1. A message from Doug Sleeter
   
   
2. Whitepaper on E-mail and Internet Security
   
   
3. 2004 QuickBooks Conference - Join us in Boca Raton, FL Next Month!
   
   
4. PayCycle - The Secret To Offering Profitable Payroll Services
   
   
5. Hindsite Software – PDA Software for the Service Industry Integrated with QuickBooks
   
   
6. Serenade Solutions Loses Funding - Ceases Operations
   
   

This month, I'm continuing my reviews of some of the products you'll see if you attend our QuickBooks Consultant's Conference on November 3-5 in Boca Raton, FL.

I'm really impressed with the quality of some of the QuickBooks add-ons we're seeing. These developers are really thinking about the problems and developing great solutions that integrate well with QuickBooks. And best of all, they create a whole new market for accountants and consultants to specialize in new areas.

I encourage you to look deeper into each of these products. You'll be impressed.

Through an alliance with Ken Schiff (GUIGuy.net), we have arranged for you to receive some very useful tips and best practices concerning e-mail and security on the Internet.

This article discusses safety and security in the context of desktop computers, protecting your identity (your personal information), passwords, and backups. Since many of the topics overlap, they are not necessarily treated separately, but in connection with each other.

This document is a compilation of best practices garnered during several years of reading, participating in online forums, and experimenting with suggested solutions. Best practices can be defined as the processes, practices, and systems identified in public and private sector organizations that perform exceptionally well, and are widely recognized as improving an organization's performance in specific areas.

None of what is presented here should be construed as the only way to address a particular situation. Search the web and you will find many opinions. However, you can be assured that I, personally, use each and every one of these best practices. I figure that if it is not good enough for me, it’s not worth recommending.

Topics include e-mail, viruses, trojans, worms, spyware, spam, phishing, security, passwords, and backups.

Go to this Web site to learn more about the GUIguy download the whitepaper.

... by Robert L. Wolff, Jr., Fresh Eyes, Inc.

For decades, accountants have been turning down payroll jobs because they assumed there was either no money in payroll services, or because they didn't want to take on the responsibility of payroll.

They did not consider client payroll to be a part of their business and only took on payroll responsibilities as a favor to valuable clients who desperately needed their help.

Why have accountants shunned client payroll until now?
Surveys report the main reasons are payroll is not profitable and it takes too much time. Despite these reasons, clients need, want and expect you to be involved. They want you to “fix it” and keep the IRS as far away as possible. They want to focus on their business, growing it and managing employees.

So, after decades of “I don't do payroll,” why are accountants again offering payroll services? Because with the advent of online payroll services, payroll can finally be fast, easy and profitable.

SEVEN Reasons to Take Another Look at Client Payroll

1. Most Trusted Advisor. Most clients expect a full-service relationship, for you to be their part-time CFO, and take care of their company and minimize mistakes. Clients focus on their business, you keep them from being a statistic: 1 in 3 business owners paid an average of $1,300 in IRS penalties in 2002.
2. Stronger and longer lasting client relationships. More Services = More Revenues = More Loyal Client = Lower Risk of a Lost Client.
3. Commitment. No one cares about your clients the way you do. You are their most trusted advisor because you personally care about their success. By providing payroll services, you dramatically lower the risk of “distractions” from the IRS and state revenue agencies. Equally important, you reduce the potential impact on your firm’s revenues that invariably result from having to “fix problems” caused by clients—out of ignorance; time pressures; or simple sloppiness. Even better, you avoid having to unravel problems caused by the payroll service bureau’s lack of attention or “hiccups.” Dodging the “payroll pain bullet” results in a win for your firm and a win for your client.
4. More Services. Payroll services open the door to providing additional professional services such as write-up and financial analysis, tax preparation, software consulting, financial planning, and so on. These services strengthen client ties while also adding new revenue streams. 5 Competitive Advantage And Differentiation. As part-time CFO providing a complete range of services to your clients, you gain a competitive advantage and differentiate your services from substitutes and other firms. Satisfied, happy clients generate positive word-of mouth and give referrals; some will be champions who proactively recommend your firm.
5. Reality Check. Many clients are not ready for “do-it-yourself,” and traditional payroll service bureaus are too expensive.
6. Profitable Revenue Stream. Payroll services are an additional profitable revenue stream for your firm. With the tools and technologies available to you today, you’ll be surprised at your return on investment on payroll.

