The big two in the payroll business have spent many years convincing accountants that it is easier and more profitable to refer their payroll clients rather than to perform the service in-house. More than 80% of their marketing dollars are geared toward keeping accountants convinced that there is no profit in processing payroll at the local level, while they build billion dollar revenue streams and make hundreds of millions of dollars. Look at the PayChex annual 10-K and see where they make a 40% net profit year-in and year-out on a billion dollars in revenue.
Meanwhile, your competior down the street is talking to your client, using their payroll service needs as a door opener. Subtly letting your client know they are a full service accounting practice, making you vulnerable.
The challenge for most practitioners is fitting a small ticket service like payroll into their consulting practice. There’s the possibility of additional overhead of clerical staff, then purchasing, installing and learning new software, while at the same time you’re having to spend time with your regular consulting clients. Today, many forward thinking accountants have discovered a . . .
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