The Cost-Effective Solution to Payroll: Outsourcing to a Company in NJ

Payroll

Although there are many options available that your company may use to outsource, one of the most popular business processes to hand over to an outside company is payroll. Let’s face it: Payroll can be complicated and time-consuming. That is why you should consider outsourcing to a South Jersey accountant, because there are many benefits to using their services.

What is Payroll Outsourcing?

According to accountants in South Jersey, payroll outsourcing is when you hire an outside source to handle your payroll needs. When deciding “is an accountant for my small business necessary for payroll,” there are certain things to remember. You can outsource the entire payroll process from creating time cards to paying tax balances. Or, you can choose to keep some facets of payroll in-house.

How Does Payroll Outsourcing Work?

Once you have made the decision to outsource payroll, you will need to determine what parts of payroll you want to keep and what you want to allow the outside company to handle. The first thing a South Jersey accountant will do is to establish a method to transfer information.

Keep in mind this is not just information about salaries, but also sensitive data related to your staff. The company will need names, social security numbers, vacation and sick day policies, expense allowance rules, addresses, wages and more. Therefore, accountants in South Jersey often ask for a data protection policy as well. Once the data is collected and entered, the outside company will begin processing payroll.

Benefits of Outsourcing Payroll

If your company does not have a dedicated finance and administration team in-house, outsourcing payroll is extremely beneficial as it will remove the burden of paying employees from staff who have other duties. Even if you have in-house financial experts, accountants in South Jersey can allow them to focus on strategic planning and other aspects of your company. Outsourcing payroll will also guarantee that your staff is paid in a timely manner and that your employment taxes are filed properly. At the end of the year, tax forms will be sent out to your employees so that they arrive as quickly as possible.

Things to Consider Before Outsourcing

Things you should consider when wondering “is an accountant for my small business payroll important” include the size of your workforce and the number of people who are currently responsible for the payroll process. You also want to remember that if just one person has been responsible for payroll, they may be concerned about job security. You will need to decide where that employee’s attentions will now be focused. Accountants in South Jersey are also beneficial if your company lacks adequate expertise and knowledge in payroll processes, especially if your business if fairly new. In addition, remember that you will need to determine if outsourcing will be less costly than the method you are currently using.

Payroll Outsourcing Saves Time and Money

Research indicates that outsourcing payroll to a South Jersey accountant can actually save time and money. Payroll is one of the most time-consuming business processes and by freeing up your financial staff by shifting payroll elsewhere, they can focus on goals that will help your company grow. In addition, the cost of outsourcing is almost always less expensive than paying employees to handle it.

Compliance and Error Protection

One of the main reasons to let accountants in South Jersey handle your payroll is that they are able to identify hidden costs you may have missed in your payroll. Not only that, you minimize the risk of errors, late payroll tax filings as well as missed deadlines. Your staff is paid in a timely fashion and you are sure to meet all payroll regulations necessary under governmental requirements.

Disadvantages of Outsourcing Payroll

There are a few disadvantages to outsourcing payroll. Although you will likely work closely with a TMD Accounting, you will still be handing control over to a third party. Your staff will still need to take time to coordinate certain tasks and activities. This may mean reviewing time sheets and expense reports before they are submitted to the accountants in South Jersey. It is still important to monitor results to be sure the outsourced company is meeting expectations.

What to Look for In a South Jersey Accountant

When deciding a company to handle your payroll, there are things you should look for. You want good internal controls that indicate the company is structured, organized and offers quality performance. You also want to choose a company that uses the most up-to-date technology. Accountants in South Jersey should be on top of regulations, especially changes to the United States tax code which is complicated and subject to change often. You also want to choose a company that has competitive pricing and offers outstanding customer service.

Looking to Outsource Your Payroll?

Outsourcing your payroll can be a complicated decision which is why you need to choose a South Jersey accountant that puts their clients first. At TMD Accounting, numbers matter and people count, a motto we have followed for more than 40 years. We are family-owned and operated, and our team takes pride in treating our clients well. We understand as accountants in South Jersey that payroll is a complicated process and we want to be sure your transition to outsourcing is as smooth as possible. Contact TMD Accounting today by calling 1-856-228-2205 or by filling out the easy online form. See how we can help take your company to the next level.

Keeping Your Books in Order: Best Accounting Practices for Construction Contractors

Bookkeeping

With the fast-paced nature of the construction industry, accounting for these businesses can be challenging. The accounting methods in this field differ from those in other sectors. Contractors have to handle numerous projects simultaneously, each distributed across multiple locations. Along with that, they must manage each one’s costs, revenue, and profitability. Find out the best accounting for construction business practices to maximize your profitability and cash flow.

Key Construction Accounting Best Practices

With the complex nature of the industry, you need to consider allocating direct and indirect project costs, selecting between cash-basis or accrual-basis accounting, and choosing the right revenue recognition method for long-term projects. Properly managing change orders can also have a significant impact on the success of a project. Here are the best practices for construction accounting that you will want to implement for your business.

Job Costing

Accurately tracking expenses for each project is crucial for your construction company to control costs and measure profitability. With that, you can ensure that all direct and indirect expenses are promptly allocated to the proper job. During any project, you will want to record expenses and submit them daily. Time-tracking software can help monitor labor costs, while expenses should be categorized in the same way as in the estimate to analyze whether the job is proceeding as planned. Your company should also have a standard formula for allocating indirect expenses, such as administrative overhead, to each project. When you use modern, cloud-based project management software from the job site, your workers improve on-time completion records, keep customers informed, and minimize non-billable work.

