How to Know Your Company Is Ready For Computerized Payroll Services

March 1, 2019

Computerized payroll services can be a game-changer for your small business when it comes to accuracy and saving time. An experienced Los Angeles accounting firm can help you set up your new system and optimize it for your business needs. Here’s how you’ll know if you’re ready to take the plunge.

Accommodate Business Growth

If your business has one or two employees, you are likely used to running payroll by hand without the use of desktop or cloud software. As your company grows, however, this task becomes more and more difficult. Some of the actions you can automate with the right payroll software include:

• Printing checks
• Calculating the correct payroll taxes
• Direct-depositing employee payments
• Filing and printing W-2 and W-3 forms
• Storing critical payroll records
• Keeping track of employee time
• Filing and making deposits for federal, state and local taxes
• Managing complex situations such as added tax deductions

Research System Needs

It can be time-consuming to establish a computerized payroll system, so ideally you’ll choose the right system the first time. Some of the key factors to consider include:

• A desktop system that requires you to install updates or a cloud-based system that is updated automatically
• The cost of hiring a staff accountant or outsourcing payroll services compared to the software cost
• The amount of time you currently spend doing payroll each week compared to the hourly rate you typically charge clients
• How many employees you have and how many you project to hire in the next few years
• The level of control and oversight you want over payroll functions and operations
• Whether you need special features, such as additional types of payment like tips and commissions

Talk with a trustworthy Encino accountant if you want to learn more about transitioning your business to a computerized payroll system. He or she will be able to share advice and guidance as you roll out the new initiative.