The process of running payroll is much like a juggling act: some math, some compliance, and some time management. When it comes to using an accountant, most people who own a small business ask themselves this big question: Do I really need an accountant to do the payroll, or can I do it on my own?

The quick answer is that yes, it is possible to do your payroll without hiring an accountant, but whether you actually should run into that is based on time, knowledge, and tools.

One of the things that we have done and enabled an infinite number of business owners to do at PayProNext is to get payroll established in-house when they have small business operations with in-house payroll software without accountants. So here is what you should know prior to beginning your very own DIY payroll process to achieve success in the small business world.

Isolated Payroll vs. Cloud Payroll

1. Isolated payroll

Isolated payroll refers to handling payroll completely in-house, with no external integration.

2. Cloud payroll

Cloud payroll, on the other hand, offers real-time access, remote processing, and integration with HR tools.

Many businesses now prefer the best cloud payroll solution for small businesses options due to scalability and lower manual workload.

In-house Payroll Process: What is involved?

Undergoing isolated payroll management internally entrusts you with several major obligations:

1. Employee Classification: Properly categorizing employees to know when they are employees and when they are independent contractors.

2. Calculating Wages: According to the terms of the hourly rates or salaries, with overtime and some other rewards.

3. Payroll Tax Deductions explained: How to handle and practice federal, state, and local tax deductions.

4. Payroll Accounting: Accounting tracking of payroll costs to be reported for compliance.

5. Employee Payroll Taxes: Determining and remitting Social Security, Medicare, FUTA, and SUTA taxes.

6. Filing Reports: Paying payroll taxes, such as Form 941, W-2s, and state reports, timely.

Self-managing payroll is not all about checking account books, and it is a mix of financial documentation, rules and regulations, and meeting due dates.

The Advantages of Preparing Your Own Payroll

With the proper use of cloud payroll tools and processes, when you have in-house payroll on your mind, it can become:

• Cost-Effective: DIY payroll is less expensive than hiring an accountant by a significant margin, in case you have automation.
• Flexible: You determine when the payroll has to be run and how fast any adjustments can be made.
• Transparent: You are also aware of all that is inside payroll accounting, including fees and tax settlements.

In-house payroll provides greater control and insight to owners of small businesses, and it is worthwhile for these proprietors.

Setting Up Payroll In-house for Small Business

Setting up payroll in-house for a small business involves:

A. Choose the Right Software

Payroll processing manually is long overdue. Apply in-house payroll packages that are not accountant-oriented and can automate:

• Calculations of wages and overtime
• An explanation of real-time payroll tax deductions
• W-2and 1099 year-end forms
• Reminder notices of filing and payment

PayProNext can easily simplify the DIY payroll method as the company has the best cloud payroll product that suits the needs of small businesses.

B. Understand Payroll Accounting

Get to know how to account for the payroll allowances, taxes, and benefits deductions. Regardless of whether the payroll is done DIY, payroll accounting accuracy is necessary to comply with and plan the business.

C. Follow a Payroll Calendar

Calculate all the dates of payment, taxation dates, and reporting dates. Failure to meet deadlines is a source of penalties.

D. Keep Payroll Isolated but Integrated

An explanation of isolated payroll, as we intend it, would be maintenance of payroll functions in security and kept separate from other accounting processes, yet data would be fed into your bookkeeping system. This aids security and removes mistakes.

E. Stay Updated on Tax Rules

DIY Payroll in small businesses requires paying attention to the changing payroll laws, or the software that automatically keeps the compliance rules up-to-date.

Cost Comparison: DIY Payroll vs Accountant

The cost comparison of DIY payroll vs an accountant depends on your business size and complexity.

• DIY payroll saves money but requires time and learning.
• An accountant costs more but offers expertise and less risk.

For many startups, hiring a DIY payroll service or using in-house payroll software for non-accountants strikes the right balance.

Choosing the Best Cloud Payroll Solution

If you decide on cloud-based systems, look for the best cloud payroll solution for small businesses that offers:

• Automated tax filing
• Employee self-service portals
• Compliance updates
• Integration with accounting tools

A step-by-step cloud payroll setup guide will help you get started quickly.

How PayProNext Makes In-house Payroll Easy

With PayProNext’s cloud payroll system, even non-accountants can confidently run payroll.

We provide:

• Best cloud payroll solution for small business needs
• Cloud payroll setup guide and onboarding assistance
• Automatic payment of payroll taxes and filing
• Federal and state law compliance updates built in
• Payroll accounting reports in detail

PayProNext removes the stress of payroll without removing your control due to the combination of automation and expert support.

Yes, you can do payroll in the absence of an accountant. Using the proper non-accountant payroll software in-house, an easy-to-follow do-it-yourself payroll process, and a solid cloud payroll service will allow you to keep payroll in a silo, error-free and compliant.

PayProNext makes setting up payroll and accounting in-house a reality, enabling small businesses to save money and remain compliant, all with payroll made easy.