Choose the Right Accounting Method

Construction companies have two primary options when it comes to accounting methods: cash basis and accrual basis. Smaller firms often prefer simpler cash-basis accounting, which records revenue when received and expenses when paid. However, companies with revenues exceeding $25 million cannot use cash accounting for tax purposes. The accrual-basis method is more complex and required for larger businesses, including public companies. This method generally provides a more accurate picture of a company’s finances but may obscure short-term cash flow issues.

Manage Change Orders

Change order management in construction projects is crucial to ensure that changes don’t cut into your project profits or result in customer disputes. The original contract should outline how to handle change orders in your project. You should also establish a standard change order process that includes the complete documentation of the work and costs required for each change requested. Ideally, you should hold off on starting work until a signed agreement from the customer is received. Some companies need a formal approval process to accept change orders. No matter what, you will want to record change orders accurately in the accounting system so that project cost and profitability can be tracked.

There are several accounting approaches to managing change orders. For unapproved change orders, you can add the costs associated with the change order to the project’s direct costs. If you are implementing a change order that’s unapproved but likely to be approved, you can add the costs to an asset account until approval for the change order is obtained. Alternatively, you can add the expense to the project’s costs and increase the anticipated project revenue by the same amount. For approved change orders, all costs associated with the change order should be added to the project costs, and the total contract value should be increased by the amount charged for the change order.

Select the Right Tax Strategies

Construction firms need to plan their tax strategies year-round to get the most benefit and ensure they comply with IRS requirements. Often, contractors that are owners or investors in the company are considered pass-through entities, including sole proprietorships, partnerships, and most LLCs and S corporations, can deduct their allocated share of losses. Contractors can also minimize tax liability by maximizing retirement plan contributions and reducing pretax income. By implementing these tax reporting strategies, contractors can better manage their tax liability and maximize their tax benefits.

Use a Firm That Handles Construction Accounting in NJ

A South Jersey accountant can help you keep your financial records organized and accurate, ensuring compliance with tax regulations and avoiding penalties. They can help you choose the right accounting method, such as accrual-basis accounting, that accurately reflects your company’s finances and enables you to manage your tax liability.

Additionally, an accounting firm can provide valuable financial analysis and reporting, helping you make informed business decisions. They can help you identify profitable areas of your business, enabling you to make adjustments and optimize your operations. These professionals can also help you track project costs and profitability, giving insight into which projects are the most profitable and ones that may need adjustments.

Finally, outsourcing your accounting needs to a professional service can save you time and resources, enabling you to focus on your core business operations. It can also provide you with peace of mind, knowing that your finances are handled by experts who are well-versed in the complexities of construction accounting.

Need Help With Your Construction Accounting?

If you’re a small construction business owner looking for reliable and personalized accounting services, TMD Accounting is the right choice. As a family-owned and -operated firm, we understand small businesses’ unique needs and challenges. Our experienced team of professionals has helped numerous clients over the years. We’re dedicated to building long-lasting relationships based on trust, integrity, and exceptional service. Our firm offers various accounting services, including payroll processing, tax planning and filing, and financial statement preparation. Schedule a consultation by calling 856-228-2205.

Navigating NJ Payroll Laws: Why Expertise Matters

Payroll

Like many other things in New Jersey, the payroll tax laws are complex. As a small business owner, you must ensure compliance with the relevant laws that apply and make sure to remit the correct payroll taxes to the appropriate tax authorities. Failing to pay your payroll taxes on time or in full can result in substantial penalties. Here is some information about New Jersey payroll tax laws from a South Jersey accountant and why you should consider hiring the professionals at TMD Accounting.

Overview of Payroll Tax Laws in New Jersey

As an employer, you must comply with federal and state payroll tax laws. Federal laws include mandatory withholding of federal income taxes, Social Security, Medicare, and Federal Unemployment Insurance. New Jersey employers must also comply with the following state laws.

State Income Tax Withholding Laws

Under New Jersey’s laws, you must withhold state income tax from your employees’ paychecks and remit them to the state at regular intervals. These laws apply unless you also must withhold the income taxes of another jurisdiction at an equal or higher rate than New Jersey’s rate. You also have the legal obligation to withhold state income taxes for employees who are non-residents. Under New Jersey’s progressive tax system, you’ll need to understand the state’s income tax rates, which range from 1.4% to 10.75%. The highest rate applies to employees whose gross incomes range from $1 million to $5 million, and the lowest rate applies to those earning up to $20,000.

Employers must withhold income taxes of 21.3% from their employees’ wages applied retroactively to Jan. 1, 2020, as a catch-up provision. You must file payroll tax withholdings each quarter, and you must file a year-end payroll tax return electronically.

Reciprocity With Pennsylvania

New Jersey and Pennsylvania have a reciprocity agreement. This means that if you have an employee who lives in Pennsylvania, you’ll need to have them fill out Form NJ-165 to avoid New Jersey state tax withholding.

