Greene & McCowan CPAs in London, Kentucky began its practice in 1998 with a strategy that eschews audits. It focuses on write-up, tax, and IT consulting with a specialization in McDonald’s franchisees. It also added payroll processing as a way to generate revenue while providing cross-selling opportunities.

Ryan McGowan says offering niche services allows the firm to impart best practices ideas to its clients.

When the firm gains a new tax client, it sells payroll services, and when it gains a new payroll client, it sells tax services. When a CPA firm provides good payroll service, it keeps the client indefinitely.

Payroll services, however, yield low margins. In a study by Genesis Research, 43 percent of the responding accounting firms avoid payroll services. Half of small businesses do their own payrolls. So, for those firms that can do it efficiently, there is a good market for profitable payroll services.

Greene & McCowan has two payroll clerks, who also perform administrative functions in the firm, processing 4,000 checks a week.

When the firm installs a payroll system, it also reviews the accounting system and makes sure the two are integrated. It uses Payroll CS software (offered by Creative Solutions), which is integrated with NetClient DCS portals. This permits clients to enter their payroll data on-line. Journal entries are made automatically.

The firm works with a local bank to offer direct deposits.

The following companies offer programs that enable accountants to provide payroll services:

From Accounting Technology, June 2006, SourceMedia, Inc., One State Street, 27th Floor, New York, NY, 10004. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=20275&;pg=acctech.