Accounting service companies provide a full range of services from payroll to collecting accounts receivable to bookkeeping and accounting processes. Small business owners are attracted by the projected savings in employee costs and additional savings in their time, which is better spent on their company’s core business activity.
Accounting services provide varying degrees of payroll services that include preparing payroll, calculating taxes and other withholding and issuing checks. Customers can also outsource filing of payroll taxes, calculate and record 401(k) deductions or other employee benefits.
Many accounting service companies offer human resources management and administration. The service includes payroll management, benefits and workers’ compensation payments. Some organizations offer assistance in recruiting and selection, regulatory compliance and training services. The extent of such services are limited only by the amount of hands-on control a small business owner wishes to have on various aspects of the HR process.
Additional services available through an accounting service include processing accounts payable, issuing payments and producing monthly reports. Accounting services typically process payments and produce their reports faster than a small staff can and keep information timely for those who monitor costs, procurement and inventory.
Another account that many services can administer is accounts receivable. This includes monitoring payments, crediting accounts and dealing with past due accounts. Additional accounting services offered of particular interest to small business include complete bookkeeping services and assistance with tax preparation.
Small business owners should find out about the reputation, experience and track record of a company before engaging their services. Remember that if the accounting service is entrusted to make regular tax payments, the small business is still held responsible if the service fails to perform as they are required. Also determine if the service obtained will be responsive to calls or problems that occur. Business owners should also be satisfied they are retaining an adequate amount of control over operations.