SOC 1 Competitive Advantage for Payroll Partners Selling Workforce Management Software
Financial & HR services providers like PEO’s, professional employee organizations, payroll providers, benefits administrators, HR services companies and others benefit by attracting more business if they know how to leverage and understand how SOC 1 reports from service providers give them a competitive advantage. For the most part, both public and private companies are held to at least some, if not all, portions of the Sarbanes-Oxley mandates often called Sarbox or SOX. Thus, pushing service providers to go through a third party SOC 1 audit actually shows potential clients as well as other business relationship suiters that they have passed a set of complex management, security and readiness reviews. Service providers that obtain SOC 1 reports are confident and able to meet new vendor criteria above those they are competing against. Resellers and other partners that learn to leverage this advantage by building their service business around choosing service providers who make available their SOC 1 report letter, could set new benchmark criteria that help set them apart from the competition.
Payroll and professional employee organizations have a competitive advantage over provider companies that are not working with a service provider who has undergone the complex SOC 1 / SOC 2 audit and has the letter of recommendation. Resellers of professional employee services that learn how to set the bar high by recommending to their potential clients to make having the SOC 1 report a requirement are able to raise client awareness, setting higher requirement benchmarking and increase revenue growth because they provide these extra assurances of compliance.
The extra value of educating creates client awareness raises the bar for higher client satisfaction due to a sense of security over sensitive information. “Public Company Accounting Reform and Investor Protection Act” or SOX, is a United States federal law that sets new or expanded requirements for all U.S. public company boards, management and public accounting firms. There are also a number of provisions of the Act that apply to privately held companies, for example, the willful destruction of evidence to impede a Federal investigation.
Service Organization Control 1 (SOC 1)
The SOC 1 report provides assurance regarding the controls at a service organization relevant to the user entities’ internal control over financial reporting. Ensuring that a service provider has internal control over financial reporting helps a client to know that the service provider has an understanding of SOX and internal controls at service organizations that may affect their clients’ financial statements.
Knowing that your service provider obtained a SOC 1 report does differentiate their and your offering by ensuring the establishment of effectively designed controls and subsequently providing your customers with the peace of mind to engage with your organization.
How do you know if it’s worth changing service providers or minimally asking the status of your current service providers plans for obtaining a SOC 1 report? Here’s the short list why:
- A competitive advantage against similar companies who have not received a SOC 1 report
- Able to meet contractual requirements
- Demonstrated internal controls benchmarking
- Revenue growth due to an increase in clientele
Swipeclock is a leading provider of cloud-based integrated workforce management software solutions that include automated time and attendance, advanced scheduling, and leave management capabilities. Swipeclock has completed SOC 1 by an approved CPA firm. The company’s products including TimeWorksPlus, TimeWorks Mobile, and TimeSimplicity, enable more than 1000+ partners to help their clients manage their most important and expensive asset—employees. Swipeclock’s workforce management products enable more than 30,000+ businesses to lower labor costs, comply with regulatory mandates, and maximize their profits.