When it comes to payroll, companies tend to have a difficult time classifying them under the appropriate department. Should payroll come under the purview of the Human Resources or Accounting department?
Human Resources might seem to be more appropriate given that it is the department which holds the key to employees’ salary information. On the other hand, Accounting might be a suitable department as well given that these are the people who deals with numbers and taxes every day.
Instead of spending too much time trying to figure out where payroll should fall under, think about payroll outsourcing. With technology today, outsourcing administrative tasks such as human resources and payroll processing can be a great way to improve and enhance an organisation’s processes.
Human resources and payroll outsourcing are not limited to large organisations with multiple units of corporate functions or small businesses who are looking for free up administrative tasks in order to focus on expansion. Not surprisingly, human resources and payroll outsourcing can be beneficial for companies such as accounting firms as well. The only thing that is holding companies back from outsourcing is risk.
Instead of focusing from a business point of view, consider HR, payroll and accounting outsourcing from a client’s point of view. An third-party accounting firm that offers HR and payroll outsourcing services to clients are likely to be more attractive to client given the plethora of services offered. At the same time, clients are unlikely to consider changing vendor given that the firm offers accounting or compliance work together with HR and payroll.
The second benefit from a collaborative HR, payroll and accounting partnership is that there are multiple avenues for revenue. While accounting services might occur for intermittent periods during the year, the HR services will be able to provide a yearly stream of profit for the company with the regular client contact on a yearly basis.
An accounting firm need not be limited to only providing clients with advisory services or products on accounting, taxes or compliance. These services could be combined together with HR and payroll, providing a more holistic, complete and lucrative outsourcing option for companies. HR, payroll and accounting together is no doubt a winning strategy for both the firm and the client.
This article was first published on GPayroll. Information is correct at the time of publication.