The Benefits Of Using A Bookkeeping Service

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisWhen you are in business for yourself, you will need to keep good records of the financial documents that you have. You will also need to keep track of payroll and other such information in a clear and concise way. If you are like many other people, this can be a daunting task and you might not be able to do it yourself. That is why there are bookkeeping services that will assist you with this type of work.

A Bookkeeping Service Is What You Need

There are many pluses to hiring someone to do your bookkeeping for you. Here are some of the reasons that you will want to consider a bookkeeping service for your needs:

1. Lower Costs

When the bookkeeping service completed their duties, you are only paying them not an entire staff. You will cut down on the costs of doing the bookkeeping when you hire a service.

2. An Unbiased Opinion

The bookkeeping service will give you just what you need without holding an opinion. Since this is what you want, you will be glad that they don’t carry an opinion on what you do.

3. You Will Have A Lower Turnover

With a service taking over the bookkeeping duties, you will have less turnover in your own staff. This makes sense when you have a lot of people on your payroll.

The Service Will Be Experts At What They Do

You will receive an expert when you hire a bookkeeping service. They not only know everything that there is to know about keeping the books right but they will also have expertise in your field too. This is exceptionally good for you because they will understand what all is necessary for your line of work.

You Will Be Able To Do What You Want To Do

When you have a bookkeeper, you will be able to pay attention to the things that you need to do. The important things that you need to attend to will no longer be put aside. You will have the time to get to those issues right away since someone else will be handling the books and the paperwork for you. It will be a relief for you and a welcomed one. It allows you to streamline your job so that everything is attended to right away.

Having a bookkeeper is something that many people want to have. Once you get set up with your bookkeeping service, you will be able to have them work on your books any time that you need them to. It is something that makes sense in the short and long term for you. Be sure that you pick a good service when you want to go ahead and get the bookkeeping accomplished.

Advantages Of Hiring Virtual Bookkeeping Services

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisTechnology has now made it possible for businesses to seriously consider remote bookkeeping services and this is the reason, many businesses are taking advantage of these remote services. However, some business owners are terrified by the concept of a virtual bookkeeper and some even think that it won’t work for them.

There is no denying that innovations in the technology industry have resulted in a complete shift in the accounting and bookkeeping industries as cloud and virtual have become the new buzzwords. These days, many bookkeeping experts are taking advantage of new technology to remain competitive and to become more effective. An accountant or bookkeeper can now offer accounting services remotely through virtual bookkeeping. Here is a list of some of the benefits of virtual bookkeeping for your business:

Save Money

It will allow you to find an expert bookkeeper at a considerably cheaper cost as compared to keeping an in-house bookkeeper. When you start searching, you will find that there are many remote bookkeepers offering part-time services and they are capable of meeting the needs of your business. Also, remote bookkeepers work as contract workers which means there is no need for you to worry about payroll taxes, vacation time and other benefits associated with permanent employees. You will also save money as services of a virtual bookkeeper are often available at affordable prices.

Zero Wastage

Since no physical office is needed for virtual bookkeeping services, you won’t have to worry about wasting resources on hiring a new person. You will also save money on administrative and accounting expenses. Whenever you hire a new person in your business, you have to spend some time on their induction. Also, space needs to be found for that person to work in.

It is not easy to keep account books. This is where a virtual bookkeeper shines as they can take care of payroll preparation, and various activities related to cash management as well as preparation of financial statements.

Another Professional in the Team

Individuals working as virtual bookkeepers not only spend time on performing bookkeeping tasks but they also regularly compete for new business. It also means that they are aware of the inner workings of the business and they would continuously improve their skills in order to remain competitive. They also have to constantly add to their knowledge and follow the best practices which means you will benefit from their ever increasing knowledge and best practices.

Access to Latest Tools

If you hire a new person at your company, you will also need to invest in the latest technology and tools in order to allow them to do their work. On the other hand, a virtual bookkeeper is responsible for keeping the software up-to-date. In short, there is one less thing for you to worry about when it comes to running your business.

