Decision-Making Process

Ultimately, every decision that you make for your business should be as well-informed as possible. Financial issues play a key role in most major decisions that businesses make. The more accurate your records are, the easier it will be for you to decide on a course of action.

Any inaccuracies in your financial data, on the other hand, can negatively affect your business. Oftentimes, problems aren’t noticed until significant damage has already occurred.

Tracking your company’s finances isn’t very stimulating. However, it is one of the most important things that you can do for the future of your business. Maintaining detailed financial records also can prevent you from inadvertently breaking the law.

Payroll Services Provide the Necessary Administrative Help to Company Managements

payroll services minnesota

payroll services minnesotaWhen any business is set up that does have many employees, these persons will all need to be paid at fixed intervals that are normally weekly or monthly. For making these payments payrolls must be made detailing the number of days worked, the payments due based on agreed salaries, and deductions made for taxes or any other dues.

The preparation of payrolls requires a fair amount of work that must be accurate, based on attendance and other records. Businesses find that this requires deputing personnel to the required work, for a few days in a month. Keeping personnel specifically for this job may not keep them fully occupied, and if they are diverted from other work, those jobs may suffer. This is where payroll services that are outside companies can undertake, for a fee, all the work that is required.

In a basic payroll service, the outside company that has been given the work will collect all wage information including days worked and wages agreed on and will make all the necessary calculations, including required tax deductions, and any other deductions, and prepare the payroll. Their services can also include printing and delivering checks, or paying directly into bank accounts, and paying any required taxes to government bodies.

Taxes are often calculated based on the number of dependents a person has, and this requires the payroll services provider to be given the personal information about each employee. These can be federal, state, local, social security and any taxes for medical care. Some of the deductions require a matching contribution from the employer, and it can be the responsibility of the payroll service provider to maintain the records for each employee and make the required contributions to the designated authorities. Many people set up retirement funds as per any rules that a company may have in place and maintaining the records for this and making the needed payments may also be part of the services that they offer.

Payroll services can also offer to take over responsibilities that are normally handled by human resources staff, like administrating leave records and any benefits or retirement programs. While earlier, all the required information needed to be prepared in companies and sent to the payroll services company, the internet has allowed all this to be sent directly through web-based payroll accounts, where the details are constantly being updated by the company and are simultaneously available to the payroll service provider. The introduction of payroll software has made the entire process even simpler.

What is a Profit First Professional

Profit First Professional

Profit First ProfessionalBookkeeping is, undoubtedly, a broad profession with many openings to work within any business. The program is set aside for those who want to be part of an international network of bookkeepers, accountants, and business coaches who have gained exceptional skills to maximize the profitability of a company.

Once you’re considered as a certified Profit First Professional (PFP), you’ll have taken a considerable step career wise to be recognized as a person who takes their profession seriously. Every professional who works with business owners as their trusted strategic advisor concerning profitability must have this certification. With this in place, your clients will consider you as an accountable partner and by adhering to a specific process can assist them in making profit more deliberate.

The certification program is basically a learning process that’s aided by the Profit First Headquarters partners. With their experience and commitment to your success as an accounting expert, they’ll assist you in implementing these proven strategies both in your business and with your clients. In this guide, we’ll take a look at a few things you need to know about being a Profit First Professional.

What is Profit First Professionals (PFP)?

Like mentioned earlier, it’s an exclusive selected community of business and accounting professionals who are implementing the Profit First technique to assist their clients in building very profitable businesses by utilizing a consultative approach.

