It's best to farm out your payroll

Jennie Wong  for The Bellingham Herald writes: When my husband and I hired our first employee at our Web development company, we had it easy when it came to doing payroll. We were already long-standing clients of a local CPA firm, so we were able to provide it with the information and simply hand over the entire process.

Many other entrepreneurs, however, face a harder road. How hard exactly? To give you some idea, the U.S. Small Business Administration has a Web page dedicated to "10 Steps to Setting Up a Payroll System." These steps include such things as obtaining an Employer Identification Number (EIN) and educating yourself on the difference between an employee and an independent contractor. And that's all long before you even get to the final step of reporting payroll taxes.

If you're confused by the payroll process, there are a variety of options for payroll assistance. Gavin Dennis is the owner of the Charlotte, N.C., franchise of Payroll Matters. He urges entrepreneurs to consider the hidden costs of doing it yourself: "Even with just a few employees, running payroll each month can be time-consuming. There are so many details involved, most business owners would be better off handing this task to an expert and focusing on doing what they do best instead."

Dennis also believes that professionally managed payroll leads to happier employees. "Even for those clients who we only know over the phone, there's a tremendous benefit in dealing with same person every time, who knows your name and understands your business," he says. "And, should the need ever arise, we're just a short drive away."

In addition to local payroll services, there are several online payroll solutions. These include familiar names such as Intuit's QuickBooks Payroll, and new entrants such as Zenefits and ZenPayroll.

Zenefits can help you set up your first payroll and integrate with an existing payroll service you may already be using, such as ADP.

ZenPayroll costs as little as $29 per month (for one employee, and $4 for each additional employee). It operates in 12 states. ZenPayroll is also a part of Intuit's Apps.com platform and recently announced plans to integrate with TSheets online time-tracking software.

And if you're about to go on a hiring frenzy, you may want to check out the newest kid on the block, New York-based Namely, which offers payroll and benefits automation as part of its soup-to-nuts product, which includes human capital management, performance management, and employee engagement. The company was founded in 2012 and serves high-growth clients such as Vimeo, Gawker Media, Mashable, Warby Parker and Birchbox.

ABOUT THE WRITER

Jennie Wong is an executive coach, author of the e-book available on Amazon,  "Ask the Mompreneur".   You can follow Jeannie Wong on Twitter here.

Frontier to Provide Outsourced Tech Support for Intuit

Frontier has won a contract to provide technical support to Intuit, developer of QuickBooks software, said Frontier CEO Maggie Wilderotter at the Goldman Sachs Communicopia Conference in New York today.

Frontier won the contract after a six-month trial period, during which the company’s performance exceeded that of others contending for the same contract, Wilderotter said. The company is currently talking to “a number of other players” about providing the same types of service, she added.

“We are experts in supporting other peoples’ software,” said Wilderotter. She noted that the company white labels a variety of its offerings through partnerships and that “our secret sauce is Premiere Tech Support.”

That product provides 24/7 computer help, including help with software. It is one of several offerings that are part of a product suite that Frontier calls Frontier Secure. The product suite also includes backup, identity protection and other offerings [snip].  The article continues @ Tele Competitor, click here.

How Small Data Can Help Your Business Intelligence Efforts

Christopher Herbert for Technology Advice writes: In the age of “Big Data,” an increasingly common question is whether there’s any benefit to small data, especially for companies with already running business intelligence efforts. The answer, of course, is absolutely.

Data of all volumes are useful, just in different ways. Small data solves problems of equal value to big data, and can make big data analysis easier.

Small data, in this instance, refers to a data pool that contains a relatively lower volume of entries or sources than would be expected from “big data.”

In general, data stores that fall under this definition are light enough to fit on Excel (one million rows by 16,000 columns) and composed of either a single or a few different data sets. This is small enough to reside on, and be analyzed by a single computer.

This leads into Allen Bonde’s popular definition, “Small data connects people with timely, meaningful insights (derived from big data and/or ‘local’ sources), organized and packaged – often visually – to be accessible, understandable, and actionable for everyday tasks.”

Summary: small data is concise enough to help an average person make a quick, intelligent decision.

But is that useful? In the face of the power and might demonstrated by big data, why play around with a comparatively miniature data set?

