Wednesday, June 24, 2009

Payroll Scammers Are 'Rare Gems'


Link to the article that inspired this post: "Payroll Company President Charged with Grand Larceny" By: Seth Voorhees of rnews.com

So... here we have another case where through the power of 'Instant Media' every search string on the web that includes the word 'Payroll' will point toward this jerk running off with his clients' tax money.
Now, there are gems like this guy in every industry. We have all seen one bad apple trashing various industries' reputations over the years from Enron and WorldCom to the banks that sold us on the value of 'Interest Only, Variable Rate, No-Docs' loans over the past few years (that one worked real good!).

All we need to do is visit the Feds' Financial Crimes web site to get a full taste of what kind of recent finance related scams are out there.

The real question is: Should you worry about your clients' perception of you and your payroll business?

The answer is dubious... it's a YES/NO scenario. Whenever one of these incidents occurs it opens up the opportunity for a slick sales rep from one of the big payroll providers to sweet talk your client. They might say things like, "Can you really trust a small business with your tax money?", "We have a Kabillion dollars backing our tax accounts... do they?"...

I would venture to say that you are only at risk for these kinds of attacks if you have failed to inoculate your clients. Here are a few things that, if you haven't done, you should:
  • Be in regular communication with your clients. If you ignore those, 'good' clients who don't call - you won't know if they are at risk
  • Even though you'd like all of your clients to utilize your tax service - don't push them into a corner
  • If you start getting questions when something like this happens, be prepared. Write up and practice a 5 minute talk on the subject that you can use on those calls. Put some bullets down. The last thing you want is to sound nervous and confused when hit with a question like this.
  • Finally... Be transparent - you have nothing to hide
So, above are some strategies to try if you are worried - or happen to be located in or around Rochester, NY (which would make this extraordinarily relevant to your business' future.

Regardless of the new focus on this fraudulent fellow, now is the time to pump up your relationship with your clients!

If you don't feel like you've touched base with your clients enough, and built that solid relationship - now is a great opportunity to do so. This isn't just in case they google payroll and find that fink's mug shot. This is about making your business stronger. Think about the
following:
  • Are ALL of your clients aware of your current offerings? Have you added ancillary services and forgot to tell them?
  • Have you reached out to your clients who may be in financial trouble? Now is the time to keep them from going in-house.
Right now the economy is pushing the already fickle consumer into a bargain hunting frenzy. Payroll Service Bureaus lose clients when the client does not know that their current provider has that one service they were lacking. Don't be that bureau.

Bottom Line? You run a good, honest business. Make sure your clients know it.

1 comment:

  1. I always recommend outsource payroll. For your small business your staff will be freed of routine payroll responsibilities. As a result, your staff can now concentrate on their specific tasks and roles in your business, leading to possible business excellence. Your business will become more competent and flexible to deal with business difficulties in the future.

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