More Time for Your Core Business

One of the biggest advantages of hiring someone remotely is that you get time to focus on your core business when someone else takes care of the books. When you know that someone you can trust is taking care of the bookkeeping, you will have the necessary peace of mind to give 100% to your business. You don’t have to worry about access to the latest financial reports. Needless to say, you need access to accurate and latest financial records in order to make informed decisions.

Get Access to an Experienced Team

When you hire the services of a traditional bookkeeper, you also have the challenge of finding someone who is the right fit. You do not want to overpay for a senior person but you still want to hire someone who is able to take care of all the important and necessary tasks as your business grows. On the other hand, when you hire the services of a virtual team, you will get help from individuals with expertise in different areas and different levels of experience, and in this manner, they can help you find the right team members for that particular task you need to be done.

Continuous Availability

When you hire the services of a virtual beekeeper, you can rest assured about their availability and accessibility. They typically do not have fixed office hours but they are usually available for customer support at all times.

Conclusion

Remote virtual bookkeeping services aren’t meant for everyone. However, they can be of great help in several situations. If you are still concerned about hiring the services of a virtual bookkeeper for your business, call us today for a consultation. One of our Business Development Specialists will help you figure out whether a virtual bookkeeper is the right choice for your business.

Why You Need To Hire A Bookkeeper For Your Company

bookkeeping company mn

bookkeeping company mnFinancial functions are some of the most important when your start-up is growing into a fully-fledged business. You may not have the financial resources to hire a qualified accountant for your business. But you should at least consider hiring a bookkeeper to help with the numerous financial aspects of the business. Here is why your company needs the services of a qualified bookkeeper.

1. You Will Have Enough Free Time To Focus On Core Business Needs

A startup business needs the full attention of its founder. You should focus more on sales & marketing, funding, business strategy, and other key areas that are important to grow your business. There are daily operational tasks that require your full attention when you are still growing the business. Hiring a bookkeeper will free your precious time so that you can focus on the core functions of your business.

2. Let A Qualified Professional Deal With Accounting Functions Of Your Business

Many founders are not competent in the accounting functions of a business. In fact, they don’t have a good knowledge of accounts receivables, accounts payables, and taxes. Let a certified professional handle these aspects of the business while you focus on the more important core functions.

3. Concentrate On A Work-Life Balance

When you have to focus on the core functions of your business and deal with accounting functions, you won’t have enough time to devote to family matters. Your family and loved ones will miss you as a result.

4. Get A Different Perspective On Your Business

Your bookkeeper isn’t emotionally attached to the business. Hence, he or she can put the financials in order and show you how the business is actually doing each month. He or she will show you where the funds are going and how your efforts are paying off at the end of the day. You will see the big picture of the business through the numbers presented by a qualified bookkeeper.

5. Escape The Tedious Aspects Of Business

Financial aspects of business hardly make the founder excited. But a professional bookkeeper may enjoy such tasks. It makes sense to hand over accounting tasks to someone who really enjoys the work. The motivation they have will help them do the job well.

6. Everything Will Be Paid On Time

Late or forgotten payments can impact the credit status of your company. You don’t want this to happen to your startup business. That’s why you need to put a professional bookkeeper in charge so that he or she will handle everything on time and pay the creditors on time.

7. Maintain The Cash Flow

Late payments from your clients may infringe upon the cash flow of the company. Cash flow is important to keep your start-up running smoothly. You may be so busy that you don’t have the time to check all dues from the clients and follow up with them. A bookkeeper will stay on top of such issues and make sure the cash flow will remain optimal at all times.

8. Reduce The Cost Of Financial Obligations

Founders think they could save money by doing everything themselves. But the trust is a bookkeeper can help you save more money in the long run. Human error is minimized and account payables and receivables are handled on time.

Money and time saving, greater cash flow, and expertise are some of the many benefits of hiring a bookkeeper for your startup. Don’t wait! Start the hiring process right now!

What Exactly Is Job Costing?

