Getting Ready for the AE Surge with BrightPay

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Getting ready for the AE surge with BrightPay

Expand your offering and grow your business in 2016

By Paul Byrne

By Mike Foster

By Paul Byrne

Getting ready for the AE surge with

BrightPay

By Mike Foster

Expand your offering and grow your business in

Q&A SessionQuestions Tab or #BPWebinars

CompetitionTwo BrightPay 2015/16 bureau licences

On DemandThis session is being recordedREC

Getting Ready for the AE surge with BrightPay

• Accountancy Practice for 20 Years• Payroll software development• Expanded into the UK – BrightPay &

Bright Contracts• 80,000 employers across the UK &

Ireland use our products

Paul Byrne

• Auto Enrolment as a Service

• Automate & Streamline AE Task

• BrightPay’s Approach

• BrightPay Demo

• 7 Steps to Profit from Auto Enrolment

Agenda

Auto Enrolment Overview

Auto Enrolment as a Service

60,861Employers completed

declaration of compliance

1,800,000Employers who have yet to

reach their staging date

Employers with less than 50

employees

of an accountants client base is made up

Auto Enrolment as a Service• Large and medium employers: HR personnel to help with

auto enrolment

• Small and micro employers: lack of in-house expertise

• Majority of employers yet to stage will not have the knowledge or experience to make informed AE decisions

• Information overload - confused, bewildered and overwhelmed

• Are you ready or prepared to take on auto enrolment business?

• What level of support / information will you offer?

• Are you prepared for employers coming to you last minute?

Auto Enrolment as a Service• Number of benefits for your clients• Time savings• Cost savings• Focus on core areas of their business• Training / Expertise

• By offering a complete end to end solution, bureaus can generate income and enhance client relationships.

• If you offer other services, auto enrolment will provide a new platform to reach and upsell to.

• Employers will be happier to consolidate all their outsourced services to one person or advisor.

Automate & Streamline AE Tasks

1. Set up a pension scheme

2. Assess employees

3. Communications

4. Ongoing duties

5. Declaration of Compliance

Auto Enrolment Responsibilities

• Modern innovative solutions exist that can automate AE duties

• Pre-staging – correct tools in place, register with pension provider

• Staging – 1 or 2 hours should be sufficient to deal with auto enrolment staging tasks

• Ongoing duties – some payroll software can automate the AE ongoing tasks

Streamline Auto Enrolment

Streamline Auto Enrolment• For large, repetitive or time sensitive tasks, the speed of

automated AE offers significant cost savings to bureaus. • Especially relevant when employers approach you close

to, at, or even after their staging date.• With the right tools, auto enrolment should become a

seamless part of the payroll process.

Streamline Auto Enrolment• With some payroll software providers, you may face

additional costs for auto enrolment functionality and support.

• Alternative software packages exist that have auto enrolment features included without an increase in the price and no hidden support charges.

Does Your Payroll Software…1. Assesses your workforce automatically?2. Allows the use of postponement?3. Customise employee communications?4. Calculate and deduct pension contributions?5. Handles opt-in and joining?

Does Your Payroll Software…6. Handle opt outs and refunds?7. Notify you when actions need to be

taken?8. Keep records and provide reports?9. Integrate with various pension

providers?10.Provide free support?

Payroll Software• Weekly, fortnightly, 4-weekly, monthly payment

schedules• Basic, daily, hourly and statutory pay• Payslips can be emailed to employees – password secure

payslip attachment• RTI submissions – automatically creates Full Payment

Submissions (FPS)• Auto enrolment functionality

Employee Assessment• Assessing employees can be time consuming• Based on employees wages and age, BrightPay will

automatically assess each employee and let you know who needs to be enrolled

• Alert you to what your AE obligations are for each employee based on their worker category

Enrolling Employees• Ease of enrolling employees – fundamental to AE process• Individual employee information must be submitted to

your chosen pension provider• BrightPay makes enrolling employees and processing opt-

in requests straight forward• Process opt-out requests, refund all deductions made and

show this refund on the payslip

Communications• Communications – how auto enrolment affects each

individual employee• Right information, right employee, right time• TPR – specific requirements need to be included• Free templates – time consuming• BrightPay – automatically examines each employee and

produces a tailored AE letter, ready for printing or exporting

Postponement• Option to postpone AE for up to 3 months• Additional communications required to notify employee

that they have been postponed• Deferral date – must reassess employees and enrol

eligible employees in a qualifying scheme• BrightPay – automatically produces postponement

communications and alerts you when postponement period expired.

