Resources · Lesson
When payroll should leave spreadsheets
A spreadsheet can work when it's just you. These are the signs it's time for a real payroll process.
For educational purposes only. This lesson describes general bookkeeping practices and is not tax, legal, or lending advice for your situation. Talk with us or your tax professional before acting on it.
Chapter 1
Pay leaves the bank as one lump withdrawal
If pay goes out as a single transfer with no breakdown of wages, withholding, and employer costs, your books can't show what you actually owe. That gap tends to surface at the worst time.
Chapter 2
You pay contractors
Contractors need their own records through the year so year-end forms go out right. Tracking them in the same sheet as everything else makes that harder than it should be.
Chapter 3
Anyone besides the owner gets paid
Once you pay even one other person, withholding, filings, and pay records come with it. Payroll software or a payroll service handles those steps every run, and your books get a clean entry for each one.
Chapter 4
What to do next
Moving payroll out of a spreadsheet is usually a short project. We can set it up, connect it to your books, and keep the two in step every pay period.
Want a person to look at your numbers?
We work with small businesses from Kalamazoo, Michigan, and remotely across the country. Tell us what's going on and we'll tell you plainly what would help.
Kalamazoo, Michigan · Call 269-200-2910