When managing more extensive projects, managing payroll systems gets critical to accounting firms. Outsourcing payroll management can be beneficial as it saves time and increases the productivity and efficiency of the workforce, enabling accounting firms to serve their clients better. Besides, payroll outsourcing offers security, efficiency, and adequate cost control. But to have successful results, accounting firms must associate with a trusted outsourcing service provider.
It is equally important for accounting firms to understand that payroll operations are difficult, and when it comes to outsourcing, finding and employing a payroll outsourcing agency that is reliable and affordable gets even more challenging. However, outsourcing payroll would be an ideal option to streamline HR and accounting management and save additional costs.
Let us understand outsourcing payroll and eight reasons for opting for it to transform accounting firms.
What are payroll outsourcing services?
Payroll outsourcing implies employing an external agency to operate all payroll-related activities. Payroll outsourcing is generally done for cost reduction and to save time from dealing with payroll activities. Hiring an outsourcing agency to manage payroll activities suggests that the outsourcing agency will deploy their payroll experts, purchase fitting software for payroll operations and remain updated about complex taxations and compliance.
Payroll outsourcing services benefit all kinds of accounting firms regardless of whether they have a large, mid-range, or small payroll clientele.
Activities that payroll outsourcing services carry out
Generally, payroll outsourcing services include performing tasks related to payroll and other payroll-related operations. These tasks include:
Top 8 reasons for choosing payroll outsourcing services
Payroll outsourcing services enable accounting firms to leverage their professional expertise, time, and resources on core and important strategies. Let’s examine eight key reasons for choosing payroll outsourcing services in 2022.
Carrying out payroll operations error-free is challenging. The payroll division looks into complicated and nuanced details, such as new recruitment, training, terminations, and deductions. On top of that, monitoring changes in tax regulations make the job even more difficult.
Outsourcing payroll operations to an outsourcing agency spares your accounting firms from fretting about these issues. It also frees up your in-house team, which can now be channelled towards more important strategies.
Small and big accounting firms often have heavy penalties due to errors in payroll processing. Payroll mistakes must be addressed with seriousness as filings with omissions, or incorrect details creates intense situations, which can lead to paying heavy penalties.
Since experts in the outsourcing agency stay abreast with the current laws, they can easily handle calculations and filings at an affordable price which, if managed otherwise, would cost hours.
Small or medium-sized accounting firms can save several pounds by outsourcing their payroll operations and have effective results by employing outsourcing service providers.
Compared to spending on hiring and training, outsourcing payroll services is a cost-effective decision, saving significant money. A few of the activities are payroll calculation, payroll software purchase price, calculation of taxes and returns, preparing reports on new recruitments and terminations, and training & support that can easily be outsourced through a reliable outsourcing agency. This makes your accounting firm viable as you can recommend cost-saving solutions to your clients compared to other outsourcing players in the market.
One of the biggest risks in payroll operations is theft which can cost a fortune, and even if the workforce is trustworthy, payroll requires extensive security.
Payroll outsourcing agencies are known for having such measures in place. With state-of-the-art technologies, alerts are raised in case of payroll fraud and manual intervention. Data storage, multiple server locations, and a backup facility prevent potential payroll fraud.
With heavy investment in innovative technologies, outsourcing payroll-related activities to an external agency is smart to build clients’ trust in your accounting firm as you provide complete security.
Outsourcing payroll services give accounting firms access to professional experts who spend a great deal of time researching government regulations. Prominent payroll agencies worldwide have experts who can manage benefits and deductions in the payroll.
Besides, the team takes care of worker’s compensation, handling employee grievances and human resources, which is an added advantage for a business.
Adhering to the compliance norms established by the government is one of the key reasons for payroll outsourcing. Every accounting firm must adhere to laws regarding holidays, wages, work hours, and benefits to deliver efficiently.
Payroll outsourcing agencies are equipped with the technological platform with provisions for compliance-related tasks, which help clients to avoid litigations and penalties. Moreover, accounting firms do not necessarily have to hire separate experts for compliance.
Errors in tracking workforce attendance can lead to wage miscalculations, leading to employee dissatisfaction and higher attrition. Manual tracking of employee shifts can be taxing. Apart from that, the risk of data loss and higher operating costs are also involved. Outsourcing enables the job of accounting firms by providing calculated data that can save time and reduce the turnaround time. Accounting firms can easily get payroll reports and accurate overtime figures to provide their clients with valuable insights.
Post-pandemic employers offer several benefits to comply with the wage and labour regulations and ensure retention. On the other hand, the HR division carries out basic tasks such as insurance, compensation, and employee satisfaction. Thanks to outsourcing, external agencies offer packages for services that manage basic tasks, along with the challenging parts of administration, from enrollment to compliance.
The Bottom Line
With an effective strategy in place, an accounting firm can serve its clients in the best way possible. If managing payroll for your clients is keeping you from focusing on growth and expansion, then it is wise to go for outsourcing as it can bring profitability, productivity, and efficiency. Post-pandemic, outsourcing is transforming the nature of operating departments, so many outsourcing agencies are available that provide payroll-related activities.
Fourfold Global offers complete payroll outsourcing solutions to our clients from different industries. With a client-centric approach and absolute record, we handle payroll operations for large projects. For more information, email us at firstname.lastname@example.org or call us at +61 2 9055 3838.