Unemployment Insurance

Most New Jersey employers must pay state unemployment insurance taxes. If you have one or more employees to whom you pay wages of more than $1,000 per year, you are required to pay state unemployment taxes. State unemployment taxes in New Jersey are based on a wage base of $34,400 per year. The rates range from 0.5% to 5.8% and are calculated each fiscal year. Your experience rate is calculated by taking the contributions you have paid and subtracting any benefits charged. You then divide that amount by your company’s average annual payroll. New employers are assigned rates for the initial three years based on their experience. Employers must also pay state disability insurance taxes, family leave insurance, and workforce development funds. Typically, these three types of taxes total around 0.0005%. When you pay state unemployment taxes in New Jersey, you might be able to take a discount of up to 5.4% on your federal unemployment taxes.

Workers’ Compensation

Employers in New Jersey must either carry workers’ compensation insurance or qualify to self-insure. To self-insure, you must seek approval from the Department of Banking and Insurance and show that your company has the financial ability to meet its legal obligations.

In addition to these various types of taxes employers must pay, there are a variety of forms that must be completed.

Why You Should Hire a Small Business Accountant in NJ to Handle Payroll

Below are some reasons why you should consider hiring a small business accountant in New Jersey to handle payroll for your company.

Leveraging Expertise

When you outsource payroll to a small business accountant at TMD Accounting, you can leverage their expertise and specialized knowledge. This can help to ensure you remain legally compliant and reduce the potential of costly errors.

Cost Savings

A professional accountant can help your business save money over the long run when you outsource your payroll to them by offering efficient, streamlined services. You can avoid the costs of hiring full-time employees to handle payroll while receiving valuable tax advice.

Ensure Regulatory Compliance

Payroll tax laws in New Jersey are complex, and complying with them can be time-consuming. It can be overwhelming to deal with regulations, laws, and payroll taxes if you don’t have a background in finance or accounting. By hiring a professional accounting firm, you can ensure regulatory compliance and avoid costly penalties.

Avoid Penalties

Most business owners simply don’t have the time to properly handle payroll and are prone to mistakes. This can result in potentially costly penalties. A South Jersey accountant can help you avoid fines, penalties, and fees assessed by the Internal Revenue Service by processing your company’s payroll correctly.

Maximize Deductions on Your Tax Returns

As accounting and tax experts, South Jersey accountants can help you identify and maximize available deductions on your taxes that are associated with payroll. This can help to keep your payroll costs low and reduce your taxable income.

Small businesses can enjoy numerous benefits by outsourcing payroll to professional accountants. An accounting firm can provide tailored solutions for your business to meet your payroll needs while also advising you about taxes and helping with filing your returns.

Find an Accountant for My Small Business

If you’re looking to outsource your small business payroll to an accountant in New Jersey, you should reach out to TMD Accounting. Our experienced accounting professionals can provide quality payroll services for your company. To learn more about the tailored solutions we can offer to your business, call us today at 1-856-228-2205.

Top Financial Mistakes Construction Contractors Make and How to Avoid Them

Accounting

The construction industry is no stranger to financial challenges. Long project timelines, significant material orders, and upfront labor expenses often characterize this type of work. Construction contractors need careful management of their finances to ensure financial stability and profitability. With help from a South Jersey accountant, you can avoid these issues that lead to reduced profitability, missed deadlines, and even bankruptcy. Here are the top financial mistakes construction contractors make and how to avoid them in your company.

Not Documenting All Work

In the construction industry, project managers can make changes on the fly without proper documentation. However, this can lead to a wide range of financial challenges for contractors, including reduced profit margins and even losses on a project. Unfortunately, these problems stem from the industry’s split-second nature, where decisions and changes are based on a brief conversation and a handshake. Without proper documentation, these changes may go unnoticed and unrecorded, leading to additional costs that may not be billed.

If you want to address this challenge, you need to implement better processes to facilitate mid-project changes. You will need a detailed scope of work, which outlines all project requirements and specifications from the start of the project. The scope should be supported by a detailed change order process that allows contractors to put together pricing and document project changes before sending them to the finance team for invoicing. By implementing these processes, contractors can avoid undocumented changes and ensure all work is invoiced. With that, you can reduce the risk of financial losses and improve your company’s overall profitability.

Late Invoices and Missing Bank Draws

Projects often have invoice submission deadlines for monthly draws from the bank. Missing these deadlines can result in delayed payments and cash flow issues. Late invoicing can significantly impact a construction company’s financial health. If workers and vendors are not paid on time, the company’s financial risk increases, leaving a lack of available cash to put back into the business. The causes of late invoicing can vary, but common issues include lax reporting systems, poor communication between the field and finance departments, or an overworked financial team.

Consider hiring contractor accounting services to address these challenges to ensure all invoices are submitted on time. By addressing these issues proactively, you can ensure workers and vendors are paid on time.

Insufficient Cash Reserves

Sometimes, the construction company will have to cover the labor and material expenses before receiving a full payment from the client. As a result, construction companies may need help to cover costs and make essential payments, such as payroll. This can lead to unnecessary loans or payment delays, which can accrue interest costs or cause distrust among vendors and employees. Insufficient cash reserves can be a significant issue for construction companies since it limits their ability to grow their business.

If you want to avoid these issues, consider requiring a 25-50% deposit on projects, which can help reduce the labor and material costs being fronted by your company. You can also renegotiate vendor contracts to extend billing cycles or pay some or all expenses after completing the project. However, this approach works best when a good, trusting relationship with vendors exists. By implementing these strategies, you can reduce your financial risk, keep more cash on hand, and preserve working capital to grow the business more strategically. Additionally, having sufficient cash reserves can help you weather seasonal fluctuations and unforeseen circumstances, providing a foundation for long-term success in the industry.