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisThere is an efficient way to create a good representation of organizational expenditures that is called job costing. It refers to the calculated amounts that referred to overhead, the cost of labor, and materials that are related to running a business that produces and manufactures products. The calculations can be complex, yet they will lead to a much better overview of how to complete work orders as well as the entire job process. It will look at the total cost of certain industries, allowing you to streamline the entire process of running your organization.
There are many advantages to job costing which are presented below;
Profitability
The job costing system and time allocation information are essential for all managers that are responsible for the operations of a company. Organizations are able to calculate how much each job is contributing to profitability. This is going to help evaluate what other employees will do, helping them to streamline and prioritize everything that they are responsible for doing, plus provide more profit and satisfaction for that business. This is a highly efficient way to handle customer orders, but it can be also used for individual workplace operations, statistical interpretation of data, and helping with the structured way that a business operates.
Performance
Time allocation, as well as job costing, helps employers evaluate the performance levels and achievements of each employee. This is a little bit different than what is called process costing, although many people think this is similar to some degree. The primary difference is that the information that is provided overviews entire departments or teams, whereas job costing helps you determine the productivity, efficiency, and cost control aspects of each individual employee. By doing so, if a particular employee is not meeting their own objectives, they can be immediately notified. This is very handy when you are going to do an evaluation of employees.
Accessibility
If you want to calculate expenses that are accrued daily, pertaining to specific jobs, this will give you the opportunity to do so by looking at the services, items, and the cost per operation for each position and their overall requirements. By formulating and finding this type of information in a summary format, you can design strategies that can help reduce the cost of running your business and develop methods of control that can allow a business to become much more efficient and properly monitor the activities of their employees in the most efficient way possible.
Flexibility And Accuracy
It is also important to look at the indirect costs related to running a business. If you are not able to do so, it’s very difficult to look at the various variables of your business and calculate how much it is costing you to remain open. This can be done by using algorithms that can trace the cost of operations automatically, and it can be very helpful for both employers and managers. There is a considerable amount of time and resources that can go into the systems, but when done properly, this can lead to the best information without having to worry about a complex calculation system that may not work at all.

Why Virtual Accounting Is The Future

payroll services minnesota

payroll services minnesotaAccounting is always necessary when you have a business. Some business owners will do this on their own, whereas others will hire a professional accountant. Typically, people will do their taxes with an accountant. This is someone they will sit down with, discuss their finances, and subsequently signed papers to pay their taxes or receive a refund. However, due to changes in global society, it may now be necessary to pursue virtual accounting as the most idyllic way of maintaining this industry.

How This Can Be Beneficial

When the Internet was first introduced in the 1990s, people wondered if doing online sales would be a fad. Some assumed that the potential for online sales would dwindle and disappear. Fast-forward two decades and we see that billions of dollars of online sales are happening year after year. It is becoming the standard way by which people choose to make their purchases. It simply easier to order something from a website and have it sent to you. In the same way, accounting can also be done through a virtual network.

Is This Risky?

There is always the potential of risk when it comes to transferring content online. Some may prefer to bring their information on a disk to be transferred directly. However, secured connections use very high-grade encryption which can protect vital information about any business. As long as the accountant that you are working for provides this secure route, transferring your documents digitally should not be a problem.

How To Transition From Physical To Digital Accounting

Transitioning from physically interacting with an accountant to a completely digital relationship is happening even today. People are realizing how easy it is to get their taxes done online. Interacting with an accountant is no different. As people become more comfortable with online transactions, it will simply be one of the many things that we all do on the web. In time, offices for accountants may not even be necessary because everything will be virtual.

As time progresses, this need to conduct business online will continue to grow. People are starting to see how financially applicable this is. The need for traveling to meetings, trainings, or even meeting with clients is falling to the wayside. In its place will be virtual trainings and meetings, as well as business interactions that can be conducted through digital files and face-to-face communication. Virtual accounting certainly is the future, and it is a future that we are currently developing right now. To learn more about this new way of doing accounting, please visit: www.uptodatebookkeeping.com

What Is Virtual Bookkeeping?

