Have you ever heard the phase “do business with those you know”? It makes sense, but how often do we really work at maintaining the relationship of our customers and service providers? The service providers include, your CPA, your lawyer, your payroll company, suppliers, and the list goes on. Most business owners understand maintaining a close relationship with customers is important but when is the last time you had lunch with your payroll company representative? I recently read a story that illustrates the importance of maintaining the relationship with everyone you do business with, not just your customers.
A payroll service company, LA Payroll, was a legitimate payroll company who provided payroll services for its clients for several years. A business broker introduced the founder of LA Payroll to a prospective buyer and the founder ended up selling the business. The new owner continued operating LA Payroll without any problems. Sometime later, the new owner brought in another partner. This is where the once legitimate payroll company took a turn. This new business partner ended up running off with the payroll tax deposits that were held in trust by LA Payroll, leaving the clients of LA Payroll with unpaid payroll taxes. Most of the clients of LA Payroll had signed on with the founder and had no relationship with the new owners of LA Payroll.
While a closer relationship, may not have prevented this from happening, it does raise the question of how well do you know the people that manage your business affairs? If it has been awhile since you last meet with your CPA, maybe it’s a good time to call LSL CPAs & Business Advisors – 714-569-1000.
By Jeff Boxx., CPA
