Paychex 2014 Annual Report Download - page 24

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prompt processing for all claims, appeals, determinations, change statements, and requests for separation
documents. Other Human Resource Services products include employee handbooks, management manuals, and
personnel and required regulatory forms. These products are designed to simplify clients’ office processes and
enhance their employee benefits programs.
Accounting and Finance Services
We offer various accounting and finance services to small- to medium-sized businesses. Paychex
Accounting Online is a cloud-based accounting service delivered through a partnership and investment in
Kashoo, a leading provider of cloud accounting services. Paychex Payment Processing Services provides various
options for small businesses to accept payments from customers, including credit and debit card processing,
ACH and eCard processing, mobile and online payments, and point-of-sale processing. We also offer payment
distribution services to help clients lower their operating costs while increasing their payroll accuracy. Through a
partnership with Biz2Credit, a leading online credit resource for small businesses, we offer the Paychex Small
Business Loan Resource Center, giving business owners access to over 1,200 lenders offering a variety of loan
options to meet their financing needs. The accounting and finance services are in their infancy, but offer
additional value-added services that small-business owners need.
Sales and Marketing
We market our services primarily through our direct sales force based in the metropolitan markets we serve,
with sales representatives specializing within our portfolio of services. Our sales representatives are also
supported by marketing, advertising, public relations, trade shows, and telemarketing programs. We utilize a
virtual sales force to service geographical areas where we may not have a local presence. We sell ancillary
services and products to both new clients and our existing client base.
As part of certain sales force initiatives in fiscal 2013, we added new territories and focused on market
segmentation in payroll and retirement services. Within payroll, we differentiate the markets we serve between
the small business market and mid-market companies. Within retirement services, we expanded our sales efforts
by creating a dedicated, wholesale sales force focused solely on enhancing our relationships with financial
advisors.
In addition to our direct selling and marketing efforts, we utilize relationships with existing clients, certified
public accountants (“CPAs”), and banks for new client referrals. Approximately 50% of our new core payroll
clients (excluding business acquisitions) come from these referral sources.
For over ten years, we have had a partnership with the American Institute of Certified Public Accountants
(“AICPA”) as the preferred payroll provider for its AICPA Business SolutionsTM Program. More than half of the
CPA firms in the U.S. are enrolled and actively participating in the Paychex Partner Program from AICPA
Business Solutions. Our current partnership agreement with the AICPA is in place through September 2016. We
also enhanced our relationships with CPAs by partnering with various state CPA society organizations. In
addition, we have a dedicated business development group to drive sales in the banking and franchise channels.
Our website, which is available at www.paychex.com, includes online payroll sales presentations and
service and product information and is a cost-efficient tool that serves as a source of leads and new sales, while
complementing the efforts of our direct sales force. This online tool allows us to market to clients and
prospective clients in other geographical areas where we do not have a direct sales presence. In addition, our
insurance services website, which is available at www.paychexinsurance.com, provides information to help small
businesses navigate the insurance industry, and generates leads by allowing interested parties to get in contact
with one of our professional insurance agents.
In addition, Advantage Payroll Services Inc. (“Advantage”), a wholly owned subsidiary of Paychex, Inc.,
has license agreements with independently owned associate offices (“Associates”), which are responsible for
selling and marketing Advantage payroll services and performing certain operational functions, while Paychex
and Advantage provide all centralized back-office payroll processing and payroll tax administration services. The
marketing and selling by the Associates is conducted under their own logos.
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