Payroll services for accountants, once considered a low-margin client service that accountants could take or leave, is once again gaining attention among accounting firms of all sizes. To a degree, this renaissance is based on the economy. With small businesses struggling under the burden of new taxes and uncertainties, accounting firms are working overtime to shore up their client relationships and their firms' revenue streams.

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Sequestration. The Fiscal Cliff. The Affordable Health Care Act. A double-dip recession? We are not even into the new year, the environment for both individual and corporate taxes is changing for 2013. And while the dust has not yet settled on exactly how tax law will change, one thing is clear: Tax Planning will become critical, especially for small business owners. Read more...

There are two ways to bill for client services, and neither is perfect. The first is known as project billing, or billing-by-the-job. Under this method, the client is quoted a full price for the job based on the estimated time and costs anticipated for the job. This usually works to the advantage of the accounting firm, since no firm wants to lose money on a job and thus will quote just a little on the high side.

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