Editor's Note: Learn from a panel of experts and entrepreneurs who have successfully financed their own ventures and are helping others do it at the Thought Leaders Live 2013 event May 29, in Long Beach, Calif. Event and ticket information can be found here.
Payroll accounting can be quite a challenge for the new business owner. There are many federal and state laws regulating what you have to track related to payroll. Failure to do so could result in heavy fines-or worse.
Many small-business owners use outside payroll services. These companies guarantee compliance with all applicable laws. This keeps the small-business owner out of trouble with the law and saves valuable time that can be devoted to something else in the business.
However, if you choose to do your own payroll, it is highly recommended that you purchase an automated payroll system. Even if the rest of your books are done manually, an automated payroll system will save valuable time and help considerably with compliance. There's not a lot of margin for error when dealing with the federal government!
Excerpted from Start Your Own Business: The Only Start-Up Book You'll Ever Need, by Rieva Lesonsky and the Staff of Entrepreneur Magazine, © 1998 Entrepreneur Press