Who does there own payroll, bookkeeping, or taxes?

Discussion in 'Business Operations' started by kdbetters, Jan 2, 2005.

  1. kdbetters

    kdbetters LawnSite Member
    Posts: 70

    I am trying to cut down on my overhead for next year and feel that I can do my own payroll, but still want my bookeeping and taxes done by a professional. Who out there does any of these by themselves and do they find it time consuming or is it saving them money?
     
  2. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    I don't think it's a good idea to do ANY of these totally by yourself.

    How much can it possibly save you to do the payroll yourself. I have 10-12 employees in the busy season and the most I think I paid for my payroll service (PrimePay) this year was maybe $125 in one month. Back when I used to use PayChex, I think I maybe paid $200 one month, at the most. To me, it's money well spent. In the time it would take me to do it myself, I could have easily been doing more than $200 in landscaping work. I'd rather be out doing what I am good at than wasting time at something I'm not so good at. Leave it to the Pros.

    The only good way to do it yourself is to pay for the Quickbooks (Intuit) Payroll service. They figure out all the taxes, paychecks, witholding, etc. for you and you pay them a monthly fee. But then, it's still like having someone else do it for you. You might pay a little less but what are you really saving?

    IMO, This is the minimum way anyone should run their business;

    Taxes: Quarterlies prepared by your payroll service. Estimated Tax deposits on yourself - done by you in conjunction with your CPA. Year end taxes prepared by your payroll service (for employees) and your CPA (for yourself and the company).

    Books: Done by you or an assistant with direction from an on-call professional bookkeeper that you hire to come oversee things and train you every month or two.

    Payroll: Done by a professional service such as PrimePay, PayChex, or ADP. At the very least - done by you in conjunction with the Quickbooks / Intuit Payroll service.
     
  3. northmichigan

    northmichigan LawnSite Member
    Posts: 133

    i've been doing my own taxes for the last few years after a couple of years with h&r block. the first 17 years i was self employed i used a tax service.the problem with using a service is that you will never learn how the system works.remember george w.'s quote 'really rich people know how to avoid paying taxes anyway'.he was telling the truth[for once] the system has to do with knowing how and when to invest in your biz with the resources at hand.i think that until you have studied the system having professional tax preparers do your return is the smart alternative.
    mj
     
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Payroll is simple to do, and if you only have a few employees it takes minutes each week. I really beleive it would be a waste if your a small company.
     
  5. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Payroll is also simple to screw up and it is the one area where screwing up is not tolerated.
     
  6. Braxton

    Braxton LawnSite Member
    from TN
    Posts: 81

    Who would one get to do payroll for a small company? I mean one to five employees? Would a cpa do this? What about the other issues? And how expensive would you be looking at, ballpark?

    Thanks.

    Braxton
     
  7. northmichigan

    northmichigan LawnSite Member
    Posts: 133

    there are payroll services often associated with temp. agencies.they charge a reasonable fee.
    mj
     
  8. Braxton

    Braxton LawnSite Member
    from TN
    Posts: 81

    northmichigan,

    Could you explain that further? Do you have experience using a temp agency? I've worked for them, but never hired from them. Anyone else have any insight to my first question?

    Thanks.

    Braxton
     
  9. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Primepay handles all our employees and at times we have around 25, However they also did our payroll when we had 3. You can also use ADP, Paychex, Quicken has a service though I don't know the name.
     
  10. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    I have 5 employees and 3 part time and run about another 6 subs during the year (building services). Payroll is done by a payroll service for $125.00 month and this includes year end. My business taxes are done by a CPA in NC. My household taxes are done by a CPA in Chicago as that is where I'm from and still have interests there. Last year I got all them done for less than $1000.00 which is the best money I can spend. And this with my wife who is a CPA. She works in accounting for a property management firm and not in taxes. Because of this she is not up to speed on all the tax laws and we are sure that we would lose a lot more than the CPA's cost. And this is not talking about time. Anything more than about 5 hours and we would lose money.
    Look up payroll service in the yellowpages and call. I think it will help you.
    By the way we use Quickbooks to do our business accounts.
     

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