Managing a company’s HR and finance and accounting processes can be strenuous for a company’s administration personnel, which is why outsourcing such tasks are becoming more popular. Aside from saving a lot of effort, payroll and accounting outsourcing have been shown to help a company’s budget. More companies are opening their doors to payroll and finance and accounting outsourcing and this may be due to the fact that outsourcing may bring in more benefits to a company than they could have imagined. The Internal Revenue Service of the United States government sanctions those employers that have committed errors in their payroll filing. In order to avoid being sanctioned, companies are turning to solutions providers to handle their company’s payroll and accounting processes.
Before 2010 ended, there were speculations that payroll outsourcing will see more opportunities this year and that there is a possibility that it will see a rise in demand. Speculations on the industry’s growth became stronger as more developments on outsourcing companies have been reported. ASAP Accounting & Payroll Services Inc., a Colorado-based company whose main clientele are small and medium sized companies, reported that their company was able to hit its $100 million mark in payroll processing. According to the article, what may have pushed the companies to look into outsourcing is the economic downturn that took place in 2008. But even though the economy already recovered, companies are still pushing for the expansion of the payroll and accounting outsourcing industry.
In support of the speculations delivered last year, WNS Holdings (NYSE:WNS), a known provider of finance and accounting solutions, was recently ranked among the top companies in North America by IR Global Rankings, recognizing its efforts for the past year. Another industry key player, Genpact (NYSE:G), saw its global client revenues grow by 16 percent over 2009, with finance and accounting services leading the growth. This growth is attributed to the company’s expansion of their finance and accounting arm.
Payroll and finance and accounting outsourcing solutions are covering all areas of the spectrum in terms of company size as it is not limited to small and medium sized businesses. A giant oil and gas company, Shell (NYSE:RDS.A), announced that it has delegated a total of 8,000 roles across six shared services centers around the globe for the past five years, with most of the roles covering financial processes. Having seen the benefits of outsourcing, such as being able to slash $4 billion off the company’s costs for the last two years, it looks like Shell would continue outsourcing some of their company’s financial processes.
A partnership that can also attest to the fact that it was a good start for the accounting outsourcing industry is the one between Clifton Gunderson and Intacct. Last January, Clifton Gunderson, a Wisconsin-based accounting consultancy firm, entered into a deal with Intacct, a cloud financial management and accounting applications vendor, allowing the former to make use of the latter’s enterprise software. Clifton Gunderson will now be able to provide their staff and clients the ability to share real-time access, improving collaboration between both parties.
With these recent industry figures and partnerships, it is inevitable to think that 2011 was indeed greeted with more opportunities for the payroll and finance & accounting industry.
Audrey B is a Strategic Solutions Executive of Infinit Outsourcing, one of the leading BPO companies that offer boutique finance and accounting solutions. Infinit Outsourcing provides payroll outsourcing to small and and medium sized enterprises who are seeking a dedicated partner.