Calling All Accountants! Why You Should Be Talking To Your Clients About PEOs

Accounting Client PEO

How You Can Bring Value

When looking at a company’s income and expense report, the second or third line item behind payroll is almost always going to be health benefits. According to the Bureau of Labour Statistics, health benefits is 7.5% of all private industry company expenses and the number one benefits expense.

While this is a major burden for many companies, it is also a new area that allows you as an accountant to bring value to your clients if you can offer a solution that cuts down these expenses.

However, as premiums continue to rise it may seem that there are no great options. That is why it is important for you as an accountant to be up to date on the latest market trend that is saving companies substantial amounts on health and other corporate benefits. This solution is called a Professional Employer Organization or PEO for short.

A professional employer organization allows companies to receive Fortune 500 benefits at large group pricing which are usually cheaper than the rates they were getting in the small group market. Furthermore, the company will gain access to a variety of employee management services such as human resources, compliance, risk management, and payroll. This impacts companies beyond just money saved as they are able to focus on growth and productivity.


Why You Can Be Confident In Recommending a PEO

This is a great option and one you should definitely not pass up on just because you are unfamiliar with it! A&C Management Group partners with lots of accountants on both a revenue sharing and non-revenue sharing basis. We have seen that a majority of accountants receive overwhelmingly positive feedback from their clients after referring them to use a PEO or talk with a PEO broker such as A&C Management.

According to the National Association of Professional Employer Organizations, small businesses who use a PEO grow on average 7-9% more than companies that do not use a PEO, have 10-14% lower employee turnover, and are 50% less likely to go out of business. You can be confident in the performance of PEOs as on average about 90% of companies that join a PEO stay with them after their first year.

Why Use a PEO Broker

Furthermore, it is important that a company finds the right PEO that fits their needs. Some PEOs are better suited for white collar companies, others for blue collar, some specialize in working with startups, and each PEO has slightly different benefits and services.

This is why forming a partnership with a PEO specialist such as A&C Management Group can better ensure your clients are satisfied with their PEO. We will also use our working relationships with some of the top PEOs in the country to ensure your clients get the best possible rates.

If you are an accountant interested in working with A&C Management Group, you can contact us at Even if you are not, I hope you consider discussing PEOs with your clients as the value they can bring will certainly help your business.


Adam Nessim
Senior Director of Business Development
A&C Management Group, LTD