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 BookkeeperFor 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 CandidateFor 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.
Exploring the Nuances of Digital Transformation 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!
Ryan Roch is the CEO of Intrepidium Consulting, offering customized Bookkeeping, Accounting, Fractional CFO, and Tax Preparation Services to small and medium-sized businesses. With extensive experience in financial reporting, strategic planning, budgeting, compliance, and cash management, Ryan helps clients overcome financial challenges, gain clarity, and achieve their growth objectives.
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Can a bookkeeper do payroll?
Yes, a bookkeeper can handle payroll responsibilities. They have the necessary skills and knowledge to process employee paychecks, calculate taxes and deductions, and ensure compliance with labor laws.
How does a payroll and bookkeeping service record payroll checks?
A payroll and bookkeeping service records payroll checks by: debiting the payroll expense account, crediting the cash account, and recording the transaction in the payroll register.
Is payroll considered bookkeeping?
Yes, payroll is considered a part of bookkeeping as it involves recording and managing the financial transactions related to employee compensation, such as salaries, wages, taxes, and deductions.
Does bookkeeping cover payroll?
Bookkeeping does not typically cover payroll. Payroll is a specialized function that involves calculating employee wages, withholding taxes, and other deductions, which is usually handled separately from general bookkeeping duties.
How much do bookkeepers charge for payroll?
The typical range for bookkeeping services related to payroll is $30 to $100 per hour, depending on the complexity of the business and the services required.
What do you call a bookkeeper who does payroll and office assisting work?
A payroll clerk or administrative assistant.
Do bookkeepers handle payroll?
Yes, bookkeepers are often responsible for handling payroll, including calculating employee wages, withholding taxes, and preparing paychecks or direct deposit information.
How to offer payroll services as a bookkeeper?
Offering payroll services as a bookkeeper involves handling employee compensation, tax withholdings, and regulatory compliance. This can provide a valuable service to clients and generate additional revenue for your bookkeeping practice.
Do full charge bookkeepers do payroll?
Full charge bookkeepers can handle payroll responsibilities, but whether they do payroll depends on the specific needs and arrangement of the business they work for.
Can I run a bookkeeping service and payroll service without a CPA license in KY?
In Kentucky, you can operate a bookkeeping service without a CPA license. However, providing payroll services may require additional licensing or registration, depending on the specific services offered.
How to start bookkeeping and payroll service?
Start by obtaining necessary licenses and registrations. Develop a service plan, pricing structure, and client acquisition strategy. Invest in bookkeeping and payroll software. Market your services to potential clients in your local area.
Does a bookkeeper figure payroll withholdings?
Yes, a bookkeeper typically calculates payroll withholdings, such as federal income tax, Social Security, and Medicare taxes, as part of their duties in managing a company's financial records and payroll.
Can my bookkeeper prepare payroll tax forms?
Your bookkeeper can prepare payroll tax forms, such as quarterly 941 returns and annual W-2 forms, as part of their regular responsibilities. However, it's advisable to consult with a tax professional for specific guidance on your payroll tax obligations.
Is payroll part of bookkeeping?
Yes, payroll is a component of bookkeeping as it involves recording and managing employee compensation, taxes, and other payroll-related financial transactions.
Does a bookkeeper handle payroll?
Yes, a bookkeeper typically handles payroll responsibilities, including calculating employee wages, withholding taxes, and generating paychecks or electronic payments.
How do bookkeepers manage payroll tasks?
Bookkeepers manage payroll tasks by calculating employee wages, withholding taxes, and benefits, as well as generating pay stubs and W-2 forms, and submitting payroll information to the appropriate government agencies.
What are standard payroll duties for bookkeepers?
Maintaining employee time and attendance records, calculating gross and net pay, preparing and distributing paychecks, filing payroll tax forms, and ensuring compliance with labor laws.
Are bookkeepers typically responsible for payroll?
Yes, bookkeepers are typically responsible for processing payroll, including calculating employee wages, withholding taxes, and generating paychecks or direct deposit records.
What payroll services do bookkeepers offer?
Bookkeepers can provide payroll services such as calculating employee wages, withholding taxes, generating paystubs, and filing payroll tax returns on behalf of small businesses.
How do bookkeepers maintain payroll accuracy?
Bookkeepers maintain payroll accuracy by carefully tracking employee hours, calculating wages, withholding taxes, and ensuring timely payments to employees and government agencies. They also reconcile payroll records with bank statements and general ledger accounts.
Can bookkeepers provide end-to-end payroll services?
Yes, bookkeepers can provide end-to-end payroll services, which typically include calculating employee wages, withholding taxes, and generating paychecks or direct deposit information.
What payroll software do bookkeepers recommend?
QuickBooks, Xero, and FreshBooks are popular payroll software options frequently recommended by bookkeepers for small businesses. These solutions offer features like automated tax calculations, direct deposit, and employee self-service portals.
How do bookkeepers handle payroll compliance?
Bookkeepers ensure payroll compliance by calculating accurate deductions, withholding taxes, and submitting timely payments to appropriate authorities. They also maintain detailed records to meet regulatory requirements.
What payroll reports can bookkeepers prepare?
Bookkeepers can prepare payroll registers, payroll tax returns, pay stubs, and periodic payroll summaries for employers.
How do bookkeepers streamline payroll processes?
Bookkeepers can streamline payroll processes by automating time tracking, integrating payroll software, ensuring accurate employee information, scheduling regular payroll runs, and providing detailed payroll reports for compliance and tax purposes.
Do bookkeepers reconcile payroll transactions regularly?
Yes, bookkeepers typically reconcile payroll transactions on a regular basis to ensure accuracy and compliance with payroll regulations.
What payroll certifications should bookkeepers have?
Bookkeepers should consider obtaining payroll certifications such as the Certified Payroll Professional (CPP) or the Payroll Compliance Practitioner (PCP) to demonstrate their expertise in payroll processing, tax compliance, and related areas.
Can bookkeepers advise on payroll tax issues?
Yes, bookkeepers can provide guidance on payroll tax matters, such as calculating, withholding, and remitting payroll taxes, as well as ensuring compliance with relevant tax laws and regulations.
How do bookkeepers update payroll records?
Bookkeepers update payroll records by calculating employee earnings, withholdings, and deductions, then recording this information in the company's accounting system to ensure accurate compensation for employees.
Do bookkeepers assist with payroll auditing?
Bookkeepers can assist with payroll auditing by reviewing payroll records, verifying employee hours, and ensuring accurate calculations and deductions. This helps ensure payroll compliance and identify any discrepancies.
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