News

RSM McGladrey, a subsidiary of H&R Block, and McGladrey & Pullen, have agreed to a split the net income from the RSM operations with the Block unit getting two third and M&P one third of the bottom line. The parties, which renewed their relationship in December, have also agreed to change compensation arrangements, which were not spelled out.

Pacific Capital Bancorp CEO George Leis said the fact his company would receive about $10 million in proceeds from the sale of its refund loan and refund transfer business was disappointing. That was a major understatement because the forced sale of the tax business of the company's subsidiary, Santa Barbara Bank and Trust resulted in its disposing of a unit that had produced just under $132 million in net interest income over the last two years.

NetSuite, which markets Internet-based applications, has signed Hein & Associates, a Denver-based CPA firm, to offer implementation services for NetSuite's customers in a number of vertical markets. The San Mateo, Calif.-based vendor indicated it may recruit other third parties, including more accounting firms, to implement NetSuite products in other specialized areas.

Although revenue barely budged for Automatic Data Processing in the second quarter ended December 31, the payroll services company plans to hire 300 to 400 people during fiscal 2010, accelerating hiring that it had planned for 2011. While enterprise business is still not doing well, the company sees growth in sales to its small business customers, according to CEO Gary Butler.