From CPAs to bookkeepers, benefits brokers, insurance companies, HR consultants and timekeeping businesses, a growing number of accounting and financial services businesses are discovering many good reasons to consider adding payroll to their array of service offerings.
If you're one of them, you may have a base of clients already interested in having you take on their payroll in addition to the other services you provide. You already know how payroll can increase the value of your practice, with a recurring revenue stream and a stronger connection to your clients developed through more regular interaction.
What’s Holding You Back?
If you're considering taking on payroll for the first time, the risk and potential for compliance trouble can seem daunting. There are lots of software options promising to make it easier, but comparing them can be a head-spinning experience. They can also be expensive, putting you in the position of having to make a heavy investment before any of that new revenue is there to help soften the blow. And what if it doesn’t sell?
These are big decisions, but state-of-the-art technology and a wealth of available expertise have created big solutions if you know where to look.
With a little help, and the right system in place, adding payroll services to your practice can be a smart business decision. Here are a few tips to get you started:
Do Your Homework
- Assess your market and create a sales plan: Take the time to determine the level of demand. How much is built-in with your current clients? How much additional marketing will you have to do to generate a return on your investment? Will you need outside sales reps to expand beyond your existing clients?
- Compare features: How easy is the software to use? Does it integrate easily with other systems? What sort of support is available? Will you have as much training and customer service as you need? What is the implementation process? Will your system grow with you? Will you have access to ancillary services that could grow your business even more?
- Know what you don’t know: There are a wide variety of options for payroll software and services on the market. Narrowing down your choices will require an assessment of how much you can handle on your own, and what aspects for which you’d be better served with outside expertise. Will you be able to easily process ACH direct deposit payroll services? Will you be responsible for managing payroll taxes on your own?
- Take your time: Don’t rush. Make sure you are ready for your first clients. Set your system up in advance, so you are well prepared from the very first client. Those are the clients who will refer your services to other businesses.
3 Reasons to Consider Using Outside Help with Payroll Taxes
- Avoid penalties and fines: A lack of knowledge in this area can be costly. If you have employees working in multiple states, juggling different deadlines and regulatory requirements can be overwhelming, and the penalties for getting it wrong can be steep. It takes a lot of research and work to stay on top of federal and state tax changes. That time could be better spent growing your business.
- Save on labor costs: Having an outside expert handle this job can save you the cost of having to hire extra employees.
- Peace of mind: You will sleep better at night knowing you have left the this job to the experts who can make sure you are always in compliance. Payroll tax errors can expose you to significant liability.
Let Go of Fear
Ready? Your clients are interested and you are ready to embark.
Heed the advice of Google executive Peter Roper, who told CNBC that you’ve got to be fearless to achieve your business goals. Successful people do their homework but they also take risks. Don’t let fear hold you back from the expansion that can help your company grow.
Choose the Right Payroll Partners
Find the right partner and the rest of your decisions are a snap. At Payroll Tax Management, we take the headache out of payroll tax compliance, from quarter-end and year-end filings to issues surrounding multistate compliance. Our clients can rest easy knowing they will not get into trouble with penalties or out of balance accounts. Our clients also have access to added solutions through our sister companies Time Rack and Cachet Financial Services.
Click on the link below to see how we can help.