Misunderstanding and Misallocating Costs

When it comes to understanding costs in the construction industry, you need to have a clear and comprehensive understanding of all the expenses associated with a project, including materials, labor, equipment, and administrative costs. Without an understanding of expenses, construction companies may be pricing jobs incorrectly, resulting in projects that are destined to be unprofitable. By properly allocating and tracking costs for each project, companies can gain a more accurate view of their profitability and make more informed business decisions.

You will want to analyze your income statements and identify costs that need to be properly allocated. When you take a more strategic approach to cost allocation and tracking, you can maximize profits on all projects and achieve greater overall profitability.

Front-Loading Costs

Front-loading costs refer to spending a large amount of money upfront in a project’s early stages. Permits and site preparation expenses are all included in this practice. While it may seem necessary to get a project off the ground, front-loading costs can lead to cash flow problems later on in the project when the money runs out before completion. Front-loading costs can strain a construction company’s cash flow. In turn, the company may need to take out loans or delay vendor payments, which can negatively impact business relationships. Additionally, it may result in a project’s completion taking longer than anticipated, leading to potential penalties and damages.

You should develop a comprehensive project plan outlining expenses and expected timelines to prevent front-loading costs. With that, you can allocate resources and manage cash flow more effectively. Additionally, consider spreading costs throughout a project, negotiating with vendors for payment terms, and setting aside contingency funds to cover unexpected expenses.

Consider TMD Accounting for Your Construction Company Financial Needs

As a family-owned and- operated accounting firm, we have extensive experience assisting with accounting for construction business clients. Our team provides personalized, high-quality service to meet your financial situation. See how we can help your construction company succeed. Call us at 856-228-2205 to schedule a consultation.

The Importance of Accuracy in Payroll Processing for NJ Businesses

Payroll

As a small business owner, you understand the need for accuracy. When it comes time for your payroll, you want to ensure that workers receive fair compensation for their labor. If you don’t manage your payroll, it can harm your business’s reputation and future prospects. You need an accurate system in place to avoid any issues for your company. Here are a few things to know about payroll processing so that you can prevent problems in the future.

Accurate Payroll Processing Is Vital for Your Business

You want to ensure that your business has accurate payroll processing measures in place. First, you want to make sure that all your employees receive fair compensation for their jobs. Missing a payment or using the incorrect rate can lead to frustration and distrust, resulting in increased turnover rates and decreased productivity from your employees.

Along with that, you always want to avoid any potential legal issues. Failing to pay your employees can lead to fines, legal fees, and lawsuits. As a result, it could damage your financial stability and the company’s reputation.

With a precise payroll processing system, you can maintain a positive public image for your business. You can attract more customers and employees when you are known for treating employees fairly and providing accurate compensation. In turn, that can lead to increased growth opportunities and profits.

Accurate payroll processing is essential for maintaining employee satisfaction, avoiding legal issues, promoting transparency and trust, and presenting a positive public image. For that reason, you will want to prioritize your payroll processing to ensure the long-term success of your business.

Why Do You Need to Outsource Your Payroll Processing?

Outsourcing payroll processing has become a popular option for businesses of all sizes. There are many benefits of outsourcing this task. It can help companies to streamline their operations while minimizing errors and ensuring compliance with regulations. Here are some key reasons you may want to consider outsourcing your payroll.

Cost Savings

Outsourcing payroll processing saves you money on staffing costs, equipment, and software. With these services, you no longer have to spend time and money training your in-house staff on complex payroll systems and regulations.

Time Savings

Outsourcing payroll processing can free up valuable time so that you can focus on other areas of the business. Hiring a company to handle your payroll can be beneficial if you have a small business. These companies often don’t have time to manage payroll by themselves.

Accuracy and Compliance

Payroll processing companies ensure that payrolls are processed accurately, on time, and in compliance with regulations. These services help to minimize errors and reduce the risk of penalties and fines for non-compliance. They also keep up to date with changes in tax laws and regulations, ensuring that your payroll is always compliant. This can help you avoid costly penalties and fines from the state and federal governments.

Data Security

Outsourcing payroll processing can help ensure that your sensitive employee information is secure. Payroll processing companies use the latest technology and security measures to protect your data from unauthorized access.

Expertise

Finally, these companies have the expertise and resources to handle all aspects of payroll processing, including complex tax calculations, employee benefits, and regulatory compliance. With that, you can ensure that your payroll is accurate and compliant while reducing the risk of errors.

Choosing the Right Payroll Processing Service for Your Small Business

When it comes to choosing a payroll service or South Jersey accountant, there are several factors that you should consider when selecting the best option for your business needs. Here are a few tips for choosing small business accounting services for your company.

Track Record of Success

You want to work with a firm with a proven track record of honesty and accuracy in handling federal, state, and local tax filings and payments. You should also know if the firm encourages clients to verify payroll tax payments using well-known methods, such as the Electronic Federal Tax Payment System (EFTPS).

Insured

A reputable payroll processor should have errors and omissions (E&O) insurance, a fidelity bond for crime protection, and cyber liability coverage to protect against potential losses or damages.