Below are four occasions where small data is not only a useful tool, but the optimal tool.

Small Business Insight

The first case where small data is preferable is when big data is simply out of reach. Small businesses may theoretically experience benefits from tapping into an all-encompassing data set, but since data generated by their own company is likely limited, it’s more helpful to know how to gain insight from small, relevant data sets that address their immediate needs.

And really, there’s no good reason to default to the premise that big data is inherently superior to small data. It is more important for analytics that multiple, disparate data sources are connected and correlated than that any particular data source is extremely large. A focused business question, and a plan to find the data-derived answer, is simultaneously cheaper and more valuable for a small business than a team of data scientists managing servers and running tests in hopes of uncovering new insight.

Proof of Concept

For organizations looking to use new big data sets and try out new data analytics tools, it helps to first simulate the analysis on a smaller data set. The first step in any big data effort needs to be identifying a real question or issue for which data analysis may help make a better business decision. If no such insight can be gleaned from a smaller foundational set, then maybe you need to rethink how you plan to analyze the larger set.

Testing Data Features

Small data sets are easier to manage and manipulate when determining which data “features” you need to track to find your intended insight. Quick trial and error would be ridiculous to attempt on the full data pool, due to time constraints and network bandwidth. If your business intelligence method involves complex SQL programming, performing analysis on the small data set could also serve as a practice step.

CEOs and Executive Accessibility

CEOs and executives are becoming increasingly hands-on in their companies’ business intelligence efforts, as demonstrated by the shift towards self-service business intelligence tools. Small or summarized data sets are easier for them (or anyone who’s not a trained data scientist) to explore, than working through the full data set. Once the CEO observes a new angle or feature to look into, the data team can take over and run the model on the big data.

So, yes. Small data is useful. It’s useful whether you have big data or not, and the ability to get insight from a limited set of data remains necessary. Perhaps it’s even the new competitive edge.

Comments, questions? Dissensions, mentions? Comment below or bring it to social media to discuss with your peers.   You can follow Technology Advice on Twitter by Clicking Here.

Enter the Underdog: Xero vs. QuickBooks for Small Business Cloud Accounting

Todd Spear for GetApp writes: Accurate accounting is essential to the success of your business. That puts tremendous pressure on whichever bookkeeping application you choose to use. For many accounting departments, Intuit QuickBooks has long been the standard for accounting software.

Through the years, Intuit has transitioned its flagship downloaded QuickBooks software from a dedicated, legacy desktop application to a Web-based app, aptly named QuickBooks Online. The company has only seen major disruption in the past few years, as a new crop of accounting apps, born and raised within the computing cloud, have emerged as competitive alternatives to QuickBooks.

GetApp keeps tabs on all the accounting apps on the market, and many are remarkable. But one app – which is something of an “underdog” from the land of the Kiwis, New Zealand – is causing a major stir, and no doubt casting a shadow of worry over the development team at Intuit. It’s called Xero, and it’s standing out as potentially the alternative to QuickBooks.

Xero serves a growing global customer base already totaling more than 300,000 unique small businesses per month. If Xero is a new name for you, it’s probably because its adoption has rippled from its point of origin in the Pacific. But Xero has more recently begun making more than a splash in the American marketplace, where it has rather quietly amassed more than 18,000 small businesses subscribing monthly, supported by a growing team of more than 800 people with its headquarters in San Francisco.

Like the “Little Engine that Could,” though, Xero has a refreshingly clean approach to accounting software. And that’s put it on the radar of many who have long been acclimated to Intuit QuickBooks.

As Xero’s presence attracts more and more customers worldwide, it’s increasingly worth considering as a viable alternative to QuickBooks – and other accounting apps, for that matter.

In an effort to explain what makes Xero the leading alternative to QuickBooks, we’ve put together this article, which aims to highlight the key differences that may well make Xero the most intuitive, helpful and all-around intriguing accounting application around.

Here’s what the “fresh, designed-for-the-cloud”underdog Xero has to offer compared with so-called “Old Faithful,” QuickBooks Online.

Xero: Familiar, yet different

If you’ve used QuickBooks at all, you will find it easy to wrap your head around Xero. Everything you would expect to see is readily available in Xero’s dashboard.

