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Impact of HR and payroll outsourcing on service quality

Impact of HR and payroll outsourcing on service quality

Every entrepreneur is well aware that running a business is not only about getting more customers and fulfilling orders, but also the need to handle their employees from a human resources perspective. As a company grows and expands, the subject of bookkeeping becomes increasingly difficult for a small team to keep on top of, and quite a few companies decide to hire an outside professional accounting firm, or use what is known as an “accounting firm. outsourcing accounting services.

HR and payroll service – what does it consist of?

What is full accounting and the tasks that a company’s HR and payroll department has to deal with every day? As it turns out, as more employees are hired, the paperwork and paperwork involved in handling human resources increases significantly. Every employee must have a signed contract, taxes or social security paid, and of course must be paid an appropriate salary. In a company with a few employees, HR matters may be handled by one employee delegated to do so, but in a large enterprise, a whole department, that is, a team of employed professionals overseeing accounting matters, oversees it.

Of course, the accounting department is not staffed by random people, but by those with the appropriate knowledge and experience. Often employees in this department are much more familiar with labor law than the company’s owners. This is not surprising, since it is ultimately their wrong decision that can involve serious legal or financial problems.

What does outsourcing consist of?

From year to year, a trend can be noticed in which entrepreneurs decide to close their in-house accounting offices and choose outsourcing instead. What is he actually?

This is nothing more than partnering with an external company and having it perform certain tasks from a certain area of business. For example, it may just be a comprehensive HR and payroll service. What does this mean? The idea here is that instead of creating an in-house accounting department , which is paid for by the company and is staffed by employees, all the tasks of this department are outsourced to an external company that takes over their scope of services, i.e., the accounting department.

bookkeeping , preparation of financial statements, recording of accounting documents, full bookkeeping, tax consulting, and all other accounting matters of the company.

To what extent does an outside company take over the responsibilities of the human resources department? The key is for it to take on as much work as possible, but this is determined by a signed contract with a detailed scope of services. It is standard, however, that an accounting outsourcer should outsource the maintenance of employee files, calculation and payment of salaries, accounting for vacations and preparation of reports for the business owner.

Accounting outsourcing Warsaw and other cities – key advantages

For people who are first exposed to the idea of outsourcing, the idea may seem a bit strange. After all, you hand over sensitive data about your employees to an outside company, but also your payroll, and often the scope of the tasks performed by specific people in the company. This is data that should never go outside the company. So what is the reason why HR and payroll outsourcing is so often chosen by businesses? Behind this, of course, is a very attractive list of advantages of this solution.

By far the most important advantage of establishing cooperation with a company , which provides accounting and human resources services in the system of outsourcing is a significant reduction in the cost of doing business. Professionals working in the payroll department expect remuneration appropriate to their knowledge and scope of work. In addition, their workplace should be prepared, equipped, heated and provided with all their social needs. If, on the other hand, an outside company is hired, its cost will be incomparably lower.

Many HR employees are worried that they will lose their jobs after outsourcing is introduced. This is extremely rare, as they are usually directed to other tasks. Having been relieved of tedious and time-consuming work, they can take on other, more serious tasks.

A very big advantage is also that outsourcing allows you to transfer responsibility to another company. When running our own HR department, any mistake by employees meant trouble for the company. However, if you outsource these tasks to an external company, they take responsibility for the mistakes of their employees.

Finally, it should still be mentioned that outsourcing avoids the recruitment of specialists for the payroll department, ensures the confidentiality of the company’s data, and involves fixed and predictable costs that are easy to plan in the company’s budget.

Does outsourcing have any disadvantages?

As you can see, outsourcing HR and payroll is an excellent solution for any business. However, it is important to know that the use of third-party services in this regard may involve some problems.

First and foremost to be mentioned here is the dependence on an outside company. In the event of its problems, or the termination of its operations, it can be very difficult for a company to quickly take over HR tasks and accounting services. Therefore, an important factor in choosing the accounting services of an external accounting firm is its position, and experience in the market. Vamik Accounting Office has over twenty years of experience in the field of personnel and payroll services for limited liability companies, offering full accounting and personnel services.

Should HR and payroll outsourcing be used?

Although outsourcing HR and payroll has some downsides, it is definitely a good path for any business. The advantages that come with such a decision are really very important and will allow you to significantly improve the efficiency of your business and become more competitive in the market.