Any business that has a staff of employees relies on accurate payroll accounting in order to ensure the proper imbursement of the employees as well as the monitoring of expenditures that a business covers month in and month out. A willy-nilly approach just won’t do when staff is waiting for their pay at the end of a work week, nor will it sufficiently answer the auditor’s questions when they call the account executive in for a look at the books.
This is what accountants do for a living. It is their daily fare, and as such it is a natural inclination to need and to seek the counsel of experienced and reputable accountants when handling payroll questions. In fact, this is the most practical and sensible step a business can take, regardless of the scope of their venture.
Even the smallest of businesses that maintain a temporary staff of two will have payroll issues that must be addressed each and every week. The payroll may be small, but the possible liabilities will not be if the government finds any mistakes on the tax returns at year’s end. Accountants are trained, educated, and required to answer these types of questions for business owners of any size, and they can also provide several options to their clients in how a payroll is handled.
The first thing that accountants can do for a business is help them to initiate a solid payroll system to begin with. This is often an afterthought in business planning, unfortunately, other than an awareness that employees must be paid somehow at the end of each pay period. Installing an efficient and flexible payroll scheme at the outset can help the business owner avoid coming up short when wages are due, as well as stay ahead of pending payrolls with intelligent asset management ideas.
Manual bookkeeping can be sufficient in the beginning for payroll purposes, and accountants are experienced in this undertaking, because they understand how to arrange budgets and allow for credit and debit effects on a business’ cash flow. They can also help to set up an electronic bookkeeping system when that becomes necessary, helping the business owner to learn how to use the system and how to customise it for current and future ventures.
The taxation side of wise payroll practices is perhaps one of the most important ways in which accountants can be of invaluable assistance. Tracking sales and expenditures is the lifeblood of a business, and learning how to predict trends in a particular marketplace and take steps to adjust the ledger so that those tax payments can be made in full and on time is just another way in which accountants earn their keep.
Sales and expenditures can also affect the profit margin vis-à-vis investment opportunities, and any chance a business owner has to ensure that payroll will be made not just this week, but the week and the month after should be taken full advantage of. Accountants have the expertise and the solid experience to help the business owner to recognize investment opportunities, and to have a grasp on how much of the available assets the business can safely invest. (Alex Blackwell)