Why You Should Offer Cloud Payroll Services If You Are An Accountant
As an accountant, you can even evolve into a business advisor depending on the need, adding value to your profession.
Just until recently, payroll was not considered as a profitable service for accountants to offer their clients. There were good reasons behind this, including the complexity of the work involved, as well as the potential presence of mistakes.
However, it’s now time for you to take another look at the situation. Cloud-based software can make your life as an accountant easier, especially if you want to offer these types of services at a profit. In this article, let us look at how you, as the accountant, and your clients, can take advantage of this new method of payroll management.
What is Involved?
In order to understand the way cloud payroll services can offer advantages to your clients, let’s take a look first at how things are done traditionally. Later on, let us consider how things can change with cloud based payroll services.
For Small Businesses
In general, small business owners start a business of their passion. This is a way for them to fulfill their dreams. In the middle of managing the tasks involved, dealing with different employees, and making sure that things are running smoothly at work, they suddenly find themselves performing data entry tasks.
Each month, they now need to complete various payroll tasks by themselves, and for their employees most importantly. If they need to use a different kind of software, they may end up worrying about committing mistakes as a result of not being familiar with the software. Some small business owners may even wonder if they have complied accordingly with all legal requirements.
For Large Businesses
Owners of larger businesses have come a long way with their businesses. These types of companies usually have their own in-house payroll team. This means that they take charge of directly paying their employees’ salaries. The only job of their payroll team is to compute salaries and that’s it.
Another potential scenario is for these companies to outsource their payroll to a dedicated third party company. In this case, they are providing company related commercially sensitive data to an outside service provider. For a large business, any of these two options are not ideal.
What the Cloud Offers?
No doubt that you have already heard of cloud applications and other cloud based services. If you are new to these technologies, you may be wondering what they mean. However, as technologically complicated it may seem, the cloud is actually not as complex as you may have thought it is.
Using cloud based technology only means that you are using the internet in order to store data and access information. In the past, you need to run programs using your computer, storing data inside the hard drive. With cloud based technology, on the other hand, you are running the program online, using a browser or an app, and the data is securely stored on remote servers.
In application to payroll services, cloud computing can be regarded as a more convenient and secure method of using software. As an added benefit to it, you can expect that all the IT work is prepared for you. There is no need to worry about storage space, backups or even software upgrades.
What to Say to Your Clients?
As an accountant, you may have been trained to persuade clients based on your ability to compute and comply with legal requirements. Now, with new technologies emerging in the market, such as the use of cloud payroll services, you answer to the need of embracing a new technology which you may have found quite complicated before.
The benefits offered by cloud payroll accounting services become clear after looking at the workflow involved. While different services may vary in terms of work process, the following is a standard flow that you can expect:
- The client enters the website of the firm, logging in to a secure portal.
- The client enters the work hours of the employee for a specific time period.
- Data becomes available immediate for the company to access. This translates to a cut down on data entry needs.
- Payroll is processed quickly, with most of the tasks automatically handled and computed.
- The payment is made, typically using direct bank deposit. Other options may be available too.
- Tax information and payment reports are made available for the company and the client.
- All withholding and tax deposits can be field electronically with tax authorities.
- This also applies for both forms and reports.
All of these processes may be achieved easily and quickly. This can be considered as a huge step ahead compared with the way things are done traditionally.
How it Can Benefit You?
As an accountant, you can also expect to experience some benefits on your part by using cloud payroll services to your clients. Now that you have a clearer understanding on how cloud payroll services work, let’s take a look at the benefits at hand. For one, it all sums up to two things – convenience and automation.
Cloud payroll services using a software application easily simplifies processes, reducing effort to perform things manually. It also provides you with the same tools that bigger companies use.
Security of access to the system anytime, anywhere, using any device with internet connectivity.
- Easy to add new clients and employees
- The processes for each client are similar, allowing you to quickly scale revenue streams
- Capacity to give your clients a restricted access for both reporting and data entry.
- This can cut down on idle admin time for the company
- Simple, faster processes for paid employees
- Automated employee payments, third parties and tax authorities
- Better compliances with the reporting regulations of employers
With cloud payroll services, you can change your relationships with your clients. Since you can now constantly keep in touch with your client, you will become more engaged with them, especially as they make financial decisions. As an accountant, you can even evolve into a business advisor depending on the need, adding value to your profession.