Payroll Services for Accountants: What Can You Expect from Your Outsourcing Provider?

Payroll services for accountants have grown leaps and bounds in demand over the last few years, particularly post the global coronavirus pandemic.

Payroll outsourcing is thus a trend to look out for in the next five years. A peek at the above numbers indicates that payroll outsourcing could be the next big thing in the accountancy sector and the only probable sustainable solution for accountancy firms to operate, grow, and earn profits in the post-pandemic world.

To reap the benefits of handing their payroll to experienced third-party professionals, more and more accountancy practices have been getting aboard the outsourcing wagon. However, before finalising the outsourcing decision, accountants must understand the outsourcing process in detail and know what to expect from their outsourcing provider.

How Does Payroll Outsourcing Work?

Many accountants make the mistake of assuming that outsourcing is merely the process of finding a payroll outsourcing services provider. However, there is more to it than just that. In fact, the process of finding an outsourcing partner itself is quite tedious and needs comprehensive planning and strategy.

Even after you have found a payroll service provider to partner with, your responsibility does not end there. Regular communication and feedback are essential to facilitate a long-term outsourcing association and get the best results.

You may have read several articles listing the detailed process of finding the right payroll outsourcing partner for your firm. But what happens after you have found one? Let’s look at the step-by-step process of how payroll outsourcing works.

Step 1: Once you have found and finalised an outsourcing firm for your payroll needs, the first step is candidate sourcing. Top outsourcing companies providing payroll services for small businesses have a repository of skilled and experienced payroll specialists working offshore. The outsourcing firm shares the profiles of some of its best candidates with the accountancy practice.

Step 2: Contrary to the belief that outsourcing leads accountants to lose control, you can shortlist and interview candidates to choose the best fit for your organisation. These interviews are conducted virtually and arranged by the outsourcing provider.

Step 3: Once you finalise the right candidate for your team, it is time to sign the contract with your provider. Make sure you read the entire contract thoroughly before signing it. If you have any specific requests or regulations, get them added to the contract immediately.

Step 4: The next step in the payroll outsourcing process is to onboard your offshore team. Although these resources join your team virtually, it is important to introduce them to your team and conduct a formal induction to get them started.

Step 5: Even after your offshore experts begin working for you, it is your responsibility to communicate with them and provide regular feedback.

Must Read: Making Payroll Profitable: Decoding Payroll Outsourcing Services for Accountants

What Can You Expect from Your Payroll Service Provider?

Now that you know the detailed process of outsourcing your payroll, let’s look at the typical responsibilities of the outsourcing firm. There are multiple providers in the market claiming to offer the best payroll outsourcing services. However, how a firm understands your requirements and tailors its services to suit your needs makes a huge difference.

Once you have signed the contract with a payroll outsourcing firm, here’s what you can expect from them.

Strategic Plan

Outsourcing is a tactical association and requires a strategic plan for its effective implementation. You may already have a plan to execute your payroll outsourcing association, but does your outsourcing provider have it too?

For instance, how does your outsourcing provider plan to address your queries and issues? Do they expect you to speak to their standard client servicing team, or do they plan to provide you with a dedicated manager? How do they plan to go about communication or handling employee absences?

The most important thing to expect from your outsourcing provider is a strategic account management plan. This will give you a clear idea of how professional they are and how much they value you as a client.

Technical Support

One of the significant reasons accountants and accountancy practices outsource payroll is its technological advantage.

Technology is evidently the future of payroll, considering the rising need to automate complex payroll calculations. However, not all practices can afford to buy the latest payroll software and train their in-house staff on its usage. This is where outsourcing can be crucial.

Outsourcing firms providing payroll services for accountants understand the complexity of furlough calculations and help make them simpler through technology. Outsourced payroll specialists are trained on multiple payroll software so that you can easily integrate the most suitable one into your processes.

Regular Communication

The key to a productive and long-lasting outsourcing partnership is effective communication.

Just like you need to communicate with your offshore team regularly, you can expect the same from your outsourcing provider. These catchups must discuss the association, get feedback about the candidates, raise concerns and issues, and review potential extended contracts or the need for additional services.

Grievance Redressal

It’s true, a world-class payroll outsourcing services provider will take care of everything end-to-end so that you do not encounter complaints or issues at any point during the partnership. However, certain factors are out of control, and sometimes, things go haywire. How does your outsourcing partner plan to handle this situation?

Ask your payroll partner if they have a grievance redressal plan in place. Speak to them and understand how they plan to go about the process in different situations. This will help build a sense of security and trust, thus nurturing the association further.

Summing Up

A successful payroll outsourcing partnership can foster only when both companies shoulder their responsibilities effectively. To enjoy dedicated payroll outsourcing services with QXAS, call us at +44 208 146 0808 or log on to Outsourced Accounting, Bookkeeping, and Payroll Services | QXAS UK (qxaccounting.com).