Is Your Payroll Provider Helping or Hurting Your CPA Practice?
Is Your Payroll Provider Helping or Hurting Your CPA Practice?
In the accounting world, every choice counts. But few are as high-stakes as choosing which payroll provider to partner with. It might seem like just another box checked, but the wrong one can quietly bleed time, money, and trust from your practice.
The right partner, though? It can be a complete game-changer. They make your firm run smoother, keep your clients happy, and even open the door to new revenue streams.
The wrong one? They bog you down in busywork, create compliance nightmares, and, worst of all, undermine your reputation.
So, which one are you working with? Let’s find out.
Red Flag #1: You're doing all the work
Some payroll providers claim to partner with CPAs but hand over little more than a portal login and a client support line. If your firm is fielding payroll questions, fixing errors, or managing compliance headaches for clients, you're not in a partnership; you’re a buffer.
A good payroll partner should lighten your workload, not pile more on. At a minimum, they should take full ownership of accurate and timely payroll processing, handle all tax filings and compliance reporting, and manage client onboarding and customer service.
If this isn’t happening, your provider is hurting your practice by eating up your billable hours and exposing you to risk.
Red Flag #2: They compete with you
More payroll companies are quietly expanding their services — bookkeeping, tax prep, even advisory work. If your provider is pitching these services directly to your clients, they’re not a partner. They’re a competitor.
This isn't just about revenue. It’s about trust. Your clients rely on you as their financial quarterback. When another vendor enters the picture offering overlapping services, it confuses the relationship and undermines your authority.
A true payroll partner respects boundaries. They support your services, not replace them. If your current provider is encroaching on your territory, it’s time to reassess.
Red Flag #3: They’re slow to respond and hard to reach
When payroll issues come up, time matters. Delayed responses or vague answers from your provider can cause major disruptions not just for your clients, but also for your reputation. If getting support feels like submitting a ticket to a black hole, that’s a major red flag.
A dependable payroll partner should offer fast, knowledgeable support that’s easy to access. Whether it’s a tax question, a software glitch, or an urgent correction, you need a provider that’s responsive and solution-oriented. If you’re stuck waiting days for answers or bouncing between departments, your provider is hurting your practice more than helping it.
Green Light #1: They integrate with your systems
A payroll provider that plays nice with your accounting software is a game-changer. It reduces manual data entry, minimizes errors, and saves serious time during reconciliation and tax season.
Look for features like seamless integration with QuickBooks, Xero, or Sage; automated general ledger syncing; and real-time reporting dashboards that keep you and your clients in the loop.
If your payroll provider’s technology creates more headaches than help, they’re holding your practice back.
Green Light #2: They help you grow
The best payroll providers don’t just serve your clients; they also help grow your firm.
They offer co-brandable marketing materials that make it easy to promote your services, provide white-labeled solutions so payroll can run under your firm’s name, and train your staff on payroll workflows and compliance so you can scale with confidence.
These providers invest in your success because your growth fuels theirs. If your current partner isn’t offering these kinds of tools and support, they’re not a growth partner. They’re just another vendor.
Green Light #3: They stay in their lane and do it well
You shouldn’t have to stress over late payroll tax filings or a stack of compliance notices. A reliable payroll provider should consistently file on time, stay current with changing regulations, and offer audit support if any issues come up.
If you find yourself double-checking their work or cleaning up after their mistakes with your clients, it’s not a partnership — it’s hand-holding.
What to do if you’re not happy
If reading this has you second-guessing your payroll provider, you’re not alone. Many CPAs stick with the wrong provider out of habit or fear-of-switching pain. But here’s the truth: Staying stuck costs more than switching. So start by doing the following:
- Auditing your current provider’s performance: Are they saving time, generating revenue, and supporting your growth?
- Talking to clients: Are they happy with the payroll experience you’ve connected them to?
- Exploring alternatives: There are new, CPA-centric providers that offer stronger tech, better support, and true partnership.
Don’t let loyalty to a legacy system sabotage your firm’s efficiency or your clients’ trust.
Look for the right payroll partner
Your payroll provider should make your life easier, not harder. They should drive revenue, reduce risk, and free up your time, not drain your resources and compromise your client relationships.
Make payroll work for your practice. Not the other way around.
