Make payroll profitable with this one small step
Payroll is undoubtedly one of the most important aspects of any business; but it’s far from easy. Accountants and payroll experts spend a significant amount of time managing compliance requirements, and keeping up with changing legislation. It’s vital that staff are paid correctly, so payroll causes constant pressure to ensure data has been collected on time, and accurately calculated each pay run.
Growing a payroll client base often means increasing costs, more staff or working unsustainable hours. Payroll as a service is, therefore, perceived as unprofitable for accountants. Time-poor and revenue-focused, accountants are often reluctant to manage payroll themselves, and if they do offer payroll services for clients, many only do so when it’s necessary alongside other services.
However by avoiding providing payroll as a service, accountants are missing out on a whole other revenue stream. Accountants just need to find the right technology: to scale payroll compliance, so they can avoid the complexities experienced with traditional payroll software.
Getting comfortable with change: start small
If we break down the complexity of different types of clients, the easiest payroll client a firm could have would be those who are director-only, followed by clients with employees on static salaries that remain the same every pay run. As business sizes get larger and more complex scenarios come into play, payroll becomes more and more difficult and time-consuming to run.
For accountants looking to make changes to their existing processes, the simpler, director clients are a great place to start. Firms can quite easily test new payroll technology on director-only clients because onboarding time is much quicker than it would be for a larger business client. Accountants can also easily adjust to new software using director clients as their test driver, pivoting quickly without completely overhauling business practices overnight.
Challenging conventional director payroll processes
Although director payrolls are fairly simple, firms still have to go through the same process in their software as they would with regular clients. Between updating a pay run to submitting an EPS file to HMRC, accountants can still find themselves spending up to 15 minutes per client each pay period just processing monotonous admin tasks. These tasks tend to be mindless ones, like pressing buttons, waiting for software to load, checking data, and manually sending payslips and reports; yet they can’t be avoided in most software.
Small steps toward big change
Desktop payroll systems have set the status quo for ‘getting the job done’, but they aren’t simplifying the work for accounting and payroll professionals. Modern payroll technology, however, gives accountants the ability to automate the entire process, with no manual intervention and focus on the advisory side. By starting with small changes - such as automating simpler or director only payrolls - accountants can instantly reap the time-saving benefits of modern software without completely overhauling their processes or increasing software costs.
Our white paper: 'How accountants can make payroll profitable'; explores technology trends in the payroll and accounting industry, and how firms can utilise modern technology to drive value and profit.
Turn payroll into a profit centre with Director Pays
Director Pays is a cloud-based payroll system for accountants and payroll bureaux that is designed specifically to remove the manual efforts involved with director payroll processing. With a one-off set up, accounting firms can automate pay schedules, tax and NI calculations, HMRC submissions including FPS and EPS, client reporting, and journal entries to accounting platforms.
You might also be interested in
KeyPay is the first true cloud-based platform to hit the UK bureau market, designed to eliminate the traditional payroll headaches of employee onboarding, data collection, payslip distribution, HMRC and pension fund compliance. In a single system, KeyPay automates the flow of data from employees across rotas, timesheets, leave management, and...