Key Benefits of Hiring a Profit First Professional

– They will deliver premium level business services
– They play a significant role in the industry’s major shift where you can meet and exceed your financial targets.
– They offer high-quality services that favor your financial health
– They are a trusted advisor for your business success and profitability in the long haul

Differences Between The Duties Of A Bookkeeper And An Accountant

BOOKKEEPING SERVICES

PAYROLL SERVICESBookkeeper vs Accountant

A bookkeeper is an individual who doesn’t have an accountancy college degree but deals with data entry tasks such as processing payroll data, ensuring statements are mailed to the customer, making ready the sales invoice, ensuring payment of bills, and entering bills made by vendors. On the other hand, an accountant has acquired a professional accounting degree and will carry on with the operations done by the bookkeeper. A few examples include:

– Preparing the company’s financial statement such as cash flow statement, balance sheet, and income statement.
– Adjusting entries in order to record the expenses that the bookkeeper failed to enter. These could include employees’ earned wages that require to be processed the following week and bank loans’ interests since the previous bank payment.
– They also help the management to comprehend the financial impact made by its past and future choices.

Bookkeeper vs Accountant: Key Differences

This list contains the detailed differences between the two careers:

1. Bookkeepers are needed for evaluating, quantifying, recording and later classification of financial transactions. Accountants, on the other hand, are needed to summarize, explain and convey the latest financial transactions as filed in the ledger account.

2. Bookkeepers are never tasked to come up with financial statements. However, accountants are paid to come up with financial statements.

3. When it comes down to the exclusiveness of financial decisions, it is usually impossible to rely on book-keeping records but considered with accountant records.

4. Bookkeepers mostly use tools like Ledgers and Journals while that of accountants are Income statements, Balance Sheet, Cash Flow Statement, etc.

5. Generally, the senior management doesn’t get involved with the bookkeepers, but when it comes to accountants, they could be interested in their functioning since they need the information so as to make better future management decisions.

6. With bookkeepers, no special skills are required since a lot of the activities are usually mechanical in nature. Accountants, on the other hand, need specialized analytical skills since there’s a high complexity level involved in keeping the books of accounts safe. To be an accountant, you’ll need a professional accounting degree as well as some past work experience in accounting.

Making sure the financial records are properly organized and the finances correctly balanced out by the bookkeeper, together with smart financial planning and timely tax filing by the accountant, directly accounts to the long-term success that each business needs.

What A Bookkeeper Can Do For A Small Business

bookkeeping services

bookkeeping servicesBookkeeping involves the preparation of business accounts. It entails the recording of financial transactions on a daily basis. Paperwork detailing these transactions is usually processed. Sales and expenses are recorded in a general ledger. Software such as Quickbooks is involved in bookkeeping.

A bookkeeper should be able to reconcile the bank accounts of a business. This ensures that the details of transactions on financial statements match those in the accounting software. This is necessary to ensure that transactions are recorded correctly to avoid fraud and overdraft fees.

A bookkeeper should be able to handle accounts receivable for a small business. This involves the creation of invoices for customers. Sending these invoices and providing statements to customers is all part of accounts receivable tasks. Clients can also alert the bookkeeper when they make payments.

Accounts payable involve bills that a business receives. Deadlines for payment that need to be made should be noted by a bookkeeper. They will ensure that payments are made to various vendors. Proper management of these accounts will solidify relationships with suppliers.

A business needs a bookkeeper to prepare its financial statements. These include the profit and loss statement, cash flow statement and balance sheet. These statements need to be updated regularly. Preferably, this should be done on a monthly basis.

The expenses incurred through operations are shown in the profit and loss statement. This statement also shows the bottom line of a business. The balance sheet, on the other hand, shows the liabilities and assets of a business. Cashflow statements show how much money is coming into and out of a company.

Businesses need bookkeepers to process their payrolls. A bookkeeper is able to help a business prepare its payroll. He or she can input data into the payroll system. This happens after reports are submitted by the payroll provider. Alternatively, data can simply be imported.

Tax payments can also be made by a bookkeeper. Management of timesheets can also be done. This can be for hourly workers or for overtime.

Tracking and managing bank feeds is important for every business. A bookkeeper is able to manage the bank transactions of a business. Linking the bank accounts of a business with its accounting software enables this to happen. A business owner can monitor transactions in real time through this.

