Know Whether Bookkeepers do Payroll
Some bookkeepers do offer the service of completing your payroll, but payroll can be a complicated process. Each employee’s gross income must be calculated using their hourly wage and any unpaid time off or overtime worked must also be considered. Then deductions should be calculated, in their specific order, followed by any contributions, such as to a retirement account. Not to mention that each employee can change their W-4 (withholding statement) whenever they deem necessary, changing aspects of how their paycheck will be calculated. Payroll can quickly become more stressful than it is worth, which is why it is mostly outsourced. Luckily, this process can also be automated nowadays with payroll software making the process even smoother.
Download Our Free Brochure →Most bookkeepers simply input the data into your books after a payroll service completes the payroll and sends the documentation to you. A bookkeeper will post the payroll information to the corresponding journal to track it properly. Those wage expenses will also be shown on your income statement under operating expenses. It is important to track how much you are paying employees as it can help you when determining if you have the extra funds to hire another employee. It is also crucial to reconcile your payroll regularly to make sure there are not any errors occurring.
