How To Making Payroll Profitable for Accounting Practices in 2022
Payroll is one of the most tedious and complicated financial tasks that there is. Employing a massive amount of time, effort, cost and resources. Payroll has traditionally been considered as one of the most non-lucrative services by accountants and practices. With the influx of latest technology such as cloud platforms and specialised payroll software, however, this notion is slowly dying down. Further, with the boom of outsourcing and its accompanying benefits, several accounting practices are now beginning to turn to experienced payroll outsourcing providers to add payroll to their plethora of services.
Payroll trends to look out for in 2022
Each business undergoes significant transformation over time, especially as the world moves towards colossal technological revolution and globalization, and payroll is no exception. Additionally, the covid-19 pandemic has remarkably influenced the dynamics of business, forcing industries and organizations to innovate, adapt and flourish.
Here are some critical payroll industry trends to look out for in 2022.
1. Technological innovations in payroll processing and management
As discussed earlier, the payroll industry has been seeing a boom in technological innovations such as cloud platforms and specialised software. This surge has significantly revolutionized the way accountants and practices look at payroll as a service offering. While some practices have made efforts to technologically upgrade themselves, most firms are turning to payroll outsourcing providers to integrate latest technology into their payroll service offerings.
2. Payroll services as a crucial supplementary offering
Over the last few years, accounting practices in the UK have been dealing with the challenge of client retention and securing new clients as they demand a complete package of services instead of hiring multiple vendors for different functions. This has also led to an increase in competition, wherein only practices that offer a plethora of services are bound to survive. Therefore, it has now become more necessary than ever for accountants to review the scope of their services. And add payroll as a crucial supplementary offering to ensure a steady cash flow in 2022.
3. Boom of payroll outsourcing like never before
Outsourcing comes with the promise of higher productivity and profitability with significant cost savings. Outsourcing your payroll needs can help you keep abreast with the latest technology, offer precise and quality services to your clients, save on significant overhead costs, and stay put in the ever-growing competition. Payroll outsourcing, therefore, will have a wider scope than ever in 2022 and is expected to flourish exponentially.
4. Process upgrading and resource upskilling
The greater profitability assured by payroll outsourcing can help accountants upgrade their existing processes, focus extensively on more important business functions, and invest into resource upskilling for greater productivity. With this, practices can ensure higher client retention rates, secure new clients, stay abreast with their competitors. Ensure a steady flow of income throughout the year. In the long run, outsourcing can even help practices to cut down their in-house processing costs up to 50%.
How can a daunting task like payroll be made profitable?
The answer is simple – through OUTSOURCING!
Payroll is a highly formidable task that requires accountants to have complete knowledge of PAYE and compliances, thorough accuracy, and unparalleled skill. To build an in-house team of such knowledgeable professionals can be awfully expensive and time consuming. Moreover, it significantly adds to associated overhead costs, including training costs, leave and holiday covers, and so on. Amidst this, even if one of your skilled staff members quits during the peak payroll time. It can add unnecessary strain on the rest of the team.
Outsourcing, on the other hand, provides a solution to each of the above adversaries. When you pick a reliable payroll outsourcing business to partner with. You can rest assured about your needs being in the hands of highly experienced and trained professionals. Outsourcing service providers hire the best-in-class accountants and train them to work on latest software and seamlessly adapt to the changing client needs. These professionals can work from your own office or from the outsourcing provider’s office based on your preference. Moreover, the accountants are available to work at a time and duration of your choice and assure a faster turnaround time.
How to choose the right payroll outsourcing provider
The right payroll outsourcing business can take your practice to unanticipated heights. Conversely, an undependable service provider can negatively impact your reputation and may also pose data security risks. Therefore, it is important to choose the right outsourcing service provider from a range of firms in the market.
Here is a quick checklist to choose the right outsourcing partner.
- Years of experience: It is advisable to consider the overall experience of the outsourcing firm in the payroll industry to determine its reliability.
- Awards and Certifications: The awards and certifications bagged by an outsourcing agency vouch for their expertise in the domain of question.
- Data Security Measures: It is necessary to examine the data security measures employed by the firm to ensure that the sensitive company and employee information you share with them remains safe and secure.
- Communication: Communication is key to run a successful business. The way a firm structures its client communication strategy speaks a lot about their credibility and professionalism.
- Ethics and Approach: An outsourcing firm with strong business ethics and a client-based approach is quite likely to go out of its way to offer the best of services and ensure the highest level of client satisfaction.
How can Fin-eX Outsourcing help?
Fin-eX Outsourcing is a leading payroll outsourcing provider with operations in several countries of the world, including the UK. With a rich payroll outsourcing experience of over 12 years. Fin-eX is a one-stop destination for accountants and small and mid-sized practices to outsource their payroll needs. With Fin-eX, you can quickly and effectively scale your business without incurring additional and unreasonable costs.
The Fin-eX Advantage
- First GDPR compliant accounts outsourcing company in Pakistan
- Affiliated with prestigious accountancy organisations like ICAEW and ACCA
- Fully compliant with ISO 27001 for information security and ISO 9001 for quality
- Highly efficient, resolute, and experienced accountants
- An enterprise of Fin-eX, a highly trusted and successful outsourcing company