Running a small business can be a lot to juggle. There are usually several hats that you’re wearing at once. As you get your business started, you may find that it gets more intense the busier you get. Keeping up with payroll and tax paperwork can seem like an insurmountable task, and you aren’t alone in feeling this way. It is a common struggle for small business owners. It often comes from the overwhelm of day-to-day operations. Mark Dicus & Company is here to talk about some of the most common payroll mistakes that business owners make so that you can avoid them in the future.
Beware of These Common Payroll Mistakes
No one wants to spend more time than is absolutely necessary on payroll and tax paperwork. However, when you make common mistakes in your payroll, this is exactly what will happen. Here are some of the common payroll mistakes that small business owners should avoid:
– Disorganization: Your records need to be neatly organized so that when the time comes, you can easy find them and file your taxes. When you have a disarray of papers strewn across your desk, or even have papers that are neatly stacked on your desk without any organization whatsoever, it can create a feeling of chaos. It can also lead to big mistakes in your taxes. Every week, you should be taking an hour or so to organize and file your paperwork so that you can easily find documents you need to file taxes on your net payroll.
– Missed Deadlines: You will soon find that there are specific deadlines that you will be expected to meet as a small business owner. Missing these deadlines can be a disaster that results in lost money and fines. Many business owners find that some sort of calendaring that keeps track of important deadlines like submitting payroll, holidays where banks will be closed, and even filing taxes. You will be responsible for meeting monthly, quarterly and yearly tax deadlines. When you have a system in place to keep you on track, employees as well as the business will thrive.
– Misclassifying Employees: It is also important that you are classifying the employees and workers that you have appropriately. There may be some workers who are exempt and others who aren’t. There may be some instances where you will work with freelancers or contractors as well. Failing to classify these workers correctly can leave you losing money and missing reimbursements. A simple audit of your employee classifications and payroll can help you avoid these errors.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
The amount of paperwork and bookkeeping that is required to own and run a small business is unbelievable. This is why so many business owners turn to Mark Dicus & Company to take care of it for them. We will handle all of your bookkeeping and accounting needs. Call us today!