Boost Your Profitability by Adding Payroll as An Add-On Service

Generally, payroll is not considered to be a profitable service in accounting circles. Many consider payroll to be unattractive and resource-intensive. We’re sure you’ll understand this if you’ve spent any time working on large, complex and frequent payroll.

The sheer complexity of payroll makes it a ‘nuisance’ for accountants. It requires staff full knowledge of PAYE and specialist software, not to mention how time-consuming and administrative heavy it is. If payroll has been a pain point for you, we have a solution: outsourcing.

Payroll is one of the easiest things to outsource and this can instantly remove all of the challenges that come with it while increasing profits and adding value to clients. It is unsurprising if your practice is missing out on offering payroll services to clients.

Reasons to Offer Payroll Services to Clients

Here are four reasons why the function is indeed a profitable add-on service for your clients:

1) Reduce client workload: You might already know how time-consuming it can be to deal with regular accounting tasks for clients. Add payroll tasks to the mix and it can quickly become a headache for your staff. However, you can easily solve this problem and reduce your client workload by outsourcing payroll to specialists. With the specialist taking care of all your payroll needs, your practice will have more time to focus on higher revenue-generating tasks while also reducing your workload significantly.

2) Enhanced client retention: Payroll is a pain point for accounting practices and clients. Who would say no to taking this complex task off their back? You can easily upsell payroll services to clients as they’ll be freed from dealing with the various challenges associated with managing several employees and their salaries. Furthermore, with clients relying on you to handle their payroll, the chances of retaining them for a more extended period are much higher.

3) Improved decision-making: Menial and repetitive accounting tasks can impact staff morale and, in turn, your profitability. By outsourcing payroll services, not only will your clients gain access to an efficient payroll system, they will also get invaluable insights into their business. Today, payroll software is quite sophisticated and will offer in-depth insights in real-time, which will allow your clients to make better business decisions. These insights will further increase their confidence in doing business with you and might encourage them to frequently reach out to you for assistance.

4) Superior customer experience: It’s generally understood that client satisfaction is extremely crucial for an accounting practice. However, most clients are only somewhat satisfied with the services they receive. By offering payroll services, your practice has an opportunity to improve client satisfaction manifold. When your clients realise that your practice is the one-stop shop for all their accounting, bookkeeping, and tax needs, you’ll increase your revenues further while your clients enjoy a superior experience.

When Should You Offer Payroll?

There is no fixed or best time for offering payroll services; anytime is right to take on payroll work. However, one thing you should keep in mind is to ideally make the transition a few days before the start of a tax year, as this is when clients will be more receptive to making changes to their payroll processes.

Profitable Payroll for Accountants Made Simpler

Today, accounting practices like yours have access to a large, global talent pool. The pandemic has further broken-down geographical barriers and technology has made it easier to work with teams working halfway across the globe.

So, it’s a good idea to consider hiring payroll specialists like QXAS instead of taking on payroll in-house. Not only will payroll outsourcing add value to your clients, but it will also lower your costs and increase profits.

Thinking of Outsourcing Your Payroll Function?

QXAS is a seasoned outsourcing provider with several years of expertise in payroll processing. With our assistance, your practice can reduce costs in the long run, gain access to our payroll expertise, and be assured of enhanced data security.

Reach out to our payroll experts at [email protected] or call +44 208 146 0808 for any of your payroll outsourcing queries.