Small businesses need bookkeepers for many reasons. UptoDate Bookkeeping prides itself in offering quality, accurate and efficient bookkeeping services. Whether it is outsourcing that you require or just setting up and organizing your bookkeeping, we are here to help you. Visit www.uptodatebookkeeping.com for all solutions regarding bookkeeping for your business.

The 3 Signs You Need Help With Your Payroll

payroll services minnesota

payroll services minnesotaWhen you first start a business, processing payroll seems to be the easiest task that you will have to perform. If you are currently reading this, then you have probably come to the conclusion that payroll is a process that involves more than simply paying employees. Trying to do payroll on your own can take up a lot of mental bandwidth. So, if you feel as though you are ready to outsource your payroll, the following are some signs that now may be the time to hire a bookkeeping company to manage it for you.

Late Payroll

It probably goes without saying that most of your employees do not have a lot of breathing room when it comes to their finances. In fact, reports from the Federal Reserve estimate that over 40% of households in the United States do not have the funds available to cover an unexpected $500 expense.

This means that if you are late running payroll, this can not only mess up their lives, but it can also destroy any credibility and trust you have established as an employer. So, if a bank holiday will throw you off from processing payroll on time, or it slips your mind, consider outsourcing the job to a payroll service.

Missing Tax Deadlines

In the majority of states, small businesses have to make at least eight separate payroll filings annually. These filings include state filings and quarterly filings of the IRS Form 941. Making sure these filings are processed on time is another task that can be forgotten by small business owners. Filing late and/or making late deposits can become costly over time.

Cash Flow Issues

Even small businesses that are successful can occasionally experience cash flow problems. If your business goes through seasonal cycles of ebbs and flows, or you have a major one-time expense, your budget may be destroyed. Whatever your specific problem is, a bookkeeping or payroll service can help you manage your cash flow in several ways such as:

Withholding the taxes for payroll so you do not have to come up with the money at once
Paying your employees through direct deposit
Providing you with accurate payroll data so you are able to make better projections for cash flow

This is list is by no means complete, but it should provide you with a few red flags that you should be on the lookout for. Simply put, an experienced and professional bookkeeping service will give you more time to focus on other areas of your business while minimizing risks that could occur from you doing payroll on your own.

Our Primary Goal Is To Help You With Your Bookkeeping

bookkeeping services

bookkeeping servicesIt is so important to keep track of all of your finances if you have a business. If you do not know how to do this properly, you may need to hire a bookkeeper that can keep your finances in order for you. There are likely many companies in your area that do provide bookkeeping services. You will need to find a competent business that can help you out. The best way to do this is to research all of the companies to find out how much they charge and if they are available. Your other option is to simply call UpToDate Bookkeeping.

The Services That We Offer

Our company is an accounting service that can help you maximize your profits. Whether you need to use our services one time to set up your accounting program, or if you need a regular bookkeeper, we can provide all of this and more. We not only provide bookkeeping services but we also do payroll services. We want to make your job as easy as possible. Instead of designating one employee to handle all of this for you, our company can help you save money and eliminate any worries about the bookkeeping process. We will give you personalized, cost-effective and comprehensive services that can help your business succeed.

Why You Should Consider Using UpToDate Bookkeeping

Our company was founded at the turn of the millennium. All of our employees have a combined amounts of experience that extends beyond six decades. We understand the ins and outs of bookkeeping, payroll, and job costing. Our team is thoroughly committed to providing you with a personalized service that will allow you to simply focus on your business. We can also help you establish financial goals for your company, and discuss your financial statements with you. Our job is to help your business become as profitable as possible, and that can begin by taking advantage of our bookkeeping services.

If you do not have a bookkeeper for your business, certainly consider using our company. UpToDate Bookkeeping is providing these services for many other businesses. If you would like to speak with us, you can contact us by phone, or send us an email so one of our representatives can get in touch with you promptly. Even if you have never used a bookkeeping service before, you will be glad that you started working with us. Our objective is to always provide our clients with the best possible bookkeeping and payroll services available. You can learn more about our business at: https://www.uptodatebookkeeping.com