Review of Service Bureau Style Payroll — 2006

Windows/XP was telling me that critical system updates needed to be downloaded
and installed, some type of Java update needed to be downloaded and, since my
system had rebooted after a crash, I had a desktop message from Microsoft asking
whether I wanted to report “my problem” to Microsoft. Sheesh! I
just woke up. Leave me alone!

Okay, enough of this. You all have computers at home, too! My point is that
my responsibility for upkeep of our home computer network was an interruption
that I could have done without this particular morning. My time could have been
better spent elsewhere, certainly towards a more productive end.

How nice it would be if someone else could handle this problem for me? In
fact, how nice it would be if this could be entirely avoided in the future.
Why should maintenance of home computers be any different than mowing the lawn?
The solution should only be a matter of finding a service that would fit our
pocketbooks, right? Then, I began to think about how much better it would be
if we could just simply get a remote high-speed hookup to a hosted computer
desktop. Yeah, now we’re cooking. Nothing would ever be written to MY
hard drive, I wouldn’t ever worry about viruses, and no one could ever
scan the back-end of my home computer with a bent for breaking in and sending
malicious e-mails. Even better, all operating system and system utility updates
would be loaded by somebody else! Not my problem! Subscribe to the service,
set it up for auto-pay with a credit card, and now it’s NO LONGER MY JOB!

I’m a CPA in public practice, and payroll processing doesn’t present
a problem or major hurdle for me. Yet, I recognize that for many it is a boring,
repetitive process — one that could be performed by someone else. I have
this theory about payroll processing. I believe that payroll processing in any
form, whether it’s the delivery of payroll services to 800 businesses
by a payroll service bureau or a local accounting firm serving 10 to 15 small
business clients, is just like mowing lawns. We all know that payroll is not
going to go away. In fact, many accountants have discovered that the provision
of payroll services aids in recession-proofing their accounting practices.

We also know that everyone is not suited to the task. Many of us, clients
and accountants alike, would be better suited if someone else assumed responsibility
for some or all payroll tasks — writing payroll checks; making tax deposits;
and taking care of monthly, quarterly and annual tax reports. The solution:
turnkey enhanced payroll applications, hosted applications, and outsourcing
of payroll tasks. The enhanced solution: Allow customization of outsourcing
to assume payroll tasks in support of individual client needs. Many accountants
in public practice hear the words service bureau and immediately think that
someone has uttered a four-letter word — somehow the subject has changed
to a discussion of SIZE. It ain’t so.

While I agree that a quality service bureau application should be scalable,
the words service bureau should really stand for much more. Service bureau applications
should stand for the following: the ability to deliver enhanced payroll routines
such as direct deposit (or loading take-home-pay to debit cards for non-banked
employees); multiple company support; creation of ACH files for payroll deposits;
impounding of client funds and YOUR accounting fees; online portals that support
remote data entry by clients and/or accounting staff; customized reporting;
support of unlimited number of employees, locations, payroll codes-earnings-deductions;
enabling client employees to access their historical payroll through secure
online portals; real-time on-demand processing and so much more.

Many accountants who provide payroll services have discovered that the provision
of payroll services leads to increased client work and greatly assists in attracting
new business.
This review includes a strong cast of service bureau payroll applications from
companies desiring to form successful, working partnerships with you, the practicing
accountant. These products are geared to accountants with a large payroll client
base (50 or more).

I almost forgot to mention that I went to the lawn and garden store yesterday.
They had the most wonderful, high-tech Tanaka walk-behind edger. It was to die
for! Now, let’s go mow
some lawns! 

– – – – – – – – – – – – – – – – – – – – – – – – – – –