Over the past few years we have seen first-hand a real appetite from accountancy firms to outsource their payroll operations to specialist providers such as ourselves.
Our experience is in line with the growth of the outsourced payroll market over the same period, but why are businesses and their accountants looking to move their payroll processing away from in house teams?
Historically, it was only larger businesses that saw the benefits of outsourcing their payroll function but these days small and micro employers are joining in. Both Real Time Information (RTI) and the introduction of Auto Enrolment Pensions has led to a skills shortage across many businesses.
Combine this with increasingly complicated legislation and short reporting deadlines and this key business function has become a hassle that most are keen to avoid.
For many businesses their first port of call has traditionally been their accountants and until more recently the majority have been more than happy to increase their revenue and deepen their client relationships by performing the role of outsourced provider.
However, the pressures that have resulted in the businesses wanting to outsource are now being felt more and more by their accountants and so they too are looking to move the work away from an in house model.
So why does payroll outsourcing make sense to so many firms?
Outsourcing doesn’t mean that you never need to think about your clients’ payroll again. Although it does mean you can think about it less and review the results with clarity.
We can all agree that payroll processing is a business critical task that should be simple and easy to manage, however with the constantly changing legislation and processes it has become complex, time consuming and stressful to a point where many believe that it would be better managed by experts.
But what specifically are the benefits?
Cost Effective – with the cost of qualified administrators, payroll software and stationary in many cases all adding up; a steady monthly outsourced cost makes a lot of sense.
Avoid Stress – outsourcing the payroll function shifts the filing responsibility to the outsourced payroll provider who will have to worry about fast approaching deadlines and chasing clients for authorisation.
Adding Value – Many accountants believe that managing a payroll for their client means frequent contact keeping them in touch with their clients’ needs, but how valuable is this contact? If it’s focused on information gathering and deadline driven is it really adding value or building relationships?
Building relationships – Taking a back seat in the payroll process is empowering, freeing up time to work on continuing to build on existing and new relationships in order to grow bottom line profit.
Sickness & holidays – For many payroll processing restricts those responsible from taking holidays and is a concern to management if sickness comes into play. These worries will become a thing of the past.
Increased Data Security & Backups – Outsourcing ensures that employee information is safe and backed up so if you experience a data loss or failure the pay history is easily recovered.
It’s more than just payroll these days – a good outsourced payroll service is more than just payroll these days with auto enrolment pension administration and BACS services available to lighten the load.
Considering Outsourcing your Clients Payrolls?
If payroll is getting a little too much, why not contact us to find out how we can help provide you with peace of mind and time to focus on revenue generating areas of the business.
Our experienced team, tailored approach and continued innovation means you can partner with us confidence.