Everyone’s happy when payroll tasks are done correctly. But let’s face it, an accountant didn’t enter the profession to manage extensive paperwork and to keep track of payroll documents. From entering employees’ details in the software to directing salary to their checking accounts, these tasks consume a lot of time and can be easily outsourced.
Moreover, unprecedented growth in the accounting practice calls for the clients’ payroll to be handled efficiently. In such scenarios, payroll outsourcing for accountants is a viable option. If you are new to the process, here are five things you should know.
Outsourcing reduces costs.
Hiring payroll specialist staff is expensive, and salaries are just the tip of the iceberg. Employers also much pay overhead expenses, employee benefits, office equipment, and other miscellaneous taxes. Also, lets not forget software training and hardware upgrade costs.
Outsourcing saves time.
Payroll, although profitable, is a time-consuming task that requires the staff to have expertise in specialist software. If the function is outsourced, the team can use the free time to deliver lucrative services, and do so in a more efficient time frame.
Outsourcing gives access to qualified payroll specialists.
Payroll is an over-regulated function which makes it extremely hard for accountants to keep up-to-date. Rather than having only one or two team members running the payroll function, the accountants can gain access to a more experienced group of payroll professionals at more cost-friendly rates. Such an arrangement means the accountants don’t need to look after periodically training them or bearing overhead costs for them.
Outsourcing allows accountants to up-sell.
Payroll outsourcing for accountants frees up their time and enables them to pitch high-margin services such as tax preparation, financial analysis, software consulting, and more. Since the staff isn’t invested in labor-intensive jobs anymore, the accountants can drive more revenue streams by up-selling.
Moreover, clients would prefer working with an accounting practice that is a one-stop shop offering virtual/outsourced CFO services and managing tax and financial jobs. Such one-in-all-packages help in retaining more clients and improving the annual cash flow.
Outsourcing helps accountants build strong client relationships.
Client servicing requires time. Unfortunately, accountants get entangled in so much that they are unable to give time to building strong client relationships. What they don’t realize is that payroll outsourcing for accountants is a cost-effective opportunity for them to increase revenue from their existing clients, and in the process sign up new ones.
By outsourcing the time-consuming payroll tasks, the accountants can focus on weekly client calls or meetings, attending conferences and events to exhibit the business, and to network.
The wave of payroll outsourcing for accountants continues to thrive in the US, and it is only for the benefit for accountants like you who are struggling with employee retention, rapid technological changes, and increasing client demands.