Solid Reputation

Along with integrity and insurance, you will also want to consider the reputation of the payroll service provider. The right firm should provide you with a long list of references who can vouch for the quality of their services. Make sure to contact these references and ask them specific questions to ensure that the provider offers excellent customer service.

Latest Technology

The payroll service provider should have the latest technology that seamlessly integrates payroll processing with employee time tracking and human resource management. Additionally, the service should offer employees a secure portal to access their pay and other relevant information. A reliable time and attendance system will be instrumental in tracking employee attendance, work hours, and paid time off.

Find an Accountant for My Small Business

Setting up proper payroll processing practices is crucial for the success of any business, no matter its size. At TMD Accounting, we have a team of expert accountants who can help create a payroll plan to pay your employees and keep your business compliant. We provide payroll and bookkeeping services to companies in various industries, including automotive and body shops, healthcare, construction, hospitality, restaurants, and professional services. If you would like to learn about our services, please contact us at 856-228-2205.

Simplifying Payroll Processing for NJ Business: An Overview

Payroll

One of the most time consuming aspects of running a business is payroll processing. Although it may sound simple to compute the hours an employee works and cut them a check, the fact is that there are many other aspects to payroll processing that many business owners do not consider. These include payroll taxes, wage garnishments, labor regulations regarding hours and breaks as well as making sure payroll is executed and issued in a timely manner. The team at TMD Accounting offers these tips for simplifying your payroll processes.

Budget for Payroll

One of the biggest mistakes business owners make, according to small business accounting services, is not budgeting for their payroll costs. Keep in mind that payroll involves more than just paying your staff. You will need to have enough budgeted to not only cover employee salaries, but also withholding taxes that must be submitted to the Internal Revenue Service, your state, and your local government quarterly. What many new business owners don’t understand is that although your employee has FICA and Medicare tax withdrawn from their checks, as an employer you are also required to match those amounts. Therefore, you want to be sure that your budget includes the salary plus the taxes you will be required to submit.

Consider a Separate Bank Account

Although you are able to pay your staff from your main business account, using a separate account for payroll may help make your cash flow more transparent. When your company is growing, this can help you budget more easily. It will also help you keep better track of your payroll taxes, the cost of the benefits you offer as well as other deductions you may need to withdraw from your employee’s payroll checks.

Choose a Payday and Stick with It

Your employees expect to receive a paycheck at regular intervals and while there are pros and cons to the various time periods you use for payroll, whether it is weekly, bi-weekly, twice a month or monthly, once you decide when payroll will be issued, small business accounting services suggest you stick with that schedule. Keep in mind that the more often you pay your employees, the more you will need to track your withholdings which is why many employers use the bi-weekly or twice monthly methods for payroll says a South Jersey accountant.

Salary or Hourly?

One of the most frequently asked questions when people ask “is an account for my small business necessary” is whether paying employees a salary or paying them hourly is the best option. This may depend on the business you are in as well as what each employee does. In most cases, management will be placed on salary as their duties are more complex. Paying hourly requires a bit more work as you will need a method to track each employee’s hours every pay period. If you outsource your payroll to small business accounting services, they often have mechanisms in place that will track your employee hours for you.

Use Direct Deposit

Research indicates that more than 80 percent of all Americans are paid via direct deposit, and this is one of the best ways to streamline your payroll services. Direct deposit allows you to review reports before you transfer funds to your staff. There is no need for stacks of checks that need to be signed, envelopes to keep payroll private concerns about lost checks or any of the other issues that you face when you issue paper checks.

Payroll Policies

Another critical error many business owners make is not having policies in place for their employees and this is especially true of payroll. When you hire a new employee, there will be documents they need to provide, including copies of Social Security cards, filling out a W9 form as well as any benefit paperwork. Consider issuing a payroll policy that has time sheet deadlines, information about taking sick or vacation time, reimbursement for business expenses and more. You and the employee should sign the policy with a copy given to the employee as well as one in their personnel file.

Set Up Reminders

It is likely your employees will not be pleased if you forget to pay them, and it will be difficult to retain staff if you consistently make mistakes in their paychecks. Although using a South Jersey accountant will help prevent these errors, you can also make sure things are done in a timely fashion by setting reminders for yourself. These may simply be a reminder to submit approved forms in time for checks to be issued or one so that you remember quarterly taxes must be submitted.

Electronic Tax Filing

The IRS offers the option to file payroll taxes rather than mail in forms and a check. It is likely your state and local governments offer that as well. This helps eliminate the risk of payments arriving late and helps you remain compliant with the law. Usually, you will receive an instant confirmation that your payment was received which you can file for your records.

If you are asking “will an accountant for my small business help with payroll,” the answer is yes. TMD Accounting has been offering accounting services for more than 40 years as a family-owned and operated South Jersey accountant. Contact our team today about your payroll needs by calling 1-856-228-2205 or fill out the easy online contact form.

The Benefits of Choosing TMD Accounting as Your South Jersey Small Business Accountant

Accounting, Small Business

When you own a small business, you wear many hats. Not only are you responsible for the day-to-day operations of your company, but you are also responsible for making sure your employees are paid in a timely fashion, that taxes are paid properly and that your financial records are complete. This includes accounts payable, accounts receivable, balance sheets and more.

 

For the average business owner, dealing with financial matters can be stressful and you may begin to resent the time you spend on them, especially when you would rather be interacting with customers or developing new products. That is where TMD Accounting, your small business accountant in NJ, can help.

