How to streamline growth with payroll solution
Payroll can be time-consuming, error-prone and vulnerable to constant legislative changes—all of which can reduce profits. However, as technology advances, cloud-based payroll systems have paved the way for new opportunities for accountants wanting to offer payroll services. According to Accounting Today’s recent report, 61 percent of accounting firms reported already offering payroll services to their clients and an additional three percent plan to offer payroll in 2023.
Accounting firms are laying the foundation for long-term success and growth with this offering: the right payroll solution can drive efficiency, minimize time-consuming manual data entry tasks and improve accuracy. But firms must carefully evaluate and select a payroll software partner that best meets their needs and creates more time for client engagement.
Set payroll goals
Firms can only provide a successful payroll service to clients if goals are clearly identified, and a thorough evaluation is conducted to meet clients’ needs.
To do so, firms must examine resources. They need to make sure that all of their clients’ needs are met and the payroll process is efficient. Finally, they should ensure high-quality customer service. Once top-level service is consistently delivered, they will be able to address any challenges in a timely manner.
Once accounting firms assess the needs and capabilities of their clients, they should then decide how they want to handle client payroll services – either via automated software or outsourcing.
Pick the right payroll process
Firms have a variety of options for payroll processing. Initially, they should assess what their business truly needs, then bring in a payroll partner that can deliver the functionality, support and training to maximize their deployment.
Firms need to compare offerings and understand the firm’s ideal payroll process. Automated software can help reduce time spent on manual data entry and improve accuracy and data security. Some service providers offer full end-to-end coverage which eliminates printing and mailing physical checks with single-click payments to multiple vendors. On the other hand, managed payroll providers allow a firm to outsource payroll processing, enabling staff to focus on other service offerings, including increasing time with clients.
However, if your accounting firm prefers an outsourced provider, you should examine the chosen provider’s license and certification. For example, providers that have Nacha certification are independently audited, while providers that are licensed money transmitters comply with all state requirements.
Alternatively, firms can also choose a provider that offers both. The ultimate goal needs to be a solution that is right for their firm today, but also in the future. A provider that offers both solutions will enable a smooth transition if the firm decides to switch their payroll processing.
Payroll services allow firms to expand their service offerings and foster continued growth with the right provider. Understand the firm’s needs first, then look for the services that most closely address those needs while offering flexibility and scalability.
IRIS offers payroll solutions for CPA firms of all sizes that ensure compliance and improves productivity and engagement. Contact us to learn more about how IRIS can take the pain out of payroll for your firm.