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Additionally, using an automated bookkeeping solution makes filing taxes at the end of the year considerably less time-consuming. It’s a key prerequisite to using time-saving accounting software effectively and comes with the added benefit of preserving the liability protection afforded to an LLC.
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They often used spreadsheets or outdated software to perform the tasks. This approach was time-consuming, had many errors, and lacked the flexibility to accommodate changing employee needs or regulatory requirements. In these systems, payroll administrators were responsible for calculating wages, taxes, and deductions.
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