Both accounting apps track accounts payable and receivable, and both offer a quick overview of your current cash position and outstanding balances. Xero’s tagline is “beautiful accounting software” and it was one of the first companies to make design a top priority when developing an accounting software. QuickBooks Online has caught up on the design front with a revamped look and feel that it released about a year ago. So both apps are reasonably easy on the eyes, and both are simple to get started using; both Xero and QuickBooks make it a snap to connect your bank account.

Visually, as Xero was designed specifically for the cloud in 2006, it was clearly made with mobile usage in mind. That said, QuickBooks Online performs well on smartphones and tablets in its own right.

But the similarities largely end there.

Accounting on the go vs. Rooted to your desktop

Xero was founded by Rod Drury with the help of his accountant. Interestingly enough, the pair’s inspiration came from the inadequacies of desktop accounting programs available at the time and the lack of innovation in using cloud technology to make accounting easier.

From the start, Xero was built specifically to work online in what is now called “the cloud” – the Internet-based computing and processing resources that make Web apps work.

So Xero’s always been right at home on mobile devices. Intuit QuickBooks started out as one of those oft-maligned desktop accounting programs. That said, it has gradually made the move to mobile while still retaining a familiar workflow.

Xero’s mobile app (called Xero Touch) has an idiot-proof “all thumbs” approach to its mobile-ready iteration, and it’s ideal for monitoring your real-time cash flow keeping track of transactions while on the move. Xero also has a couple of really nifty invoicing and receipt-tracking features. 

You can create invoices with just a few clicks, as well as send them, right from Xero Touch’s clearly laid-out interface. You can also snap pictures of invoices and store them within the app.

QuickBooks retains most of its desktop functions in its mobile interface, but it’s an admittedly tight squeeze at times. QuickBooks Online’s tablet app is feature-rich and easy to look at, but not as manageable on an iPhone or other smaller-screened device, compared with Xero.

Bank reconciliation made simple

One of the key differences between Xero and QuickBooks Online has to do with reconciling accounts – and that’s where the proverbial rubber meets the road, when it comes to accounting apps.

In Xero, reconciliation works in a way that would be familiar to anyone who has done bank reconciliation on paper, albeit, with a few advantages.

For most of us, the reason for reconciling your business’ bank accounts is to verify the accuracy of all monies coming and going from your account. It’s to make sure all invoices clear in a timely fashion, and all bills are kept current, and this real-time cashflow insights lets your small business make better decisions.

Of course, you know it is logical to compare transactions against account positions, side by side. Xero stands out because it allows you to match invoices and receipts with account transactions, helping you to find not only errors, but also potentially fraudulent charge, at a glance and with quite a bit less “searching” than QuickBooks.

Both Xero and QuickBooks Online facilitate bank reconciliation, though the means by which each goes about it are quite different.

Bank reconciliation in Xero consists of choosing “Reconcile Account” from the Manage Account menu in the Bank Account view. From there, you are presented with two (very logical) columns, one on the left showing bank statement line items; the right, showing transactions recorded in Xero.

When payment amounts align perfectly, they are marked with a clear green “OK” button and you simply verify the reconciling by clicking the “OK” button between matching transactions/records. Just like playing Tetris. Xero saves your small business time by allowing you to define preset codes for routine and repeat transaction types. In the event that you wonder about a transaction, you can simply click “Find Match” to search through records and reconcile the activity.

This all turns a dreaded, time-sucking monthly chore into a less-than-a-minute task.  Here’s an explainer video highlighting the intuitive way reconciling works in Xero: 

Integrations for all occasions

Both Xero and QuickBooks offer third-party app integrations to expand functionality. Xero integrates with more than 300 third-party business apps, while QuickBooks integrates with about 60 while integrating with its own products for services such as payments and payroll.

Our underdog, Xero, boasts some handy integrations from innovative third-party developers like Constant Contact, connecting you to valuable (marketable!) customer data, Google Docs for generating and sharing reports in Google Sheets, and Square, bringing the trusted online selling platform directly into your accounting platform.

QuickBooks Online takes on a somewhat different approach to third-party integration. Intuit offers a smattering of a la carte apps, including eCC Cloud and Method CRM. Intuit sells third-party apps through its online store.

