Pros and Cons of Payroll Outsourcing Services: What CPA Firms Need to Know

Deciding whether to opt for payroll outsourcing services can be challenging. While payroll functionality is crucial, other factors such as compliance, data security, and budget could influence the decision-making. Learning the advantages and disadvantages of payroll outsourcing services is imperative to making an informed decision.

Payroll processing has evolved into more than just processing employee payslips. Managing payroll in-house requires an entire team of skilled employees who also have a thorough knowledge of the process and the ability to handle an organization’s payroll administrative tasks. Moreover, other factors include compliance, offering 401K plans, etc. Before you turn to payroll outsourcing providers to process your accounting firm’s payroll, it is necessary to know its pros and cons.

Third-party providers offer payroll outsourcing services to handle your administrative and compliance tasks pertaining to employee pay. This might also include payroll taxes and other payments. Accounting firms opt for payroll outsourcing given these tasks’ tedious, time-consuming nature.

Now getting straight to the point:

What are the advantages and disadvantages of payroll outsourcing services?

POSITIVES FIRST:

It saves your precious time

Payroll processing can consume a lot of your staff’s time. Did you know that 40% of business owners spend over 80 hours per year on payroll, taxes, and other administrative tasks? Outsourcing payroll can help free up your time to focus on growth and core business. Irrespective of the number of employees, the payroll process requires a great deal of time as well as attention to detail.

Time saved is indeed money saved. But outsourcing payroll services also helps save money.

Reduces Operational Costs

Cost cutting is one of the main drivers for organizations that outsource. Payroll outsourcing cost is so low that accounting firms can save up to 70% of operational costs. Recent reports suggest that 59% of businesses consider cost the most significant factor for outsourcing.

Eschews Risks & Penalties

You might be liable to pay fines or penalties for delays in missing deadlines. But with payroll outsourcing services, your partner company will ensure that there aren’t any such delays or mishaps so that you won’t get penalized. The best payroll outsourcing companies help you steer clear of all risks and are up-to-date with the constantly changing rules and regulations. Security is crucial while managing your accounting firm’s payroll function so it can be risky. Moreover, there is also the risk of human error and carelessness that might lead to identity theft and mishandling of sensitive information. You can circumvent these risks by outsourcing payroll services. Global payroll providers stay abreast of data laws and are fully compliant. More importantly, they use cloud technology and have airtight data security measures.

AND CONCERNS NEXT:

 Loss of Control

Accounting firm owners worry that outsourcing their payroll will lead to a loss of control. The primary concern is the security of sensitive employee information. But this shouldn’t stop you from taking the outsourcing path, as most global payroll service providers agree to abide by your terms and conditions of storing and handling your sensitive data. You can easily manage this outsourcing risk by setting timelines, tracking KPIs & metrics, and constantly communicating with the person of contact.

Finding Reliable Payroll Outsourcing Services

Payroll is more than a compliance issue; the complexity that it is also an accounting element makes it the most challenging yet commonly outsourced service. But for accounting firms that have decided to outsource their payroll, the challenge might lie in zeroing in on the right provider. Choosing a payroll outsourcing provider with a solid reputation, top talents, state-of-the-art infrastructure, airtight data security measures, and staff with good communication skills can easily tackle this disadvantage.

THE SMART MOVE: PAYROLL OUTSOURCING SERVICES

Payroll outsourcing services are a savior, given how they are cost-effective and help optimize your CPA firm’s payroll function efficiently. As far as you make the right choice when it comes to the payroll outsourcing company, you will enjoy the enormous benefits of payroll outsourcing services.

YOU WILL REALLY APPRECIATE PAYROLL OUTSOURCING SERVICES FROM QXAS

We understand that you have many options when you want to outsource your payroll. We provide the best-quality payroll support for your CPA firm without the premium price tag. You can interview our candidates and onboard the preferred ones to handle your firm’s payroll within just 48 hours!

THE QXAS ADVANTAGE

• 14+ years of experience delivering payroll outsourcing services
• Specialization in catering to high-volume payroll processing requests. Have processed over 1,000,000 timesheets annually
• First GDPR & SOC-2 compliant payroll outsourcing company in India which is also affiliated with prestigious accountancy organizations like ACCA & ICAEW
• 100% compliant: ISO 27001 certified for information security and ISO 9001 for quality
• A highly trusted & successful Payroll outsourcing company with highly efficient, resolute, and trained accountants