Ongoing AE Duties• Monitor any changes to employees age and earnings• If an employee becomes an eligible jobholder, they must

be enrolled into a qualifying scheme• BrightPay will recognise this change, alert you of your AE

obligation, and produce the necessary communications• Payroll software should continuously monitor employees

in case enrolment is required

AE Contributions• BrightPay – automatically uses phased minimum

contribution levels• There is also the option to use custom contribution rates if

desired• BrightPay makes relevant contributions and deductions at

each pay period and includes these on employees payslip.• BrightPay keeps up-to-date with minimum contributions

Pension Providers

Records & Reporting • Proof of compliance – records must by law be kept for a

minimum of 6 years• For example, communications in relation to opt in, opt

out, and joining notices• BrightPay easily generates customisable reports for

analysis

Pricing & Charges• Pricing varies across the industry with each payroll

software provider• Some charge extra per employee per month – can quickly

add up• Some charge additional fee for Auto Enrolment

functionality• Make sure to read the small print – be aware of hidden

costs, such as support

Limitations• Some providers have limitations to AE features and

functionality • BrightPay has no limitations – it handles and automates

the AE employer duties for you• No restrictions to the number of employees• Performs necessary tasks for non-eligible jobholders and

entitled workers

How BrightPay Handles Auto Enrolment

By Mike Foster

Expand your offering and grow your business in

Expand your offering and grow your business

in 2016Mike Foster

Tuesday 8th December 2015

About me• Background – mentor, trainer, business development• Area Manager for Barclays Start Up Team• Start up of Leisure business in South Oxon• Started my own 4 businesses including:

• Own bookkeeping business - Set up 2003, Employed team, Franchised model, Sold 2013

• ICB Head of Member Development in 2014• Author & Presenter @StartUpDVD • Co-Founder of The Bookkeepers Alliance

What we will cover• Avoid the common pitfalls and barriers to growth• 7 systemised steps to grow your business• The value of your existing client relationship• The opportunities to expand• Making it happen with effective goal planning and a focus on

high pay off activities

Common Pitfalls andBarriers to growth

Common pitfalls & barriers to growthResearch has indicated that there are some common reasons for businesses failing and for not growing.

Be aware and plan to avoid.

So what are they?

Common pitfalls• Not enough capital• Growing too fast• Lack of experience – skill & resource gaps• Too few customers – recruiting or over reliant of a few• Prices too low• Bad Debts / Poor credit control• Poor control of overheads• Poor market research• Competition activity – awareness is key• Poor communication (with staff, customers, suppliers)• Bad management and supervision of people & processes• Health issues of key people• Bad luck

Barriers to growth

• A lack of strategy• The economy and market conditions = demand• Lack of preparation of what is expected• Not finding the right people• Poor / no leadership & people management• Lack of ability of owners to let go• Change management & reaction to change• Lack of working capital / cash• Raising finance• No marketing plan or product positioning• Do not listen to their existing customers• Too busy recruiting new customers, so not retaining existing

What stops the majority of us from taking action and growing?

Research tell us:

1. Time2. Lack of a system3. Attitude & motivation

Plan to manage the growth• Need more staff?

If so, recruitment or outsource & management

• Different premises?• Keep control of the quality?• Relationship management with clients• Working capital & cashflow need?

The 7 systemised steps for growing your business

Growing your business

"The whole principle came from the idea that if you broke down everything you could think of that goes into riding a bike, and then improved it by 1%, you will get a significant increase when you put them all together,“Sir Dave Brailsford Explaining the marginal gains philosophy that is perhaps his greatest British Cycling legacy

7 systemised steps for growing your business1. Number of leads marketing2. Conversation rate sales3. Number of sales cross sales4. Value of sales prices 5. Margin cost management6. Buy more often sales & service7. Increase customer lifetime retention

1. Number of leads marketing

• Strategy – know the ideal clients you want• Tactics – tips how to attract them• Be Proactive• Create lead flow systems

2. Conversion rate sales• How clear is your USP to the buyer

– what is truly ‘important’ to them• What is your USP? Your differentiator

• Know the influencers

Know the influencersHusband / Wife

PartnerBusiness Associate

Trusted Employee

Business Partner / Shareholder

Existing provider

Other?

AccountantBusiness

Adviser ?

2. Conversation rate sales• Test different approaches – say, wear, time, handout, offer

• Review & know why you are not converting• Market awareness – know it & demonstrate it

• Remove the risk, give a guarantee• What Guarantee could you offer?

• Listen & Match – pain & gain• What is the pain & gain of using or not using you?

3. Number of customer sales cross sales• Uncover all needs not just first sale – buying mode

• Ensure they are aware of all your offer• Credibility pack – what you do, pain & gain, why you do well

• Package your products – joint price offering

• Link your core product or service to another offering – Internal or external

4. Value of sales prices • Review your pricing strategy

• Be aware of market movement to subscriptions, technology delivering time savings thereby reducing chargeable hours

• Pricing model – fixed, value, menu pricing,

• Can you increase your prices?• Set good habit & expectations with an annual increase• Research shows you rarely loose an ideal client• Even losing clients you can gain – new turnover level, time

4. Value of sales prices • Up-sell clients where possible – Bronze, Silver, Gold

• Reposition your service to review the price or Package with a higher value – from buyers perspective * Water, Lettuce, Shares

• Offer payment options / plans

5. Margin cost management• Review your resourcing

– who does job, need to visit, how often, software used,

• Can you cut any related costs– Fixed – rent, wages, professional fees, line rentals, – Variable – software licences (change), travel, insurance,

stationery (eg payslips), postage (sending your invoices), cost to recruit,

6. Buy more often sales & service

• Add easy purchases – software upgrades, stationery, tax investigation protection, seminars / events,

• Sell more to your client base – monitor, remind yourself

Client name

Book’s Payroll Credit Control

Manag’t acc’ts

Pers’lTax

Software upgrade

Insurance

ABC & co X X X

J Bloggs X X

XYZ Ltd X X X

Son & Daughter

X X X X

Other & partner

6. Buy more often sales & service

• Ask more often!• Quarterly client review meetings – wants, needs

• Remind them what you do – newsletters, seminars, offers, have a planned purchase path (one purchase to another)

• Third party knowledge of your customer• Exceed expectations – use you more

• Share expertise with client – engage you for more

• Train & Develop your team – to maximise their relationships

7. Increase customer lifetime retention

• What is your retention policy & goals• Are you communicating• Are you listening & collecting feedback• What are your clients, wants, needs & demands• Delight with greater value than the promise• Keep it personal – not just a number

• Obtain testimonials from them• Just do a good job

7 systemised steps for growing your business1. Number of leads marketing2. Conversation rate sales3. Number of sales cross sales4. Value of sales prices 5. Margin cost management6. Buy more often sales & service7. Increase customer lifetime retention

The value of your existing client relationships• Your clients trust you – passwords, codes, financial information, cash,

• You are likely to be undercharging most of them (in their eyes)

• You may have been referred by another person they trust & respect• You have been asked to deliver a task that has to be accurate and

completed in a timely manner, that they trust you to do• You undertake a role they have already decided they have no desire,

time or skill to undertake• You have their ear and are extremely likely to buy from you again

The £ value of your relationships• You invoice your client monthly – Average £200 pm• You invoice every month - £2400 pa• You average retention of that client is 6 years - £14,400 lifetime value

• This is before any additional cross sales or referrals from them that create a greater value to you

• How much are you prepared to invest to gain this value?

The opportunities to extend your offering in 2016

• More of the day to day data management – unless do everything already!

• Software & Technology – cloud move, recommendation, implementation & set up, training, upgrades

• Credit control • Payroll• Auto Enrolment administration and management• Advisor role – help your clients understand the real number for success

• Management accounts – but with relevance, personalised KPI’s, sensitivity analysis,

• Seminars or Webinars – share your expertise or encourage to buy

• Complimentary products or services – delivered by you or a partner with return value

Employees or Outsource

BUT Keep focused on what you already do well

Run your business like Clockwork1. Know and analyse your starting point – skills gap analysis

2. Making the time for your priorities3. Your mission, vision, goals and objectives – with clarity

4. Know your ideal customers5. Positioning your business 6. Your marketing tactics7. How to win more customers8. Make your numbers work – success drivers, KPI’s,

9. Maximise your people investment – Commitment, Ownership, Responsibility, Excellence,

10. Making your business work like clockwork – your role, delegation, systems,

Effective Goal Planning… you will arrive, but where?

1. Define the goal (SMART)2. Today’s date and planned achievement date3. Benefits of achieving the goal ‘the gain’4. Losses if the goal is not achieved ‘the pain’5. Obstacles your envisage6. Solutions to those obstacles7. Who needs to know about the goal?8. Action steps9. Schedule actions and diarise reminders10.Tracking methods

Effective Goal Planning

Know your High Pay Off Activities

Mission, Vision, Goal & Objective

Targets

High Pay Off Activities

@MikeFozOxford

uk.linkedin.com/in/mikefosteroxford

https://www.facebook.com/TheBookkeepersMentor

www.entrepreneursmentor.co.uk mike@entrepreneursmentor.co.uk

www.bookkeepersalliance.co.uk

Any Questions

http://bit.ly/1H30vPA

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Tuesday 12th January @ 11.00 am

https://www.brightpay.co.uk/events/1026/

Essential Questions to ask your Payroll Software ProviderBy Paul Byrne, BrightPay

How to choose a quality scheme and not get lost trying to navigate the auto-enrolment jungle

By Griselda Williams, Smart Pensions

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Questions & Answers

For more information visit www.brightpay.co.uk or phone 0845

3004 304