Increasing legislation, DIY software encroachment and a still-tight economy mean that today’s accounting firms increasingly are under pressure to grow revenues and client bases. That’s why so many accounting businesses are adding non-seasonal, year-round services to their offerings – and the savviest among them are offering cloud-based payroll services.
A 2018 survey by Accounting Today showed that showed that more than half – 56 percent – of small accounting firms nationwide now offer payroll services and another 10 percent plan to add them. Some 65 percent of medium-sized firms and 69 percent of large firms also do payroll, with 13 and six percent, respectively, planning to add those services. Here’s why:
- Your industry is changing: Once upon a time, tax preparation and planning were the bread-and-butter of CPA firms, offering plenty of work to allow specialization. That’s no longer true, particularly for smaller accounting businesses. There’s a growing exodus of clients, particularly individuals and small businesses, switching to online, DIY tax preparation software services. Plus, changes in state and federal legislation impacting CPAs are a constant concern. But there’s good news…
- Payroll is a natural fit: As a CPA, you already have the inside track on your clients’ inner workings and financial state. You also have their trust. In fact, a recent Gallup poll ranked accountants sixth highest among the most trusted professions, topped only by medical professionals, teachers and police officers. What you may not yet have is exclusivity. A survey by business and tax consultancy, L. Harris Partners, showed that one in three employers use multiple CPA firms to handle various financial aspects simply because none offer all-inclusive services. The more comprehensive your service list, the more valuable you are to clients looking to streamline their own operations.
- You have a deep pool of prospective payroll clients: The global payroll and human resources market value hit $17.2 billion in 2016 and is projected to reach $41.6 billion by 2026, according to Transparency Market Research. During this time, 80 percent of enterprises plan to purchase or upgrade their talent management solutions. That’s an incredible amount of opportunity for anyone looking start a payroll service bureau or add payroll to their existing financial services and solutions.
- Cloud-based payroll offers a high ROI: In today’s tech-savvy culture, more and more data and functionality reside in the cloud. A byproduct of this trend means that much of the physical hardware, power infrastructure and space needed for payroll operations (including staff) in the past is no more. Cloud computing and storage eliminates the high upfront costs of building and installation, plus the ongoing equipment maintenance and staff costs. It’s just one of multiple reasons that offering cloud-based payroll services is a low-investment, high-yield opportunity.
- Technology makes it easy: Another benefit of today’s cloud-based payroll environment is that so many functions are automated, making for a far less labor-intensive and more time- and cost-effective operation. Manually inputting employee hours, tax information, deductions, etc. is time-consuming and can be confusing and prone to costly errors. Potential liability for tax issues or mistakes resulting in under-or over-paying employees can lead to expensive legal fees and compensation claims. Modern payroll software solutions, like those offered by Apex HCM, cut time, effort and cost significantly and keep risk at an unprecedented low. It’s a savings and security benefit that employers increasingly are willing to pay for.
If your accounting firm is looking for a new way to boost revenue, call 877-750-2739 or schedule a demo online to find out how we can help make adding payroll to your service menu fast, easy and profitable.