<h2>Payroll services for small business</h2>
<p>There&#8217;s a lot that goes into running a small business &#8211; and payroll is one of the most important (and complex) parts. That&#8217;s where payroll services come in. Just as <a href="/merchant-services/">merchant services</a> allow you to take payment, a payroll services company provides businesses with solutions for managing employee payroll, taxes, and benefits. This can include everything from processing payroll checks to filing tax returns.</p>
<p>Payroll services for small businesses can be a big help when it comes to keeping on top of all the paperwork and compliance. And since every business is different, there are now many various <a href="/payroll-services/">payroll service providers</a> to choose from. So whether you&#8217;re looking for full-service payroll or a more DIY approach, there&#8217;s sure to be a solution that fits your needs.</p>
<h2>Payroll services definition</h2>
<p>Most businesses need some payroll service to handle employee compensation. An ideal payroll service manages all aspects of employee pay, from tax withholdings to direct deposit. They will also keep accurate records and produce regular reports. This can be a huge relief for businesses, who would otherwise have to handle this complex and time-consuming task themselves.</p>
<p>There are several different types of payroll services, <a href="https://www.guidantfinancial.com/blog/6-reasons-your-small-business-needs-payroll-services/" target="_blank" rel="noopener noreferrer">each with its advantages</a> and disadvantages. For example, some services are designed specifically for small businesses, while others cater to larger organizations. Some services are cloud-based, while others require a more hands-on approach. Ultimately, the best payroll service for your business will depend on your specific needs and preferences. Luckily, there are plenty of options to choose from, so you&#8217;re sure to find a perfect fit.</p>
<hr />
<p><strong>Best Payroll Software &amp; Services for Small Businesses </strong></p>
<p><a href="https://sonary.com/b/paychex/paychex+payroll-services/">Paychex</a> &#8211; Award-Winning SMB Solution 2022</p>
<p><a href="https://sonary.com/b/paycor/paycor+payroll-services/">Paycor</a> &#8211; All-in-one HR solution for success</p>
<p><a href="https://sonary.com/b/bamboohr/bamboohr+payroll-services/">BambooHR</a> &#8211; Streamlined payroll &amp; data in one place</p>
<p><a href="https://sonary.com/b/onpay/onpay+payroll-services/">Onpay</a> &#8211; Flexible and customized packages</p>
<p><a href="https://sonary.com/b/oracle-corporation/netsuite+payroll-services/">Oracle NetSuite</a> &#8211; Automated, cloud-based payroll processing</p>
<hr />
<h2>What is a payroll service?</h2>
<p>A payroll service helps businesses of all sizes by managing employee compensation. There are many types of payroll, but the most common is salary or hourly payroll. Salary payroll is a system where an employee is paid a fixed salary each pay period regardless of the number of hours worked. Hourly payroll is a system where an employee is paid an hourly wage for every hour worked. The ideal payroll service for a business depends on the type of business, the number of employees, and the budget.</p>
<p>Gusto, Paychex, Paycor, and ADP are all popular payroll services that offer different features and pricing options. Small businesses may prefer Gusto because it provides a simple, user-friendly interface and affordable pricing plans. Larger companies may prefer Paychex or Paycor because they offer more robust features such as time tracking and advanced reporting. Ultimately, the best payroll service for a business is the one that meets the specific <a href="/content/how-to-make-payroll-process-improvements/">needs of the company</a>.</p>
<h2>What is the average cost for payroll services?</h2>
<p>The cost of payroll services will vary depending on the size of your business and the services you need. For example, a payroll company may charge a flat fee per payroll processing, or they may charge a percentage of your payroll.</p>
<p>They may also charge additional fees for services such as direct deposit and payroll tax filing. The best way to determine the cost of payroll services is to request quotes from several companies and compare their rates. However, be sure to ask about any hidden fees or surcharges for an accurate comparison. With a bit of research, you can find payroll services that fit your budget and needs.</p>
<h2>What is a payroll provider check?</h2>
<p>A payroll provider check is a physical check issued to an employee by their employer to cover the cost of their wages. The check is then used to pay for the various payroll taxes associated with the employee&#8217;s position. Payroll provider checks are an essential part of small business accounting, as they help to ensure that all of the necessary taxes are being paid on time.</p>
<p>Without them, it would be straightforward for small business owners to fall behind on their tax payments, which could lead to serious financial problems. Payroll provider checks also help to keep employees&#8217; personal information safe and secure, as the intended recipient can only cash them. This helps to prevent identity theft and other types of fraud.</p>
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<p><strong>Related Articles</strong></p>
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<h2>Benefits of payroll services</h2>
<p>Payroll companies offer various services that can save businesses <a href="https://beenegarter.com/7-benefits-outsourcing-payroll/" target="_blank" rel="noopener noreferrer">time and money</a>. These services typically include payroll tax filing, direct deposit, and employee self-service portals. They may also offer health insurance, 401(k) administration, and time and attendance tracking. Payroll companies often have a team of experts who are up-to-date on the latest tax laws and regulatory changes.</p>
<p>This can save businesses the hassle of keeping up with complex payroll regulations. In addition, payroll companies typically offer discounts on taxes and other fees, and they may also offer flexible payment plans that can help businesses save money. Overall, choosing a payroll company can be a great way to save time and money.</p>
<h2>Final Thoughts</h2>
<p>Payroll services are an essential part of any business, and they help to manage employee payroll and even retirement benefits. Companies like Gusto, Paychex, Paycor, and ADP help companies manage payroll and retirement benefits. These services can be a lifesaver for businesses, as they help to keep track of employee hours, vacation time, and sick days. They also help to process payroll taxes and ensure that employees are paid on time.</p>
<p>In addition, payroll services can also help to manage retirement benefits, such as 401(k)s and IRA accounts. This can be a huge help for businesses, as it takes the burden off of the company to manage these accounts. As you can see, payroll services are a <a href="https://sonary.com/content/6-essential-steps-to-setting-up-your-small-business-payroll/">vital part of any business</a>. Without them, it would be challenging to keep track of employee hours, pay taxes, and manage retirement benefits. Luckily, many different companies offer these services. So if you&#8217;re looking for a way to simplify your business operations, consider signing up for a payroll service.</p>