Bookkeeping Assistance

One of the ways a small Jersey accountant can help your company is by handling the bookkeeping services necessary to organize your finances. There are many options today for bookkeeping software and a small business accountant in NJ can help you choose one that fits your business needs. They will also be sure to choose options that will grow with your company. Of course, the answer to “why should I use an accountant for my small business when I have staff who does my bookkeeping” is simple. Your accounting staff needs guidance and may need training on the software that is chosen, something a small Jersey accountant can assist with.

Monitor Your Company’s Financial Health

Another important reason to work with TMD Accounting is to monitor the financial health of your business. A critical part of any company’s financial health is cash flow, and most business owners are unaware of the various formulas necessary to improve it or address any issues with it. Working with a small business accountant in NJ will provide you with a monitoring system to watch all transactions in your company and make sure that money is moving in and out of the business properly.

Tax Code Changes

The United States has a complicated tax code that changes quite frequently. It is almost impossible for a business owner who is not familiar with the tax code to handle that aspect of their company properly. Forms submitted to federal, state and local governments must be accurate or you could face penalties that may be extensive. If you are asking, why you should use an “accountant for my small business,” tax regulations should be at the top of the list.

Forensic Accounting

Although you may trust your accounting staff implicitly, the news is filled with stories of people who were trusted and took advantage of that trust. Using a small business accountant in NJ will provide you with a level of forensic accounting that could discover problems in your financial system. Although the problems may not be signs of fraud, they may simply be incorrect data in your financial software, funds not placed in the proper account or simply a misunderstanding about how a financial matter should be handled.

Business Transitions

Businesses undergo transitions over time, whether it is a shift in ownership, merges or a change in products or services. When your company is undergoing any type of transition, using a south Jersey accountant is critical to be sure the transition goes smoothly. They can identify any possible risks that may occur during the transition or threats to the business that could result in devastating consequences if not addressed. As the transition progresses, a small business accountant in NJ can put financial processes in place to protect your interests and the interests of your stakeholders.

Focus on Other Aspects of Business

One of the most important answers to “why should I hire an accountant for my small business” is that it allows you to focus on other aspects of your business. As a business owner, you may find yourself taking on too many responsibilities in an effort to reduce costs. In the financial aspect of your company, however, this can lead to errors that could be very costly.

 

In addition, when you are focusing on day-to-day finances, you are not focusing on other matters related to running a business. When you started your business, you had a vision of how it would operate and without financial guidance, that vision may become blurred. In order to pay more attention to the things that made you start your company in the first place, your products or services, allow a south Jersey accountant to focus on your financial health.

Cost Savings

It may seem counter-intuitive that hiring a small business accountant in NJ will save money, but the fact is that their expertise can do just that. A south Jersey accountant will look over your finances and pinpoint where the money is going, providing you on areas where you can save while also identifying tax breaks that can reduce how much you will owe each quarter. They can help you avoid penalties and fines by filing your tax forms regularly as well. One of the best ways to view the hiring of a south Jersey accountant is as an investment, not an expense.

Looking For a South Jersey Accountant?

If you are considering an accounting service for your business, contact TMD Accounting today to learn more about our small business and personal accounting services. Our motto is “where numbers matter and people count,” something our team lives by each day. With over 40 years’ experience as a south Jersey accountant, TMD Accounting can help your business grow while protecting your financial interests. Family-owned and operated, our staff is flexible and reliable, and we always keep our services affordable. Contact TMD Accounting today by filling out the easy online form or call 1-856-228-2205.

Managing Cash Flow as a Contractor: Tips and Tricks

Accounting, Small Business

There is no question that one of the hardest industries for managing cash flow is the contracting business. Whether you are a construction business or an independent contractor of another kind, there are common mistakes that you may be making that hamper your cash flow. Check out these tips and tricks if you are a contractor who wants to maximize your cash flow and keep your business running smoothly.

Importance of Budgeting

One of the first tips provided by a South Jersey accountant is to create a workable, manageable budget and stick to it in order to protect cash flow. With the right budget, you can see where your money is going, identify areas where you can reduce spending as well as areas where income may be increased. Independent contractor accounting services recommend that contractors create a budget for the next 18 to 24 months with a fluid cash flow model for the next six to a year.

 

By monitoring cash flow for those months, you will be able to identify periods when cash is limited, whether it is because business is slower due to inclement weather or there is a lull between projects. Not only will you be able to identify slower months, it will also allow you to identify months when cash is flowing more freely and allow you to adjust spending so you are able to hold onto some of that cash for the leaner months.

Build Savings

Contracting is often described as “feast or famine” where you have periods of the year when business is booming and others when there is little work coming in. For example, if you are a roofing contractor, you may have several months in the winter when there is little to no work. During the spring and summer, there may be days of zero rest. When you create your budget, you want to look at about six months of expenses and income. Total the amounts and divide by six to get a monthly average. Whenever your income exceeds what you budgeted, put the difference into savings. When you hit those lean times, you can use savings to carry you through if necessary.

Cash Flow by Project

Another tip offered by small business accounting services is to monitor cash flow by project. To do this, you will need to determine the time frame for the project that includes when each aspect of it will be completed, when you must disburse payments and when you have to bill the owner. This will help you accelerate receipts and realize a better cash flow from each project. Keep in mind for this method to work, you will need timely collection and billing processes, methods for disbursing payments and accurate scheduling. You can also ask for upfront deposits for long-term projects in order to keep your cash flow stable, small business accounting services recommend.

