When Should CPAs Outsource Payroll?

Even the most experienced professionals might sometimes find payroll activities to be burdensome. Payroll is a time-consuming task that can also be an additional burden considering how new laws are constantly created and updated. Don’t you prefer utilizing your time and resources to achieve your set objectives? Wouldn’t you rather spend your day focusing on value-added services and growing your business? And did you know that payroll outsourcing is the new norm for nearly 40% of American Businesses?

It is a no-brainer that outsourcing is a great way to shift your focus from tedious admin tasks like payroll. But when should CPAs consider outsourcing their payroll? Continue reading to find out when to consider payroll outsourcing for your CPA firm now.

WHEN YOUR ORGANIZATION LACKS THE RESOURCES

Running out of resources- both personnel and technology to effectively run payroll is one of the most important reasons to outsource payroll. Between 2015-2019, there has been a 300% increase in companies that partially outsource payroll. Per Deloitte’s survey, an average payroll organization employee has 12 years of experience and works overtime of 25 hours every month.

WHEN IT GETS DIFFICULT TO KEEP PACE WITH CHANGING REGULATIONS

Do you want to grow your business but aren’t aware of the ongoing legislative changes that pose risks to your company? No better time to consider outsourcing payroll. With professional payroll outsourcing services, you can improve authenticity and efficiency in payroll work as well as avoid penalties. With constantly changing laws in the payroll sector, it can get hard to keep track. Payroll service providers keep themselves updated with the news, so there are very few mishaps.

WHEN YOU CANNOT MEET DATA SECURITY OR RECORDKEEPING REQUIREMENTS:

Fraud is one of the major concerns for businesses of all sizes, and an average of 5% of US companies’ gross revenue is lost. Irrespective of your strategies, data security and confidentiality are two critical components for payroll processing. And needless to say, Payroll processing errors and security breaches can lead to long-term consequences. An external payroll processing team working with secure platforms and strict passwords for data can help prevent internal breaches and ensure that your clients and investors do not lose faith in your brand. Expert payroll accounts at QXAS, for instance, are fully versed in all compliance-related topics and can help you with any doubts or concerns you may have about payroll compliance.

WHEN IT IS IMPORTANT TO SAVE COSTS

Payroll outsourcing is cheaper than hiring an in-house payroll specialist. Doing it in-house implies investing in equipment and advanced software and offering training to the team. Moreover, accountants also need to stay updated with the changing tax rules, deadlines, etc., without which you are prone to costly penalties. Companies that outsource payroll save 18% more than those that do it in-house. Outsourcing lets you concentrate on your core business and frees you up so you can focus on strategic tasks that could impact your venture’s success. Your budget is always a factor in determining whether or outsource or hire in-house to manage your accounting tasks. Choosing to outsource can help you avoid expenses like payroll taxes, health insurance, 401k contributions, vacation time, and other benefits. You can also save a lot on office space and equipment and pay only for the services you require.

WHEN YOU CAN NOT AFFORD TO MAKE MISTAKES

If you have been penalized for incorrect or late tax payments, this is the perfect time to consider outsourcing your payroll. No business wants to encounter audits and penalties. Outsourcing payroll can help you avoid federal and state payroll compliance complexities. With experts at work, quality will never be compromised. As mistakes in calculation or filing the right forms are prone to penalties, working with a team that is up to date with all the necessary information at their fingertips and abreast with changes can help you save a lot. Outsourcing is all about thinking ahead. An excellent global payroll provider offers capabilities beyond what you can perform and will also give you that peace of mind and free up time, save you money, and reduce compliance risk.

WHEN YOU WANT TO ACCESS THE LATEST TECHNOLOGY

Cloud-based systems are used to manage essential data alongside ensuring better data integrity and visibility. Outsourcing providers have exceptional technological infrastructure, and you can easily integrate their cloud-based accounting software and platforms with your client’s system based on their requirements. Centralized access to payroll information enables wider online access for customers rather than submitting requests to an in-house team which might take days to process. Outsourcing payroll also provides you access to robotic process automation that several specialist payroll service providers currently use to optimize processing to improve accuracy and timeliness. Also, integrating Payroll and HR via these latest technologies facilitates seamless sharing of data and prevents teams from transferring data, which improves speed and security manually.

WHEN YOU ARE LOOKING TO SHIFT FOCUS

The ability to stay focused on the crucial tasks of your business is one of the main reasons to consider outsourcing your payroll. Leave all the tedious payroll-related activities to an outsourced team while you can focus entirely on other activities that help upscale your business. Outsourcing enables CPAs to utilize their time more efficiently to focus on value-added services like tax planning, wealth planning, financial disclosures, investments, and advising clients. Also, when you outsource payroll, your firm can offer quality services within a given timeframe. You can now meet all deadlines as your outsourcing partner possesses all the vital resources required for the timely execution of payroll-related tasks. Your firm can also sign up for big projects for new clients without the burden of being too busy. You are likely to grow substantially when you focus on your business and invest your time and efforts in its development. And more importantly, you will have the space to build client relations, which is pivotal to any business.

OVER TO YOU

Businesses across industries are under pressure to ensure financial transparency and maintain compliance. And with the constantly changing financial regulations, several CPA firms are now seeking a greater degree of support. Payroll outsourcing has become the norm for many accounting firms, given how an outsourcing provider can promptly and efficiently carry out tasks. If you as a CPA are considering outsourcing, make sure you do your research and discuss thoroughly with the providers you shortlist, as it will help you sign up for the best one and be associated with them for the long term.

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

OUTSOURCE TO QX 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, and
• are well-equipped with a user-friendly platform & a transparent pricing structure.

WORLD-LEADING PAYROLL OUTSOURCING SERVICES

• QXAS has 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 have processed over 1,000,000 timesheets annually
• First GDPR compliant payroll outsourcing company in India and an ACCA-approved Gold Employer
• 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