The Intersection of HR and Accounting - Why Accountants Need to Hire Human Resource Managers
The fast-changing business environment requires that you innovate, and outsourcing is one of the key ways by which you can accomplish that.
As the owner of a small accounting firm, you know that growing your company and improving your core services while addressing all of your firm’s operational and administrative needs, such as HR, is nearly impossible. Most of the time, this attempt to balance these two conflicting areas leads to potentially costly errors.
HR is an important function of your company, but it is a highly time-consuming, paperwork-heavy, and low-yield process that often detracts from your goal of focusing on your consulting services, which are your income-generating activities, and growing your firm.
Large and small companies alike have realized how outsourcing their HR functions to HR management service providers addresses these issues. This strategy is not free, but its benefits more than outweigh its costs.
In general, entrusting your HR work to HR management companies allows you to focus on what you can and like to do and increase your firm’s overall efficiency and productivity. Here are some of the reasons you should be hiring HR managers for your accounting firm.
You want to reduce HR costs.
Maintaining an in-house HR department requires manpower, equipment, and high overhead cost. The HR department is not an income-generating unit in your field, which means that you need to be critical about keeping this area efficient and cost-effective.
Depending on how small your business is, the huge expenses required by keeping a robust and full-service HR department may not be worth the benefit that your business obtains in return. If your books indicate a clear need for cost reduction, then it may be time you hired an HR management partner.
You may need to improve your processes.
Accounting firms are always busy and perpetually buried in paperwork. Having been accustomed to this scenario, you may be becoming excessively complacent and overconfident about your existing processes and solutions. Moreover, you may not even have anyone assigned to do R&D.
This situation can cause your firm to lag behind your competitors or struggle to keep up with the latest advancements in your field. If you feel that your company is currently not performing optimally, consider speaking with a representative from a good HR service provider. Take the time to hear their proposal to see how they can improve your current processes.
You need top-of-the-line HR technology.
A full-service HR department needs top-of-the-line solutions, such as workforce management and HR information systems, which can be expensive. If the number of workers you have makes the cost of purchasing and constantly updating these tools worth it, then, by all means, purchase.
However, as is common among small accounting businesses, the cost of these tools is not worth their advantages. Meanwhile, a reputable HR management service provider can let you use these state-of-the-art systems at a fraction of their cost only as they are used by other clients too.
You want to increase profitability.
Decreasing profits does not result only from poor sales or client service. Oftentimes, it is your overhead costs (one of the largest of which is HR) that are bleeding your accounts dry. If your books show that an unreasonable fraction of your income is going toward your overhead, then you definitely need the help of a reliable HR service provider.
Obviously, profitability is the ultimate goal of outsourcing your HR functions (or any other business unit, for that matter). Once your processes and manpower are streamlined, technologies are updated, and internal productivity is improved, profit will follow.
You badly need someone with HR expertise.
HR management is no easy task. Why did you think universities and colleges had courses revolving around it? It involves payroll, performance evaluation and management, career planning, coaching, timesheets, and loads of other tasks that a full-time business owner and operator like you will never be able to fully address.
You can try, but a trained and experienced HR professional will always do better. This is because HR is a full-time job that needs the complete attention and focus of its manager. Trying to effectively handle HR and your consulting unit at the same time compromises the quality of both departments.
You need a good solution to your staffing problems.
Regardless of size, accounting firms have peak and off-peak seasons. The problem with small companies is that, during peak season, they either hire a lot of people that they would not normally hire at other times or overwork the small team that they have to the point of burnout.
If you are constantly struggling with this manpower issue, then leave it all up to an HR manager. Let them worry about staffing your firm as you continue business as usual.
You aim to grow at the lowest possible cost.
Growth or expansion may not have been part of your original plan when you started your business. You may have been one of those owners who just want a steady stream of income. Besides, you have to spend money to make more money, and that is not easy to do for a small business.
However, sooner or later, you will be forced to grow. Your employees will want career growth, and your competitors will be expanding. You have to keep up, and an HR manager can help you achieve this goal while keeping costs low.
When you outsource your HR functions, you can serve more clients without having to move to a bigger office, buy new software suites, or pay more payroll taxes, among others. It is your HR management service provider who will take care of assigning more people to your team and scaling your contract according to your additional service requirements.
A Final Word
Outsourcing your HR functions to HR management service providers not only takes care of staffing but also provides other solutions that positively affect efficiency, productivity, and overall profitability.
Hiring an HR manager may be new to you, considering how you have kept your small accounting business for years without their help. However, the fast-changing business environment requires that you innovate, and outsourcing is one of the key ways by which you can accomplish that.