Payroll Software

Payroll Accounting Software
Written by Devan Adam   
If you own your own company, then you know that the job of accounting and doing payroll can be daunting. Many companies nowadays choose to outsource this job and not even bother with it at all. But if you’ve decided to do your accounting and payroll “in-house”, then you will need to chose the correct brand of payroll accounting software that is right for your company’s needs.

How to Choose the Correct Brand of Payroll Accounting Software

Don’t be intimidated with all the accounting jargon! Let your company’s Certified Public Accountant help with making the decisions about which payroll accounting software is right for your business needs. He or she will know exactly what to look for as you are considering various products.

Your CPA may be responsible for filling out and mailing those pesky forms, which are required on a quarterly and annual basis by the IRS. Even so, it would likely be helpful to your Certified Public Accountant if you chose payroll accounting software, which has built-in features to accomplish these functions.

With so many brands of payroll accounting software out there, how do you choose the one that has all the features you will need in order to get the job done? These are some things to consider:
  • What product or service does your company provide?
  • Does your company maintain an inventory?
  • Will you need to file state income taxes?
  • Who will be responsible for printing out and mailing W-2 and 1099 forms at year’s end?
  • Who will be responsible for filing IRS forms such as Form 941, Form 940 and Form 944?

Other Areas of Concern

Another important consideration is the size of your company. If you employ fewer than 25 people, then you are considered a small business. There are many payroll accounting software packages, which would easily accommodate this number of employees.

Payroll accounting software can be purchased at computer stores, office supply stores or at any number of online stores. It can be helpful to find a store employee and discuss with them exactly what you are searching for in terms of payroll accounting software. Below are a few questions you might want to ask:
  • Deductions. Can the payroll accounting software handle reimbursements and employee loans? Is it capable of setting limits on deductions?
  • Earnings. Determine your company’s earnings categories. Make certain the payroll accounting software will support all of these categories.
  • Tax Forms . Will your payroll accounting software allow you to file the forms required by the IRS?
  • Can it handle Earned Income Credits (EIC)?
  • W-2 Forms. Does the payroll accounting software you are considering allow you to print out W-2 and 1099 forms to mail to your employees at end of year?
  • Direct Deposits. Many of your employees will want to sign up for Direct Deposit so be sure that your payroll accounting software includes this feature.
  • Reports. Does the payroll accounting software allow you to print out reports of all financial activities?
  • Security. Will your financial records be completely secure? This is critical in today’s world of hackers, phishing and scammers.

Asking the Right Questions

Stores that sells these products online will also have people who can answer most of your questions. Some software manufacturers can send one or more of their employees to your business to help install the software and get it up and running. This can help your company’s payroll department get set up quickly and be running efficiently in no time. If this is a service that you would like and feel would benefit your accounting department, then negotiate this at the time of purchase.

An area that many business owners forget is payroll check stock. You may want to consider purchasing a brand of payroll accounting software, which allows you to print checks on your existing printers, so that expensive new printers don’t need to be purchased.

Also, find out the cost of the check stock itself. Some types of check stock are relatively inexpensive and will do the job you need done. But it’s a good idea to find out about this at the time of purchasing your payroll accounting software.

Dos and Don’ts

Do make a list of questions and concerns that you, as a small business owner, feel are important. Don’t be afraid to ask questions if you don’t understand some feature of the payroll accounting software that you are considering. You want this process to be as simple and stress-free as possible.
 
< Prev   Next >
You are here  :Home arrow Types arrow Payroll Accounting Software