More than ever, honing in on a specific niche has become the norm in business. Whereas previously small businesses worked from a broad perspective and provided every service in their chosen field, now it has become more acceptable to choose one particular niche in that field and concentrate on it. This can be very freeing. What results is often much more success, since the attention is laser-focused in one area. It turns into quality over quantity. For instance--when it comes to accounting--many practitioners choose to concentrate on one aspect of accounting, such as payroll, rather than offering the whole realm of accounting services.
Today on the Rules of Thumb blog from MoneyThumb we will discuss the niche of payroll and offer helpful steps for building a successful payroll practice.
Define Your Payroll Practice Processes
You should have a definite plan in writing for the processes of your new payroll practice. This means plainly laying out what is expected when it comes to processes such as taking on new clients, quarterly filing, year-end tasks, and client terminations. These processes and how they will be handled are documented step-by-step so there is never any confusion.
If you have employees this will help them to clearly understand their job responsibilities and be able to work efficiently and effectively. Knowing that your business is running as intended will give you the peace of mind to focus on strategy, sales, marketing, and supporting your team.
Not only do processes help with internal alignment, but your clients know exactly what to expect from your payroll practice. Consistency is key, and clients quickly learn to trust you and trust the process.
Define What Kind of Clients You Want
You should have a set idea of what kind of payroll clients you want and standard procedures for handling clients. If you don't define your payroll practice and exactly what it offers clients, you could create chaos and confusion for everyone involved. It's better to grow healthy, with the right clients, and not give in to every client's whim.
You may have to turn down good-paying clients because they aren't a good fit for your payroll practice, or if their demands are beyond the scope of your work. Some clients just are not the right fit for you. The market for payroll services is huge. If a client doesn't work out, move on to the next prospect.
Learn About Marketing Your Payroll Practice
Most accountants and payroll companies are terrible at marketing – bad websites, no social media presence, and zero differentiation from competitors. Do all you can to learn the basics of successful online marketing for your payroll practice. You need a great website, a busy social media page, and always be adding new good reviews of your practice. Gain subscribers to a fantastic newsletter you create.
Define Your Pricing Plan
Before you announce your new payroll practice you should have your prices for all services clearly laid out. To help you with this, download this free whitepaper from Accounting Web, Pricing Plans for a Profitable Payroll Practice.
In this guide, you will learn the following:
- Insights into payroll that may lead to necessary changes
- Deciding which direction to take in payroll pricing
- Tips for building your own payroll pricing structure
- A full checklist to ensure success along the way
For even more assistance in creating a successful payroll practice, check out MoneyThumb's PDF financial file converters designed specifically for accountants. Having the ability to quickly and easily convert bank statements and payroll information will help your practice thrive.