Key Takeaways
- Payroll outsourcing enables accounting firms to focus on core functions while accessing specialized expertise and payroll technology and taking advantage of cost efficiency and enhanced security.
- Selecting an outsourced payroll provider requires careful evaluation of their experience, service offerings, integration capabilities, and security measures to ensure alignment with your specific business needs.
- To manage your outsourced provider effectively, communicate with them regularly, monitor their performance, and keep your internal processes up to date and aligned with any changes implemented by the provider.
Accounting firms juggle a multitude of complex tasks, from auditing and tax preparation to financial consulting and compliance management. These responsibilities demand valuable time and internal resources, often leaving little room for certain meticulous and time-consuming functions, like payroll processing.
This is where payroll outsourcing comes into play, offering a strategic and flexible solution that allows accounting firms to streamline their operations, reduce costs, and ensure compliance with ever-evolving tax regulations.
In this article, we delve into the many benefits of payroll outsourcing for accounting firms. Additionally, we’ll review the top payroll outsourcing companies in 2025, offering insights into their key features and services.
Finally, we’ll provide practical advice on selecting the right provider and best practices for managing payroll outsourcing effectively. By the end of this article, you'll have a comprehensive understanding of how payroll outsourcing can transform your accounting firm's operations and drive success.
Why Accounting Firms Should Consider Payroll Outsourcing
About 73% of companies outsource some aspect of their payroll process. This includes many accounting firms, which choose payroll outsourcing for the many benefits it provides.
Here are the main reasons to consider outsourcing this function for your firm.
Focus on core accounting functions
Outsourcing payroll functions allows you to concentrate on your firm’s core services, such as auditing or tax preparation. This strategic delegation allows you to dedicate your internal resources to essential services that directly impact your clients’ success.
Clients retain full access to and oversight over their payroll data, ensuring they maintain control while benefiting from the efficiency of specialized third-party providers. Assigning payroll tasks to experts leads to greater operational efficiency and more time for core business activities.
Access to specialized payroll expertise
Leveraging the expertise of specialists in outsourcing payroll significantly reduces the risk of errors and ensures compliance with tax regulations and employment laws, which is crucial for firms expanding into different jurisdictions.
Specialized payroll providers are also well versed in the latest payroll software and technology, which allows for more efficient and accurate payroll processing.
Additionally, these experts can provide valuable insights and recommendations based on their extensive experience, helping your firm optimize payroll processes and improve overall efficiency.
Ability to utilize advanced payroll technology
Outsourcing payroll allows you to access advanced technology without the need to invest in it directly. These technologies include automated tax filing, real-time payroll processing, and detailed reporting tools.
Payroll technology enhances accuracy and efficiency by automating tasks and reducing human errors. It also offers valuable insights through data analytics, helping you make informed decisions.
By leveraging advanced payroll technology, you can stay competitive, scale operations, and improve service quality.
Enhanced security
Outsourcing payroll to specialized providers ensures employee data is protected through advanced security measures like encryption, secure storage, and regular audits.
It also helps prevent fraud with robust internal controls and monitoring systems, maintaining the integrity of payroll processes and the firm’s trustworthiness. This is crucial given that payroll fraud accounts for 15% of all occupation fraud schemes in the US and Canada.
Cost efficiency and scalability
Payroll outsourcing often reduces operating costs compared with maintaining an in-house payroll department. External payroll services and payroll outsourcing services enable accounting firms to scale operations with business growth or changes, avoiding significant internal adjustments.
Reduced costs, scalability, and improved efficiency through advanced technology make payroll outsourcing appealing to accounting firms. This approach ensures accounting firms can adjust their payroll services in line with business growth or downsizing, enhancing overall cost effectiveness.
Furthermore, outsourcing payroll to locations with lower salary expectations can help keep labor costs manageable. For example, a benefits and payroll coordinator in Latin America (LatAm) has an average annual salary of $24,000, compared with over $94,000 in the US.
Top 10 Payroll Outsourcing Providers for Accounting Firms
Choosing the right payroll outsourcing provider is essential for accounting firms aiming to enhance their payroll operations.
Below, we present 10 of the leading payroll outsourcing companies for accounting firms, in no particular order. Note that these include both companies that offer payroll services directly and recruitment firms like Near that help you hire finance professionals skilled in payroll management.
1. Near
We’re placing ourselves first due to our passion for helping accounting firms access top-quality outsourced services through our comprehensive recruitment and staffing solutions.
Near has a large talent pool of remote experts based in LatAm, including finance professionals like accountants, bookkeepers, and payroll specialists. We support accounting firms throughout the entire hiring process, making it easy and efficient to hire candidates with specialized financial skills who offer cost-effective services.
2. Deel
Deel is a comprehensive payroll and compliance platform that specializes in helping businesses hire and manage remote teams globally. It handles payroll processing, tax compliance, and benefits administration, ensuring that your firm remains compliant with local laws and regulations in over 150 countries.
Deel’s user-friendly platform and dedicated support team make it a reliable choice for accounting firms looking to streamline their payroll operations.
3. ADP
ADP is a well-established payroll outsourcing provider known for its comprehensive payroll and human capital management solutions. Catering to businesses of all sizes, it offers a wide range of payroll outsourcing services, including payroll processing, tax compliance, and employee benefits administration.
ADP’s advanced technology and robust security measures ensure accurate and secure payroll management. Its skilled team’s extensive experience and reliable customer support make the company a trusted partner for accounting firms seeking efficient payroll solutions.
4. Gusto
Gusto, formerly known as ZenPayroll, is aimed primarily at small to mid-sized businesses, providing an intuitive payroll and human resources management platform. The platform’s user-friendly interface makes payroll management easier for accounting firms, ensuring a smooth process for business owners.
