About us
Abacus Payroll Software is a locally developed feature-‐rich software product developed as a complete payroll solution that not only assists businesses in managing and controlling all aspects of their payroll, but also ensuring legislative compliance.
Our distinctiveness lies in the affordability and simplicity of our comprehensive software product that is the REAL solution to payroll frustrations and problems experienced by businesses of all sizes.
Our innovative software offers a cost effective solution without compromising on any of the functionalities associated with the reputable and more expensive solutions. The various niche formulas and a calculation – many unique to Abacus Payroll, allow even an inexperienced user to create and maintain an efficient payroll, while access to a variety of financial reports previously available exclusively from accountants, ensures the manageability of the payroll function as a whole. The user-‐friendly lay-‐out and on-‐screen help functions reduce the dreaded intensive and expensive training and support requirements users of payroll software have become accustomed to.
Our strength lies in establishing and embedding a culture of individual service across all levels of our organisation. As such, we take great pride in the professional and personal service our agents are recognised for.
Market identification
Abacus Payroll Software’s superb functionality and flexibility allows a wide variety of users ranging from individuals to corporate entities to be serviced across four design levels:
Abacus Payroll Software Level 1: 1 Employer and 10 Employees Suitable to:
• Medium to large corporate entities that make use of HR departments to design employee remuneration packages.
• Financial Advisors to illustrate the effect specific fund contributions such as medical aid, pension fund and retirement annuity fund contributions have on individual taxable income. • Salary auditing entities including auditing firms, tax advisors and accounting professionals. • Resource Companies in designing temporary and permanent staff remuneration packages.
Abacus Payroll Software Level 2: 3 Employers and 30 Employees Suitable to:
• Any individual or contractor working on an hourly basis or independently, e.g. self-‐employed IT Contractors, financial advisors, consultants, freelance writers or any individual without a formal salary structure.
• Pensioners who receive income additional to their monthly pension.
• All formal and informal entities that employ more than one employee for more than 24 hours per month, including farmers and employers of domestic workers.
Abacus Payroll Software Level 3: 3 Employers and 120 Employees Suitable to:
• Any formal or informal medium sized enterprises that employs up to 120 individuals, including farmers, transport companies, garages, private education institutions etc.
Abacus Payroll Software Level 4: 12 Employers and 1200 Employees Suitable to:
• This level caters ideally for bookkeeping, tax practitioners and auditing professionals.
The Independent Abacus Payroll Software Agency
The Abacus Payroll Software Agency is an independent entity that incorporates into Abacus Payroll Software’s national distribution network of Abacus Agencies, located within a one hour response radius across South Africa. This agency network distribution is directly linked to the actual identified market potential in specified urban and rural areas. Each agency is independently owned by a certified agent and functions as an autonomous structure within a geographical area. Agencies are however not restricted to operate in this geographical area only.
The primary focus of the agency is to establish and maintain a business relationship with Abacus Payroll Software users, while continuously introducing Abacus Payroll to potential clients. Abacus Payroll Software Agencies are to support and extend their local marketing efforts by providing their clients with comprehensive training and support. The aim for the Agency is to sustain this valued client relationship in order to enjoy recurring value sales. This key aim points to a specific move away from “call centre” and “once-‐off sales” to delivering real and enduring personal service in order to achieve direct references by word of mouth.
The agency structure is controlled by the Abacus Management System, a web-‐based interface management system that not only supports the Agent as a client and management tool, but also provides financial information in commission, clients, sales and marketing tools.
Abacus Payroll Software Agents are rewarded for getting new business and retaining existing business through a multilevel commission structure based on the number of packages sold. Agents have the opportunity to earn additional income from rendering supplementary services to clients in their own independent capacity.
Training
Knowledge of the Abacus Payroll Software is paramount in taking the product into the market. In order to become operational the agency holder or nominated individual agency representative is therefore required to attend mandatory system training (first level training) and to complete the certification process (second level training). The training provides functional insight into the product, and ensures that a basic level of product knowledge is maintained throughout the Abacus network.
Completion of the first level of training permits agents to proceed to market and sell Abacus Payroll, while the second level of training (certification) authorises the agent to provide additional services such as user training, product setup, implementation and support. These courses are both one day events and conclude with practical exams in order to ensure a sufficient knowledge and skills.
To ensure that an agency complies with the requirement of system knowledge, at least one
individual directly associated with the agency, should be certified. Certification can only be done at Abacus head-‐office or regional centres where applicable.
Agencies can at their own discretion appoint sales agents solely responsible for marketing and sales of Abacus Payroll products. These sales agents are to be trained by the certified agent in the basic functionality of the product and relevant sales strategies to be followed.
Income opportunities
The Abacus Payroll Software Agency structure presents a lucrative business opportunity to discerning finance professionals and entrepreneurs.
The Business Case
The purpose of Abacus Payroll Software is to provide businesses of all sizes with an affordable payroll solution with comprehensive functionality. Our business case is based around a concept of producing an individual payslip at a cost of about R2.00, of which the agent / partner receives about R1.00. These numbers is indicative of a highly profitable and sustainable income stream.
The vast South African target market offers limitless business opportunities by marketing and selling Abacus Payroll Software and offering a range of independent business services:
1. Marketing of Abacus Payroll Software
The main focus of the Abacus Payroll Software Agency is to acquire new clients to use Abacus Payroll Software as a payroll solution. To ensure that the agency benefit financially from the sale of the Abacus Payroll Software, a standard multi-‐level commission structure that is directly linked to the number of sales achieved by the agency, applies. Please contact Monica at
[email protected] for more information.
