Payroll is an important function, regardless of whether you're a small accounting firm or a large business that handles millions of pounds worth of business.
Correct payroll processing is crucial when it comes time to draw up an income statement. It also keeps employees happy when they get paid on time. Many clients ask accounting firms to handle their payroll.
It may seem straightforward at first glance. It is not difficult to calculate the hours of your clients' employees and prepare their wages. Payroll is not all about hours and pay.
The process of calculating taxes, implementing wage policies, and paying HMRC is not easy. If you don't manage things with care and finesse, things can quickly escalate and become complicated. Payroll demands precision every time. After all, nobody appreciates the smallest error on their payslip.
Your accounting firm's growth will be slowed down if you have more staff managing payroll than providing advisory services like tax planning or forecasting. It is a smart decision to outsource payroll processing, such as to XL KPO.
Here are seven ways that payroll outsourcing can benefit you:
STREAMLINE YOUR ACCOUNTING FIRMS
Payroll management isn't always the most lucrative type of project if you provide specialized services to clients in niche areas like forensic accounting and environmental accounting. Imagine your staff spending hours each week calculating weekly wages.
By directing your clients' payroll management needs to third-party providers such as us, your accounting company is free to accept more lucrative tasks in line with your expertise and allows you to grow.
DON'T MISS ADDITIONAL REVENUES
Your accountants can become too busy processing payroll and lose valuable work time that could have been used for more important tasks. Outsourcing payroll allows your accountants more time to interact with clients, solve their problems, and reach out to potential clients.
This could be a great opportunity to generate new revenue streams if you don't offer payroll services. These are all money-making activities that you and your accounting firm could benefit from, while an outside team handles payroll.
LEAVE PAYROLL & ADMIN COMPLIANCE WORRIES
Payroll has compliance standards that can be difficult to follow for accounting firms without specialist expertise. This could lead to legal problems later.
XLKPO's payroll accountants are compliance experts and can answer any questions your clients might have about payroll or admin compliance.
Our ability to manage HMRC, auto-enrolment retirement pension, and other regulations can save you a lot of time. We can also speak on your behalf to HMRC or pension authorities. Therefore, outsourcing payroll to an outside provider is a smart move to avoid any potential non-compliance liabilities.
GET IT DONE BY THE EXPERTS
Payroll processing can be a tedious task that takes time. It requires expertise and precision to correctly process data and identify errors.
These are the things that third-party providers excel at and they are used to processing hundreds, if not thousands of client payslips each month.
Accounting firms can be confident that the payroll function will be handled by us and their clients will receive accurate payrolls on time.
MAKE PAYROLL PROFITABLE
Outsourcing your payroll function can help you save both time and money. Instead of spending hours looking through large amounts of information and checking for errors, accountants can focus on the specific work they are most skilled in.
You don't have to spend money on payroll processing software or train your accountants how to use it. XL KPO already has the software necessary to manage the payroll of accounting firms efficiently and expertly.
Many third-party providers, such as XL KPO, offer payroll services. Their pricing models take into account: Pay type, the total number of employees, and frequency. Some even provide dedicated payroll staff that can manage all aspects of the payroll, including correspondence and resolution of queries.
Employing an in-house payroll manager is far less expensive than outsourcing. This includes salaries, benefits, and the cost of office infrastructure. Our accounting firms work with believing that outsourcing makes more sense financially when they are charged for exactly the work performed by our accountants.
ENHANCED DATA SECURITIES
Third-party payroll providers know that client information is extremely confidential and will keep this in mind when outsourcing payroll work to accounting firms. XL KPO uses GDPR-compliant tools for managing client data. These include password-protected payslips and employer reports, encrypted emails, and more. These tools ensure that client's data is protected from beginning to end, regardless of how complicated or large it may be.
How to choose the right service for your accounting firm?
It is important to choose a reliable, trustworthy, and expert service provider. Each payroll service provider offers different services. After comparing your options, it is important to choose the right partner.
These are the points to consider when choosing a payroll provider if you don't know where to start.
Pricing for outsourced payroll is determined by many factors including the services included in a package (both primary features and additional features), the location and size of the company, as well as the type and size of the firm.
It is important to do extensive research on the different pricing structures offered by various payroll service providers.
Providers offer a variety of pricing options, including fixed and variable pricing.
Although price is important when hiring a payroll specialist it doesn't always mean that the best choice is the most expensive.
Data breaches are increasing in today's world. Therefore, sensitive data protection for every company is an important responsibility. An acceptable payroll service provider must have the right processes and rules to protect clients' data.
To find a trusted specialist, you can ask your network for recommendations.
Experience and qualifications
You should ensure that the payroll service providers you choose have all the required credentials from respected institutions. They should be responsible and cautious, as well as have sufficient experience.
It will be easier for them if they have worked with companies in your sector. This will make it easier for you to get the answers you need and help you overcome any challenges your industry or business might face.
Accounting firms of all sizes are increasingly outsourcing payroll so that they can complete the task efficiently and quickly. Do your research thoroughly and speak with all the potential providers to ensure that you choose the right one for the job and can work with them long-term.
Reach out to our outsourcing professional at firstname.lastname@example.org or call +44 208 191 1010 for any outsourcing-related questions.