What Does a Payroll Service Company Do

Payroll services for small business
There's a lot that goes into running...

<p>If you’re running a business or learning bookkeeping basics, two terms you’ll hear often are Accounts Payable (AP) and Accounts Receivable (AR).</p>
<p>They sound similar &#8211; and they’re both about money &#8211; but they play very different roles in your business finances.</p>
<p>In this guide, we’ll break down what each one means, how they work, and why understanding the difference is crucial for keeping your cash flow healthy and your books in order.</p>
<h2>What Are Accounts Payable (AP)?</h2>
<p><a href="https://sonary.com/accounts-payable/">Accounts Payable</a> refers to the money your business owes to others.</p>
<p>Think about the bills you haven’t paid yet.</p>
<p>These are short-term debts to vendors, suppliers, or service providers &#8211; basically, anyone who sends you an invoice for something you’ve purchased on credit.</p>
<h3>Common examples of accounts payable:</h3>
<ul>
	<li>Unpaid supplier invoices</li>
	<li>Utility bills</li>
	<li>Office supplies you bought on terms (e.g., Net 30)</li>
	<li>Freelancer or contractor invoices</li>
</ul>
<p>When you receive a bill and haven&#8217;t paid it yet, it becomes part of your accounts payable. Once you pay it, it’s removed from your AP balance.</p>
<p><strong>In short:</strong></p>
<p>👉 AP = money going out (what you owe others).</p>
<h2>What Are Accounts Receivable (AR)?</h2>
<p><a href="https://sonary.com/accounts-receivable/">Accounts Receivable</a> is the flip side-it, the money that others owe you.</p>
<p>This usually comes from customers or clients who received a product or service but haven’t paid you yet.</p>
<h3>Common examples of accounts receivable:</h3>
<ul>
	<li>An invoice you sent for completed work</li>
	<li>A product delivered with payment due in 15 days</li>
	<li>Monthly retainers or service agreements</li>
</ul>
<p>AR is considered an asset because it represents incoming cash. Tracking AR ensures you follow up on payments and don’t miss out on revenue.</p>
<p><strong>In short:</strong></p>
<p>👉 AR = money coming in (what others owe you).</p>
<h2>Quick Comparison: AP vs. AR</h2>
<table style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 33.3333%; text-align: center;"><span style="color: #ffffff;"><strong>Feature</strong></span></td>
<td style="width: 33.3333%; text-align: center;"><span style="color: #ffffff;"><strong>Accounts Payable (AP)</strong></span></td>
<td style="width: 33.3333%; text-align: center;"><span style="color: #ffffff;"><strong>Accounts Receivable (AR)</strong></span></td>
</tr>
<tr>
<td style="width: 33.3333%;">Who owes who?</td>
<td style="width: 33.3333%;">You owe others</td>
<td style="width: 33.3333%;">Others owe you</td>
</tr>
<tr>
<td style="width: 33.3333%;">Balance sheet category</td>
<td style="width: 33.3333%;">Liability</td>
<td style="width: 33.3333%;">Asset</td>
</tr>
<tr>
<td style="width: 33.3333%;">Impacts cash flow by…</td>
<td style="width: 33.3333%;">Money going out</td>
<td style="width: 33.3333%;">Money coming in</td>
</tr>
<tr>
<td style="width: 33.3333%;">Related to</td>
<td style="width: 33.3333%;">Bills and expenses</td>
<td style="width: 33.3333%;">Invoices and customer payments</td>
</tr>
<tr>
<td style="width: 33.3333%;">Managed by</td>
<td style="width: 33.3333%;">Accounts payable team/bookkeeper</td>
