By following certain procedures, coupled with hard work and determination, one can immediately began the process of starting a payroll accounting business. Most business owners prefer to outsource their payroll accounting. Why? Because payroll accounting can be complex and costly if not processed correctly. Starting a payroll accounting business can be financially rewarding for professionals who possess the skills and patience to process payroll correctly.
Due to the complexity of payroll accounting and the local, state, and federal laws regulating payroll, it is mandatory to have the knowledge and experience to work with payroll. This experience can be obtained through college, training programs conducted by professional organizations, or simply by working with another experienced payroll accounting businesses for a few years. Additionally, a person can choose to self-study by purchasing self-help books on payroll accounting. After training, the payroll consultant should possess knowledge of calculating federal, state and local withholdings, and social security and Medicare tax withholdings as well as other pertinent calculations. They should know when and where to file monthly, quarterly or annual payroll reports. They should also understand how to prepare certain payroll forms such as W-2 or 941 forms. Payroll professionals have the option of becoming Certified Payroll Professionals through the American Payroll Association.
Once a payroll professional has chosen a business name for the payroll business, the name should be registered for protection. If the business will only be conducted locally it can be registered at the city level. However, if the business doing payroll will be a corporation the name must be registered at the state level. Furthermore, if the payroll firm will conduct business at the national level it can obtain a trademark with the federal government. If the name of the payroll company is not registered, it may be taken by another business owner.
The owner of the payroll organization must decide where the business will be conducted. The business can begin at home if there is not enough funding to purchase or rent commercial property. Once a business location is chosen, equipment and supplies should be purchased. Computers, printers, furniture, office supplies, and payroll software are major necessities. Payroll software should be purchased with great care. The payroll consultant must make sure the software can perform all payroll calculations accurately. Also, the software should be able to print out forms once the calculations are computed.
The payroll accounting business must have clients to succeed. The most affordable way to obtain clients is through word of mouth. Referral programs are also a successful technique. Referral programs consist of rewarding current clients for referring new clients. For example, the owner could offer a big discount to customers who refer ten clients throughout the year. The payroll professional should also make a habit of attending business conferences to network with business owners who may need payroll services. Payroll business owners should bring plenty of business cards for networking. Also, placing an eye-catching ad in the local Yellow Pages will help you acquire new clients. It's also a great idea to keep your education current by taking additional online classes in accounting or in good business practices from time to time.