A payroll accountant is a valuable member of your small business team. According to the Small Business Administration, 71% of small businesses outsource their payroll and tax prep. Here are four lessons from a payroll accountant that can help you to manage your payroll better.

As a small business owner, you likely have a full plate, but if you manage payroll yourself, you have to make room for staying on top of the issues that affect payroll. Payroll laws frequently change, which can affect how you manage your payroll. Most small business owners outsource their payroll management because it can be daunting to keep up with the constant flow of changes. However, you must keep up with the changes for the sake of your business.

You must keep your payroll records for three years according to the Fair Labor Act; even if the employee only worked for a short period of time, you must maintain the records for three years. The IRS likes seven years of records if you are called for an audit. You must keep good records of your payroll.

Keep payroll records under lock and key or if you manage them electronically, be sure that you have the best encryption software so that they're protected. Payroll information is very valuable to cyber criminals and other bad actors.

Making a payroll as automated as possible is the easiest way to manage payroll. Simple, effective processes are the best way to manage payroll. Use available technology to ensure that payroll is done on time without errors.

Switch payroll to direct deposit instead of handing out checks. It simplifies the process and cuts out a lot of the work. Be sure to always double-check data before you hit send.

Payroll is something you should always be transparent about. If there will be changes to your payroll, notify employees well in advance. If there is a payroll mistake, acknowledge it as soon as you realize it has occurred.

The best way to avoid payroll problems is to outsource your payroll needs to a qualified payroll accountant. Call Riley's Tax Service today to learn more.