It's a long time until January 2010.
Why now? Why expand?!? Umm, Logan - did you notice that the economy is now one of the pillars of chaos theory, that our elected officials keep smiling and writing checks - hoping it was all just a bad dream, that our customers can't seem to keep up on their bills - ours included!
Well, there is nothing worse than a bloated Accounts Receivable with no hope of collecting. That is why now is the perfect time to expand your payroll operation.
You see, here is the secret:
In payroll, you take your payment when you process the client's ACH transactions.
Paid with the employees = No AR = Money In The Bank
Remember, when a client lays off part of their staff, your invoice for their payroll is barely reduced. Just a little bit off the top for that handful of checks, not the base fee.
One of my clients in particular who I may have written about in the past brought up the fact that his growing Accounting practice was not making money while meeting all of its goals.
There is nothing like drowning in success (and I don't mean in a swimming pool full of champagne and hundred dollar bills). His words to me went something like this,
"Logan, after tax season I am jumping into payroll full time and letting go of this practice as soon as possible. I just can't deal with the fact that a successful practice, meeting all of its growth goals can to not make anywhere near the projected income in the plan. My client list is growing, but so is the list of clients who are behind on, or just aren't paying their bills."
Moral of the story:
- If you aren't taking your payment with the payroll, start.
- If you are starting a new payroll operation, make sure that this is your standard practice and is contained within your Payroll Service Agreement.
- If you don't have a Payroll Service Agreement with your clients - write one. If you don't know what to put in it, give me a call.