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Have You Outgrown the Year-end Accounting Approach?

Have You Outgrown the Year-end Accounting Approach?

When you start a small business, many items are on your to-do list. While bookkeeping, accounting, taxes, and payroll may not be your favorite responsibilities, they’re critical to the health of any business.   

Small business owners have a few options for managing these functions: 

  1. The business owner can spend their own time performing these functions (i.e. DIY)
  2. Hire and supervise an employee to do these functions.
  3. Hire an outside service provider to help (a.k.a. “outsourcing”). 

The DIY approach doesn’t work well for most because it takes a lot of time and attention to detail. Hiring an employee who knows how to do these things usually isn’t in the budget for most new businesses. This leaves most businesses trying their luck with “outsourcing.” 

Working with a traditional accountant at year-end

Hiring a local accountant to prepare business tax returns after the end of the year is where many businesses start with outsourcing. Tax preparation services are relatively expensive because tax preparers are trained professionals, and their work is very seasonal. These accountants provide a valuable service but often aren’t focused on helping with bookkeeping, payroll, or planning for next year. 

Have You Outgrown the Year-end Accounting Approach

Working with an accountant only after year-end often leaves business owners realizing they need more help before and after tax time.

Outsourcing payroll processing

Most small businesses outsource the processing of employee payrolls to an outside service provider. Payroll services are more affordable because they can be substantially automated and have evolved into cloud-based systems and paperless processes. In addition, payroll service providers often provide other resources - everything from employee timekeeping and portals to answers to HR questions.   

There are several large payroll service providers in most US markets. The biggest, ADP, boasts they work with “more than 500,000 small businesses,” #2 Paychex is not far behind them. These are paycheck factories operating on a vast scale. Unfortunately, it’s easy for a small business owner to get lost in that huge number of customers.

Putting it all together

Small business owners can get a lot of value from a service provider that works with them throughout the year – helping them stay organized with bookkeeping and on track with payroll and taxes in a coordinated way. TMA has spent the last 25 years working to provide affordable service for hundreds of small businesses in Indiana and beyond.

What if I need more help or don’t know what I need?

If you feel your business could use more attention or additional help throughout the year, we would be happy to talk with you about it. We love helping small business owners focus on what they love.


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