Outsourced accountant – 8 reasons why delegating payroll to professionals is profitable

Company managers and entrepreneurs are increasingly considering the possibility of outsourcing the calculation of employee benefits. An inspiring example is the experience of foreign colleagues who have been successfully practicing turnkey settlement services through outsourced accounting support for a long time.

Why and to whom is it especially beneficial in Ukrainian realities?

Today, the situation is very common when an enterprise or company has an accounting department (or a separate accountant) that manages all accounting, but the calculation of wages and other payments, as the most complicated and time-consuming process in calculations, requires a separate staff unit.

And separate responsibility. Very often, the chief accountant (or the manager himself) delegates payroll to subordinates for these very reasons or looks for opportunities to optimize processes.

The ideal solution is outsourcing payroll to accounting professionals. In the process of work, the manager and the company will certainly feel the following 8 advantages and breathe a sigh of relief.

Transfer of responsibility in the legal sphere to the contractor

First, outsourcing payroll helps to minimize risks in the employee’s work process by transferring the process to a third-party legal entity that is liable in court.

Secondly, complex payment calculations (wages, vacations, sick/maternity leave) and accompanying communication with personnel require a constant resource. The company or enterprise cannot always provide this communication and, as a result, the reputation of the employer, who is accused of “irresponsibility”, suffers.

When payroll is outsourced, the contracting company is responsible for incorrect calculations, untimely submission of payroll reports, untimely payments, etc.

“The responsibility borne by the contractor company is constant. After all, unlike the company’s own employee, who can leave the company at one moment tomorrow, removing all obligations, the contractor company has a contract and legal obligations with the company .

If the current accountant, who was conducting calculations through the contractor company, is fired for certain reasons, then another accountant of the contractor takes over the processes without changing the obligations.

And we, as a company, providing a continuous process of accounting support, are also steadily responsible in court, if we suddenly fail to fulfill our obligations,” says Yana Dekusar, partner, director of the personnel support department and HR Nota Group.

Financial benefit – savings on staff expenses

Elementary calculations show that it is more profitable to have accounting support outsourced than to keep an accountant in-house. Why? First of all, you need to equip the full-time unit with a workplace (desktop, chair, a certain workspace, as well as a laptop and software, etc.).

In addition, when registering an employee, the company pays taxes for him, as well as all additional expected costs, such as insurance, training, check-ups, sick leave and vacations, etc.

When working with a contractor company, the customer does not pay for the work space and ensuring the efficient work process of the accountant, because he is not buying a “staff unit”, but a service.

“Having outsourced accounting services, the employer can no longer worry about the fact that the employee fell ill, went on vacation, will give birth tomorrow, has an uncomfortable desk or a broken laptop, and “calculations have not been made”.

The contractor company allows this headache to be removed, and in return, the employer receives paid services on time,” emphasizes Yana Dekusar, partner, director of the personnel support department and HR Nota Group.

A continuous well-established process – regardless of the “human factor”

The contractor company, as a rule, guarantees that the “human factor” will be leveled, that is, the work process will have a continuous duration, without downtime due to the search for a new employee and pauses “for family reasons”.

“The accountant got sick or quit his job – it’s not the company’s problem anymore, it’s our problem, the contractor, and we solve it inconspicuously for the customer, keeping the process uninterrupted despite the change/replacement of the employee.

We, not the customer, spend our time on onboarding a new person,” says Yana Dekusar, partner, director of the personnel support department and HR Nota Group.

Higher qualification of personnel means higher quality of work

As a rule, the contractor of the outsourcing company hires the best specialists with the willingness to pay salaries above the market, because the specifics of the work do not allow for mistakes. The price of a mistake is too high: legal responsibility plus reputation in the service market.

The key is that the contractor has the expertise to select the best specialists. While the entrepreneur/manager/, hiring an accountant, often plays the “lottery”, watching how this or that employee will prove himself.

In this situation, it is critical that it is not easy to bring the accountant to justice for his mistakes, because the application for dismissal is quickly written at his own will, and the accountant can in certain cases sue the employer in court. As a rule, in lawsuits, justice gravitates towards making decisions in favor of the employee, and not the enterprise.

Ensuring confidentiality

Preventing data leakage is a priority area of ​​security for any accounting service.

“We have an NDA signed with every employee. We are constantly strengthening cyber protection. Today, we are protected from information leakage due to our well-developed IT security,” says Yana Dekusar, partner, director of the personnel support department and HR Nota Group.

Insurance against staff turnover

Today, everyone’s mental health forces them to make adjustments to their work processes. However, there are processes in the company that are difficult to stop and a simple one in one area will cause failures in several others. A contractor company is insurance against “irreplaceable” people.

Expert response in a period of change

The contractor company always provides a prompt response to changes in legislation. While there are no guarantees that an employee is used to promptly monitoring all changes in legislation or will do so regularly. The contractor company professionally monitors all relevant innovations, as it is legally responsible for the non-compliance of calculations and reporting with the current legal norms.

Affinitive consulting

If the situation requires revision of individual calculations or their optimization, it is beneficial for the customer to get advice from a contractor who is already professionally immersed in the current situation of the company.

“We have a separate expert department that will professionally provide not only an assessment of the situation and recommendations, but also an in-depth analysis of the client’s request, because in this case we are not superficially tangential to the processes, we serve them,” says Yana Dekusar, partner, director of the department personnel support and HR Nota Group.

What “pains” of companies today will be most effectively solved by outsourcing payroll?

• Lack of personnel
  In Ukrainian realities, we are constantly faced with a shortage of specialized personnel due to the departure of specialists abroad. It is not easy to find professionals for a “budget” salary, besides, very often you need to find a specialist quickly.
• Low competence
  The best specialists have either left or already have stable employment. In the realities of war, professional development for many becomes either impossible or irrelevant.
• Human factor
  Disorganized communications, delays in work, impaired mental health often make adjustments to work processes that negatively affect the efficiency of the company’s work in general.

What tasks can be delegated to outsourced accounting support?

• Data processing for calculation of wages and other payments to employees.
• Monthly calculations of personal income tax (PIT), single social contribution (SSC), military duty and other social deductions (if available).
• Accounting for additional payments or compensation to employees (hospital, vacation, dismissal, pregnancy and childbirth benefits, etc.).
• Prepare salary reports for management on a monthly or other basis.
• Preparation and submission to the authorized state bodies/institutions/funds of Ukraine of monthly and quarterly reports on wages and personal income tax.
• Providing support to employees with questions about wages and preparing certificates at the request of employees.

The complete list of services is agreed upon individually by the customer and the contractor and fixed by contract. The outsourced accounting service allows you to effectively and autonomously optimize the process of calculating payments to employees and related reporting.