Understand The Difference Between 3 Types Of Payroll Services- Those Offered By Bookkeepers, Certified Public Accountants And Professional Payroll Services
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Payroll is an area in which you (SMEs or startups) do not want to take any risk because it leads to some financial and serious legal consequences. Most of you have no clue which type of payroll service suits to your business? So, here SMEjoinup.com going to tell you about the main differences between three types of payroll services and how can they be improved with the help of an expert firm?
Payroll is a serious concern for every SME. It is mandatory for all businesses to pay employees as per the government’s rules and regulations. But often SMEs believe that in the early days having a bank account for paying employees in a legal way is pointless. So they never think of hiring a payroll service provider agency for making payment to the employees on the records.
This short term thinking leads SMEs to dire fallouts, when the company account is audited for any legal concern. So what SMEs or you can do to avoid this pitfall? How an expert agency can be hired? Who can deliver the best services to deal with this issue? This post is explaining the answers of all these questions and related information;
Significance of Payroll Service
Payroll system is one of the core areas of your business. Usually, it is pursued to manage the employees’ expenses, allowances, salary, gross pay, deductions, tax and many more for a specific time period. Management and accounting are two main essential parts of payroll.
Additionally, to process both these departments in an effective manner, you need to use right featured software which generates different reports about employees. It offers some outstanding benefits either to the employees and SMEs;
- It clarifies employees about their salary, leaves, deductions etc.
- Help SMEs to manage employees’ data efficiently.
- With this service, transferring salary and generating pay slip is easy with the convenience of a mouse click.
- Manage the company security and confidentiality.
- Generate employees’ related reports easily whenever required.
- It keeps record of employees leaves, salary etc.
Types of Payroll Services
3 types of payroll services are as below:
In-House Payroll Service
In-house payroll service is workable when the number of employees is very small or about less than 10 in a company. It this case, you have limited data to maintain and an employee can do that easily by using payroll software. However the employee, who is responsible for payroll system, must be updated about the employee’s laws, salary norms, tax deductions and filing etc. The key advantage of this system is that you need not to disclose the company’s secure data to any outsider.
Bookkeepers and CPAs
Bookkeepers and CPAs hired for outsourcing of payroll services. They deliver accounting, tax, financial reporting, audit, and other economic services on paid basis. In this process, a bookkeeper or CPA prepares financial statements for your business. He helps in reviewing the financial declarations all along to maintain the data of your employees and delivering bank interface services.
Just make sure whom you are hiring for service is a certified CA or accountant with very good market reputation because he needs to work on a sensitive data of your company including employees’ data, joining, salary, leaves etc.
When you take decision to hire a payroll service agency for your small business, it means you have a team of payroll experts who will assist you in different tax and regulatory requirements whenever needed. They deliver accounting and administrative services including automatic deductions, employees’ day-to-day expenses, direct deposits and many more.
On the behalf of your company, payroll firms make all decisions of payments and protect from penalties for late filling and any wrong information. Nowadays, payroll service provider companies allow small business owners to manage and monitor payroll details online through a secure web browser.
In this case, you need not to purchase any additional system or software. You keep the track of all your employees’ payments, leaves and deductions on your monitor, as per your convenience. They also offer you email alerts service to receive quick updates about any payroll issue.
Why Payroll Service is a Good Option?
With payroll service provider companies SMEs need not to be worry about a number of issues that might come in the day-to-day business functioning:
- Payroll service provider companies reduce the head count needed to manage this work in-house.
- As per the size of your company, you can select the services and make the payment accordingly.
- It protects you from the hassle and responsibility of retaining employees.
- The service also keeps you away from the harassment of payroll processing which needs to maintain the data of employees associated information for tax preparation and filing.
- Payroll service reduces the burden and you can focus easily in the other areas of your business.
- Payroll services keep you compliance with laws and best business services so that penalties and fines can be avoided.
- Payroll service helps in motivating employees with on time payment and compensation.
Which payroll service suits to your business?
Payroll issue leads employees’ frustration and fine for businesses. But by hiring a payroll firm you can ease your mind from all these worries. Deciding whether to use in-house, outsourcing or online payroll processing requires knowing the right characteristics needed for your business. In all, to determine the best payroll service provider firm, analyze each on the basis of following factors:
- Easily operational
- Accounting software integration
- Mobile accessibility
- Payroll reports
- What extra services the payroll provider offered
On the basis of these points, you can select the best firm for your business. SMEjoinup.com has taken here a list of some of the best payroll firms with a brief of what each of them claims to offer.
The Chugh Firm
With the presence at global level, TCF is affiliated by The Chugh Firm, USA to assist the Indian SMEs. It offers a wide range of services including the framework of HR management, employee hiring, track employees time and attendance to keep organizations in compliance of many other things.
The team of TFC includes Certified Public Accountants (CPA) and Chartered Accountants (CA) who understands the complexities of every business and consults in Tax, Payroll Management, Accounting needs and many other areas. In India, the company has offices in New Delhi, Mumbai, Chennai, Chandigarh and Ahmadabad. The company’s client list includes small businesses or multinational corporations whom it assists in the process of setting up payroll, registering as an employer and many more.
Finsmart Solutions is a Pune-based payroll service provider company with accounting, bookkeeping, payroll, audit and business review services. It offers separate plans in the areas including Outsourced Payroll Services, Company Incorporation Services, Outsourced Accounting Services, Audit and Review Services, and Outsourced Reconciliation Services. The main advantageous factor about this company is that it offer smart and flexible payment plans for SMEs. Pay-as-you-go and Pay for each month are two main plans which will definitely make you satisfied. Select first for try and feel satisfied with trail program you can switch to another easily.
LetsComply, a technology driven platform help entrepreneurs and business owners to start and manage their businesses by making everything related to payroll, legal, financial & taxation related regulatory framework easy. It takes care of salary statements, bonus calculation, grants, advance payments, allowances and many more. The team of LetsComply includes experienced CA, Cost Accountants, Corporate Lawyers, Management Graduates, Technologists and many others who understand every aspect of your business and prepares a framework for quick service delivery.
Maple Tree Business Consultants Private Limited
Maple Tree Consulting, a Mumbai based company save your time that you need to spent on making balance sheet and managing employees. The services offered by this firm include payroll, Finance and Accounting (F&A), Taxation, Corporate Services and Payroll Management etc. Its team comprises of CAs and Corporate Financial Advisors who have long time experience in this area and are specialized skills. It has offices in New Delhi and Bangalore as well.
Paysquare, headquartered in Pune is known as a specialist in the area of end to end payroll outsourcing services. It delivers strong accuracy through its software platform in every area and offers a complete automation while offering managed payroll services to the clients. The company claims that it has over than 300 clients and processed 1, 20,000 payroll records every month across only in India.
INTERO Payroll is delivering the best payroll services to the Indian clients since 2008. It is headquartered in Delhi but delivers services pan India. Its team is pro in bank understanding and statutory compliance and offer cost effective and customized payroll processing system. The company claims that its payroll system is highly flexible and easy to use. It has offices in Mumbai, Bengaluru, and Hyderabad but services delivered pan India.
If you want to know more about these firms, use the SMEjoinup platform and fill the form to get information about vendors on your mail.
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