BOOKKEEPING SERVICES

BOOKKEEPING SERVICESThe vast majority of people that start small-and medium-sized businesses do that for the opportunity to do what they do best, whether it is fixing vehicles as a mechanic, creating garden art as a landscaper, or even building websites as a graphic designer.

What most small business owners discover, however, is that besides doing the task that they love full-time, they also have numerous other jobs that they must attend to part-time, which range from marketing to bookkeeping.

If you aren’t particularly experienced in handling such tasks, it can be easy to put them on the back burner, and this may harm your business, particularly when it comes to bookkeeping. After all, while doing the work might be great, not being paid in time is not so great.

Fortunately, remote bookkeeping has come to remedy the situation. It is a service that provides small-and medium-sized businesses with a dedicated remote bookkeeper that’s always available to handle this challenging task.

You can just imagine the freedom of having an experienced bookkeeper ready to help you take care of all your financial tasks every month, thus offering you peace of mind that only comes with knowing that your finances and books are properly organized, accurate, and up-to-date.

The following is a breakdown of all the things that you should know about virtual bookkeeping services.

Is Remote Bookkeeping the Right Option for You?

Research reveals that remote bookkeeping is an attractive option for small businesses that would rather have a more convenient option when it comes to managing their books, even those that already use intuitive accounting tools such as QuickBooks Online.

Remote bookkeeping customers have some similar characteristics that they are looking for, which include:

Organized

Cash flow is one of the most important ways to measure how healthy your business is and is depicted in the month-end financial reports. It is one of the key services that remote bookkeepers provide that small business owners greatly appreciate.

Trustworthy

Trust is obviously an important consideration. After all, handing over your finances to an accountant that you barely know or don’t know at all might sound risky. You want to ensure that you only deal with an honest, ethical, and dependable professional. Hiring an accountant without being first confident in their abilities can be worrisome, so knowing that your provider has been vetted by a third-party service can give you peace of mind.

Consistent

The main benefit of using virtual bookkeepers is that you get to save precious time. Unfortunately, that can be eroded rather quickly if you constantly have to explain the ins and outs of your individual needs. For instance, perhaps some customers use credit cards to pay every month while others prefer using e-checks.

It is the reason why on-demand customers usually request that their bookkeeper get to know them and understand the unique details of their business and industry at large, along with their personal preferences when it comes to communication and invoicing to ensure that they are always on the same page.

Your virtual bookkeeper will get to know your industry and business and customize your setup accordingly. It means that there will be no need to constantly explain your needs.

On-Demand Assistance

If you have questions but don’t know where to turn, you can always connect with a virtual bookkeeper via video chat or message to receive personalized help.

Professional Certification

Tax laws are becoming increasingly complex and small business owners are regularly turning to their accountants for advice regarding what they are allowed to legally deduct. You obviously want to maximize on your tax savings, but this should never be at the expense of operating outside the law, which is why it is so important to work with an accounting professional or bookkeeper that’s familiar with the current tax laws.

Convenience

Perhaps, rather than doing your own books, you have been contracting with somebody locally to help out and you have probably realized just how frustrating it can be. Having to schedule an appointment, and then waiting until they are available. Then, when the appointment time finally rolls around, you come to the realization that it isn’t convenient for you any more since you are in the middle of a massive project.

Better Organization

Your business operations will be much smoother if you get your income statements, chart of accounts, and balance sheet organized, which will help you to understand the performance of your business better.

Month-End Close

You probably already use the saying “Another (birthday/vacation/fill-in-the-blank) in the books.” That’s actually accounting lingo and it refers to the “month-end books” that all small business owners need to refer to when determining how healthy their businesses are. If you choose UpToDate Bookkeeping, you can rest assured that your books will be reviewed and closed every month.

Year-End Report

You can finally breathe easy as you start wrangling your taxes. Your virtual bookkeeper will compile a year-end report for your business to help you when it comes to preparing your tax return.

So, are you looking forward to having more time in your day? Relief from the fear that your books could be wrong? A better picture of your business through regular financial statements?

Find out today just how virtual bookkeeping can help your business.

