15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Start-up Businesses Should Take Payroll Seriously

If you have employees, then you likely have a payroll. In fact, there are more than 6 million businesses in the U.S. that utilize such a system, according to the U.S. Census. If you are a start-up business, it is imperative to get your efforts right from the get-go so you have a business that runs smoothly. Here are a few common mistakes some businesses make regarding accounting for payroll – and how you can avoid them.

1. Combining Personal and Business Finances

As either a small or start-up business, it is easy to start blurring the lines between your personal finances and the money your company needs to thrive. However, keeping your accounts separate and having records for each is important, as joint accounts can further complicate things like:

” Tax liabilities
” Debt
” Credit ratings
” Lawsuits

What’s more, separating your business account will help protect your personal assets should any legal proceedings occur.

2. Doing It on Your Own

It is OK if you are not a certified public accountant. You probably started your own business in another industry and have expertise in that area. Trying to manage the accounting for payroll in your business is a highly detailed task that actually has both state and federal regulations governing it. That is why turning to an expert for help is a good idea. A company that provides payroll services can handle complicated issues and ensure you are compliant with the law.

3. An Unclear Policy

No matter what your policy is, you should be very clear about it with your employees. Make sure they know when and how they will be paid, how leave time works and any other details that are pertinent. Every employee should have a copy of your policy, and you may even consider posting it in a space where all or most of your workers will see it.

Starting your own business is an exciting time. You want to make sure you get things off on the right foot, and having a smooth payroll process is part of that. Finding a company that does accounting for payroll is one of the best things you can do in addition to having a clear policy and keeping your personal and business finances separate.