Amongst all the tasks of getting your business off the ground, setting up payroll is a crucial component. No matter your industry or team size, employees will want to be paid on time. And, even if the process of setting up payroll may seem intimidating at first, you’ll likely find it much easier than you anticipated. Especially if you choose to partner with a chartered accountant.
So, whether you’re a first-time business owner wanting to learn how to set up payroll in Ontario, or you’d like to simplify your current payroll process — here are the benefits of teaming with an accountant, and things to consider about the process.
What is Payroll Accounting?
Payroll accounting involves the tracking of employee payments in relation to a business’s overall expenses. Essentially, payroll accounting helps a business determine what money is owed to employees and how these funds influence cash flow. Of course, salaries and wages are just one part of what a business typically pays its employees. The cost of benefits and payroll taxes are also associated with payroll accounting. This could include holiday pay, bonuses, commissions, and even paid time off.
Understanding the total overall costs a business incurs from its team members is important for smart, strategic growth and scaling, and helps ensure that a business is equipped with the right people and can sustain itself.
What’s often included in Payroll Accounting Services?
To help keep your payroll process seamless, accountants often use payroll accounting software to accomplish tasks like:
- Regular payroll processing
- Record keeping of pay and benefit costs into the business’s accounting ledger
- Ensuring accuracy of information and documents
- Issuing payments to tax authorities
- Keeping a business in compliance
- Payroll remittance
In short, all the associated tasks and financial record keeping that payroll requires often fall under payroll accounting services. While some businesses will hire a full-time position to fulfill their payroll processing and other accounting needs, it can be beneficial for a business to outsource their payroll accounting services to a chartered accountant.
Benefits of Setting up Payroll with a Chartered Accountant
There are two things a business can always use more of — and that’s money and time. Depending on your current situation, the size of your business, and your most pressing needs, it can be a smart idea to outsource your business’s payroll processing. Doing so can save you both money and time, and provide you with peace of mind knowing you have an expert on your side.
For example, the most cost-effective solution to payroll processing is for business owners to learn how to do it themselves. But when you’re juggling your services and clients and focusing on building your business, you have little time left over for taking on even more responsibilities. That’s why it’s highly beneficial to outsource your payroll processing to an accountant. You can simply provide the appropriate information and documentation, and free up a large portion of your time to focus on your business.
Similarly, hiring a full-time accountant is likely to be more costly to your business than outsourcing the services. A full-time team member is a big investment for your business, and if you’re still in the earlier stages and growing, it may not be the right time to make that investment.
And, with a chartered accountant handling your payroll processing, you can be sure that they have the experience and expertise to ensure accuracy and compliance with CRA.
Count on Leonard Tam Professional Corporation for Your Payroll Needs
Instead of spending your valuable time learning how to set up your payroll for your Ontario business, reach out to the team at Lenoard Tam Professional Corporation for the expert services you need.
Contact us today to get started.