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Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Payroll as a Profit CenterDon’t’ Miss the Opportunity
October 20, 2016
Copyright © 2016 ADP, LLC. Proprietary and Confidential.
2Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Today’s PresentersKyle Boettke
– Division Vice President, Channel Programs, ADP LLCAnthony Horton
– General Manager, Specialty Products, ADP LLCScott Gallagher
– Vice President, Client Base Acquisition, ADP LLCScott Hess
– Principal, CliftonLarsonAllen
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3Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Welcome!This information is the property of ADP, LLC (ADP). It may not be distributed, reproduced, modified, sold or used without the written permission of ADP.
The information is provided “as is” without any expressed or implied warranty, is based on generally accepted HR practices and is advisory in nature.
This content provides a high level overview and practical information concerning the subject matter covered and is provided with the understanding that neither the publisher nor the writers are rendering legal advice or other professional services.
Employers are encouraged to consult with their in-house legal counsel or with an experienced employment law attorney for legal advice regarding specific facts concerning the organization’s compliance with applicable legislation.
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4Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Logistics & Resources
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6Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Agenda
Part 1: Processing Payroll for your Clients & Case Study
Part 2: Client Base Acquisition Programs
Part 3: Revenue Rewards & Revenue Share Programs
Part 4: Q&A
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Payroll as a Profit Center
Copyright © 2016 ADP, LLC. Proprietary and Confidential.
8Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Reasons to Leverage the Power of Payroll
Grow your Business
Increase Revenue
Influence your Future
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9Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Reasons Why Accountants Offer Payroll
49%accommodate
their best clients
34% deepen
existing client relationships
1/2more time with clients / deliver
additional value
Survey says….
Accounting Today Executive Research Council Survey – July & August 2016
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10Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Current View of Payroll Services
68.8%
67.6%
42.7%
7.8%23.2%
36.0%
96.0%
Q3: What services does yourfirm currently offer clients?
PayrollServices
AdvisoryServices
Audit
Insurance
13.5%
40.1%34.3%
9.5%
2.8%
Q4: What is your current growth strategy for your
payroll services? Rapidly accelerategrowthSlow growth
Maintain/no growth
Reduce
Eliminate
Accounting Today Executive Research Council Survey – July 2016
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11Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Generational View of Payroll
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12Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
What the Experts Say
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13Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Different Ways to Make Profit with Payroll
Process Payroll for your clients
Client base acquisition programs
Refer and share revenue or
rewards
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Processing Payroll for Clients
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Industry dynamics.Demographics and the accounting industry are changing, are you?
57%of accountants in public accounting are over 55 and will be on the brink of retirement in the next 5-10 years.1
There may be a large number of accountants retiring in the near future, but most U.S. firms don’t have a succession plan in place – nor do they plan to develop one soon.
Nearly 18% of all U.S. accounting firms are in merger talks or expect to be within two years.2
Mergers have become more common in recent years due to changes in demographics and other succession planning issues
53%1 of firms who process payroll and
18%3 are likely to sell their payroll services separately from the rest of their business
Some firms realize that their businesses may be more marketable if they sell their payroll businesses separately
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
RUN Powered by ADP® Payroll for Partners
ADP has a custom Internet-based solution designed for accountants that offers: Dedicated team of payroll specialists to help ensure
accuracy every payroll
Federal, state and local payroll tax management
Go paperless with multiple payment options including direct deposit, checks or pay card
New Hire Reporting
Mobile Application for your clients to enter payroll hours any time any where!
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Manage Your Client’s Payroll Efficiently And Accurately All In One Place Manage all of your clients on one dashboard Have access to your clients’ reports Preview payroll prior to real-time processing Grant three levels of user access to your clients to streamline your
payroll process ACA Dashboard allows you to track your number of full-time employees
to help you stay in compliance with Affordable Care Act requirements
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Manage From One Dashboard
Update screens
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Easy Access to Relevant Payroll Reports
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Payroll Preview Real Time to Ensure Accuracy
Update screens
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
State of the Art Mobile Access to Clients’ Employees
Update screens
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
HR411 Provides Best Practices to Help Clients
Manage day-to-day HR responsibilities, including compliance with employment regulations
HR HelpDesk is staffed with certified HR professionals available by phone or email to provide best practice HR information
Employee Handbook Wizard based on federal and state employment law
HR Toolkits for step-by-step guidance for HR tasks
State and Federal Compliance Database, job description wizard, and more
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Time & Attendance, Insurance and Benefit Add-ons
Electronic Time & Attendance solutions to help reduce labor costs and improve wage & hour compliance
Pay-by-Pay® Premium Payment Program for Workers’ Compensation
Health & Benefits through our licensed affiliate, Automatic Data Processing Insurance Agency, Inc.
Retirement Plan Solutions
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Convenient Billing and Printing Options
Charge your clients based on simple upfront monthly charges View your clients’ charges on your consolidated monthly billing
statement Choose from multiple check printing and delivery options, or go
paperless with employee access and RUN mobile for increased convenience
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Solutions for All of Your Clients’ Cash Flow & Control Needs
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Marketing Assistance to Grow Your Business
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Why RUN Powered by ADP® Payroll for Partners?
Less Work by being able to manage more payrolls in less time so you can get back to focusing on other valuable aspects of your business, especially at quarter and year end.
