There are a number of different options for an organization when considering how to handle payroll accounts. If you run a sole proprietorship or have very few employees, you may consider doing it yourself, and it doesn't hurt if you're also quite good with numbers. As you hire more people or find your math skills lacking however, you may begin to pursue other options, such as in-house or third-party handling, and all the software and expenses that come with them.
Knowing which solution will work the best before selecting one is vital but may seem impossible to discern if you have no experience in that field. Seeking financial advice should be your first step, whether it's from a seasoned payroll processor, an accountant, a financial advisor or an experienced friend. When it comes to money and business banking, there's no room for trial or error.
Go big or go home
Some organizations would recommend using the well-known brands, as they're the most trusted. Others would say doing it yourself is the only way to make sure it's done right. While neither opinion is necessarily wrong, it really boils down to your own preference and capabilities.
Pat Carson owns a payroll service in San Jose and told Inc Magazine that, "there will be folks who absolutely love the service they have and would be very willing to recommend people," but that's not always the case.
She recommended coming up with a list of the services you want and making sure that's all you're given if you choose an outside company. Otherwise, you run the risk of being overcharged for services rendered that you may not need or never actually wanted.
The right tools
The Guardian offered different advice for those looking to host their own payroll processing. Mostly, it will hinge on the kind of software purchased, as pen-and-paper books are too easily compromised or filled out incompletely. Seeing as online banking already puts the convenience of payments and account management online, it would make sense for an organization to handle payroll through the internet as well. This will also facilitate direct deposit and electronic review in case of a suspected error.
It's important to shop around for software or a service, depending on which one you select, as they usually will offer other incentives or price reductions to entice customers. Seek financial advice if you're still torn between two or more services, and be sure they offer the tools you need before investing in a service to ensure the best chance of success.