Opening a business focusing on providing payroll and tax services can be a very lucrative venture. Outsourcing the payroll and tax operations of businesses is very popular and prevalent these past years because it can cut costs significantly which can really assist in these days of economic recovery. At the same time, most companies see this trend in business as very viable since it leaves the very complicated tasks of payroll and taxes to professionals that can provide accurate figures and numbers not to mention the alleviation of having to hire more full time staff just to crunch the numbers and pay the wages. With this high demand, your idea of opening this type of business is pretty feasible. However, you still need to do the legwork and know the intricacies of the business. Here are some aspects of the business that you should keep in mind when contemplating on starting one.
Plan the business. Before going ahead and hiring the staff you will need, you may want to pause and plan the business out. The very first thing to do is to determine the services that you will be offering. Decide whether to offer the services to businesses primarily or to individuals as well. If you decide on both, then you will need to package your services to suit the needs of your target customers. Create a business plan that includes solid figures, clear goals and objectives, and various operating and marketing details. You may need to do some research about the business to familiarize yourself with the numbers and operations. Try to consult various accountants that already offer their services as individuals. These people could be included in your business as employees as well that can definitely make it easier for you.
Acquire the necessary licenses and registrations. Check your state and city regulations regarding this type of business. Register as an LLC or corporation to legitimate the business.
Secure the capital. This can be an optional step that you can take since it will depend on how you will run operations. If you plan to set up the business as a virtual environment where your people work at their homes, then you may not need too much money to start things up since you will not need office and equipments. If you plan to start a solid firm with a credible location and state of the art equipment and software, then you may need a lot of money. Secure a loan and let your business plan do the talking.
Hire staff. A payroll and tax outsourcing business will definitely need certified accountants running the show. Hire people with the necessary license and credentials to legitimize and add credibility to your business and the services it provides. You will need to be a certified accountant as well if you plan to start the business as an individual.
Purchase topnotch accounting software. Any payroll and tax business will always rely on accounting software that can ensure accurate and efficient numbers. Search the Internet for the top accounting software around and purchase the best. Epicor Financial Management and Simply Accounting by Sage are some of the top accounting software that a lot of payroll and tax businesses use. You may want to check these out or their close rivals.
Market your services. When everything is set up, start marketing and selling your business. Newspaper and magazine ads are your best bets to get your name out there. The Internet is another great place to advertise your services. However, nothing really beats direct marketing and selling. Hire some sales people and have them go door to door to various companies and business establishment.
With good marketing, sales, and high quality of service, you should be able to expand the business quickly by garnering a lot of clients. Make sure to keep them happy so that they will always stay with you.