As a business owner, finding balance between running your business while also managing your books and payroll obligations can be a battle. While some muddle along as best as they can, spending time that would otherwise be free time to input numbers, the reality is that they would rather have someone else worry about balance sheets and payroll taxes.
How do you know when it is time to hire someone to do that necessary work for you?
The answer is not a one-size-fits-all. If your business is such that you are spending just a small percentage of time with your books and have no employees, you may be just fine doing it on your own. For those that are not in that boat, however, the consideration should be how much you value the time you have available to spend operating your business. If your answer is that you would rather not have to deal with the accounting and the payroll and the plethora of federal and state taxes that go along with both, it is time to consider out-sourcing.
Once you’ve determined to hire someone to handle that side of your business, how do you decide who?
There is a plethora of options available in today’s marketplace, including online services and software that offers a DIY approach, as well as a variety of firms that specialize individually in bookkeeping or payroll, the advantage lies with a firm that can handle not only bookkeeping and payroll, but also advisory services, tax preparation, and the ability to help you proactively manage your business.
Hiring the right one for your business is the most important decision. No one wants to receive a letter asking for penalties because someone misplaced a decimal or made some even more egregious mistake.
While price is often a driver in these decisions, it should be balanced with the services and experience offered.
One of the big players in the accounting business is Intuit, which is now offering their QuickBooks Live Bookkeeping service, which allows you to pay extra to add on a payroll service as well. Their site advertises that your account will have one of their bookkeepers assigned to connect your bank accounts and clean up your books using QuickBooks Online, which sounds attractive to many, for the price. The caveat, however, is that you have no control over who is assigned to your account and a tiny disclaimer in their Terms of Service states, “Some Full-Service Bookkeeping services may be provided by Bookkeepers located outside the United States.”
Of course, the other caveat is that QuickBooks Online is not the premium accounting software it touts itself to be. In fact, the basic version is nothing more than a glorified checkbook register and in order for it to function as a robust accounting software, the user must purchase additional subscriptions from Intuit. There have also been problems with the connections with bank accounts, sometimes doubling or tripling the information, or not getting it at all, which, of course, requires someone to go through and either delete the duplicates, or input it in manually. In addition, the IRS requires business records be kept 10 years after the close of the business; the information in QuickBooks Online is only kept as long as you pay the subscription, which means you could be on the hook for paying for it long after you have closed your doors.
Most CPA firms, like ours, use QuickBooks Desktop, which is more comprehensive than its Online cousin and allows the firm to keep the information stored locally as long as needed.
In addition to the difference in accounting software, there are a few other things that our firm can provide that the online options do not. These include:
- Advisory services for finances, business planning, and taxes
- Payroll management & help with onboarding new employees to ensure federal requirements are met
- The filing of state, city, and federal taxes, including payroll
- Year-end preparation and mailing of W-2s and 1099s and their related employer reporting forms
- The ability to visit your place of business, if needed
- Many years of experience
- Familiarity with your specific industry
While price is often the biggest concern, consider that the monthly cost of QuickBooks Online Live Bookkeeping can be $600 or more, depending on the subscriptions you are using. Our firm’s costs vary depending on the work needed and the number of employees for payroll, but we offer so much more and you might just be surprise at how competitive our rates are.
November and December are the best times to look for a payroll provider, as the new year is coming soon. We’d be happy to schedule you a free consultation appointment to meet with Bruce and talk with him about your needs. He can even give you an estimate for our services.
Schedule now to see how we can help you succeed!