Payroll processing is a crucial function for every organization. Firms with proper payroll processing can thrive easily, while those with flawed models remain vulnerable to fines, legal risks, and employee-related problems. So, outsourcing these responsibilities to a consultant (freelance accountants, independent HR professionals) or outsourcing firm can help. That’s the best way to save time, reduce operational costs, and access the latest technology.
Consultants find it channeling to retain clients due to the availability of numerous payroll processing options in the market. Thus, to stand out in the crowd, professionals need to offer compelling solutions and USPs to wow small business owners.
Offering advanced technology and access to software
Replacing outdated processes and implementing modern technology can help in introducing more flexibility in day-to-day operations.
In-house payroll processing team members need access to the latest tax tables and software solutions. Firms need to pay subscription charges for maintaining and upgrading the same. But that’s crucial because using obsolete software and incorrect tables can result in multiple penalties. Small and medium-sized enterprises are not in a position to implement the same. The pandemic has made the situation even worse for startups. Thus, such enterprises consider outsourcing payroll processes to ensure it continues running smoothly.
Put simply, access to advanced and updated software is what clients need, and professionals must offer the same. Choosing and implementing the best payroll software can help consultants to reduce administration time and pay accurately to their client’s employees. The system can automate enrollment processes, perform payroll procedures, generate tax-related reports, and create documentation for the labor department. Implementing the latest software and technology helps in improving accuracy in the work. Accountants can ensure their systems integrate with the client’s accounting software and ERP system to ensure smooth data flow.
Offer enhanced data security
Payroll processing happens to be one of the riskiest business operations due to employee-related personal data involvement. While handling the process with their in-house team, companies often face issues caused due to tampering with files, missing data, and inaccurately arranged information. Plus, there are chances of embezzlement of funds or identity theft. So, organizations want software that can secure this data and offer limited, restricted access to employees as per their role.
Companies prefer outsourcing their payroll processing to professionals or payroll processing services firms that can provide enhanced data security and monitor the company’s payroll for unethical practices or payroll fraud. They select firms or professionals who can provide a safe haven for the data with state-of-the-art-system that can be accessed with ease.
Complying with government regulations
Small and medium-sized businesses that operate in multiple countries often find it challenging to comply with government regulations.
Complying with discrimination law, social insurance, taxation, immigration, and labor laws applicable in cities where the business is present proves a headache. An in-depth understanding is crucial for ensuring regulations applicable to payroll processing are followed. Non-compliance to guidelines results in unnecessary audits and penalties.
The world of government tax regulations is challenging in almost every country. Small business owners aren’t experts, and late payroll tax filings, omissions, or errors can prove very costly for such enterprises.
For example, the amount of penalties paid to the IRS for incorrect filing of payroll taxes by small firms is considerably high. Such fines can impact the bottom line of small Asian firms operating in the US. Thus, businesses prefer working with consultants who have knowledge about these regional variations. Professionals and payroll processing service providers need to stay on top of these local and national payroll rules and regulations in countries where they operate.
Other aspects that companies look for while selecting a trusted service provider
Companies check certain factors while hiring a consultant or payroll outsourcing services provider for handling payroll processing.
Businesses look for professionals with an exemplary reputation in the market because they are expected to handle confidential, sensitive data. They appreciate consultants who have a strong track record for working in the relevant sector. So, publishing case studies and client testimonials on the website can help professionals in gaining trust.
Some clients appreciate firms or consultants who provide accounting and bookkeeping, visa processing, HR assistance, and payroll processing as a part of the package. So, while offering a quote, professionals should consider sharing details about other services that they provide. The consultant should not hesitate to take time and explain details of the services that they offer and elaborate on the value that these services can provide to the business.
Data safety remains of utmost importance as much of the payroll data needs to be accessed and processed electronically. So, clients look for security solutions that the service provider plans to deploy for encryption, data protection.
Lastly, a professional should be able to stay on top of changes in the law. He or she should be able to elaborate on how their business is capable of remaining compliant at all times, even in case of regulatory changes.