Top 7 Reasons Why CPAs Should Start Outsourcing Payroll

In today’s digital age, the ability to automate almost any process has become a key differentiator between businesses. The same goes for payroll. While CPA firms can offer their clients a high-quality service tailored to their needs, payroll outsourcing can be a real game changer, especially for those struggling with the burden of talent shortage.

Many CPA firms outsource payroll because it allows them to focus on more important things, like providing financial advice and implementing strategies to help their clients grow their businesses. Hiring an outsourced payroll services company also allows you to take advantage of new technology that might make payroll processing easier and more accurate. Top CPA firms that delegate their payroll to an outsourced payroll services provider have achieved increased profitability and efficiency.

If you’re running a CPA firm, a million things might be on your to-do list. Payroll probably isn’t at the top of that list. In fact, it might not even be on your radar. But it should be. Outsourcing payroll can be highly beneficial to your CPA firm when you choose the right outsourcing service provider. Here are some of the top reasons to outsource payroll:

1. Save Time

There are many reasons to outsource payroll, but one of the most important is that it can save you a lot of time. You don’t have to worry about tedious tasks such as keeping track of employee hours, calculating paychecks, or preparing tax documents when you outsource payroll. This can free up a lot of your staff’s time so that you can focus together on expanding your firm. If your in-house team is doing payroll, it’s taking up valuable time that could be spent on other aspects of your business. When you outsource, someone else takes care of all the details for you. All you have to do is provide employee information and approve the final product.

2. Mitigate Errors & Risks

Another benefit of payroll outsourcing is that it can help you avoid mistakes. If you’re doing payroll processing for your clients in-house, there are chances for errors that can cost you money in fines or penalties and might also affect your credibility. But when you outsource payroll, you can rest assured that everything will be done correctly, as you have delegated the tasks to experts with ample experience. This can give you peace of mind and help you avoid costly mistakes. Outsourcing payroll can save you a lot of time and hassle. It’s a smart choice for any business owner who wants to focus on running their business instead of dealing with payroll administrative tasks.

3. Save Money

Outsourcing payroll can save your business money in several ways. Perhaps the most obvious way is that it can help you avoid the high costs associated with maintaining an in-house payroll department. But there are other ways as well. For example, outsourcing can help you utilize economies of scale, lowering overall costs. Outsourced payroll services can actually save you money in the long run too. You could owe the government money if you make mistakes when calculating taxes or withholdings. That’s money that could be better spent elsewhere in your business. Additionally, by outsourcing the payroll process, you can free up valuable time and resources that can be better spent on other areas of your business. You will be able to save up to 50% or more of the operational costs as you will pay only for the services and not bear the hiring, training, and infrastructure charges.

4. Shift Focus on Your Core competencies & Growth

One of the most important aspects of running a successful business is focusing on your core competencies. This means devoting your time, energy, and resources to the areas of your business that generate the most revenue and profit. Outsourcing payroll is one way to free up your valuable time and resources so you can focus on what you do best. When you outsource payroll, you hand off all the complex and time-consuming tasks associated with processing employee paychecks and tax filings to a team of experts. This leaves you and your key resources free to focus on other aspects of your business.

5. Free Up Resources

You free up valuable resources within your accounting firm when you outsource your payroll. This can include human resources, accounting, and even IT staff. By outsourcing Payroll, you can focus these resources on more strategic tasks and even consider offering additional services that aren’t currently in your repertoire. Additionally, by outsourcing Payroll, you can take advantage of the provider’s economies of scale and expertise. This can lead to cost savings and increased efficiency for your organization.

6. Data Security & Compliance

There are many risks associated with managing payroll in-house, including compliance risks, data security risks, and operational risks. By outsourcing payroll to a trusted provider, you can help reduce these risks. Compliance risk is the biggest concern for many businesses when it comes to managing payroll in-house. There are a lot of rules and regulations that must be followed, and it can be easy to make a mistake. This can lead to hefty fines and penalties. When outsourcing payroll, you can rest assured that your provider will follow all the necessary compliance requirements.

Data security is another important consideration. Your clients’ payroll data contains sensitive information about your employees, such as their Social Security numbers and bank account information. If this data were to fall into the wrong hands, it could be used for identity theft or fraud. When you outsource payroll, you can be sure that your data is safe and secure.

