Advancing Payroll Advisory as a Small Firm

How to Uplevel When Clients Are Trying to Outgrow You

As a virtual bookkeeper for small businesses with years of experience, I understand why those of us who offer critical advisory services are drowning in compliance work instead of providing strategic advice. And once I understood it, everything changed.

Let me explain.

Small firms are positioned to serve clients in ways we never could before, but most of us don't realize we have a competitive advantage. For instance, while big firms get stuck in committees and approval processes, small firms can pivot instantly when new technology becomes available. We don't need to convince partners in three different offices or navigate corporate bureaucracy. And when integrated systems solve compliance puzzles, we can adopt them immediately when big firms get bogged down in planning meetings.

What does that mean for those in advisory services? Well, recently, Intuit introduced significant updates to QuickBooks Online Payroll, including Payroll Agent, an AI-based feature that automates and simplifies the pre-payroll workflow. As smaller firms, we have the power to use this service tool without waiting for permission, and when we do, we’re able to quickly streamline employee and payroll tax management and solve our clients’ payroll and human resources problems.

This speedy decision making gives us a leg up on our competitors while also securing our role as a strategic and vital partner for our clients. 

How QuickBooks Payroll Agent Can Help Clients

I recently had a healthcare facility client that would have equaled serious monthly recurring revenue. When I talked to the owner, he sounded like he was looking for a true partner. But once I got into the weeds of the company, I realized the reality was beyond what I could properly serve with their completely disjointed systems.

Employees were calling me at all hours, asking about paychecks, time-off issues, time-clock problems, and bounced checks. Here was a client who needed exactly what I wanted to provide—strategic guidance—but I was stuck solving operational puzzles instead. 

For example, their policy in 2025 for terminated employees was to handwrite final paychecks. These checks were never entered into the general ledger, so I had no idea they existed until problems showed up. Even with automated time clocks, I spent one-to-two days every pay period dealing with constant onboarding and dismissals.

This client had all the ingredients for success. They just needed to leverage a tool that could keep up with their growth, like the new QuickBooks Payroll Agent feature. 

In fact, all my clients do!

Another client hires only part-time employees, but they're currently in 13 different states. This coast-to-coast expansion isn’t unique and many clients are expanding their operations faster than traditional firms can build expertise. 

But here’s the good news: small firms like ours can adapt faster than anyone else. While large firms need months to evaluate, approve, and implement new systems, we can make that decision and be operational in weeks.

There are still a huge number of small business clients that big firms don't have capacity to handle. These clients' needs are complex, but they just lack internal resources to manage that complexity. However, thanks to Intuit (who has taken heat for moving mid-market and larger with enterprise tools), small firms like mine and yours can use tools built for larger operations to serve smaller clients who need sophisticated solutions but can't afford big-firm overhead. 

In other words, we get enterprise capabilities with small-firm responsiveness.

Reshaping Competition and Leveraging Opportunity Now

The competitive landscape is shifting. Traditional advantages of big firms include better technology, more resources, and specialized expertise, which are becoming commoditized through integrated platforms. What's not so easily commoditized is our decision-making speed and deep client relationships.

This creates a window where small firms can compete for clients they previously would have lost to larger practices. But it's temporary. Once big firms realize what's happening and adapt their processes, this window closes.

That’s why the conversation I had with my long-term client—the one with employees in 13 states—was so important. It allowed me to show them the value my small firm can provide that a larger firm cannot. I told him that, effective January, we're switching to a different payroll system with better integration.

I was straight with him: "My firm is really good, and we've been in business together for a long time. We get very few client complaints. But there's no way that one person or even a small team can keep up with changing regulations in 50 states, not to mention countless numbers of municipalities."

This is the reality check every accounting firm needs to face. We have clients who deserve better service, and we want to provide it, but we're hitting limitations without the right tools, tools that Intuit provides.

Now, I understand that small firms may have concerns about the cost of adopting new technology, but small firms need to stop thinking like small firms. Instead of asking "Can we afford this technology?" they need to ask, "Can we afford not to adopt it first?" Instead of competing on price, compete on speed of implementation and personal attention. And instead of referring complex clients elsewhere, invest in tools, such as QuickBooks Payroll, that let you serve them.

When I think about what Intuit's doing with their acquisitions and rolling out integrated Human Capital Management solutions, it's not about making my life easier. It's about being able to deliver strategic value my clients need.

The Risks of Moving Too Fast

Before moving on, I need to acknowledge that there is a downside to this rapid adoption approach. When you're the first to adopt new systems, you're also the beta tester. You deal with bugs, integration issues, and learning curves while serving real clients with real payrolls.

There's also the risk of technology dependence. When you build your competitive advantage on being the fastest adopter, you have to keep adopting. This means constant change, constant training, and constant risk that the next update breaks something critical.

The biggest risk, however, is strategic: if your entire advantage is built on technology adoption speed, what happens when that technology becomes standard? You need to use this window to build deeper client relationships and expertise that can't be replicated by the next firm with the same software.

So, Where Does This Shift Lead?

With everything integrated, including payroll, benefits, hiring, and employee records, small businesses get access to sophisticated resources they've always needed. When my clients want to expand to new states, I can implement systems and provide guidance quickly. When they're thinking about raises or benefits changes, I can show them exactly how it impacts their business across all locations. And when they're struggling with turnover, I can provide data-driven insights immediately.

This isn't just about better software (though QuickBooks Payroll undoubtedly is). It's also about small firms being able to compete on capabilities rather than just price. Plus, I'm tired of getting calls from employees about bounced checks. 

The integration of HR tools into accounting platforms isn't just convenient; it's a strategic imperative and an opportunity we must take if we want to evolve our practices. When QuickBooks Payroll Agent becomes available, I'll finally be able to have the conversations I've wanted to have all along. Instead of "Your payroll is a disaster, let me fix it," I'll be saying, "This is what your workforce data tells us about your business strategy."

The question is, are you ready to stop scrambling and start strategizing? I think it’s worth a moment to pause and check in on how you can take advantage of the window of advisory opportunity before you. 

This is a paid partnership with Intuit.