Payroll Processing Outsourcing: 5 Things You Didn’t Know

Everyone’s happy when payroll processing is done right, isn’t it?

But let’s face it – an accountant didn’t enter the profession to manage extensive paperwork and to keep track of payroll legislation. 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.

Yes, that’s right! Moreover, unprecedented growth in the accounting practice calls for the clients’ payroll to be handled efficiently. In such scenarios, payroll processing outsourcing for accountants is a viable option. If you are new to the process, here are five things to know about outsourcing your payroll:

1) It reduces costs

Hiring payroll specialist staff is expensive. And salaries are just the tip of the iceberg. Accountants are also responsible for bearing overhead expenses, employee benefits, desk space, and other employment costs. And let us not forget software training and upgrade costs.

Payroll processing outsourcing for accountants is feasible if minimizing expenses is the need of the hour. An outsourcing provider will already have taken care of employee and software costs. The accountants also don’t need to worry about buying licensed payroll software as the outsourcer is equipped with the right resources.

2) It saves time

Payroll, although profitable, is a time-consuming task as it requires the staff to have expertise in specialist software. If the function is outsourced, the team can use the free time to deliver lucrative assignments, and that also in less turnaround time.

3) It 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 much cost-friendly rates. Such an arrangement means the accountants don’t need to look after periodically training them or bearing overhead costs for them.

4) It helps accountants to upsell

Payroll processing outsourcing for CPAs 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 upselling.

Moreover, clients would prefer working with an accounting practice that is a one-stop shop offering virtual CFO services and managing tax and financial jobs. Such one-in-all packages help in retaining more clients and improving the annual cash flow.

5) It helps accountants to build strong client relationships

Client servicing requires time. Unfortunately, accountants get entangled so much in managing books and payroll that they are unable to give time to building strong client relationships. What they don’t realize is that payroll processing outsourcing 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, the accountants can focus on weekly client calls or meetings, and attend conferences and events to exhibit the business and network.

Closing thoughts

The wave of payroll processing outsourcing continues to thrive in the US, and it is only for the benefit of accountants like you who are struggling with employee retention, rapid technological changes, and increasing client demands.