CPAs are looking for new choices in accounting packages, according to "We think the CPA is looking for other choices in accounting packages, especially for a brand new business," Mucci said.
In November, the company launched Paychex Online Accounting, based on Kashoo. Paychex made a minority equity investment in Kashoo the prior month. Mucci did not reveal the amount of the investment and in terms of whether Paychex might buy Kashoo said only that it was always a possibility
The company is selling the application via the Web. Mucci said there will likely be experiments in selling via other means, including telesales. Currently, users are finding the online accounting applications via web searches. "We are getting a lot of good interest," he said, but noted it is too early to discuss results.
However, Mucci acknowledged that getting accounting clients is seen as an avenue to selling payroll to new clients as the Paychex continues to expand its product line and emphasize cross selling.
For the second quarter ended November 30, Paychex reported good growth in net income and revenue. Net income rose to $158.7 million, an increase of 7 percent from $147.9 million in last year's corresponding period. Payroll revenue reached $395.7 million for the most recently ended period, up 5 percent from $377 million a year ago. Total revenue hit $610.5 million, rising 7 percent from $563.4 million a year earlier.
Mucci reported the period represented the fifteenth consecutive quarter in which checks per payroll had risen. Asked about price increases, Mucci followed the company policy of not disclosing the amount. But he commented that "The price increase has held well; we're not having to discount more. We are continuing to give more revenue per client."