<td style="width: 33.3333%;">Accounts receivable or sales team</td>
</tr>
</tbody>
</table>
<h2>Why This Matters: AP + AR = Cash Flow Control</h2>
<p>AP (Accounts Payable) and AR (Accounts Receivable)  aren’t just accounting terms &#8211; they’re the heartbeat of your cash flow.</p>
<ul>
	<li>If your AP is too high and you’re not bringing in AR fast enough, you may struggle to pay bills.</li>
	<li>If your AR is too high (i.e., too many unpaid invoices), it might look like you’re profitable &#8211; while your bank account is actually running low.</li>
</ul>
<p>When you monitor both, you can make smarter decisions:</p>
<ul>
	<li>When to chase down late payments</li>
	<li>When it’s safe to invest or hire</li>
	<li>When to negotiate better payment terms with suppliers</li>
</ul>
<h2>✅ Final Thoughts: Understanding AP and AR Isn’t Optional &#8211; It’s Essential</h2>
<p>Whether you’re managing the books yourself or working with an accountant, knowing the difference between accounts payable and accounts receivable helps you stay in control of your business finances.</p>
<p>Remember:</p>
<ul>
	<li>Accounts Payable = what you owe others</li>
	<li>Accounts Receivable = what others owe you</li>
</ul>
<p>Tracking both accurately keeps your business healthy, your payments on time, and your cash flow predictable.</p>
<p>And that’s what good business looks like.</p>
<h2>FAQ</h2>
<p><strong>1. Is accounts payable an asset or a liability?</strong><br />
It’s a liability. Accounts payable represents money you owe to others &#8211; it sits on the liability side of your balance sheet.</p>
<p><strong>2. Is accounts receivable income?</strong><br />
Not exactly. It’s recorded as an asset, not income. It becomes income once the payment is received and the invoice is closed.</p>
<p><strong>3. Can a company have both AP and AR?</strong><br />
Yes &#8211; most businesses do. You’re likely both paying vendors (AP) and getting paid by clients (AR) at the same time. Managing both properly keeps your cash flow stable.</p>
<p><strong>4. What happens if you don’t manage AP or AR correctly?</strong><br />
If you ignore AP, you risk late fees, damaged supplier relationships, or even credit issues.</p>
<p>If you ignore AR, you may not get paid on time &#8211; or at all. That can leave your business strapped for cash even if sales are strong.</p>
<p><strong>5. How do you manage AP and AR efficiently?</strong><br />
<a href="https://sonary.com/accounting-software/">Use accounting software</a> like QuickBooks, Xero, or FreshBooks to:</p>
<ul>
	<li>Track invoices and bills</li>
	<li>Automate due date reminders</li>
	<li>Generate reports</li>
	<li>Match payments with transactions</li>
</ul>
<p>Staying organized avoids cash flow surprises and builds trust with both customers and suppliers.</p>

Accounts Payable vs. Accounts Receivable: What’s the Difference?

If you’re running a business or learning bookkeeping basics, two terms...

Justin Estes is a Financial Content Strategist, a recognized small business accountant, consultant, and financial content expert. His background in accounting and finance led to a passion for helping people make the most of their money and matching them with financial products and strategies that enhance their lifestyle. 
Justin’s areas of expertise are investment content, fintech strategy, personal finance research, investment, and marketing for banks and credit unions.