Outsourcing has been recognised by Accountants as one of the best ways to streamline their various Accounting processes. With the advancement of Accounting technologies, an Accountants’s job description is also upgrading day-by-day. The dependency of business owners on Accountants as their trusted advisors is on the rise. Accountants are no more just the number crunchers, they are becoming the real value-adders for business owners. Amid all that’s going on in the Accounting industry, combined with the extra workload that Accountants have been forced upon them due to the ongoing crisis, outsourcing accounting and bookkeeping services has been gaining popularity.
Outsourcing payroll services to well-renowned payroll service providers allow businesses and accounting practices to focus on the core objectives of the business that will help them to grow. Doing payroll in-house can be a complicated task with ever-changing laws and regulations. Australia has one of the most difficult payroll environments and hence requires more than just push of a button software.
Outsourcing payroll services can be helpful in saving money, time and gives you peace of mind. Outsourcing payroll accounting has a team of highly experienced professionals and trainers who are abreast with the ever-changing laws and regulations and can help you run and manage payroll effectively. The advantages associated with payroll outsourcing is that it lowers risks, maximises ROI and now it’s easy to implement as well.
Following are the benefits of outsourcing payroll services:
- Time is money:
Managing Payroll in-house can be a tiresome job for Accountants that can eat away their precious time which otherwise could be used for attending client’s more value-added services. However, outsourcing Payroll services can not only save an Accountant’s time, allowing him/her to be more productive but also save on costs of hiring an in-house team that would require training costs, employee benefit costs and more.
Moreover, outsourced payroll services gives Accountants access to the latest technology and experienced expertise. All they need to do is put all their energy into growing their practice instead of data entry.
- Reduced risks and associated costs:
Hiring in-house staff members to manage payroll can be a large company expense. Based on research by PwC, it is shown that for large organisations, managing payroll internally typically costs $1400 per employee, per year, and nearly $2000 per employee per year for small-mid sized businesses.
As discussed earlier, hiring an in-house team just to manage payroll can turn out to be a pretty costly affair for Accountants as other associated costs such as employee hiring and training, employee benefit costs, employee payroll expenses, and so on. Also, managing payroll can turn out to be even costlier if not managed properly, therefore trying to hire less experienced employees to save costs can backfire.
Rather than having an in-house employee, you can choose outsourcing accounting and bookkeeping services having to pay ‘cost per employee’ and receive the knowledge of expertise. Outsourcing payroll services will reduce the risks associated with the costs of in-house payroll processing.
- Improved security and Increased Transparency:
Payroll contains extremely lucrative and sensitive data which makes it vulnerable to criminal activity both internally and externally which includes things such as employees accessing personal data to engage in identity theft, tampering with information for personal gain, and hackers gaining access through security flaws. Ensuring your data is kept securely is paramount and this kind of environment can prove costly.
But when you outsource payroll accounting you can trust the payroll service provider that your data is safe and secured.
- Access to Compliance Support:
Compliance and payroll go hand-in-hand. Managing payroll in-house requires you to keep abreast with the changing laws and regulations. Any errors in processing payroll or not abiding by legislative laws can result in severe penalties where the business owner can be responsible both financially and legally. No matter how long your staff is on payroll unless they’re trained professionals you are running the risk of breaching compliance obligations.
Outsourcing payroll services to a firm that understands the ins and outs of payroll and all that comes with it. They have a team of expertise who assist you in remaining compliant and also advise on best practice approaches in managing your payroll effectively. Outsourcing payroll services provide your support and assistance with regulatory and legislative compliance.
- Value-adding products and functionality:
Outsourcing doesn’t just mean payroll services. Many outsourcing companies provide value-added services in areas such as talent management, time and attendance, payroll, Rostering, and Business Intelligence. By outsourcing payroll, you can have peace of mind and guaranteed to have payroll managed peacefully. Outsourcing payroll services can get you access to value-added services that offer solutions to your workforce problems.
Outsourcing accounting and bookkeeping services have long been key players in helping Accountants grow their practice and this trend seems to be only growing amid the ongoing crisis.