Accounting and payroll services are two outsourcing practices that have always remained a grey area when it comes to some companies.
Outsourcing in general has proven to offer favorable results to all types of industries. However, other organizations still remain reserved in terms of subcontracting these two functions.
Your accounting is one of the most important components of your business as it lets you determine your financial health and status. All financial transactions in and out of your organization happens within your accounting department. Further, it is also through your accounting where you process your employees payroll.
In this article, we will be discussing the five common misconceptions with regards to these two outsourcing services.
Accounting and payroll services outsourcing
Accounting and payroll outsourcing refers to the practice of handing over a portion or the entire processes involved in these two functions to an external provider. As for your outsourcing provider, you always have the option to outsource to freelance accounting professionals or to an outsourcing company.
Another thing to consider is that you also have the options to offshore, nearshore, and onshore.
Outsourcing has always been a viable option for startups and small businesses that struggle with their expenses. Hiring additional staff will cause more hike to their finances. Medium to bigger size companies are also able to relish on the benefits of these services.
Part of the great perks of outsourcing these functions is that organizations are able to reduce their overall costs. It also allows them to have more time to focus on their business core and boost their efficiency and productivity.
On top of those, working with outsourcing vendors enables organizations to work with industry experts and global talents.
5 common myths about accounting and payroll services outsourcing
Growing your business always comes with various challenges. Accounting and payroll are two critical functions that should be done accurately and correctly to help avoid serious repercussions to your company.
Although many have already embraced the outsourcing practice, others remain doubtful towards it. Below we will be discussing five of the common misconceptions about accounting and payroll services outsourcing:
- Accounting and payroll services are very expensive. Just like any type of outsourcing service, it will always serve as one of your investments. Your overall expenses will depend on your type of requirements and services that you have acquired. Outsourcing companies usually have accounting and payroll packages. This means that you will only pay for what you need.
- In-house accounting and payroll roles are cheap. Hiring your staff will not only require you to provide their monthly wages but also their mandated benefits and training. Not to mention, you also have to provide the necessary resources needed to perform their job. As for accounting and payroll, you will need to have an up-to-date accounting and payroll systems. More so, an additional IT support to handle your accounting needs.
- Anyone can process your payroll. Accounting and payroll processes include large volumes of private information, including bank accounts, personal data, and more. It is essential that these functions must be assigned to safe hands, especially to avoid the risk of fraud. Both these functions must be managed by the right accounting professionals that are well equipped to handle these jobs.
- Outsourcing accounting and payroll services are not secure. Outsourcing providers always have secured procedures and setup processes. This helps maintain the safety and confidentiality of all their clients data.
- Only big companies can outsource their accounting and payroll. Startups, small to medium size, and even big corporations can always outsource their accounting and payroll. In terms of your payroll, remember that labor laws are constantly changing. Outsourcing will help you to be compliant with the laws and regulations connected with accounting and payroll.
As for your bookkeeping and accounting, OP360 has accounting and payroll solutions that are applicable to all types of industries. Take a quick look at our offered services, here!