2. Independent Business Opportunities
The personable nature of the professional relationship agents establish and maintain with clients allows the agency to provide clients with additional independent services directly related to Abacus Payroll Software. These independent business opportunities fall outside the agent agreement of Abacus Payroll Software and billing for these services would be an agreement between the agent and the client.
Typical services to consider include:
• Maintaining the payroll system by capturing monthly data.
• Adding new employees or updating information.
• Telephonic support on functionalities related to Abacus Payroll.
• Running payroll and creating month and year end.
• Printing and emailing of payslips and reports.
For the above services, the agent will typically charge an hourly service rate, a rate per payslip or establish a retainer structure with the client. Abacus Payroll Software recommends a competitive
rate structure to agencies, but pricing remains the prerogative of the independent agency and the relevant professional fees apply to agents registered as accounting professionals.
2.1 Setup & Maintenance of Abacus Payroll Software.
The effective use of Abacus Payroll Software is largely dependent on the correct setup of the software. To ensure effective implementation of the system it is suggested that the agency be directly involved in the setup process. Some of the issues that might occur with system setup relates directly to outdated client hardware and software or technological incompatibilities.
2.2 Data setup and Implementation
Clients may opt to have the Abacus Software Agent capture employee salary data rather than do this themselves. Setup of 10 employees would on average take one and halve hours.
Since the Abacus Payroll Software Agency is to be held responsible for all salary advice given, agents are cautioned that payroll advice is only provided by qualified and registered financial professionals.
2.3 System training.
Effective user training is critical to the success of the Abacus Payroll Software. Two basic user training scenarios apply:
• On-‐site training: This type of training refers to the agency to provide on-‐site training to Abacus Payroll Software users. The time needed for system training is about three hours per individual user.
• Group training sessions: Agents may be offered the opportunity become a formal training centre
for Abacus Payroll Software after acquiring 50 clients. This will allow the agency to present group certificate training.
It is suggested that the total training cost should not exceed 30% of the total cost of the package.
2.4 Support Agreements.
One of the main functions of an Abacus Payroll Agent is to provide quick and effective support in a personable manner. The Abacus Payroll Software Agency or its dedicated certified representative is available to clients for support via telephone, sms or e-‐mail. It is suggested that this form of support is provided free of charge.
Any support that requires the physical presence of the agent is billable according to agreement between the agent and its client. The agency could also offer clients a services package deal at a fixed price. This could include system maintenance, data updates, telephonic support, running the payroll, creating month and year end and printing or e-‐mail payslips and reports. It is advised that the proposed price not exceed 75% of the selling price of the software version.
2.5 Sale of Payslip Paper
The selling of formal payroll paper to clients forms an integral part of the services provided by the agency and ensures the agent with a recurring income. The paper is wrapped in batches of 100 payslips and 1000 payslips per box. The current selling price of the payslip paper to the agency is R 200.00(excluding VAT) for 100 payslips or R 2000.00 (excluding VAT and delivery cost) per box. The proposed selling price to the user is proposed to be between R 3.00 and R 3.50 per payslip (excluding VAT).
2.6 Payslip Print & Mail Credits
Credits allow the employer to print payslips on standard white paper or e-‐mail a payslip to be printed. Credits are sold online in batches of 50 and 100 at a cost of R2.00 per credit. Depending on the payment channel used, the agent receives a value of approximately R 80.00 per 100 credits.
2.7 Annual Updates
Excellent service delivery and a professional relationship with the client could ensure that clients acquire the annual system and tax updates. The agent receives a commission of R150.00 per client per year, payable at the end of April each year.
2.8 Payroll Outsource Opportunity
As part of the agency package, the agent is provided with Abacus Payroll Software Level 4. This enables the Agent to act as a payroll outsourcing entity to 62 employers (1200 employees) and allows the Agent the opportunity to negotiate a recurring income stream. As the Agency generates an Abacus Payroll Software payslip at a cost of less than R5.00 (excluding VAT) per payslip, a real opportunity lies in presenting a complete payroll service to clients at a proposed rate of between R20 and R60 per payslip.
HOW TO BECOME AN AGENT:
The first step to becoming an Abacus Payroll Partner is accepting the standard Abacus Payroll Software Agent Agreement. This allows you the opportunity to purchase an Agency. As part of the purchase, agents receive:
• A Level 4 (Platinum) Abacus Payroll Software Package for functional and demonstration purposes.
• The Abacus Payroll Software Manual
• Access to the Abacus Management System
• Abacus Payroll Software and Abacus Management System Training (Location Specific) • Abacus e-‐mail address.
• Marketing documents
Additional marketing material like banners, vehicle branding and clothing can be ordered from the management system.
Basic requirements to become an Abacus Payroll Software Agent:
• Own vehicle
• Dedicated cellphone
• Laptop with Windows XP / Vista or Windows 7 • Proficient computer skills
• Fixed ADSL or similar speed Internet access
• Business acumen
Management of the Partnership
Abacus Payroll Software developed an internet-‐based management system to support the agent in managing prospects, clients, commission and commission invoicing.
Payment of Commission
Commission earned is payable on the last work day of the month at 00h00. Agent accounts are finalized according to payments reflecting at that specific time. The system then generates an invoice from the agent to Abacus Payroll Software. Payment of the commission invoice is released on the 7th of each month, or the first working day thereafter. Any payments received by the agent after the specified time is allocated to the following month's commission.
Cost of becoming an Abacus Payroll Software Agent:
The price of an Abacus Agency amounts to R8000.00 (VAT Exclusive)
We look forward to discussing this exciting business opportunity with you. For more information, please contact Monica at [email protected]
