TECHNOLOGY
Boosting the value of payroll bureau services within accountancy firms
Jeremy Hyman, principal at Jeremy Hyman associates, explores the role of payroll bureau services within accountancy firms, how they’re perceived and how they can change attitudes, using technology to help them boost their value
I spend a lot of time working with firms of accountants around the UK, and most of them offer payroll services. Regrettably, these bureaux can sometimes be regarded as the poor relation of some of the higher-billing departments. I believe this view is driven by three considerations: ● firstly, payroll is a relatively cheap service in terms of fee; in fact, it sometimes isn’t billed as a separate service at all, but bundled together with other services ● secondly, payroll is a largely transactional service, and there is potential for advisory work to be, not just ignored, but entirely misunderstood ● thirdly, payroll is sometimes provided from a protective stance. It isn’t that the firm wants to provide payroll services, rather, it doesn’t want a client going to a competitor to obtain them. In those firms, there isn’t a great backdrop against which payroll professionals can feel valued and appreciated. What can be done to address this problem? Years of experience working with technology has taught me that, although technology can support change, it
rarely drives it in a positive way. Two interdependent themes will be considered here: using technology to improve efficiency, and how users can best use the time released by this. Two interdependent themes will be considered here: using technology to improve efficiency, and how users can best use the time released by this
we’ve observed a fascinating maxim in our work. The work clients most resent paying for is, in general, the work staff least like to do. What do I mean by this? If a client pays a firm £250 a month for processing data, they’ll resent that fee as they feel it doesn’t add value. If, on the other hand, a client pays £250 a month (or indeed more) for a service that includes advice, narrative and insight, as well as processing, there’s less resistance and more differentiation. This means we’re no longer in a race to the bottom on fee but competing in one to the top in quality. And while fee never becomes irrelevant, with other factors in play, we’re less of a commodity and more able to justify why we’re worth what we’re charging. Here are my top three bits of technology, which any modern payroll operation wanting to achieve peak efficiency should use: A portal For the secure exchange of information between parties. This portal should serve employers and employees, as well as staff and any other stakeholders. It should be easy on the eye and deliver a great user experience with minimal maintenance.
Achieving efficient operations There’s a trend within accountancy firms, and indeed all professional service organisations, to move from being processors to advisers. Together with this,
| Professional in Payroll, Pensions and Reward | June 2022 | Issue 81 38
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