Managing, supervising or even starting your own business can be terrifying. There is much to think about from organization to financing. It may be easy for you to jump right in and determine what kind of business you want to start and how you want it to run, but when you get down to the nitty gritty of the financing, you may find that you are overwhelmed.

Payroll is just one of the aspects of business financing that you will have to get straight when you are starting your own business. You have to determine a way to pay your employees, and also yourself. So just what is payroll and how can you keep your pay roll in gear? Business advisors suggest that there are generally three different ways that you can choose to manage the payroll in your company: internal management, an accountant, or a payroll service provider.

Internal Management

Internal management occurs when you give the job of managing payroll to a specific member of your staff. There are both advantages and disadvantages concerning this method. On the one hand, having a member of your staff responsible for payroll will keep the system in house and give the company itself a higher control level over the process. On the other hand, when one person and one person alone handles payroll, often in addition to other tasks that he or she performs on a regular basis, there is a much higher chance of error on behalf of the staff member. Also, any tax errors place the company in a state of liability.

An Accountant

There is also the option of hiring an accountant to keep your payroll in check. The advantages of this include the hands on experience of an expert as well as the fact that it still offers the company some level of control. On the other hand, this option may be more costly and take more time than internal management or payroll service providers.

Payroll Service Providers

Payroll service providers are another way to go with your payroll structure. These services are the absolute experts of payroll. They are familiar with taxes, 401(k)s and direct deposits. They will be able to keep your payroll costs at a steady level and if there are any tax errors, some policies will expect the payroll service provider pay for the errors. The disadvantage of this service is that you are placed even farther from controlling the payroll process.