Chart a Path
Over the years, we've found that nearly every firm that offers payroll has one goal in common: to be able to confidently offer comprehensive payroll services to any current or prospective client. But the strategies by which they achieve that goal can vary widely. Some firms choose to process every payroll in-house, some firms choose to outsource every payroll to an outside service, and many firms choose something in between.
When it comes to payroll strategy, most firms tend to fall into one of three broad categories:
In-House Approach
Firms in this category choose to process most client payrolls themselves, generally using a software solution like Accounting CS Payroll. This affords firms the highest degree of control over the process, and it can also be more profitable than other approaches if it's handled correctly. But it does require a high level of technical knowledge and at least one staff member who is dedicated to payroll full-time.
Firms that choose an in-house approach may still refer some payrolls to an outside service. For example, a few client payrolls may be too large or complex to be profitable. In these, cases a payroll service like myPay Solutions enables the firm to provide payroll without processing it.
Firms may also have clients who want to process their own payroll. In these cases, solutions like Accounting CS Client Access enable clients to process their own payroll in a way that's integrated with the firm.
Outsourced Approach
Firms in this category choose to outsource most of their payroll business to an outside service like myPay Solutions. This enables firms to benefit from the client loyalty and steady cash flow that come from offering payroll, without the staffing requirements or technical knowledge required to process it in-house. Outsourced payroll is also faster and easier to implement than in-house processing.
Hybrid Approach
Many firms choose a hybrid approach, processing some payrolls in-house and outsourcing others to a payroll service. Often, they do this by creating a tightly defined business model, defining certain client types and sizes that they can process efficiently in-house. They then refer payrolls that don't fit this model to an outside payroll service like myPay Solutions.
This approach enables them to maximize profit on a client-by-client basis, tailor their payroll business to their desired staff size and goals, and confidently offer payroll services to every current and prospective client.
What's your strategy?
Does your firm fit one of the categories above? If you're not sure, we've created a payroll strategy tool that can help you determine the payroll strategy and level of involvement that's right for your firm.
Once you've identified a strategy, you can begin choosing the tactics and tools that will help you confidently offer payroll to every current and prospective client. You'll find tips and expertise for this stage in our Design a Solution section.