Furlough as a chargeable service? What you need to know
Increasing your prices is never very popular with clients especially in this COVID-19 climate. Deciding to charge for furlough can be a daunting and controversial task. As accountants and payroll bureaus have had the added workload of calculating and processing furlough payments, it is inevitable that clients should expect to pay more for the extra work provided.
Many payroll service providers are shying away from charging clients while others are contemplating a charge to remain viable and sustainable into the future. The fact remains, processing furlough payments is something your clients need help with, which is why you could provide it as a chargeable service.
If you are thinking of introducing an additional charge for furlough processing, here are some key tips to think about.
- Make it clear that the services you provide are worth the amount you are charging.
- Keep in mind how much additional time it takes to perform your client’s furlough tasks.
- Best practice is to clarify the new pricing structure, specify the date at which it will come into effect and explain the benefits.
- Be confident in outlining the additional work and expertise required to process furlough payments.
If you decide not to charge your clients, make sure you include furlough processing as a line item on your clients' invoice. It would be advisable to mark it as free or with a monetary value with 100% discount. Your clients need to appreciate that this is an additional service that you are not charging for. This will help towards client retention, customer referrals and customer loyalty.
Free Guide for Accountants & Payroll Bureaus
This guide examines the impact of COVID-19 on payroll and how to mitigate some of the losses to remain viable and profitable in the future. We address the realities and challenges of deciding to offer furlough processing as a chargeable service.
Accountants who switch up their payroll software provider can strategically structure, organise and build a high-performing payroll processing service that is built for the next challenge. Get your free copy.
Book a demo today to discover how BrightPay and BrightPay Connect can help your accountancy practice or payroll bureau come back stronger from this challenging time.