Why Small Businesses Should Use a Payroll Software

Posted by Accounting & Business Solutions, LLC on December 21st, 2020

Accounting & Business Solutions, LLC is a company that provides payroll services for small, medium, and large companies. It provides these services by compiling information about an individual or companies who need Payroll Services, such as Taxes, QuickBooks Software, Periodic Accounting, and much more. They then make offers to the companies that meet their criteria. As much as these payroll systems have provided ease to companies by eradicating the need of hiring a full-time accountant, there are also some mixed remarks circulating regarding the functionality of payroll software systems.

The majority of payroll services for individuals are provided by Direct Deposit. This is because individuals prefer to receive their paychecks by direct deposit. On the other hand, some companies use payroll software’s to receive their checks. Individuals also like to have the option to pay their taxes upfront versus waiting until their next paycheck. By using a payroll service to make your tax payments, you not only avoid late fees, but you also ensure that your tax payments are made on time, every time.

The average company in the United States has two employees. If you were to provide payroll services for a company with twenty-five employees, it would take you about thirteen hours to complete the work. When you compare this to a company that has one employee, you see that providing payroll services saves both time and money. The average company has between five and eight employees, which means that it takes a lot longer to complete payroll services for them compared to a medium-sized company with between five and ten employees.

A medium-sized company's time frame to get their paperwork done may be longer or shorter. A company with fifty to seventy employees may take six to eight hours to get all of their paperwork done. If you were to use a payroll service for a company with twenty-five employees, it would take four to six hours. This is because payroll processing takes time... time that employees are spending on their various projects. By using payroll software, the human resource department is freed up, so they can handle their various projects more efficiently.

Smaller businesses have even found that they are able to save money by using payroll and accounting services. Some small businesses have saved as much as forty percent or more by using a payroll service to handle their payroll. This is primarily because human resources and accounting employees do not need to be allocated to handle the payroll by the business owner.

If you are a business owner who is considering using a payroll service, you should consider the following. A payroll service can save your company money on payroll taxes. Human resources employees are freed up, so they can handle their various projects more efficiently. The payroll taxes that your business will be required to pay can also save your business money.