Avoid Low Revenue Projects and Underbidding

Too often, contractors are guilty of taking projects that will yield low revenue, especially when business is slow. In competitive markets, it is also tempting to underbid just to get the job. A South Jersey accountant advises against those options as they can include a significant amount of risk. Every bid issued should reflect your expertise, past performance and safety record as well as the technology you have invested in, your ability to meet deadlines and other qualifications that will encourage customers to choose you over another company.

Tax Savings

When it comes to taxes, you want to pay what you owe, but there is no reason to pay more than what you must pay. Tax codes have many deductions and some are designed specifically with contractors in mind. This is where independent contractor accounting services can be very beneficial as they can identify many tax savings that the average person is unaware exist. Look at any fixed assets you plan to purchase in the future to see if it might be more beneficial to purchase in this tax year to recover some of the costs in tax deductions. In this industry, many owners overlook fuel credit for use off-highway, research and development for improving a process or the deduction for creating energy-efficient buildings by installing upgraded HVAC, lighting and other features, according to a South Jersey accountant.

Living Better with Technology

Have you been putting off technological advancements because your cash flow is tight? You may think this is helping, but it could actually be having a negative impact on your budget.  There are many types of software today that can actually save you time which, in turn, saves you money. This means that outlaying funds for updated technology can actually improve your cash flow rather than reduce it. Independent contractor accounting service experts also say that technology can reduce human error and help your company run more efficiently.

Succession Planning

Although it may not seem to have an impact on cash flow, TMD Accounting, a South Jersey accountant explains that putting a plan in place for when you are no longer the owner is critical to the success of your business. It is one of the most important steps to creating a financially sound company. Not only will it make you rest easy that your company will continue after you have retired or passed on, it will indicate to employees that you intend to stay in business. This can help with employee retention while also helping promote investment in the future of your business.

Need Help Managing Your Cash Flow?

If you are struggling to manage the cash flow in your contracting business, contact TMD Accounting today to see how our friendly team can help. You can reach us by calling 1-856-228-2205 or filling out the easy online form. With 40 years’ experience, we live by our motto: “where numbers matter and people count.”

The Benefits of Working with a Local Payroll Company in NJ 

Payroll

When it comes to outsourcing payroll, as a small business owner you have many options. You can choose to use a large national company to handle your payroll processes, or you can go with a small business accountant in NJ. If you are considering outsourcing your payroll, then one of the best choices you can make is selecting a local payroll company, such as TMD Accounting.

Personalized Solutions

One thing that national companies do not offer that a small business accountant in NJ would is services that are personalized specifically for your company. Many times, national companies have a “one-size-fits-all” approach to payroll, requiring your employees to use the same time sheets that giant corporations use. This may mean that the options don’t fit what your staff actually does or that the computations are not as accurate as they could be.

Local Customer Service

Whenever you use a national service for a business process, you run the risk of customer service representatives that are in another city, another state, or even in some cases, in another country. Using a South Jersey accountant to handle your payroll needs brings you someone local who will understand your needs better than a person who lives hundreds or thousands of miles away. In fact, by choosing a payroll company in NJ, those working with you may be friends, family or neighbors of many of the people who work for you, bringing you even more personalized interaction with the people who are paying your employees.

Compliance and Regulations

Although the national companies are well-versed in IRS regulations, they may not be as knowledgeable about the requirements in your state. Even if they offer an office within the state which means they understand those regulations, they still may not understand local requirements and regulations. By choosing a South Jersey accountant, you are more likely to get someone who thoroughly understands the regulations and requirements of the area and not just IRS regulations.

Keep in mind that the United States passes around 8,000 laws each year and many of these can impact the tax code. At the state level, a recent study found that the average state passes 128,000 laws each year, 23 times more than the U.S. Congress. This is why having a small business accountant in NJ handling your payroll makes more sense than a national company who may only understand federal tax law.

Less Costly

When you choose to outsource your payroll to a small business accountant in NJ, it will likely cost you less than it would a national company. Although national companies may offer basic packages that seem to cost less, these usually are extremely basic and may not cover all the options you will need to adequately handle your payroll. By hiring a local payroll company in NJ, you may find that their basic package includes many more options which will actually save you money in the long run.

Dedicated Representatives

Another benefit to choosing local is having dedicated representatives who get to know your business and your employees. For example, at TMD Accounting, a knowledgeable payroll company in NJ, one of our team members will be tasked with learning the ins and outs of your business. The staff gets to know you and will have working knowledge of how you need your payroll system to operate. This will help your payroll system run much more smoothly and will actually save you money in the long run.

Human Interaction

Small business accountants in NJ offer a personal touch that many large, national companies do not offer. When you need a question answered and are working with one of the large companies, you may have difficulty reaching someone to help you. In fact, you may have difficulty talking to a human at all. Many offer websites that they claim have “the answers to all your questions” only for you to find out the questions have to be ones that a chatbot can answer. That means if your question is at all unusual, there will be no one who can help you. With a South Jersey accountant, you know that the phone will be answered by a human and your question, no matter how unusual, will be answered by a human.

