How Do I Choose the Right Bookkeeping and Payroll Services for My Business?
Running payroll and managing books are two of the most critical financial functions for any business-and also two of the easiest to get wrong.
If you’re considering hiring a service to handle both bookkeeping and payroll, here’s what to consider, what to watch out for, and why splitting them might be smarter.
Choosing the Right Fit
1. Payroll Compliance Knowledge
The provider should handle federal, state, and local payroll requirements.
2. Integrated Systems
Bookkeeping and payroll should work together for seamless reporting.
3. Transparent Pricing
Avoid providers with hidden fees for payroll processing.
4. Flexibility and Scalability
Ensure they can handle seasonal changes or rapid growth.
What Bookkeeping Covers vs. What Payroll Covers
While some providers bundle both together, they’re very different functions:
Bookkeeping includes:
- Transaction categorization
- Bank and credit card reconciliations
- P&L and Balance Sheet reports
- Expense tracking and reporting
Payroll includes:
- Calculating wages and taxes
- Filing W-2s and 1099s
- Submitting payroll taxes
- Complying with federal/state laws
They’re connected-but require different tools, expertise, and compliance handling.
Pros and Cons of Bundling Services
Some full-service firms offer both bookkeeping and payroll under one roof. That might sound easier, but be careful:
Pros:
- One point of contact
- Unified reports
- Easy startup
Cons:
- Higher pricing
- Slower support if they’re not specialized
- Hard to switch one service without the other
Why Many Businesses Separate Them
At Remote Books Online, we specialize only in bookkeeping-and work with your payroll provider (like Gusto, ADP, or Paychex) to ensure everything lines up.
This gives you:
- CPA-ready monthly financials
- Flexibility to use your preferred payroll provider
- Cleaner handoffs for tax prep
- More control over costs
Key Things to Look for
- Industry experience (retail, services, ecommerce, etc.)
- Flat-rate pricing, not hourly
- Support for multiple payment schedules (biweekly, monthly, etc.)
- Cloud-based systems with real-time access
- Secure document sharing
- Separate or integrated payroll journal entries
Test Case: Construction Firm Unbundles Services and Saves 40%
A growing construction business in Texas used a bundled bookkeeping + payroll provider. But the payroll module was clunky and couldn’t handle job-specific wages or state compliance.
They switched to:
- Remote Books Online for monthly bookkeeping
- Gusto for job-based payroll
The result?
- Saved $2,600/year
- Cleaner job costing
- Faster support from both vendors
FAQs
Can RBO manage my payroll too?
No, we don’t run payroll-but we collaborate with your provider and post payroll journal entries correctly.
Do you recommend any payroll systems?
Yes. We commonly work with Gusto, ADP, QuickBooks Payroll, and Paychex.
Can I switch payroll providers mid-year?
Yes-with clean books and correct data, switching is easier than most think.
What if I’ve been running payroll manually?
We can help catch up your books and properly log prior payroll data.
Should I combine payroll with bookkeeping services?
Yes. It saves time and reduces errors.
What’s the typical cost for payroll services?
It depends on employee count and pay frequency.
Do providers handle tax filings for payroll?
Yes, many manage payroll tax filing and payments.
Can outsourced payroll work for remote teams?
Yes, with cloud systems it’s simple to manage.
Final Thoughts
Bookkeeping and payroll are both too important to leave to chance-or the wrong provider.
Remote Books Online focuses 100% on bookkeeping, ensuring your financials are accurate, up to date, and tax-ready. We’ll coordinate with your payroll platform so everything runs smoothly-without the extra overhead.
Get payroll and bookkeeping under one roof. Schedule a free consultation.
Our bookkeeping and payroll solutions support businesses from Florida retailers to California agencies.
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
