Have you ever wondered how payroll as an independent entity can make a difference in your accounting business?
Including payroll management as a side service in your accounting line-up might sound manageable while you’re in the process of expanding your business. But, before long, payroll starts to feel like getting out of hands as you tend to increase your human resources as well – as the complexity of wage calculations, deductions and wage and hour compliance take their toll.
It’s not easy to steer clients towards financial stability. You need the right mix of services and proper resources to create an equation to preserve your clients’ financial integrity and easily manage payroll while increasing your bottom line. Most clients are looking for a one-stop accounting solution and will look elsewhere if you can’t assist them with timely and accurate payroll. Fortunately, if handled right, outsourcing payroll management services can be a strategic initiative for your accounting firm—and timely and accurate payroll processing can build client relationships.
It becomes challenging for accountants while dealing with certain payroll process and below could be some or all of the reasons for that:
- The time invested in the payroll process doesn’t add significant value to accounting services. If you are an SME or a startup or a bunch of CAs – you will just not be able to comply with the day-to-day payroll requirements.
- It is a much required service but clients won’t pay additional if included in the accounting practices.
- Knowledgeable staff may leave, leading to internal inefficiencies.
- Client information is not always timely, accurate, or complete, thereby making it difficult for a small team to manage.
A good payroll service provider should typically provide the following services
- Integrate with your systems, timelines and guidelines as well.
- Calculate earnings and deductions of the wages and salaries
- Facilitate benefits like healthcare, gratuity, pension funds and even leave and travel for the new age start-ups
- Commands solidarity on compliance issues and keeps you compliant with employee laws
- Enable accounting integration and simplifies financial statement preparation
- Report new hires to the administrating state agency
- Allow you to process payroll from any computer or mobile device
Why Outsource Payroll Services:
The following twoare likely problems you will encounter when it comes to processing payrolls:
1. Payroll Audits
Payroll audits are crucial and essential both. You can wait until your clients have been through the pain of a payroll audit to reach out to them about payroll. However, at DKM Online the idea is to act as the strategic growth partner of our clients; to create healthyrelationships with your clients is essential and defining to your accounting firm’s success, it would benefit you more if you reach out proactively—before there are any problems.
The timely problem identification and efficient solutions are only possible through audit mechanisms. That is why payroll audits is one of the major reason for outsourced payroll services to the professionals.
2. Payroll Errors
Errors calculating payroll can have unexpected and unwanted costs associated. To clients, it is not a simple error. Their staff will be upset by an error if it impacts them directly, often destroying the trust that you have worked hard to build. In addition to disgruntled employees, you will cause penalties and undue stress for your client.
You shouldn’t do what most accountants do: i.e., simply introduce your clients to an external service provider and step away, undercutting the value that you can provide the client in the process. Clients will pay more for peace of mind than anything else you can offer them. By working as an intermediary between your clients and an external provider, you can offer a higher level of service at a reasonable price, while still profiting. In addition to increasing fees, accountants that embrace payroll are able to attract new clients, as it brings one more thing under the same roof.
Payroll is something that most clients have to deal with on a regular basis. Integrating payroll outsourcing into your accounting practice will allow you to reach a wider business audience and add to your bottom line.
Review our services to help your clients evaluate whether outsourcing their business payroll is an effective solution for their organization.