Unlimited Access vs. Single User Access

One of the major differences between Xero and QuickBooks is the way each handles and charges multiple users and employees.

You’re likely using accounting software to simply keep tabs on your banking transactions. But there are of course times when you want other employees and need a professional opinion, meaning you need to allow an authorized accounting professional to work within Xero or view your accounting dashboard. For those times, Xero has a clear advantage over QuickBooks Online.

Quite simply, Xero allows unlimited access for your employees and trusted advisors (including accounting professionals). Xero’s basic package ($9 per month) is ideal for freelancers and independent contractors. If you want to include payroll, you’ll want to look at Xero’s standard package, which is $30 per month to pay five employees. Xero also allows you to authorize your accounting professional to have direct access to your Xero dashboard on their tablet or laptop, and simply message or call her or him when you need advice.

In contrast, QuickBooks Online’s basic version (known as “Simple Start’) allows only one user for $12.95 per month. To get access for three users you’ll need to spend $24.95 per month.  For five users, you’ll need to spend $39.95 per month and more as you grow and need to pay more employees over the limit specified in your contract.

The other major difference between the two apps is how each incorporates payroll services. For QuickBooks Online, payroll is a $39-a-month add-on. For Xero, payroll services are part of your plan, which scales up based on the number of employees you need to process each month.

Be sure to closely look at the total cost of Xero vs. QuickBooks Online to make sure it meets the needs of your business. Xero is designed to support unlimited users and includes payroll as a feature within the product. QuickBooks Online charges for additional users past a specified number and payroll is a separate product that integrates with QuickBooks Online.

Who’s the top dog?

QuickBooks is an undeniable accounting mainstay. That being said, Xero is the ideal alternative to QuickBooks Online, and Xero is readily proving itself with a growing customer base. Xero, the underdog, is nipping at the heels of Intuit, offering particular appeal to the next generation of entrepreneurs and accounting professionals who are using the latest mobile and cloud business tools. Made for the cloud and right at home on mobile, Xero pairs its innovative side with its practical side. The way reconciling works in Xero mirrors the way it works on paper, albeit with a few steps thankfully cut out – such as clumsy spreadsheets and Pendaflex files, for those of us old enough to remember.

If you’re ready to make the switch from spreadsheets, pen and paper, or legacy desktop software, you should consider Xero before jumping right into QuickBooks Online. Xero’s scalable pricing can grow with your business, remaining cost-effective at every stage of your company’s growth.

Xero’s ability to turn the keys over to an unlimited number of users and its wealth of integration options with other innovative business tools such as Square, ZenPayroll and Google Docs make it a great choice for your small business accounting needs.

Unsure which big name in small biz accounting works for you? Compare Xero vs. Quickbooks head-to-head with user reviews on GetApp, or go ahead and sign up for a no-strings-attached trial of each.

Visit GetApp Here.

Shares fall led by growth stocks; Xero drops to 9-month low

Suze Metherell for the National Business Review writes: New Zealand shares edged lower as investors shunned growth-orientated stocks in favour of companies offering a steady yield, led by accounting software developer Xero.

The NZX 50 Index fell 1.857 points, or 0.04 percent, to 5112.386. Within the index, 18 stocks fell, 19 rose and 13 were unchanged. Turnover was $118.8 million.

Investors sought companies which offer a yield over growth-orientated stocks, which have fallen out of favour in recent months after making big gains in the first quarter of the year as analysts question their high valuations relative to earnings ahead of next month's reporting season when they will get a steer on how firms are tracking.

Xero fell 4.7 percent to $24.50, its lowest since October, and led the benchmark index lower. [snip]  The article continues @ The National Business Review, click here to continue reading...

4 Tools to Simplify Payroll

Sara Angeles for Business News Daily writes:  Payroll can be a nightmare. From figuring out wages and deductions to keeping up with regulations, vacation days, contractor rates and other details, the minutiae of processing payroll can overwhelm any business owner. Not only that, but many of the payroll solutions available are too complex and complicated for a small business' needs. Instead, here are four small-business-friendly payroll tools that will take the legwork out of paying your employees, while cutting your payroll time.