Can Payroll be profitable?

Profitability is the #1 reason professionals don’t provide payroll services. High investments and operating costs squeeze profits like a wrestler’s power grip—direct deposit setup and processing fees, software, e-file/e-pay fees, software, updates, security, etc. A straw poll of accountants puts annual costs at $3,500 to $25,000—for one payroll client or for 50 payroll clients.

Of course, profits depend on how much you charge. Various factors tend to limit payroll fees to 50% to 85% of what national payroll services charge. Fees range from a low of $55 per month to a high of $253. You could make payroll a low/no profit service, then make up profits on other professional services. Do you really want to follow this strategy?

Payroll is actually an ally in your quest for more clients, more services and more profit. In addition to the retail service, some payroll companies offer wholesale programs for accounting professionals. PayCycle’s all-inclusive, monthly flat-price wholesale payroll service costs just $14.99 per client per month for the first 5 clients, and $9.99 per month for each additional client. (Flat, monthly, all-inclusive fee means exactly that. No nickel and dime charges.) Features are identical to the PayCycle Plus retail payroll service. PayCycle bills you, then you charge clients what you want. Up-front investment is virtually nil. Operating costs are very low.

Worried about payroll taking too much time, or that clients can’t do the data entry themselves?

Not an issue. Today’s payroll providers have eliminated complexity for accounting firms and their clients, without compromising what you need for processing payroll. For example, PayCycle includes email reminders, guaranteed accuracy, many predefined pay types/deductions, federal and state e-pay/e-file, new hire reports, W-4s, I-9s, drill-down reports, and lots more. And you control whether and how much a client does with PayCycle. Don’t worry. PayCycle's guided, self-service solution walks them through each payroll. A typical payroll takes 5 to 7 minutes. How PayCycle is able to do this is the difference between other solution’s 1960's design and PayCycle use of 21st Century technology and deep payroll processing experience.

In conclusion, here is a list of the SEVEN reasons to check out providing payroll for your clients.

1. Keep your clients, don’t hand them off to a payroll service bureau.
2. Add value to client relationships by taking care of them; by fulfilling their expectations; and becoming their trusted advisor.
3. Control payroll processing and information (no non-billable “fix it” time), and what tasks you do and your clients do.
4. Wholesale prices for payroll services.
5. Control your fees and profits. Set fees based on your business strategy and local competition.
6. Receive guidance from your payroll provider’s payroll experts
7. Get started with minimum effort. No training or prior payroll experience is required to use the service.

Another one of our conference sponsors is Hindsite Software.

For clients in the service industry - irrigation, cleaning services, landscaping, HVAC, electricians, plumbers, pool services, construction, pest control, snow removal, repair, or delivery, this software is the solution for managing information between service personnel and the back office.

This software has been in the market for over 6 years and has incorporated the inputs of hundreds of customers in the service business.

HindSite Software replaces the clipboard and paper work order with a PDA. The PDA provides time-card tracking by the minute, full inventory tracking, customer contact information, and call tracking allowing the technician to keep an accurate account of every service call.

The work order in the PDA contains all the information – including notes from the office – the technician needs to do his or her job properly. There is even a section allowing the technician to enter field remarks, so that the office staff knows exactly what was done on that job. Also included is a mileage report, allowing to you know when it is time to service your trucks.

The PDA solves a number of serious issues for companies in the service industry. The most notable is the complete removal of all guess work. The staff no longer has to decipher illegible handwriting…now there is direct data transfer. All the information that was entered into the PDA is transferred to the office, and kept on record in each customer’s history.

The PDA synchronizes all the information with QuickBooks or Master Builder via the QuickBooks SDK and all accounting, customer billing and inventory updates are automatic.

Aside from the PDA software, the back office software includes a complete call scheduling system that tracks all technicians and trucks to make efficient use of staff resources. HindSite Software also has the ability to create customizable lists and reports, as well as broadcast Email, label printing, routing, employee maintenance, inventory management, network messaging, and several different calendars.

We're sad to report that Serenade Solutions, the developers of iHarmony, (highlighted in our newsletters earlier this summer) has run out of money and will cease operations shortly. We were very impressed with their technology and company, but as often happens in the start-up software business, they were unable to obtain sufficient financing to continue operations.