If you have staff, doing payroll can be extremely time-consuming.
At first glance, it may seem easy, but there is more than just transferring paycheques into your employees’ bank account or cutting checks.
There is taking out tax deductions, managing vacation pay, sick time and other human resource issues.
Bookkeepers can help with all that.
In fact, they are an essential part of any small business team because they can help with payroll and taxes so that you don’t need to worry about it or spend time on accounting tasks.
In this blog post, we will explore how a bookkeeper can help with payroll and what other services they provide besides keeping track of numbers!
What Is A Bookkeeper?
In the business world, a bookkeeper is defined as a person who handles accounts payable and receivable, collects and tracks business receipts, files taxes on behalf of the company.
They are responsible for balancing the books each month to ensure that all transactions have been recorded accurately.
Here are some other roles a bookkeeper can fulfill:
• Prepares financial reports based on tax filing requirements.
• Keeps up with all of the legal and financial aspects of running a business.
• Completes payroll processing on time each month.
• Processes all other necessary transactions for you so that you have time to focus on more important tasks at hand.
How Does A Bookkeeper Help With Payroll?
Whether hiring a bookkeeper, accountant, or other similar position, they will have experience in this area and be more trustworthy than an intern or internal person who doesn’t have the expertise of an outside person.
When you utilize a bookkeeper to help with payroll, you also get peace of mind knowing that they will be the one to check for any errors on their end, and you don’t have to worry about it.
A bookkeeper is trained in all areas of running a business, while an intern may or may not know all the ins and outs. This can save time and potentially money since they can catch errors that you would typically have to deal with.
Different Types Of Bookkeepers
There are a variety of bookkeepers available for your company, from full-time employees to contractors.
The first option is beneficial if you can afford it because they will be around longer and have built-up experience based on the number of years you employ them.
In contrast, a contractor would only be working with you temporarily and might be just as invested in your company.
The best fit for you will depend on your needs.
Regardless of what you choose, there are generally two bookkeeper types.
General Bookkeeper
A general bookkeeper develops financial reports and prepares for tax time. They keep track of all company activity, including sales receipts, inventory purchases, and money transfers.
General Bookkeepers report to the owner or business manager and have a great deal of freedom in what they do since government regulations do not bind them as payroll processors are.
This means that they work independently and can handle many different tasks.
Payroll Specialist
A payroll specialist is defined as an employee who manages, plans, and processes all aspects of payroll.
The government highly regulates them, so they must be highly detail-oriented regarding taxes and legal compliance.
You can hire a payroll processor who does not report directly to you if you cannot commit the time.
Who Needs Bookkeeping?
What does a bookkeeper do for a small business? Many small businesses need help from a bookkeeper or similar position, so they have time to concentrate on more critical tasks. The best candidates are ones who have employees at different levels, with various benefits.
You should consider hiring a bookkeeper if you have trouble keeping everything straight or are not very good at accounting tasks.
In many cases, they can save you money by finding errors before they become a problem. Bookkeeping also ensures that you remain compliant with tax laws, so you do not have to worry about steep fines or even having your business seized.
It is nearly impossible for a CEO to handle all of the payroll needs for their company.
Even if you have a stellar employee dedicated to the task, it’s always good to have another set of eyes checking financials, especially when things get busy and you can make mistakes without notice.
How A Bookkeeper Can Help with Payroll
When you are looking for help with payroll, there are several services they can provide:
- Prepare reports on compliance with federal and provincial laws. This includes tax withholdings (Canada Revenue Agency) and Employment Insurance.
- Calculate income taxes and ensure all deductions are added to the payroll. This includes federal, provincial, and benefits contributions.
- Preparate statutory payments such as Canada Pension Plan (CPP), Workplace Safety Insurance (WSIB), and Employment Insurance (EI).
- Calculate net pay for each employee after withholdings.
- Issue pay stubs and T-4 records for employees.
- Analyze sales performance to determine if you need more staff or any other necessary changes.
The list is exhaustive but there could be many others depending on the individual company.
That alone is a good reason to speak with experts and get information about all of the options available to make an informed decision.
Why Is Correct Payroll Important?
While payroll might seem too minor to worry about, it is essential to your business’s success.
It keeps employees happy, which reduces turnover and the need to look for and train new employees.
It also keeps your financial statement to continue with operations without worry about bad news.
