Scaling Payroll Operations for a Multi-Partner Melbourne Accounting Firm

Industry: Public Practice (Australia)
Firm Size: 5 Partners | 22 Staff
Service Scope: Payroll Processing & STP Compliance
Engagement Model: Dedicated Remote Delivery Team

The Challenge

A Melbourne-based accounting practice managing over 85 payroll clients began facing operational pressure due to:

1. Increased STP Phase 2 reporting complexity
2. Payday Super transition preparation
3. Frequent payroll amendments and adjustments
4. Partner time spent reviewing routine payroll work 5 Inconsistent reconciliation between payroll and BAS

The firm’s internal team was skilled but stretched. Payroll turnaround times were increasing, and review bottlenecks were impacting client satisfaction.

The partners needed scale — without hiring locally.

TLS Intervention

TLS implemented a structured payroll delivery model:

1. Dedicated remote payroll team aligned to the firm
2. Standardised payrun checklist including: - Timesheet reconciliation - Award rate verification - Super guarantee validation - STP cross-check
3. Embedded reconciliation workflow between payroll and BAS
4. Defined review checkpoints for partner sign-off
5. Weekly SLA monitoring

The goal was not just processing — but creating a repeatable control system.

Implementation Approach

Phase 1 – Process Mapping
TLS mapped the firm’s payroll workflow across 20 active clients to identify inconsistencies.

Phase 2 – Standardisation
A uniform payroll SOP was introduced across all payroll clients, including reconciliation templates and review documentation.

Phase 3 – Delegated Execution
TLS payroll team assumed end-to-end processing responsibility, with the firm retaining structured review oversight.

Measurable Outcomes (Within 4 Months)

• Payroll turnaround time reduced from 4–5 days to 2 days
• Amendment frequency reduced by 38%
• Partner review time reduced by 30%
• Zero STP reporting discrepancies across all managed clients
• Improved client response time during pay cycle

The firm transitioned from reactive payroll management to controlled payroll governance.

Practical Impact for Accounting Practices

• Payroll services can scale without expanding local headcount.
• Structured reconciliation reduces downstream BAS corrections.
• STP Phase 2 risks are better managed with standardised controls.
• Partner-level time can shift toward advisory instead of operational review.

This engagement demonstrated that payroll is no longer an administrative function — it is a compliance system requiring process discipline.