Intuit grabs PayCycle

Updated: June 10, 2009

And it's all about strategy, Intuit says. The acquisition supports Intuit's strategic goals by underscoring the company's connected services strategy, which is designed to give customers online access to its products and services. This is key, because Intuit derives more than half its total revenue from connected services offerings. Expanding the online capability of its payroll offering advances Intuit's move into the "software as a service" markets for small business, which in turn is expected to accelerate the growth rate of its overall payroll business. PayCycle's partnerships with financial institutions are also expected to extend Intuit's ability to offer integrated payroll solutions to an even larger set of partners and deliver a simple payroll solution to a greater number of small businesses.

What does the deal mean for small businesses? Hundreds of thousands of accountants will be rejoicing now that they have the ability to "easily and profitably" offer services as stand-alone payroll providers for their small business customers.

Intuit now plans to offer small businesses a range of low-cost, high-value alternatives to expensive payroll outsourcers and time-consuming, error-prone manual payroll methods. It should also help them develop and deploy next-gen online payroll tools much faster.

Featured Research
  • 2017 Business Intelligence Trends

    It's long been thought that business intelligence (BI) could only be utilized by highly trained analysts and was therefore unattainable for most businesses. However, advancements in BI have made it so that everyone can utilize BI solutions to help shape business decisions and drive companies bottom lines. more

  • Your Phone System and Your Bottom Line

    Businesses have been using phones to drive increases to their bottom lines for almost a century now. Telephony, much like the rest of the business world, has seen drastic changes with the increase in technological advancement. Voice Over Internet Protocol (VoIP), has enabled companies to connect with consumers at levels that have been seen as unheard of before. And trust us when we say this, it is doing wonders for the bottom line. more

  • How to Scale a Contact Center in 2017

    Are you on the fence about scaling your contact center and not sure how or whether or not now is the time? Studies have shown that 93% of executives expect that contact volume will remain constant or increase within the next two years. This means that now more than ever is the time to begin scaling and we are here to help. more

  • Making the Case for a New CRM

    Did you know that having an outdated CRM is just as bad as not having one at all? Do you find yourself working even just a little too hard to make your current CRM work to maintain your contacts and relationships? While it is increasingly more difficult to reduce customer churn, modern CRM tools are much more powerful and provide much more opportunity to develop stronger relationships with your clients that can provide more stability and revenue to your company and bottom line. more

  • 2017 Phone Systems Checklist

    As you are well aware, we are living in an age of extreme technological growth. With this, an understatement might be that phone systems have changed a bit over the last decade. If you are in the market for a new phone system, it is absolutely essential for you to have knowledge of this vast sector and just what exactly you need in order to have your business succeed. more