Less Worry with ADP’s secure technology, service, money movement and full-tax filing services to help manage every aspect of your client’s compliance challenges - from payroll and human resources to time and labor.
More Profit by offering additional services to your clients with no upfront investment for software or maintenance fees.*
Dedicated Service Team working side by side to implement and enhance your client experience.
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. | ©2016 CliftonLarsonAllen LLP
CliftonLarsonAllen LLPCLA Payroll
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About CLA
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Copyright © 2016 ADP, LLC. Proprietary and Confidential.
Firm Overview
600+ principals
600+ principals
More than 100 locations
More than 100 locations
4,500 people4,500 people $750M$750M
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18+ industries
100s of services
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CLA Payroll
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Copyright © 2016 ADP, LLC. Proprietary and Confidential.
CLA Payroll Practice
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• 900+ clients on RUN• $3M+ in annual revenue• More than 20 dedicated payroll
processors• Niche is serving privately-held clients
in the under 50 employee space• 5+ year partnership with ADP• Focus on building careers to make a
bigger impact on our people, our clients, and the industries we serve
Copyright © 2016 ADP, LLC. Proprietary and Confidential.
Whatever your needs, we’ll bring solutions to help with all of the things that matter to you
Why Payroll?
Seamless Service
Seamless Service
Compliance and
Regulatory Concerns
Compliance and
Regulatory Concerns
Protect Sensitive
Information
Protect Sensitive
InformationProcess
ImprovementProcess
Improvement
StrengthenInternal Controls
StrengthenInternal Controls
Lack of Internal
Resources
Lack of Internal
Resources
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Critical Success Factors
Software PlatformSoftware Platform
Automation and Efficiency
Automation and Efficiency LeadershipLeadership SpecializationSpecialization
TrainingTraining Client ServiceClient Service Quality and Controls
Quality and Controls
Continuous ImprovementContinuous
Improvement
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twitter.com/CLAconnectfacebook.com/cliftonlarsonallen
linkedin.com/company/cliftonlarsonallen
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CLAconnect.com
Scott Hess, CPA, MBAManaging Principal [email protected] West Research Drive, Suite 200Milwaukee, WI 53226262-898-6541
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Client Base Acquisition
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40Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Why Consider a Client Base Acquisition Program
Merging practice with another firm without a payroll practice
Obtaining capital for investing in your practice or as part of your succession plans
Too many legislative changes impacting payroll increasing firm risk – ACA, FLSA overtime rules, paid sick leave, etc.
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41Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Client base acquisition program attributesConfidential and complimentary valuation of your client payroll business
Dedicated executive team to guide you and a comprehensive client transition plan
Conversion specialists to guide your clients through the process
Comprehensive payroll solution with add-on options and data access with your clients’ data post transition
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The Process Value your clients’ payroll book Develop a transition plan Communication to your clients Client transition team assesses
clients needs & proposes solution Convert clients Funds transferred to you
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Rewards & Revenue Share
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45Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Program Benefits You earn benefits for referring
your clients Clients have access to
comprehensive payroll, HR & benefit solutions to help them attract & retain top talent
You stay connected with electronic data access / general ledger interface to your clients’ payroll data
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46Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Rewards Programs Earn points for referred clients
that can be used for purchases for your practice or employees
Complimentary access to practice management resources and tools: CCH Resource Library – online access to
Master & State Tax Guides and tax news Healthcare Reform Library Reference materials from Wolters Kluwer,
the Tax Materials, Inc. and ADP Complimentary CPE courses
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47Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Shared Revenue Programs Revenue for each new client referred
who becomes a client of ADP’s payroll solutions
Ongoing residual payments on the service retention of your referred clients
System to track referrals and incoming payments and generate leads using social media
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48Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Can I Receive Revenue for Referred Clients?AICPA Code of Conduct - http://pub.aicpa.org/codeofconduct/Ethics.aspx#• 1.520 Commissions and Referral Fees• 1.520.001 Commissions and Referral Fees Rule.01 Prohibited commissions. A member in public practice shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive a commission, when the member or member’s firm also performs for that clienta. an audit or review of a financial statement; orb. a compilation of a financial statement when the member expects, or reasonably might expect, thata third party will use the financial statement and the member’s compilation report does not disclosea lack of independence; orc. an examination of prospective financial information..02 This prohibition applies during the period in which the member is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in such listed services..03 Disclosure of permitted commissions. A member in public practice who is not prohibited by this rule from performing services for or receiving a commission and who is paid or expects to be paid a commissionPart 1 — Members in Public Practice118 shall disclose that fact to any person or entity to whom the member recommends or refers a product or service to which the commission relates..04 Referral fees. Any member who accepts a referral fee for recommending or referring any service of a CPA to any person or entity or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client. [Prior reference: paragraph .01 of ET section 503]
A nonauthoritative question and answer regarding disclosure of a commission is available at www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/Ethics-General-FAQs.pdf.
Copyright © 2016 ADP, LLC. Proprietary and Confidential. Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Summary There are many ways to make payroll profitable for your practice
Processing payroll for your clients offers a new revenue stream and can increase client engagement
Client base acquisition program can be a profitable solution when payroll is no longer part of your plans
Revenue share programs offer new revenue streams that can help with reinvestment into your practice
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51Copyright © 2016 ADP, LLC – This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal or other professional services.
Q&A / Thank you for attending!
For more information:adp.com/accountant
855.408.3751