Five reasons to start offering payroll services to your clients
As soon as a business takes on employees, there’s the pressing need to run a weekly or monthly payroll. But running a payroll creates an administrative workload that most startup founders, entrepreneurs and owner managers would happily do without – and that aversion to financial admin provides a golden opportunity for your firm to diversify into payroll services.
Below, we’ve highlighted five of the key benefits of expanding into outsourced payroll services, and explain how the right payroll software will be the foundation for your new service.
1. Lighten the admin load for your clients
Office workers waste more than 40% of their day on manual administrative processes, according to recent data from Automation Anywhere. And entering the timesheet hours, calculating the payments and sorting out the bank files for their payroll will make up a substantial chunk of that manual data-entry time for your clients.
By offering a payroll service, you give your clients the option of outsourcing this payroll admin to your firm. And, with their workload lightened, clients can focus on higher-value, profit-raising tasks like business development, marketing campaigns or strategic planning etc.
2. Offer a more comprehensive value bundle to clients
The average business owner’s expectations of their accountant have changed radically over the past decade. Whereas offering bookkeeping, accounting and tax services used to be the norm, many businesses now expect their accountant to offer a holistic, multi-service offering that includes payroll, outsourced finance and cashflow management, among other things.
Going beyond pure compliance and offering additional services, such as outsourced payroll, helps you offer a more comprehensive service. And when clients place real value on this end-to-end service, they’ll be willing to pay a higher price point.
3. Generate higher revenues from the same client base
Revenue growth will always be a key target for any accounting firm with an eye on profitability. Taking on more clients is one way to achieve this, but adding payroll services for your existing clients allows you to boost revenues while maintaining the same client numbers.
It costs far more to win a new client than it does to retain an existing one. So, rather than investing the firm’s hard-earned cash in sales and marketing campaigns, why not add a payroll service and increase the average fee for your current satisfied customers?
4. Simplify your bookkeeping and year-end accounting
When your client runs their payroll in-house, their payroll information is only as good as the weakest link in their finance team. Manual data entry is prone to human error, and that can lead to hours of wasted time while you correct the figures, update the journals and get them ready for period-end or year-end.
As your client’s accountant, you know their business and their finances inside out. So, you’re in the best possible position to run their payroll effectively, to minimise the potential for human error and miscalculations, and to ensure their journals and bank files all tally precisely with the company’s main accounts. When payroll can be integrated effectively into the day-to-day accounting process, this makes your job far easier when it comes to finalising the accounts.
5. Use payroll software technology to expand your firm’s capabilities
Payroll may sound like a service that requires a lot of manual input and time-intensive admin for you and your team. But, in 2021, the reality is that the new breed of hybrid payroll software can get a large percentage of the payroll tasks done automatically, saving you time and money.
With a payroll solution like BrightPay Payroll Software and their cloud add-on BrightPay Connect, you have an all-in-one solution for calculating payroll runs, communicating with your payroll clients and even making bank payments on the clients’ behalf.
BrightPay can help you run a productive payroll service with:
Direct integration with your accounting software – BrightPay’s direct API integration syncs your payroll journals with many of the UK’s top accounting packages.
Batch processing of multiple payrolls – BrightPay allows you to run batch operations across several payroll files, making the payroll process far more efficient and productive.
Direct payments to employees and HMRC – the ability to facilitate direct payments with Modulr allows you to pay the clients’ employees without the need for time-consuming bank files. You can also make payments directly to HM Revenue & Customs (HMRC) on the client’s behalf, helping you add even more value for the client.
Automation of auto enrolment elements – BrightPay automates the main auto enrolment pension processes, keeping clients compliant and saving you time.
Client payroll entry and approval – BrightPay Connect offers an employer dashboard where you can communicate with the client and, working together, can complete the payroll entry and payroll approval processes.
Employee self service app – the clients’ employees can make use of BrightPay’s Employee Self-Service app, to access their payslips and P60s, or request holidays directly through the system.
Try BrightPay as your payroll platform
Adding outsourced payroll to your mix of services is a no-brainer for any ambitious accounting firm. And with BrightPay as your core platform for payroll provision, you have all the features, automation tools and online solutions you need to run a tight payroll ship.
If you’re planning on rolling out a payroll service, why not try our 60-day FREE trial and see how simple and straightforward BrightPay makes the whole payroll process.