Reasons Why Every Small Business Needs A Bookkeeper

Bookkeeping Company Minneapolis

Bookkeeping Company MinneapolisBookkeeping Defined

If you’re a small business and thinking of hiring a bookkeeper, it’s important that you first understand what bookkeeping is and how it can benefit your business. Simply said, bookkeeping involves managing your business’ books, recording all transactions. Whether it be a sale or an expense, it should be recorded. A bookkeeper is someone responsible for keeping track of all the finances – oftentimes, this process involves making use of bookkeeping software. When done properly, the business owner will be able to make accurate financial decisions with the use of the information provided in the books. These bits of information can also be used to help the business file taxes, secure loans, and even show the company’s health financially. With that being said, keeping the books accurate and up-to-date plays a very important role, no matter the size of your business.

Should I Hire A Bookkeeper?

Always bear in mind that bookkeeping requires a lot of time. Maintaining and balancing your books can usually take a huge chunk of your time, especially if you have a lot of financial transactions. With that being said, if you have a limited number of transactions, hiring a bookkeeper may not be necessarily needed. To make it easier to understand, here are some examples :

Example #1: I own a small sole proprietorship business offering services. I run the business alone and have no employees with about 12 monthly transactions. With that small amount of expenses and invoices, I would only need about 1 hour every month to work on my books.

Example #2: I own an online e-commerce store and sell products. On average, I buy 200 products and sell all of them within that month. With about 400 transactions (buy and sell), it would take me 8 hours per month to do the books.

In general, there’s no specific number of hours that tells you that you’ll need to hire a bookkeeper. The only thing that you should always take into consideration as a deciding factor is whether keeping up with your books takes too much of your time. If you’ve been spending time on your books more and less on your business operations, you may want to consider hiring a bookkeeper. This way, you can focus on more important things and delegate the task of managing your books to someone with extensive experience in the field.

Another reason why you may want to consider hiring a bookkeeper is when you, the business owner, have little to no background when it comes to accounting. Accounting is a crucial knowledge that you need to have to be able to efficiently manage your books. Someone without account experience and knowledge may find it difficult to take care of complex transactions. Someone with extensive experience in this background may help you and your business to accurately take care of your books.

Various factors can take into account a business’s books to become more complex. The more that the books get complex, the longer the time it would take to maintain these books. Here are some of the most common factors that are to be taken into account:

Inventory
Payroll system (total number of employees)
Fixed assets such as buildings, furniture, cars, and equipment)
Product manufacturing
Advantages Why You Should Hire An Outside Bookkeeper

By hiring an outside bookkeeper, one of the benefits would be the time that you can save. You don’t have to worry about the tedious tasks of managing your books, but instead, you can focus your efforts and your time on running your business alone. Bookkeepers are equipped with the knowledge and trained to make sure that your books remain balanced and accurate. You’ll also have the peace of mind that you’ll make the correct financial decision because of the accurate information that’s provided in the books. While it’s true that a bookkeeper is an added expense to your business, you’ll have the peace of mind and get the burden off your shoulder of managing your transactions – these are things that money can’t buy.

As you can see, even small businesses can take advantage of hiring an outside bookkeeper. However, take into account the amount that you’re spending on this service. It may go up or it can get cheaper, depending on your books’ organization and format as well. If you have an entire box full of receipts, expect your bookkeeping services to be a bit more expensive as compared to those that have digital receipts.

The Importance Of Bookkeeping

payroll services minnesota

payroll services minnesotaReliable financial records are essential, which is why bookkeeping is so crucial. Unfortunately, there are a lot of businesses out there that don’t make bookkeeping a priority. Accurate records won’t just make your life easier. Bookkeeping is also a legal requirement.

There are many businesses that fail because of poor bookkeeping. After all, when you’re not keeping proper records, you don’t have the information you need to make your business successful.

1. Proper Budgeting: You need accurate books in order to set a fair budget. When you’re able to keep track of both your expenses and your income, you’ll be able to plan ahead. You’ll be able to make sure you have the money you need to cover all of your expenses.

2. Preparing For Taxes: It’s likely that your business files taxes annually. You shouldn’t have to dig through your desk in order to find the paperwork you need for your taxes. You can avoid these kinds of headaches if you make bookkeeping a priority. With accurate records, tax filing will be much easier. It will also simplify things for you when it comes time for you to file your own tax return.

3. Staying Organized: Organization is something that business owners should prioritize. When you need to locate an essential piece of information about your business, you should be able to do that with ease. At some point, certain parties might request financial records from you, including potential investors, lenders, your employers, and the IRS. You need to make sure that you can quickly provide this information when it’s requested.

4. Accurate Analysis: It’s important to analyze your business’ performance from time to time. Bookkeeping can help you to do exactly that. Through bookkeeping, you’ll be able to generate financial statements that you can use for the purposes of analysis. Analyzing financial statements will allow you to see the cash that’s coming into your business as well as the cash that’s coming out.

5. Improved Decision Making: When you have the data needed to properly analyze your business, you can make smarter decisions. It can be difficult to make the right decisions when you can’t access the information that you need. You can get essential information from bookkeeping. You won’t be able to make decisions that will benefit your business without looking at your financial records.

6. Planning Ahead: With bookkeeping, you’ll be able to look at how your business has performed in the past. This will make it easier for you to prepare for the future. By consulting your financial records, you’ll be able to see where your business is succeeding and failing.

7. Reporting To Investors: Anyone that has invested in your business will want to know how it is performing. You can provide investors with this information when you have accurate financial statements. Documents like your balance sheet, cash flow statements, and income statements all help to demonstrate your business’ value.

8. Managing Finances: It’s difficult to control a company’s finances without proper bookkeeping. Financial records allow you to see how and where your money is being sent. You’ll be able to see what your customers owe you and what you owe to other people. Paying your bills in a timely manner is important to the health of your business. It’s also important to make sure you receive prompt payment for the products or services you provide. Your business depends on having balanced books.

9. Minimizing Stress: When you know your financial records are a mess, you might want to panic. If you’re lying awake at night worrying about your books, you need to take action. Running a business is hard work. You should minimize your stress by keeping accurate, well-organized financial records that can be reviewed at any time.

10. Keep Track Of Profits: Without financial records, it can be difficult to assess how profitable your business truly is. After all, you’ll prepare your income statement via bookkeeping. That statement will allow you to see whether or not your business is turning a profit. When you don’t have access to information like this, you won’t know if your business is succeeding or failing. Your financial records will also help you to see how your business is growing.

11. Improved Cash Flow: Many people don’t realize that keeping accurate books can lead to more reliable cash flow. When you’re not properly tracking customer invoices, you may not notice when you don’t receive an owed payment on time. It’s important that everything, from your business expenses and liabilities to revenues and receivable are recorded. You should keep close track of invoices and ensure you’re receiving payments promptly. You should also make sure you’re paying invoices on time so that you won’t have to pay for late fees.

12. Improved Strategy: As a business owner, you should constantly be strategizing. You need to think tactically so that you’re able to build your business into something bigger and better. You can gather information from your financial records and use it to build stronger strategies. You can also see how well your current strategies are paying off. You’ll be able to adjust your methods and set more realistic goals.

13. Assess Your Business At A Glance: With accurate bookkeeping, you’ll be able to find a lot of essential information about your company. Your income statement, cash flow statement, and balance statement will all allow you to see how your business performed during that period of time. You can go over these statements and quickly assess how your business is doing.

14. You’ll Be Prepared For Auditing: If your business undergoes an IRS audit, you’ll want your books to be well organized. If your books are poorly organized, the process could drag out for a long time. The IRS could also impose fees or other penalties on you

15. Bookkeeping Is A Legal Requirement: It’s important to remember that you’re required by law to maintain accurate financial records of your business. If you don’t do this, your business can be terminated. You may also need to keep records showing that your financial records and personal expenses are separate.

Your Next Step: Now that you understand how essential bookkeeping is, it’s time to take action. With accurate financial records, you can cut costs, avoid major setbacks, and keep your business running smoothly. If you need bookkeeping assistance, don’t hesitate to reach out to us.

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.