For most accounting practices, payroll is not generally considered a profitable service. In fact, it’s often referred to as a time and resource intensive activity which is prone to errors. If you’ve spent any time working on large complex UK payroll, you probably know what we are talking about. However, with advances in technology and the availability of
Your clients have choices
Traditionally, your clients either processed payroll in-house or used payroll bureaus. But that’s changing. Both choices are still available but they neither want to do it in-house nor do they want to outsource payroll to a payroll bureau and accounting work elsewhere. To your client, payroll is all about tax and they want it taken care of by one supplier. They want a one-stop solution. What’s interesting about payroll is that it is not a tough sell. Your clients understand the benefits of a one-stop solution. However, it pays to pitch your services carefully.
5 reasons to offer payroll services to your clients
1. Higher retention of clients
Offering payroll services leads to a high client retention level. If your client has the need for payroll but you don’t offer it, they will go elsewhere. One clear advantage is that it binds clients to your practice.
2. Create a better customer experience
As mentioned above, payroll is an extra service that clients always want, along with accounts, tax
3. Help your clients make better business decisions
Cloud payroll software which lets you connect to other cloud applications is becoming more sophisticated. This allows your clients to get
4. Reduce their workload
If you’re already doing your clients accounting work it means they need to regularly send you their payroll data to be entered into their ledger. By taking on their payroll work that step is no longer required. You’ve effectively reduced the amount of work your client needs to do, which they will probably be happy about.
5. Build a deeper relationship
By offering payroll services to your clients, you strengthen the relationship you already have and you provide a scope on how to make processes more efficient.
You can make profits on payroll without doing the work
We live in an increasingly integrated society in which accountants have access to a wider talent pool across national borders. And with technology becoming the driving force of
When is the best time to offer payroll services?
Ideally anytime is the best time to let your clients know that you can also take on their payroll work. However, a good natural transition point is a couple of days before the UK financial year starts. This is a good time because clients would be more open to making changes and you won’t have to cross-check duplicate data in two systems. It also means there won’t be a need to transfer your year-to-date financial data from their old system to yours.
First and foremost, do an initial assessment for each of your clients as switching over you means a fresh start to their financial year.
To make the maximum profits from payroll, it is essential to move to an outsourced model. It is a straightforward way to turn a low-margin service into something that turns a profit, while also removing the time you spend on it and the investment you need in terms of software and hiring specialist payroll staff. Learn how to make payroll profitable for your practice using the free guide below.
My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice.