Want to Grow Your Firm? Think Payroll First
The question of change comes up every year at the end of December. Everyone has New Year’s resolutions and thoughts of how they are going to improve themselves in 2014 in regards to health, diet and fitness, as well as to how they are going to improve themselves in relationships, work and business.
January is the perfect time to switch processes and improve your technology and workflow processes. The best time to implement new payroll processes is in January because there are no numbers to carry over. All you generally need to do is import the employee list which contains the information you need to start to pay them in the new year. If you switch later in the year, you have to bring over numbers for what they have been paid during the previous quarters, so while this doesn’t mean you can’t change later,now is the best time to do it.
Once you make the decision to do payroll there are various choices as to how much work you want to do and how much work you want your client to do. Do you want it in the cloud or on-premise? Ten years ago your choices were limited and doing payroll was tedious and unprofitable. Today, making the right choices will yield profitability and increase realization to your bottom line.
Many larger CPA firms walk away from doing payroll because they think of it as unprofitable. They are missing the bigger picture and the fact that automation has reduced the work involved, making it a profit center. Also, if you pass payroll processing on to an outside vendor, you could become out of touch with the client and lose the opportunity to sell them other services.
Many new people are entering the world of accounting — or should I say the world of consulting — and they are using technology to be connected and stay in front of their clients on a weekly basis. Payroll services are one such vehicle. If you pass on payroll, you risk losing clients in the long run to others who will sell them additional services, including collaborative accounting, tax services and advisory services.