Here are a few advantages to using an experienced bookkeeper:
Prevents Payroll Mistakes
Nobody in your company wants to see 50$ instead of $500 on their payslip. Payroll mistakes like this could harm your relationship with employees, and you must prevent them from happening.
An experienced bookkeeper will have much better attention to detail than employees, which means fewer mistakes in the future. This can reduce employee issues, maintain morale, and make your staff more productive because they appreciate being paid correctly.
Not only that, but these mistakes could cause tax penalties or other repercussions from the government.
Keeps Human Resources Costs Down
This refers to the number of employees you need since they are less likely to quit after being paid correctly.
This means no high turnover rates and smaller payroll expenses since fewer employees will pay each month.
Keeping your human resources costs low also means that you can use the money for other purposes, whether for advertising, expansion or simply paying back debt.
his allows your company to be more profitable while keeping everyone happy.
Makes Financial Statements Easier
The statements will be accurate and organized, making it easy for you to find any mistakes and fix them quickly. You can also use the statements to provide information to investors and lenders should they request it for loans.
Why Are Payroll Mistakes So Common?
The biggest reason why these mistakes are common is because of time, or lack thereof. Most companies have limited staff, especially when they are starting out.
A lot of time that should be used for payroll is diverted to a company goal, whether it is opening a new store or completing another project.
This lack of attention can lead to errors in the long run.
Companies are also busy and sometimes overlook important details.
Putting off payroll to focus on another issue can cause mistakes or omissions, which is a problem you will not have with an experienced bookkeeper around.
How To Hire A Bookkeeper For Payroll
One of the smartest things you can do for your business is outsourcing as many bookkeeping-related tasks as possible.
However, you need a great bookkeeper who can provide all these services without any problems. Here are some tips for finding the best bookkeeper for your business:
Ask Current Companies Who They Use
Since your company will most likely be working with this person, you can ask other businesses if they like their bookkeeper.
Additionally, these people are in the same industry as you, so they may know how their accountant helps them and what is essential to consider when looking for an accountant.
Check Online Reviews
Online reviews are a good way to see what others think of your potential bookkeeper. They can give you the scoop on how they work, whether they are honest people, and more.
As long as these reviews check out with others, they should be helpful when finding a reliable bookkeeper for your business.
Check References
Asking for references is a common way to see if someone is good at their job. It would be best if you were not willing to hire anyone without checking their references or at least asking for them.
This will allow you to get honest feedback from past clients about your potential bookkeeper so you know what type of service you can expect from them in the future.
The Ideal Bookkeeper Candidate For Payroll
The ideal candidate will vary from company to company, but there are some basic things that you should be looking for in a bookkeeper.
Here are just a few of the traits your bookkeeper should have:
The bookkeeper can work with QuickBooks
Since most business owners use this software, your bookkeeper must know how to handle it. If they are unfamiliar with QuickBooks, consider hiring a different bookkeeper.
This allows them to use the software effectively and do a better job for your business.
The bookkeeper has previous experience in your industry
If you run a landscaping company, it would be best if your bookkeeper had worked with landscaping companies before.
This will allow them to know exactly what to look for so they can perform their duties better.
The bookkeeper is familiar with your local tax laws
To do this effectively, you need a bookkeeper familiar with the provincial tax laws and regulations.
This will help them to find your business more money when it comes time to pay taxes or deal with any other financial matters that can be taken care of in this manner.
The bookkeeper has high integrity
You need someone who will be completely upfront about everything. If you catch them doing something dishonest or misleading, they should not be in this position, so get rid of them as soon as possible.
This is very important because it can save your business time and money in the future due to their dishonesty.
The bookkeeper is efficient
The ideal bookkeeper will have a good balance between their efficiency and quality of service. They should be able to complete tasks promptly while also providing you with accurate information.
If they are not doing this, you need to keep looking for someone else who can provide the services without any problems.
Conclusion
Running a business requires skills beyond those necessary to run a household, and it is often challenging to have everything you need.
Bookkeeping is an integral part of business management that few people are capable of handling themselves. This is where a bookkeeper can help because they provide many benefits.
Bookkeepers can compile information from various sources, such as banking records, accounting logs, and sales receipts, into one place.
This makes it easy to find missing information, see what is going on in your business, and make smart decisions about running it well.
Bookkeepers are a great way to keep your business on track and make sure you stay out of trouble with your employees and the government.
They may not do everything in your business, but they will certainly give you a solid foundation for success.
If you’re looking for a bookkeeping service in Vancouver, contact us for more information and a quote!
