Many small business owners struggle with keeping and balancing the books. Add payroll to the mix and you have a disaster waiting to happen.
Any smart small business owner will perform an online search for payroll companies and the result is 10,000 search results. With such an abundance to choose from, how does a small business owner choose the right one?
Choosing the right payroll service
As with everything else in life, ask your friends and fellow business associates. Ask people at your local chamber of commerce whom they work with.
I am a big fan of local chambers of commerce as this is ground zero for success in business. Perhaps you local chamber has a deal with XYZ Payroll systems.
Phone up XYZ Payroll systems and see what they can do for you. However, don’t stop there, in fact, call at least four or five of them.
Beware of Bundling
The first call you make the sales rep says their firm has what you need and if you bundle with their income tax platform, you will save 30%.
Sounds great, however, do you really need an income tax platform? In fact, some of the larger payroll companies will try to bundle other services that will add to your monthly bill.
It is a good idea to figure out how many full time, part time or contract employees will you be adding over the coming year?
Do you need that company to handle both provincial and federal taxes and other payroll remittances? Do you need human resources services as well?
How much will that add to your monthly bill and will it seriously affect your bottom line? This is an important question to ask yourself.
Services and Pricing
Now that you have your list of payroll firms, it is time to check each firm against each other and against your needs and pricing.
I would suggest looking beyond the special offers, as they are for a short period only and may, in fact, be more than your budget. Saving 20% now sounds good, but afterward, that cost will skyrocket.
Remember it is your responsibility as a business owner to file your payroll on time or you will be facing a fine. Every province is different with different rules especially Quebec.
Check to see if the payroll firm offers online filing and the ease of filing. The best payroll firms offer the simplest forms to fill out.
Check your bill to make sure that you are being billed for exactly the services you need whether that be per employee or per month or pay period.
When you are done entering the hours, all you have to do is hit send. This is after you have entered all the important information about the employee including the rate of pay.
Mathew Jazenko loves helping small businesses in the GTA straighten out the books. If you need help with payroll or any bookkeeping issue, contact Mathew today firstname.lastname@example.org or (289)-500-1978