Why year end can be the right time for accounting firms to switch payroll software

Firms want a fresh start

Many accounting firms will use year’s end to their advantage by reviewing operations across the board. For example, it can be a good time to:

• Review and plan budgets
• Evaluate employee performance
• Understand marketing performance
• Determine if all the services they are paying for are worth the investment

In addition, for firms that are finding that more and more of their clients want them to take over their payroll, it could be a good idea to add evaluating their current payroll software to the list.

For many companies, worrying about client’s prior wages makes the decision to change payroll software difficult. The reality is that even perceived issues with the safety of client data or accuracy when migrating prior wages are enough to prevent an accounting firm from considering a switch. By taking advantage of the year’s end, you and your clients get to start with a clean slate on January 1. Therefore, the end of the year is an ideal time to make a switch if you are worried about migrating client data but are ready to transition to a different provider.

Promotions that put you ahead

When most businesses are looking to close the year’s business on a high note and may run special offers to reach their goals, there will be promotions that payroll software providers offer, which you can take advantage of.

Enroll clients today and pay later

Another reason firms choose to switch at the end of the year is that they can get clients enrolled and set up in advance, without fees charged to them until the new year rolls around. By transitioning clients early in November or December, you can remove some of the stress of changing payroll software while having clients ready in advance to run payroll in the new year. Plus, you won’t be charged until your first payroll run in January.

Mitigate mistakes

Mishaps in the payroll system may occur, such as missed tax filings, or your clients will get notices in the mail. If you are handling this yourself with prior wage migration, mistakes can be made. Most companies will make you do this unless you pay for it (but we don’t). The last thing you want is clients getting in touch to say that there have been errors that have led to penalties, or that their employees are being underpaid.

Subpar support

Often, when firms are looking for a new payroll partner, it’s because support is not a consideration that their current provider takes seriously. For example, it may be cumbersome to connect with a live person by phone. Or when starting a chat online, the customer service representative is nowhere to be found and the conversation gets lost in cyberspace. To take this a step further, some providers may not even offer in-house support, thereby outsourcing efforts to an outside company without the knowledge or experience to handle payroll-related questions.

When shopping around for a service to suit your needs, it is worth asking the vendor if they train their teams on payroll. Look for payroll software vendors that provide additional customer service training for their support staff. Therefore, they can address the unique needs of accounting professionals and become familiar with the most common reasons why an accountant or bookkeeper will reach out for support.

Budgeting is a balancing act

In addition, year’s end can be the right time to take stock and see how much it’s costing you to manage client payroll with your current software. Evaluate whether there is more value to be had by moving to a different provider. For example, you may be paying extra to handle a client’s multistate payroll, making amendments, or for direct deposit.

The takeaway is that while offering payroll services is helping your firm scale, you might find that you’re paying out of pocket more than you had planned. Like OnPay and ith many payroll software providers on the market, shopping around could add up to savings in the new year.

Reward referrals throughout the year

Establishing a new relationship with a provider can create additional revenue opportunities for your business. For example, OnPay occasionally offers referral programs in which accountants or business owners who recommend our software can earn cash when another company signs up.

Skin in the game

For firms that are seeking a new vendor that is truly invested in the success of their firm, it could be worth exploring if there are companies that put their money where their mouth is. For example, does your current provider have a revenue-sharing system that you can take advantage of? Or are there opportunities to earn complimentary payroll that you can use for your firm?