Last year, we saw immense growth in the demand for payroll services. The interest in payroll outsourcing went up since the government introduced the furlough scheme and new guidelines. Experts suggest 2021 will stick to this same pattern with more SMEs searching for their bookkeepers to offer payroll inside their packages.
For quite a long time, payroll has shared questionable notoriety among accounting firms: it's either a disturbance, a weight or an add-on administration inside a bigger package that most accounting firms offer out of need.
In this blog, we’ve talked about the latest trends in payroll management to know what the future holds for the payroll service industry.
#1. Payroll Outsourcing: a necessity during WFH
In a study “Payroll Outsourcing Trends 2021” done by an accounting firm: About 81% of bookkeepers who outsourced payroll, saw a spike of between 5% - 40% in their overall revenues.
The research additionally demonstrates the socio-economic states of the pandemic. It shows the expanded interest in payroll services and the difficulties that accompanied it for accounting works on being working from home.
Accounting firms in the UK have been facing major challenges post-pandemic and adding a burden of handling payroll on their employees isn’t a good decision. In the coming time, we’ll see more and more firms outsourcing payroll functions while working from home.
#2. Data security
Many outsourcing firms offer strict data safety efforts and are legally bound under the GDPR or BSI guidelines to follow the due perseverance needed for taking care of information.
Because of which accounting firms would now be able to move past their underlying worries about data security stresses of offshoring payroll and anticipate a more significant level of dependability and polished skill from outer accomplices as better results, hitting the commonly concurred objectives and the quality and timely submission of work.
#3. Investing payroll profits in Upskilling team members
The same research stated: 50% of all 87% of respondents who benefitted from payroll outsourcing put their benefits into improving cycles in their training, for an end goal to reinforce practice management during WFH.
The next space of investment is toward upskilling colleagues. It is an elevated need to prepare their in-house groups to adapt to developing customer needs and digitalisation happened during WFH.
Successful outsourcing of tedious work like payroll gave the capital and the time expected to fortify the two most significant backbones of an accounting firm: people and processes.
#4. Seamless communication will bring effective payroll results
The debate on how communication with the offshore partner means for the outsourcing experience proceeds unabated. Accountants feel regular updates and transparency like their in-house team does can only be enhanced if their communication barrier resolves.
In the research, when gotten some information about what the top points of a fruitful payroll outsourcing experience are: 43% of the responders asserted it was effective communication, while a quarter (25%) of the guaranteed "better compatibility with the offshore group" and in the end, 12% of them agreed customer support service also matters.
#5. More focus on clients
The research also mentioned that 97% of accountants agreed that outsourcing payroll in the last 6 months have improved their client satisfaction and they had more time to bring new clients.
Accountants who focused more on clients and set free internal resources wound up contributing their profits earned from outsourcing into improving digital measures.
This profited clients during the constant public lockdowns when digital bookkeeping frameworks were the solitary way to share reports and information: sharing of receipts, reports and contracts etc.
To sum up:
Fruitful payroll management and processes are critical to a well-performing business.
While these trends might be in their initial days, they all offer generous advantages and we anticipate that they all should turn into the standard within a few years.
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