Operational risk is also a concern when managing Payroll in-house. There is always the possibility of human error when manually processing payroll. This could lead to incorrect payments being made to employees or tax errors being made on filings. When you outsource payroll, you can avoid these mistakes and have peace of mind knowing that your Payroll Processing Outsourcing Firm is handling it correctly.

7. Expertise

Reputable Payroll Processing Outsourcing Firms bring expertise in the areas listed below:

• 401(k) regulations & integration with payroll deductions
• Adjusting accurate tax deductions and updating W-9 forms
• Estimating and raising quarterly and year-end payroll taxes
• Handling voluntary and involuntary staff withholdings and raising them to the appropriate government entities or benefits
• Maintaining eligibility for tax credits and reducing amounts owed
• Tracking employee benefits eligibility dates
• Processing benefits enrollments, Handling FICA, Social Security, and Medicare deductions & payments
• Updating federal, state, and local tax guidelines
• Adjusting payroll figures as required for compliance

Payroll outsourcing experts are also trained at verifying data accuracy, spotting errors, and correcting them at the earliest.

How Much Does Payroll Outsourcing Cost?

Payroll outsourcing for CPA firms is more affordable than you think. The pricing depends on several factors, such as the expertise, location of the service provider, their experience, and the software they use, etc. Most outsourcing services providers offer several engagement models, such as ad-hoc or FTE models, and you can choose the ones that suit your firm’s needs.

Is outsourcing payroll a good idea?

Outsourcing payroll may help CPA firms save time and money while ensuring compliance and the highest levels of data protection. Not having to spend long hours on tedious tasks enables your key resources to focus on business growth initiatives. Moreover, improved accuracy and efficiency can prevent costly penalties.

What are the risks associated with payroll outsourcing?

Like any other function, outsourcing Payroll might also be prone to certain risks. Some of them include payroll errors, incorrect deductions, data breaches, and non-compliance. You can mitigate these risks by partnering with an experienced Payroll Processing Outsourcing Firm that ensures the highest level of data security and compliance.

Final Thoughts

There are many reasons why businesses choose to outsource their payroll. The most common causes include reducing costs, increasing efficiency, and improving compliance. When done correctly, outsourcing Payroll can save your business time and money. If you are considering U Payroll Outsourcing Services, be sure to do your research and find a reputable provider that meets your specific needs.

CPA firms are always looking for ways to make their business more efficient. Outsourcing payroll is one way to do that. Payroll Outsourcing can help CPA firms save money, time, and resources by offloading the task of payroll processing from their employees and instead hiring a third party to do it for them.

Outsourcing payroll services are an ideal fit for growth-focused CPAs and accounting firms because they do not require hiring additional staff or spending on new technology. Instead, they can simply focus on what they do best: providing high-quality advice and services to clients. Outsourcing payroll can be a great way to cut costs while still maintaining the same level of service your clients expect. This is because outsourced payroll services providers are available 24/7, so you can rely on them when you need them most—you don’t have to worry about them being unavailable when you’re trying to make payroll or file taxes.

But outsourcing isn’t just about saving money and keeping your business running smoothly and efficiently, but also staying compliant and maintaining the highest levels of data security. That’s why it makes sense for CPA firms who want to take advantage of the benefits of Payroll Outsourcing Services.

How To Get Started with Payroll Outsourcing Services?

If you want to partner with the best Payroll Outsourcing Services, your search ends with us. While you might have several choices for an outsourced payroll processing partner, we bet you won’t find anyone better than us. For over a decade, we have been providing the best-quality payroll support for CPAs and accounting firms in the USA without the premium price tag. We have multiple engagement models and a highly experienced talent pool from which you can interview and onboard preferred offshore staff to handle your firm’s payroll processing requirements.

THE QXAS DIFFERENCE

• More than a decade of experience delivering offshore payroll processing services
• Specialization in catering to high-volume payroll processing requests of CPAs and accounting firms. We have processed over 1,000,000 timesheets annually.
• SOC-2 compliant payroll outsourcing provider affiliated with prestigious accountancy organizations like ACCA & ICAEW.
• Fully compliant: ISO 27001 certified for information security & ISO 9001 for quality