Higher ROI. Stronger Client Relations. Streamlined Cashflow.

While tax season is understandably busy for Despain Tax, by offering a wide range of other financial services at attractive rates this Pleasanton, California-based firm is able to generate a strong revenue stream throughout the year.

After tax preparation, bookkeeping makes up a significant part of the company's business. However, Bryce Despain, son of the firms' founder, sees an even stronger opportunity for recurring income throughout the year by growing their small business service sector. And he sees QuickBooks software and QuickBooks Enhanced Payroll for Accountants as the means to get there.

Growing the practice without adding staff
According to Bryce, he and his father are not looking to expand their business. They are, however, seeking ways to provide other services to their clientele in order to have more revenue coming in, so that they're not dependent on the spike of activity during tax season to see them through the rest of the year.

"Tax-wise, there's not a whole lot of room for growth right now," Bryce said. "We're pretty much running at capacity with individual, corporate, and partnership returns. Although annual taxation accounts for about 80% of our revenue, our goal is to have other ongoing sources of money coming in, so in November and December we don't have to rely on savings left over from tax season to cover our overhead. Where I see room for us to grow is offering other services like payroll to our small business clients."

Bryce said that helping people find cost-effective solutions to their business needs is what he enjoys most about his job, and that using QuickBooks Enhanced Payroll for Accountants enables this modest-sized practice to serve the payroll needs of small businesses usually ignored by most CPA firms. "QuickBooks Enhanced Payroll is ideal for us, because payroll is something that comes in throughout the year and provides us with recurring profit," he stated.

Reaching an untapped market, providing more convenience
A large number of Despain Tax clients are small businesses, including contractors, dentists, retailers, and wholesalers. For many of these clients, cash flow is always an issue. That's why Bryce likes QuickBooks Enhanced Payroll for Accountants so much. With its attractive price to help keep his overhead low, Bryce has the ability to offer an affordable service to a largely untapped market segment most traditional payroll firms won't talk to. And because his payroll clients' needs are simple he can handle a larger volume, which helps Despain Tax make money. "Intuit is always improving the payroll product and making my work more efficient," he said, "and by being more efficient, I can better serve those small clients that don't want to spend $150 a month on payroll for one or two employees and $400 to send out W2s. QuickBooks Enhanced Payroll for Accountants has been really beneficial for me. I can go after those particular clients and then, by doing a simple thing like payroll, I'm also able to land the tax return, which is where the real profit comes in. I see Enhanced Payroll for Accountants as the tool that brings in those clients."

Another advantage Despain Tax enjoys by offering payroll services (along with QuickBooks set-up, training, and support, tax preparation, and bookkeeping) is the opportunity to become a one-stop shop–something very appealing to many clients. If there's a question or concern regarding just about any aspect of their business they can usually get the answer with one call to Bryce or his father.

Adding to this convenience, the father-son team can also offer something else that small business owners aren't likely to find with big payroll providers: faster service. Bryce cites an example where a client called in a panic, having forgotten to send over the hours for one of her temporary workers. In fifteen minutes, she had a payroll check. Bryce is quick to credit QuickBooks Enhanced Payroll for Accountants and its ease-of-use for his ability to accommodate those simple requests and provide much faster turnaround. And because QuickBooks Enhanced Payroll for Accountants has such a gentle learning curve, he's been able to train an administrative assistant to enter a client's hours and do a lot of the basic payroll functions. This frees up Bryce's time to focus on going out and getting more consulting deals and setting up new clients. "I've talked to other small accounting firms like ours, and one of their biggest complaints about offering payroll is that they feel like they're glued to their desk. I find QuickBooks Enhanced Payroll for Accountants does the exact opposite–we can go out and better serve our clients and go after new ones."

Coming into his father's practice with a technology perspective, Bryce said he evaluated many other payroll solutions. But ultimately, the bottom line was the product had to be an efficient, easy-to-use package. In his opinion, QuickBooks Enhanced Payroll for Accountants has more strong points than the competition, and is the best for his needs by far.

The bigger picture: staying foremost in clients' minds
Yet another aspect of QuickBooks Enhanced Payroll for Accountants important to Bryce and his father is that it has given them the ability to support what they call "quarterly clients" — those businesses for whom they prepare quarterly payroll tax returns. This helps keep revenue flowing in when things are slow.

But there's an even bigger picture.

"When we do payroll, we're talking to many of our clients twice a month," he said. "That keeps us in contact if they have questions or concerns, which paves the road to more consulting." In turn, that provides the thriving practice with enough income to justify keeping its doors open throughout the year. "You look at some tax companies, like Jackson Hewitt or H&R Block," Bryce continued. "They only have a couple of locations that are open annually. We've had many people come through our doors in July holding an IRS notice, annoyed due to the fact that their tax preparer's office is closed until next season. With the additional revenue we generate by providing payroll services, we're able to offer a much higher degree of customer service." There are always situations throughout the year where people need tax help and advice, Bryce concluded. QuickBooks Enhanced Payroll for Accountants enables him to provide that additional assistance.

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