How do I judge a payroll firm’s mix of tiny employers and mid-sized ones?

Start with a table that groups clients by size and shows, for each group, the fees, the number of runs and the time spent. Compare how long each group has stayed. Small employers may come and go as their own businesses change, while larger ones may stay longer but bring more bargaining power.

Next, ask how the firm serves each group. Do tiny clients get a simple routine while larger ones have a named contact and custom setups? Ask staff where errors and complaints occur most. Check whether the pricing reflects the effort, since low fees for demanding clients can quietly drag results down.

Finally, look at concentration and growth. If a few mid-sized employers produce much of the revenue, ask what would happen if one left. Ask how new clients are found and which type the firm wants more of. Your accountant can help you read the revenue mix, and your lawyer can review client agreements. Consider growth too. Ask how clients move between groups as their businesses change, and whether the firm keeps them. A firm that retains small clients as they grow has a healthier pipeline than one that loses them at the first sign of complexity.

Key takeaways

• Group clients by size and compare fees, effort and how long each group stays.
• Check whether staffing and pricing match the demands of each group.
• Ask what would happen if one larger client left.