I P P A

1
Henshaw/Vierra Management Counsel, L.L.C. Guy R.
Henshaw and Lester E. Vierra 1460 Maria Lane,
Suite 290Walnut Creek, CA 94596 Phone 510
749-3225email guy_at_henshawvierra.com lester_at_hensh
awvierra.com We can help you manage a better,
more profitable bureau.
2
CyberPay Users Group Conference 2006

• Payroll Service Bureau Benchmarking

3
What We Will Cover This Morning

• Review of Bureau Attributes
• Paychex
• Data

4

• Review of Bureau Attributes
• Annual Revenue
• Active Customers
• Input Methodscall-in, fax-in, remote, web
• Attrition Rate
• Staffing by Department
• Product Usage
• Other Related Services

5
Bureau Revenue
6
Bureau Revenue Growth
7
Bureau Customer Base
8
Bureau Customer Growth
9
Bureau In-Put Method
10
Bureau Payrolls Run
11
Bureau Payrolls Run
12
Bureau Attrition Rate
13
Bureau Organization274 customers, 468,773 rev
14
Bureau Employee Distribution
15
Bureau Years in Business

• 9.45 years

16
Bureau Revenues More Than Check Counts

• Payroll is a source of data for key financial
  services for your customers and their employees

17
Bureau Service Revenues

• Offer
  Service
• Tax Service 91
• Time Attendance 90
• Debit Card 45
• Employment Screening 34
• Benefits Administration 52
• HR Systems 61

18
Bureau Services Recap
19
Bureau Price Increase in 2006

• Average 6
• Range 0 to 10

20
Bureau SAS 70

• Type I Type II
• YES 11 0
• NO 89

21
Common Themes for Service Bureaus

22
Trend Compare
23
Why Do You Own a Service Bureau?
24
Where Do You Picture Yourself in 5 Years?

• Double in Size, or more

25
Objective Total Return
26
Double In Size
27
Key Financial Ratios
28
Do You Have and Use a Budget?
29
How Do You Plan to Grow Revenues?
30
How Do You Plan to Control Expenses?
31
What Is Your Risk Management Focus?
32
Your Future

• It is still important to know your numbers
• Survey questions look at basic numbers and ask
  basic questions.
• You need to know what to look for and where to
  look for them
• You need to know they are right.

33
Where do we go from here?

• Pay attention to the nuts-n-bolts
• Create and document internal controls
• Use industry benchmarks
• Focus on governance

34
Good Governance

• You set the tone at the top
• Sound Business Plan
• Strong Leadership
• Risk Management
• Monitor and Keep Score

35
Sound Business Plan

• Guide to the future
• Marketing Plan
• Target Market
• Operating Plan
• Organization Chart
• Financial Plan
• Budget
• Variance Analysis
• Capital Budget
• Statement of Cash Flows

36
Risk Management

• Business Risks
• Competition
• Technology
• Fiduciary
• Regulation
• Financial Risks
• Customer Credit
• Flow of Funds
• Operational Risks
• Organizational Design
• Operating System and Controls
• Execution

37
Risk Mitigation

• Strong Leadership
• Management
• Board of Directors
• System of Controls
• Policies and Procedures
• Volume Reports
• Cash Flow Forecasts
• Account Reconciliation
• Trust, but Verify

38
Your Future

• Payroll is a great business
• Focus on the numbers
• Put controls in place and use them
• Benchmark performance against your plan and
  industry
• No reason why you can not double the value of
  your company.

39
Thank you

• For listening.
• I will cover more concepts on data, analysis, and
  governance in the next session.
• But now lets look at Paychex

40
Henshaw/Vierra Management Counsel, L.L.C. Guy R.
Henshaw and Lester E. Vierra 1460 Maria Lane,
Suite 290Walnut Creek, CA 94596 Phone 510
749-3225email guy_at_henshawvierra.com lester_at_hensh
awvierra.com We can help you manage a better,
more profitable bureau.