Outsourced Accounting And Payroll Services Work Better Together
Finding ways to optimize and improve systems can be a make-or-break moment for fast-growing startups. When leaders and decision-makers have too many responsibilities and tasks, the startup can suffer deeply. That’s why many startups are turning to outsourced accounting and payroll services to clear the plates of busy decision-makers and ensure 100% accuracy and compliance all of the time.
Typically, outsourced accounting and payroll services are divvied up and handled separately. A startup may outsource its HR processes or accounting needs. But leaders can turn to comprehensive outsourced accounting and payroll services to optimize operations, maximize workflows, and ensure your startup is well-poised for growth.
Across the board in the business landscape today, outsourcing is growing in popularity and use. Sixty-six percent of companies in the US with more than 50 employees outsource, while 29% of smaller companies follow suit.
Not only that, but the global outsourcing market could be worth more than $525 billion by the year 2030, expanding at a CAGR of 9.4%. But why exactly should startups outsource in the first place?
As it turns out, there are a few powerful benefits from outsourced accounting and payroll services. Firstly, outsourcing can help startups save money by reducing overhead and labor costs.
At the same time, outsourcing also gives startups access to specialized experts they might not currently have on their team (such as a small business CPA). For example, startups can turn to an outsourced CFO instead of shelling out for one for executive-level financial expertise.
Outsourcing also gives startups an impressive range of flexibility, especially regarding staffing and resources. You never have to wonder when to invest in accounting services.
Startups can level up how they tackle their accounting and payroll needs and quickly scale up or down based on business fluctuations. This flexibility can be critical for startups, which often face growth spurts and volatility.
Outsourcing can standardize and improve processes for individual leaders and decision-makers in startups. It can also ensure that mission-critical items (such as startup bookkeeping, HR compliance, and payroll nuances) are handled correctly.
What Falls Under Outsourced Accounting?
Starting with outsourced accounting, several different functions and tasks fall under this category, which can be extremely useful to startups:
- Bookkeeping: Proper bookkeeping is critical to a healthy startup seeking growth. Bookkeeping involves keeping detailed and up-to-date records and can include tracking and monitoring invoices, forms, receipts, deposits, purchases, expenses, and assets. Bookkeeping is also vital to compliance, or following all relevant laws and regulations. Startups need airtight books so they’re fully compliant.
- Reporting: Outsourced accounting experts can also help you with the tasks involved with financial reporting. These typically time-consuming tasks might involve preparing statements, monthly balance sheets and cash flow statements, filing reports, handling documents, and accurately keeping records.
- Bank account and credit card reconciliations: Sitting around and combing through bank and credit card statements might be taxing on internal resources, but for your outsourced accounting provider, it’s a piece of cake and part of the job. They’ll make sure everything is in alignment, so you don’t have to.
- Tax prep and filing services: If you need comprehensive tax assistance, your outsourced accounting provider has you covered. They can help you maximize your deductions and ensure accuracy with your taxes.
- Cash management assistance: Outsourced accounting providers can handle accounts payable management, billing automation, cash collections support, and W9 collections.
With outsourced accounting solutions, one of the primary benefits is that you’re working with a dedicated account manager who provides a priority service. They know the ins and outs of your business and are skillful at all elements of business accounting.
What About Outsourced Payroll?
It’s not just accounting that you can outsource: your startup can also outsource its payroll needs. Payroll can often seem straightforward at first (especially in the earlier days of a startup when the team is typically smaller), but the reality of it can quickly become complex.
Outsourced payroll services can help you with a few different things:
- Accuracy: When your startup’s payroll is outsourced, you can rest easy knowing that payroll will be accurate 100% of the time. You don’t have to worry about missed or incorrect payments.
- Compliance: There are many laws and regulations governing payroll, which are important to comply with. Your outsourced payroll provider can help you stay in compliance with things like minimum wage, overtime pay, and financial reporting.
- Complex pay: Certain types of payroll are anything but straightforward. Freelancers, part-time employees, contractors, and international employees might need special considerations, which your outsourced payroll provider can easily take care of.
Why Deploy These Functions With One Provider?
While it’s possible to outsource either accounting or payroll and use different outsourcing providers to take care of these needs, there are powerful benefits to having one provider for both services.
They Know Your Business Like You Do
When you use one provider for your outsourced accounting and payroll services, you benefit from having one provider who knows your business inside and out. They know your industry, what your team is like, what your business offers, and the nuances of your financial and payroll needs. They’ll have a complete picture of your business and can deep-dive into specific accounting and payroll needs.
You’ll Simplify Operations
Nothing can cause confusion and waste time like complex operations. Things can quickly get muddled when you have a million different logins, work on different platforms, and need to pay multiple providers. But when one provider takes care of your outsourced accounting and payroll services, you can streamline your operations and make your life easier.
Your Startup Will Always Be Compliant
Compliance might not seem particularly exciting, but the reality is that it’s mission-critical to get right. And unfortunately, there are a lot of financial and payroll compliance aspects your startup likely needs to be aware of and ensure it’s following.
But when your one provider is handling your outsourced accounting and payroll services, you know you have experts at the helm. That means your startup will be covered when it comes to laws, regulations, and requirements for both accounting and payroll.
Service Will Be Standard and Familiar
When you have one provider handling your outsourced accounting and payroll services, you know what to expect. You’ll have standard and familiar representatives, methods of communication, platforms, and meetings. This can all contribute to streamlined and optimized processes, which means more growth potential for your business.
You’ll Make Data-Driven Decisions
The decisions you make as a startup leader matter. They significantly impact your organization, its growth, and its future.
When one provider handles your outsourced accounting and payroll, you have all the data you need to make the best decisions for your startup. Whether it’s planning for the future, interest from investors, or plans to upscale, you can turn to insights from your outsourced accounting and payroll professionals when the time is right.
Your Employees Will Be Happier
When payroll processes and your startup’s accounting needs align, your employees will know their accurate paychecks are guaranteed every pay period. As it turns out, employees have a very low threshold for payroll issues, with about 50% saying they would search for a new role after just two paycheck problems. When one provider handles your accounting and payroll needs, you know your employees’ paychecks are safe and secure, ensuring they’re satisfied with the process.
Outsourcing Your Accounting and Payroll?
Outsourced accounting and payroll services make your life as a startup leader easier, maximize profits, ease workloads, and ensure accuracy. And if that’s your intention, then why not go with one provider for both needs?
When you choose a singular provider for your outsourced accounting and payroll services, you know your startup is in excellent hands. You’ll have top-tier accounting professionals handling some of the most important aspects of your business, so you can focus on running your organization and truly helping it grow.
If you’re ready to partner with a one-stop shop for your accounting and HR needs, we should talk. Here at hiline, we provide tailored accounting and HR services to help your business thrive and grow so you stay free to do your thing.
Interested in learning more? You can read about our HR and payroll services here.
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