1. RUN Powered by ADP Mobile Payroll

No need to sit around the office stressing over payroll. Get employees and contractors paid quickly, and on the go, with RUN Powered by ADP Mobile Payroll. This mobile app lets you access RUN, which is ADP's online payroll service, through your iOS or Android device. This app offers the same features and security as the Web-based version of RUN and doesn't require any technical or payroll skills to get the job done.

How it saves time: If you have Internet access, you can do your payroll with RUN's full-featured mobile app. It offers a convenient way to manage and process payroll with a system that PC Magazine calls "exceedingly simple to understand and use." Despite being designed for mobile devices, the RUN app is jam-packed with accounting and HR features, such as the ability to calculate employee earnings and deductions, as well as federal, state and local taxes. Other features include pre-defined rates; distribution by department; vacation, sick and personal time tools; employee records; and HR terms and definitions.

How to get started: RUN Powered by ADP Mobile Payroll is available to clients of RUN Powered by ADP. To get started, download the app at the Apple App Store or Google Play app marketplaces, then sign in with your RUN login information.

Cost: Contact ADP or complete this form for a price quote.

2. Snap Payroll by Intuit

Calculating paychecks doesn't have to feel like rocket science. Do it in minutes with the Snap Payroll by Intuit iOS app.

How it saves time: Skip the spreadsheets and deduction databases. Snap Payroll eliminates the need to endlessly calculate paychecks and research regulations. Simply choose the employee's state, and enter the hours worked and pay rate. The app will then automatically calculate pay and any applicable deductions. This includes disability insurance and federal, state, local, Social Security and Medicare taxes. In addition to crunching the numbers for you, Intuit makes sure your paychecks are always correct by automatically updating the app with the latest payroll and tax regulations — so you don't have to.

How to get started: Download the Snap Payroll app from the Apple App Store. Select a state and complete the brief payroll wizard with your business and employee information.

Cost: Free

3. SurePayroll

Just because you need a comprehensive payroll solution doesn't mean it needs to be difficult to use and time-consuming. SurePayroll, a Paychex company, is a full-featured, easy-to-use online payroll service designed for small businesses. It can do everything from calculate wages to complete regulation compliance and payroll record keeping.

How it saves you time: SurePayroll processes your payroll and files your payroll taxes, saving you the stress of doing it yourself. First, SurePayroll lets you pay your employees in three steps: enter hours, review the information and click Approve. You have the choice of paying employees either by direct deposit or by printing checks. Second, SurePayroll makes managing payroll taxes a breeze. The service will automatically calculate, file and pay federal, state and local payroll taxes on your behalf. It will also post W-2s and 1099s at the end of the year (which you can review and approve before finalizing) to eliminate self-processing time and provide 24/7 access. SurePayroll is also available on iOS and Android devices, making it easy to complete your payroll wherever you are.

How to get started: Go to surepayroll.com, click on the Enroll Now button and enter your business information to sign up.

Cost: Contact SurePayroll for pricing information, or enter your payroll information (number of employees and payroll frequency) here for an instant price quote. The quote calculator shows that a small business with five employees and a biweekly pay period will cost approximately $40.

4. ZenPayroll

There's more to payroll than just paying your employees. ZenPayroll is a cloud-based payroll solution that aims to make paying your employees as simple and intuitive as possible, while also taking the administrative burden of payroll off of your shoulders.

How it saves you time: In addition to completing common payroll tasks like wage calculations, paying employees and automatic tax filing, ZenPayroll streamlines related tasks and processes. This takes a huge chunk of payroll work off your hands. For example, instead of having to tend to employee administrative needs yourself, you can use ZenPayroll to create employee accounts for self-access to their documents, forms and information, such as paystubs and pay histories. ZenPayroll also integrates with business apps you likely already use, such as accounting solutions QuickBooks, Freshbooks and Xero; time and attendance software TSheets, WageBase/When I Work, Deputy.com and NimbleSchedule; and HR management platform Namely.

How to get started: Visit zenpayroll.com, enter your company name on the homepage and click on the "Get started for free" button. Complete the registration form and request an invitation for a free trial.

Cost: ZenPayroll is free for the first two months, and then costs $25 plus $4 per person for the first 10 payees then $2 per additional payee.