Its cost-effective and straightforward services have made Gusto a preferred choice for many firms seeking reliable payroll solutions.
5. Paychex
Paychex is recognized for its excellent customer support and assistance to clients of various business sizes. Serving a diverse range of clients, including small businesses, midsize companies, and enterprises, it offers customizable payroll solutions suitable for all kinds of organizations.
Paychex’s flexible service offerings cater to the unique needs of different companies, ensuring that all clients receive tailored payroll solutions. This flexibility and support make Paychex a reliable partner for managing accounting firms’ payroll processes.
6. Rippling
Rippling offers an all-in-one payroll and HR platform that simplifies payroll management for accounting firms. Its system integrates seamlessly with other business software, allowing for efficient data management and payroll processing. Rippling’s automation features help reduce manual tasks, ensuring accuracy and regulatory compliance.
7. OnPay
OnPay provides a robust payroll service designed for small to medium-sized businesses. Known for its simplicity and comprehensive features, OnPay offers payroll processing, tax filing, and benefits administration. Its transparent pricing and excellent customer service make it a reliable choice for accounting firms.
8. TriNet
TriNet specializes in providing comprehensive solutions for payroll tasks, including payroll processing, benefits administration, and compliance support.
The platform is designed to cater to the needs of small to medium-sized businesses, offering scalable solutions that grow with your firm. TriNet’s focus on compliance and customer support ensures a smooth and efficient payroll process for accounting firms.
9. SurePayroll
SurePayroll is a subsidiary of Paychex and offers online payroll services tailored to small businesses. Through its easy-to-use platform, accounting firms can access payroll processing, tax filing, and compliance support services. SurePayroll’s flexible plans and dedicated customer service make it a popular option for firms looking to streamline their payroll operations.
10. Justworks
Justworks is an all-in-one HR platform that simplifies payroll, benefits, compliance, and HR for small to medium-sized businesses.
The platform provides comprehensive services, including automated payroll processing, tax filings, and benefits administration. The company’s focus on compliance and customer support ensures a smooth and efficient payroll process for accounting firms.
How To Choose the Right Payroll Outsourcing Provider
When selecting a payroll outsourcing provider, it is crucial to assess several factors to ensure they can provide consistent, high-quality services that meet your business requirements. Here are some strategies to help you select a partner that aligns with your accounting firm’s payroll needs:
Evaluate service offerings
Reviewing the range of services from potential payroll partners ensures alignment with your firm’s specific needs. Inquiring about customer service options like response times and support channels is crucial when selecting a payroll provider.
Thoroughly evaluating service offerings ensures the provider meets the unique requirements of your accounting firm, enhancing overall efficiency and effectiveness.
Consider integration capabilities
Payroll outsourcing solutions should integrate seamlessly with existing accounting software to streamline operations. Integration with tools like time-tracking systems and HR management software simplifies data entry and enhances accuracy.
Integration capabilities are essential for seamless payroll operations within accounting firms, facilitating accurate payroll calculations and efficient employee information management.
Assess security and compliance measures
Reputable providers implement strict security measures to protect sensitive employee data. Strict security protocols are vital to protect sensitive payroll data from breaches, ensuring compliance with laws and regulations.
Ensuring compliance with tax laws and payroll regulations is vital for payroll processing, and robust security and compliance measures build trust and reliability with clients, enhancing client relationships.
Select the right location
When selecting a payroll outsourcing provider, the location of their operations can significantly impact service quality and cost.
Providers based in offshore regions like India or the Philippines often offer the most competitive pricing. However, nearshoring to locations like LatAm balances cost savings with better support and communication due to similar time zones and cultural understanding.
Evaluating the geographical location of potential providers helps ensure that they align with your firm’s operational needs and budget constraints.
Best Practices for Managing Payroll Outsourcing
Managing payroll outsourcing correctly is critical for accounting firms to maximize the benefits of this approach. Proper management ensures that payroll processes run smoothly, compliance is maintained, and operational efficiency is enhanced.
To help you navigate this crucial activity, we’ve outlined some best practices for managing payroll outsourcing:
Communicate regularly with providers
Regular communication ensures accurate updates are made to the payroll outsourcing process. Maintaining consistent communication helps address any potential issues promptly to maintain smooth payroll outsourcing operations.
A reliable and open communication channel with your payroll provider ensures all updates and changes are accurately reflected, maintaining operational efficiency and accuracy.
Monitor performance and compliance
Regular performance evaluations ensure compliance and help avoid costly penalties due to payroll mismanagement.
Using metrics for performance assessment can help you maintain oversight of outsourced payroll functions. Payroll accuracy is a particularly important metric, as errors can lead to significant legal and financial repercussions. Compare cost efficiency metrics against in-house payroll costs to measure the financial effectiveness of outsourcing.
Keep internal processes up to date
Aligning internal payroll processes with those of the outsourcing provider can enhance overall efficiency. Regular updates to internal workflows can help integrate changes from the outsourced payroll service provider, ensuring seamless integration and improved operational efficiency.
Modifying internal workflows facilitates seamless integration with the outsourced payroll system, reducing disruptions and enhancing efficiency.
Final Thoughts
Payroll outsourcing offers numerous benefits for accounting firms, including enhanced efficiency, cost savings, and improved accuracy. By outsourcing payroll tasks, you can focus on your core business functions, access specialized payroll expertise, and ensure compliance with tax regulations.
Selecting the right payroll outsourcing provider is crucial for achieving these benefits. With our talent pool of thousands of skilled finance professionals, Near is ready to help you hire experts who can handle your payroll functions efficiently while enabling you to save up to 70% on overhead costs.
Schedule a no-commitment consultation to learn more about how we can help you hire top remote payroll specialists within 21 days.