However, there is a feature that still can be considered a black sheep, even though it is one of the most important parts of accounting, especially if you have employees to pay: payroll.
Thankfully, the best-known accounting solution providers have recognized the importance of payroll, therefore, they built this feature into their cloud-based software. This way, employees can not only manage their own work schedule using time trackers, but they can also get paid in a duly manner through the very same program. Furthermore, the lack of a payroll feature is not a hindrance anymore: thanks to API support, you can integrate many different payroll applications into your accounting solution and make payday and payroll related tax filing a hassle-free, fully automated process.
Payroll Features in Accounting Software
One of the best things about payroll is that it auto-manages the entire process: all you have to do is to enter the timesheet of your employees, or ask them to submit said timesheets by themselves or use a built-in/integrated time tracker, and then the accounting software will take care of the rest. In fact, the payroll feature can also handle “deviations” in the regular payroll schedule, like vacations, sick leaves, and bonuses, as employees can individually apply for leaves even when they are out of the office. Employees are also entitled to receive their individual payroll reports, which you can also give to your accountant who can have full access to your payroll to help you verify data in preparation of tax season. Speaking of taxes, not only the software calculates the taxes you have to pay, and in some cases even allows you to file tax reports right away, but it can also remind you when payday is due and gives you the option to decide how you’d like to pay your co-workers.
Best Online Accounting Software of 2020
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Integrating Third Party Payroll Solutions
Unfortunately payroll is a feature not every online accounting solution sports. However, what these programs can do for you is offer the option to integrate a third-party app with your software, so you can manage payroll after all. In fact, some of these apps are capable of something the built-in payroll solutions of accounting software aren’t: auto-filing the necessary tax reports in every state of the U.S. Furthermore, each time you run a payroll in such a software, it reduces the chance of manual errors by removing duplicate entries that might have been left, calculating ordinary hours, penalty hours, overtime and allowances, thus making the end of the month completely hassle-free.
Although there are plenty of third-party applications supported by online accounting solution providers, one of the most popular and most advertized third-party payroll services is Gusto, an app which automatically calculates, files and pays your taxes, lets you add insurances to the mix and even prepares your 1099s. However, if you prefer something else, you can also integrate other programs like SurePayroll.
Overview of Gusto Payroll Software
SurePayroll Third-Party Application
Recommended Online Accounting and Payroll Software
Like we said before, not too many online accounting solutions have built-in payroll features, or if they do, they are often pay-only. However, if you want to make sure that everything is in one place, or you want to replace the existing payroll feature with a huge variety of third-party add-ons, then Xero and QuickBooks Online, two of the market leaders, might be your best option.
An undeniable champion in the online accounting world, Xero sports everything a business needs – from clever invoicing, quoting and expense management to time tracking, projecting, inventory and, of course, payroll. The keyword in Xero’s payroll is collaboration, since employees can submit their own timesheets, time-off requests and more, while employers can directly pay them via check, bank remittance or cash based on any payment schedule and even send detailed payroll reports to the employees. Furthermore, you can say goodbye to late and/or miscalculated payments, since not only you get notifications of the paydays, but you can also apply multiple pay rates, and even reimburse expenses. Xero also calculates the necessary taxes you have to pay on tax day and, in certain states, you can immediately file your tax reports from the software. Although Xero’s payroll is pretty good in itself, the company also offers you the option to integrate your account with the best payroll solutions of the market like Gusto, Deputy and ADP.
Whether you want to do your payroll taxes by yourself for $20 per month or get it done by experts for $47 per month, you can be sure that QuickBooks Online can handle your payroll with ease. You can run payroll as many times as you want from your computer or a mobile device. QuickBooks is able to manage the payroll of up to 50 employees who can get paid directly by checks or bank deposit, taking into consideration such deviations in the schedule like vacations, deductions and garnishments. Employees can also get free access to their online paystubs, while employers can be reminded of the paydays and due taxes via email notifications. Speaking of those taxes, QuickBooks can deal with payroll related ones, since you can prepare the necessary documents and file them right away to the IRS or, as we said before, ask the company to do the “dirty work” for you. And last but not least, if you already rely on a payroll solution, chances are you can integrate it into QuickBooks, since the company supports market leader applications like Gusto and SurePayroll.