Greater efficiency and accuracy plus better customer service – we talk to Xero gold partner David Hassall, Managing Director of DH Business Support and co-owner of XU Magazine about the benefits of migrating to Payroll in Xero.
David Hassall started his business from his mum’s living room in 2009 with a vision to reshape the way small business owners think about accounting. Now, DH Business Support prides itself on forming long-term relationships with its clients, helping them to paint a picture of how their business is performing and progressing in an easily understandable way.
The business has grown from the family sofa to three offices in Leicester, Sheffield and Liverpool and now employs 10 staff. The company provides accounts, tax, bookkeeping and payroll services under one roof, freeing up clients to focus on running their business.
David’s passion is in creating a community of businesses that work together and support each other. “It’s almost like building a learning centre, we wanted to be more than just your average accounting practice. We don’t just want to give people a history lesson every year. We’ll say: ‘This is what happened with your accounts nine months ago,’ but we’ll also tackle underlying issues too. We make sure they really understand what’s happening so they can move forward and build great businesses.”
DH Business Support employs two staff members dedicated to running the payroll for around 150 local and national clients and also runs payroll on behalf of other accountancy practices.
“For me, Payroll in Xero was a great solution,” said David. “Clients wanted everything in one place. We wanted it all in one place. It keeps everything nice and clean.”
David has been using Payroll in Xero since its launch in spring 2015 – read on to learn how Payroll in Xero has benefited DH Business Support and its clients:
“Efficiency, customer service and accuracy” – the three biggest wins from migrating to Payroll in Xero
We asked David Hassall which were the three biggest wins for his business and clients from migrating to Payroll in Xero.
“For me, efficiency’s the big one – less clicks equals more time. I’d also say, customer service, because you’re recommending something to the customer that’s going to benefit them and make their life better. And you want them to feel loved and liked!”
“Finally, accuracy. Xero Payroll is just one click. If you’re not posting journals you’re saving three to four minutes per client. Times that across 500 payroll clients and it all adds up. It’s a no-brainer.”
Xero shaves hours off the time taken to run payroll in small businesses
Payroll has created a new revenue stream for DH Business Support. It’s popular with clients – whether the company has one employee or one hundred. David explained: “Payroll is a great add-on service for us because people think, ‘It’s people’s money, it’s people’s wages. We don’t want to get it wrong.’”
“For smaller businesses it’s a great fit to have Xero Accounting plus Xero Payroll. For example, if you’ve got a director payroll and you’re putting through a few hundred pounds per month with no changes, with Xero, that’s just one click. One click just to say ‘I’m happy’ and that’s it. “
“If you’re saving five to ten minutes using Xero over Moneysoft Payroll Manager it might not seem much, but it soon stacks up.”
“With Xero versus Sage, you’ll save 7.5 to 12 minutes per average client – that’s a huge chunk of time. It means we can service more clients without having to take on more staff.”
Recording on the go using the Xero Me mobile app means less room for timesheet errors
The Xero Me mobile app helps employers save time on manual data input and log employee work hours more accurately. Employees submit their own timesheets, check their pay and manage leave requests – all from their smartphones. David says the app’s “cool visual looks” make it popular with employees and provide employers with more accurate data on working hours.
“Xero Me provides an easy format for recording time. Without it, businesses have to give you that information in another format – a scan or a spreadsheet that you’ve got to take and manually input. Again, that’s more time, more inefficiencies.”
“It can take a little time to get people used to the idea of using an app, but once you’ve educated them, got them to understand the benefits and manage some of the data entry such as holidays and sick themselves, when it comes to payroll, it’s just verifying all of it. It’s much better from an accountancy point of view.
“If you’re encouraging people to use Xero Me on the go and input time as they’re going along, it will be far more accurate. They’re not getting in on a Friday afternoon and just scribbling over the timesheet what they think they’ve done that week. It could be totally wrong and they’re being overpaid or underpaid.”
Real-time, updated information makes management reports more accurate
With real-time updates, using Xero for payroll and accounting helps DH Business Support’s clients make decisions using up-to-date, accurate data. “You know when you produce a management report, as long as payroll has been processed, all your information is going to be there. Xero creates real-time information and that’s a big benefit for our clients. It’s easier for everyone when you’re looking at the most up-to-date facts and figures.”
David’s three top tips for other partners or accountants considering using Xero Payroll
Use Xero for your own payroll
“Test it, get your head around it, see how it works. Doing your own payroll first is a great way to see how Xero Payroll works from both employer and employee side. Ensure that for whatever else you’ve got set up, that Xero Payroll is going to work with it.
Profile your clients
“After testing, plan. If you’ve got a client base already, plan who you’re going to move across. Be honest with yourself, who is it going to work for and who is it not going to work for?
Stage your migration plan
“Finally, consider staging. If you’ve got a big client base already or want to move clients across, make sure you take your time. Don’t fall into the pitfall of moving 100 clients onto Xero Payroll then realise that you don’t have a clue how to use it. Make sure you’re trained up on it, you stage it across, get your smaller payroll clients on there first before moving on to your larger clients.”