Benefits of Payroll Outsourcing Services: 5 Reasons Why CPA firms Outsource their Payroll

Payroll outsourcing services have enormous benefits, especially for CPAs looking to scale up their firms. CPA firms often find constantly upgrading to the latest software tools financially draining. Sometimes, they also get caught up in the accounting maze and miss out on making the most out of expansion opportunities. Also, once they start attracting more clients, they face the challenges pertaining to the lack of staff, infrastructure, and software, alongside the expenditure they bring along. And there is also a huge concern regarding data security.

Employees’ salary is one of the major variable expenditures of any organization accounting for nearly 50% or more of its revenue? From maintaining the morale of employees to the company’s financial stability, payroll plays a huge role. Payroll processing remains a top priority irrespective of whether you are a small accounting firm in its early stages or a large practice handling millions of dollars worth of business. Not only is it crucial to draw up an income statement, but needless to say, happy employees are those who are paid on time.

Accounting is often perceived as a cumbersome task creating hassles if not managed adequately. Especially when you run a CPA firm, you know how it becomes crucial to address its accounting needs effectively. Proper accounting management is essential for tracing and monitoring business growth, and any negligence could affect its financial health.

Moreover, payroll management isn’t always profitable for firms that offer specialized services, especially in niche areas like industry-specific accounting, environmental accounting, or forensic accounting. Payroll process outsourcing companies can help your accounting firm steer in the right direction. Here are five ways in which you can benefit from payroll outsourcing services.

SAVE POTENTIAL TIME

Irrespective of how many employees you have, payroll processing could demand time and attention to detail. And that comes at the cost of valuable time, which your accountants can now spend on the specialized work they are best trained for. You can also outsource additional tasks such as new hire reporting, etc., and choose how you would like to be contacted. They will hardly reach out to you just about once per pay period to notify you that payroll has been successfully processed. The complexities of payroll processing can take up a significant time daily and weekly, and you can’t make it up elsewhere. It can take a lot of your precious time, be it calculating payroll amounts, preparing and remitting state & federal payroll taxes & returns, or distributing paychecks simply after printing and signing.

REDUCE COSTS

Processing payroll could be a costly affair, and you need more than just a workforce to run the show. Moreover, your payroll team should keep themselves updated with all the changes pertaining to tax policies, deadlines, etc., prone to penalties. With payroll processing outsourcing, you are not only free from in-house staffing but also from what it takes to set up proper infrastructure and the latest technology. Payroll processing outsourcing companies offer end-to-end accounting solutions with their internal setup. You can save a lot of money by outsourcing to a professional service provider as they provide payroll services at a pricing model. Having in-house accountants take care of payroll can be a far more expensive undertaking that includes salary, training costs, benefits, and office infrastructure. The accounting firms that have partnered with us find outsourcing to make more sense financially.

GET ASSURANCE FOR DATA SECURITY

Payroll processing involves dealing with lots of information, including personal data of employees, their salary details, etc. It can be risky and complicated to deal with it. They are prone to potential dangers such as identity theft, data breach, and tampering with company records. With outsourcing, you need not worry about the endangered accounts and data and the risks of being leaked. With payroll outsourcing, data security is assured, and outsourcing companies help keep your accounts safe from mismanagement and breech. Client data is highly confidential, and payroll outsourcing providers ensure that they remain secured, whether complex or voluminous.

LEAVE IT TO THE EXPERTS

Considering how payroll is a time-consuming task, a high degree of expertise and accuracy is essential to process it and identify errors, even when software solutions are in use. Payroll outsourcing service providers have a team of experts accustomed to handling hundreds of client payslips month after month. Payroll outsourcing guarantees error-free and timely processing of your employees’ salaries. Payroll processing outsourcing companies employ professionals who know payroll processing inside out. They specialize in the complexities of payroll processing, taxes, and compliance with government regulations. They bring expertise in payroll processing-related areas, such as Knowledge of 401(K) regulations & integration with payroll deductions, updating W-9 forms, and adjusting accurate tax deductions. They also help manage employee withholdings & submit them to the proper government entities’ benefit programs and know how to handle FICA, social security, and Medicare deductions. Apart from being well-trained to process benefits enrollments alongside updating federal, state, & local tax guidelines and adjusting payroll figures, they are also experts in calculating and submitting quarterly and year-end payroll taxes.

FORGET COMPLIANCE WORRIES

Keeping up with payroll-related compliance norms can get tricky for accounting firms, and specialized expertise can help prevent legal hassles. Most businesses consider peace of mind with regulations crucial, irrespective of the number of employees. Payroll compliance can be complex given the frequently occurring changes and missing out on deadlines can attract heavy penalties. Expert payroll accountants at payroll outsourcing companies are fully versed in all compliance-related matters and assure you of a hassle-free experience as they can also manage statutory regulations. Payroll errors can be expensive and frustrating and lead to audits and penalties- situations nobody expects. Professional payroll processing outsourcing companies are obligated to stay current with rules, regulations, and any changes in tax rates for all geographies. Your payroll service providers recruit experts with an excellent grasp of payroll rules & legislation to deal with any tax concerns arising from payroll easily.

Must Read: The Ultimate Guide for CPAs to Decode Payroll Outsourcing Services

OUTSOURCE TO QXAS TODAY TO DELIVER THE PAYROLL EXPERIENCE YOUR EMPLOYEES DESERVE

QXAS is the one-stop destination for everyone looking for a dedicated team of highly experienced accountants who

• can smoothly manage payroll
• takes care of local taxes, laws & compliance,
• guarantees data security
• has a well-equipped with a user-friendly platform & a transparent pricing structure.

WHY CHOOSE QXAS TO OUTSOURCE YOUR PAYROLL?

• More than 14 years of experience delivering outsourced payroll solutions to clients across industries and geographies
• With specialization in catering to high-volume payroll processing requests, our team of experts has processed over 1,000,000 timesheets annually
• First GDPR compliant payroll outsourcing company in India which is also affiliated with prestigious accountancy organizations like ACCA
• Fully compliant with ISO 27001 for information security and ISO 9001 for quality
• A highly trusted and successful Payroll outsourcing company with highly efficient, resolute, and experienced accountants