Online Payroll Doubled the Revenue for My Accounting Practice
I started a small tax and accounting practice. I didn’t offer payroll though, and that was something my clients expected me to have.
May 26, 2009
by Phil Christensen, CPA, CFP
OLYMPIA, WA. — After years of working as a CPA in public accounting and insurance, I ventured out and started a small tax and accounting practice. I built my practice through word of mouth, serving insurance agents. I didn’t offer payroll though, and that was something my clients expected me to have.
Clients Needed Payroll
One of my clients who used PayCycle for her own firm’s payroll introduced me to this online product. I was not familiar with online payroll, however I knew I did not want to be burdened with collecting timecards, tracking tax payments, and managing form filings. And this is where online payroll has its advantages because I can file forms and pay their taxes electronically so there is almost no paperwork.
Why I Chose PayCycle
My clients manage most of their payroll tasks themselves using PayCycle. You can give clients a website branded with your name for this. I give them access for entering employee hours, direct deposit, and for payment of payroll taxes. I serve as a payroll consultant if they need guidance.
PayCycle was easy to incorporate into my practice. I handle the initial payroll setup for clients, and spend 30-40 minutes training them to manage their payroll tasks. With the flexibility that PayCycle provides, I am able to manage payroll for 96 clients — just by myself.
Why I Stay With PayCycle
PayCycle’s payroll service provides me with a reliable revenue stream for my practice. I generate 45 percent of my revenue using PayCycle, 30 percent from taxes, 5 percent from accounting services and 20 percent as a small business consultant.
Online payroll allows me to access my clients’ payroll accounts anywhere an Internet connection is available. I can spend time with my family or take a vacation without disrupting my clients’ payroll tasks.
Increased Client Satisfaction
PayCycle has given me the peace of mind to serve my clients’ payroll needs and maintain a high level of customer service without being “there” in the office.
If I have payroll questions, I can always call PayCycle since they offer great customer service. Ultimately, PayCycle has allowed me to add new services and increase revenue.
Quantity Discount Pricing
PayCycle uses discount pricing to encourage CPAs to use the service with multiple clients. If you have 2 clients, the monthly charge for each is $19.99 and $0.50 for each employee after the first five. When you reach 6 payroll clients, then each of your clients goes to $15.99. At 21 clients, they each go to $12.99. The cost can go as low as $10.99 per client when you have over 50 clients, like I do.
Two Months Free Payroll
PayCycle is offering 2 months free payroll for CPAs. This is a good opportunity to start using the service. The free months only start when you run the first payroll.