“The organizations that struggle the most are always behind on the information that they receive. They’re typically less profitable, they’re less efficient. They rely on manual processes. And they struggle to innovate.” – Matthew Lescault
Overview Of The Benefits Of Outsourcing Payroll For Your Law Firm:
Payroll management can be complex, especially for a law firm that is growing and has an increasingly diverse staff, from cleaning services to CFOs. You could add a payroll specialist to the list, but it’s usually more cost-effective to engage payroll outsourcing services.
One of the benefits of payroll outsourcing is that it can be managed independently of other accounting activities. Because payroll activities are time-consuming, outsourcing frees up time for your accountants to focus on other essential financial functions.
Furthermore, outsourced payroll specialists are always up to date with governing tax laws and legislation, so your records always comply with the latest requirements.
Discussion Of 6 The Benefits Of Outsourcing Payroll For Your Law Firm:
Payroll outsourcing has many benefits for your law firm. We’re going to look at six of the biggest benefits that ultimately boost your firm’s growth.
1) Time and Cost Savings
Outsourcing payroll processing and management, as separate from accounting for your law firm, makes financial sense because you don’t have any expenses that accompany a permanent employee, like salaries and benefits, and IT infrastructure, including hardware (and upgrades) and software (and upgrades).
Other benefits include:
- No recruitment and training expenses.
- More time and resources to attract more clients and increase billable hours.
- Access to real-time reports analytics that enable you to make strategic decisions regarding your workforce.
- Greater accuracy and transparency in payroll records.
2) Compliance Expertise
Payroll outsourcing companies have an obligation to keep current with industry regulations and tax laws. It’s essential for them to ensure their clients’ operations always comply with these requirements or they risk exposing their clients to penalties and could even cost them their state licenses.
Compliance benefits include:
- Compliance with laws and regulations on a local, state, and national level.
- Low risk of errors.
- Low risk of fraud.
- Low risk of penalties.
3) Accuracy and Reliability
You can imagine how unhappy your staff would be if their wages or salaries were paid irregularly; that is not the same day every month. They need to rely on their salary to be in their account on time so they can cover bills without risking late payment penalties.
You can imagine how much unhappier they would be if there were constant errors (over- or underpaying) that must be sorted out every month. Outsourcing to payroll experts ensures that these errors are eliminated. Ultimately, this results in satisfied employees who are motivated to do their best for their clients and for you.
Other benefits include:
- Confidentiality. Salary information isn’t leaked. This is important because employees who learn they are paid less than others on a similar level won’t just be angry, they could be angry enough to take legal action.
- Payroll is always processed timeously.
- Wages, deductions, and taxes are accurately calculated.
- Commitment to work standards and ethics.
Find out more about salary transparency during the recruitment process as it pertains to various states.
4) Scalability and Flexibility
Very few businesses, including law firms, stay static. Staff come and go, clients come and go, you grow, nothing stays the same for very long. It can be tricky for you or your in-house finance department to keep on top of all the time-consuming changes while still staying up to date with other core financial management tasks.
Payroll specialists have the knowledge and advanced software systems, like Sage Intacct ERP, to scale your payroll services to match your law firm’s needs.
Flexible and scalable payroll functions for law firms includes:
- Adding and removing employees
- Adjusting hours
- Incorporating complex compensation structures
- Quick, efficient, and error-free adjustments
5) Data Security and Confidentiality
When employees join your law firm, they entrust you with a lot of sensitive information, including background checks, social security numbers, and bank account details. They rely on your discretion and data security systems to keep their information confidential and safe from cyber-terrorists and the like.
However, it can be very expensive to maintain unbreachable in-house security systems. Managed payroll services include comprehensive data security measures to protect confidential information. These include encryption and restricted access.
Additional benefits include the prevention of embezzlement, identity theft, and GDPR (General Data Protection Regulations) compliance.
Note: Always find out about the service provider’s data security assurances and insurance.
(Learn more about GDPR in the US.)
(Learn more about Data Privacy laws in the US in 2023.)
6) Access to Advanced Technology
Law firms have plenty of overhead expenses without adding advanced payroll software and technology. When you choose law firm back office outsourcing services, however, you automatically get access to the best systems available.
Technology benefits include:
- Streamlined payroll processes
- Self-service options for employees
- Comprehensive reporting and analytics
- Insight into payroll expenses
- Technology upgrades
- Automated systems that optimize payroll processes, reduce human error, and increase the efficiency of internal processes.
Conclusion and Final Recommendations
Payroll management is time-consuming and eats into resources that could be used to a greater advantage elsewhere in your firm. Outsourcing payroll services enables you to redirect resources to areas where they promote growth and contribute to your firm’s ROI.
One of the knock-on benefits of outsourcing your payroll is the improvement in morale. This contributes to the overall atmosphere in your law firm, making it a pleasant place to work. This helps keep staff turnover down because they enjoy coming to the office. And this reduces your recruitment and training costs.
Outsourcing payroll for your law firm can bring numerous benefits, especially when combined with Sage Intacct ERP. Sage Intacct offers customizable modules designed for law firms, ensuring seamless integration with LWI’s payroll outsourcing services. By outsourcing your payroll and leveraging Sage Intacct, you can enjoy benefits such as accurate and timely payment processing, reduced administrative burden, and enhanced financial visibility. Experience the convenience and efficiency of outsourcing payroll with the power of Sage Intacct and LWI’s expertise in serving law firms.