Benchmarks and insights from Canadian bookkeeping firms
Payroll on its own can feel overwhelming — let alone pricing it as a service for clients. It often seems like there are too many variables, forcing you to treat it as a nuanced and customized service that can easily fall out of scope. But what if we told you it doesn’t have to be?
We hit the virtual streets — aka many, many Zoom calls — with a mission to find out if payroll services can truly be profitable for Canadian bookkeepers. The answer is a resounding yes.
The payroll profitability proof
Is payroll a magnet for “scope creep” or a reliable revenue driver? For the majority of firms, the answer is clear.
The payroll service boundary
When bookkeeping firms focus on attracting right-fit clients by aligning their marketing with their value, the nuances and variables in payroll services become manageable with solid systems and processes in place.
“Payroll is a primary driver for strong client relations. It is a highly sticky service simply because of the consistent communication required.” – Canadian Bookkeeper
The benchmarks below highlight what we uncovered and what profitable payroll looks like for your peers. It’s time to turn payroll from a routine task into a profit-driving powerhouse that keeps clients sticky.
The peer benchmark
Who did we talk to? We interviewed Canadian firms to find the average benchmark.
The payroll growth opportunity
When clients grow, they hire. On average, 45% of a firm’s client base needs payroll — a built-in engine for growth.
Information was sourced from The bookkeeper’s playbook to making payroll profitable
“Clients don’t know what they don’t know. By asking the right questions before onboarding, you guide the conversation, uncovering payroll knowledge gaps. The questionnaire included in the guide was perfect for this.” – Canadian Bookkeeper
Navigating the client knowledge gap
Clients don’t know what they don’t know — be their guide and charge your worth.
Identifying client knowledge gaps early sets the stage to showcase their value and charge appropriately
Payroll is more than just a transaction
Why are profitable firms moving away from treating payroll as a freebie or a standard hourly task? Because payroll provides a recurring touchpoint that opens the door to deeper advisory services and a stronger partnership — and let’s be honest, while payroll feels task-driven, the real value in payroll is in the headaches it solves for small businesses and their employees.
“The cadence of payroll creates more opportunities for client conversations. Because of that recurring connection, you have more opportunities to follow up on advisory insights to elevate your value” – Canadian Bookkeeper
A modern firm’s payroll pricing shift
Payroll is now tied to the value of the service, not the minutes on the clock.
Tiered for complexity
When you step out of the weeds of manual data entry and price your services based on the value you provide, you change the dynamic of your client relationship.
“Payroll is an opportunity to provide immense value. Whether a client runs it themselves or has us manage it, they need expert advice on how payroll impacts their bottom line.” – Canadian Bookkeeper
Ready to turn payroll into a profit centre?
Making payroll profitable requires more than just processing numbers. The key to firm growth lies in positioning yourself as the superhero who solves clients’ pain points. Combine that heroic relief with a pricing structure that echoes your value rather than just the time spent, and you are well on course.
“I didn’t realize I was undercharging for my payroll services. The pricing calculator included in the playbook was an eye opener.” — Canadian Bookkeeper
Top it off with exceptional onboarding, and you are on a clear path to success.
The bookkeeper’s playbook to making payroll profitable helps firms:
- Identify their payroll super powers
- Uncover client knowledge gaps to showcase their value
- Position and sell their payroll services
- Price and package their payroll services
“Payroll is incredibly stressful for small business owners. Knowing we are handling it for them is a massive stress reducer.” – Canadian Bookkeeper
The Bookkeepers playbook to making payroll profitable
Download your free copy of The bookkeeper’s playbook to making payroll profitable and start scaling your payroll services with confidence.
