You can’t go wrong when you outsource bookkeeping and other non-core business tasks. This is provided that you delegate these to reliable and trustworthy professionals. Looking for virtual firms could be as rigorous as screening in-house applicants, but the hiring costs are relatively cheaper. Working with virtual firms are usually contractual, so you get to reap all the benefits as soon as you sign a deal with them – no additional costs, no extra responsibilities.
Payroll refers to the list of eligible for payment in exchange for their services for the company. Payroll could also mean the compensation package, the calculation of the salary amount, or the process of settling these payments. Nevertheless, in general, payroll is a vital bookkeeping process, especially because it directly affects your people.
A streamlined and thorough payroll management can go a long way in building a healthy and fair work environment. When done right, it could promote trust and loyalty. It could encourage productivity and results, inspiring passion and commitment. When done accurately and consistently, it is like hitting multiple birds with one stone. Payroll is, indeed, a basic accounting task that can make a huge difference.
Virtual Accounting Services: The 3 Phases of Payroll Management
Entrepreneurs can leverage payroll to acquire their desired results. The challenge, however, is the system itself. Payroll may sound straightforward, but it entails a series of tedious and time-consuming processes.
Time Card and Work Hours
If you want timely and accurate outputs, you must establish a strong foundation. Unlike traditional time cards where employees need to punch their work hours manually, virtual accounting firms have managed to digitized the process of collating these data. They utilize coded programs that capture the hours that employees report to work. They use online accounts, ID badge, or fingerprints to record the time-in, time-out, and in-between breaks and approved activities. All these data are then stored in a secure database where reports can be generated.
Pays and Deductions
From the main database, calculating the gross pay is just a few clicks away. This is one of the several advantages or perks of an automated payroll system. The virtual accountants would need to incorporate any legal contributions, loan repayments, and any applicable deductions for the current pay period. Still relying on the built-in formulas on their premium software, on this stage, these experts thoroughly categorize amounts and transactions in preparation for the final stage.
Calculations and Slips
Virtual accountants then generate the net pays and finalize the payslips on the third phase of the payroll management. While finishing up, depending on the agreement, these specialists would simultaneously draft financial and tax statements at this stage. Once everything is approved, they will then disperse funds into the employees’ accounts accordingly. They will then have to file and keep records of everything.
Payroll is governed by federal and state laws. Hence, aside from demotivated employees, you could end up facing legal ramifications if you do not take this bookkeeping task seriously. Delays and disputes do not only destroy your credibility and reputation as a business head, but these could eventually drag your whole hard-earned company into rubble. Prevent all these hassles and heartaches from happening by entrusting your payroll to reputable and reliable virtual accountants.