Local Specialist

The main reason to choose a payroll company in NJ is that they are local specialists when it comes to payroll. They not only understand state and local laws, they also understand the people who work for you. They know how important payroll that is correct and timely is to your staff. They also understand how important complying with laws is to you as failing to do so could put your entire business at risk. A South Jersey accountant will make sure that your company is following the law and paying your staff correctly. Not only that, using a small business accountant in NJ can save you time, allowing you to focus on the things that will help your business grow rather than focusing that time on payroll.

If you are considering outsourcing your payroll, contact the expert South Jersey accountant firm of TMD Accounting. With more than 40 years’ experience in the industry, our team of accountants can help get and keep your payroll on track, make sure you are compliant with all laws and allow you to focus on the things that will help your business grow. Our motto, “where numbers matter and people count” is one we have lived by since we opened our doors. Family-owned and operated, we are here to help with all your payroll needs, so give us a call at 856-228-2205 or fill out the online contact form for more information.

Navigating the Complexities of Payroll with a South Jersey Accountant 

Payroll

Payroll management is a crucial task for any business, no matter its size. However, navigating the complexities of payroll can be complicated, especially for companies in South Jersey. With federal, state, and local regulations, tax rates, and compliance requirements, you will want an experienced accountant who can guide you through the process. Learn how to navigate payroll complexities with the assistance of a qualified accountant.

The Challenges of Payroll Management

Many factors can complicate payroll management in New Jersey. For example, the state has specific laws and regulations related to employee classification, overtime pay, sick leave, and vacation pay. Employers must follow these laws and regulations to avoid legal issues.

Additionally, there are specific requirements regarding recordkeeping and reporting, meaning employers must keep accurate records of their employees’ hours, pay rates, and deductions. If you fail to maintain accurate records, that can lead to legal issues and penalties.

Along with that, you must file both state and federal taxes. Once again, failing to file can lead to penalties and legal problems. New Jersey businesses must also pay state unemployment, workforce development, and disability insurance taxes.

State payroll management can be a complex and challenging task for businesses. For that reason, all companies can benefit from hiring an experienced accountant who can help them navigate through the complexities of payroll management and ensure compliance with all regulations.

The Benefits of Hiring a South Jersey Accountant for Payroll Management

Hiring a South Jersey accountant for payroll management can bring numerous benefits to your business, especially when navigating the complexities of processing and administration. An experienced accountant fully understands the regulations that impact payroll management, including minimum wage laws, tax rates, and unemployment insurance requirements.

Processing payroll can be time-consuming and tedious for businesses with many employees. An accountant can handle all aspects of payroll processing, from calculating employee wages to filing taxes. With help from a South Jersey accountant, you can save time and reduce the risk of errors.

Compliance is critical when it comes to payroll management. An accountant can help ensure businesses comply with all applicable regulations and avoid potential issues in the state. As previously mentioned, non-compliance with payroll regulations can result in penalties, fines, and legal issues. When you work with an accountant, you can reduce the risk of these negative consequences.

Services Provided by a South Jersey Accountant for Payroll Management

A South Jersey accountant can provide various services to help businesses with their payroll management needs. Here are some of the critical services that your accountant can offer to your business.

Payroll Processing and Management

An accountant can handle payroll processing, including calculating employee wages, tracking hours worked, and processing payroll checks. These professionals can help track payroll for both salaried and hourly employees.

Tax Filings and Compliance

When you hire an accountant, they will handle all payroll tax filings, including preparing and filing quarterly and annual tax returns. These professionals can also conduct any payroll tax audits that may occur.

Employee Benefits Administration

These individuals will help manage your employee benefits programs, including health insurance, retirement plans, and employee contributions.

Recordkeeping and Reporting

When you need accurate payroll records, turn to an accountant. These professionals will provide your business with regular payroll reports, handle payroll-related audits, and manage investigations.

Hiring a South Jersey accountant can streamline your payroll management processes, reduce the risk of errors and compliance issues, and ensure that the payroll records are accurate.

How to Choose the Right South Jersey Accountant for Your Business

When it comes time to select a South Jersey accountant for payroll management, there are several factors to consider to make the right choice. First, you want to look for a professional with relevant experience for the job. When evaluating potential accountants, find someone with experience working with businesses similar to yours. In addition, you should choose an accountant who understands the specific payroll tax laws and regulations that apply to your industry.

Effective communication is important when it comes to payroll management. Businesses should look for an accountant who is responsive to their needs and questions. These individuals should also be able to provide regular updates and reports on payroll processing.

While cost is important, you need to understand the value of small business accounting services. A low-cost accountant may seem like a good deal, but if they cannot provide the support needed to ensure accurate payroll management, the cost savings may not be worth it in the long run. You should look for an accountant who offers fair pricing and can provide a clear breakdown of costs and services.

By working with a knowledgeable and experienced South Jersey accountant, you can ensure they stay compliant with all applicable payroll tax laws and regulations. They can also streamline your payroll processing and reduce the risk of penalties and legal issues. You want to find an accountant with the expertise and skills to manage your payroll processes effectively.

Need an Accountant for My Small Business?

Contact TMD Accounting today to explore your options for hiring an accountant for your business. We provide personalized and attentive service to all of our clients. Our TMD Accounting team serves businesses in the automotive/body shops, healthcare, construction, hospitality, restaurants, and professional services industries. With over 40 years of accounting experience, our team will ensure your accounting needs are handled professionally and accurately. If you want to schedule a consultation, please call us at 856-228-2205.

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