Case Study: Commonwealth Business Services achieves higher revenue and payroll tax savings with RCReports

Accurate Reasonable Compensation Calculations Add Up to Additional Revenue for Firms and Payroll Tax Savings for Their Clients

Commonwealth Business Services, a CPA firm specializing in small business tax and accounting, needed a more accurate and compliant method for calculating reasonable compensation for clients transitioning to S-corporations, moving away from manual estimates and spreadsheets. To address this, they implemented the RCReports service.

Using RCReports, the firm automated the generation of defensible reasonable compensation reports. This solution saved the firm time, provided a valuable new advisory service, and significantly reduced clients' payroll taxes, with an average salary reduction of $30,000 saving clients approximately $4,500 annually in FICA taxes. For the firm, RCReports unlocked new revenue streams from entity selection, tax planning, and payroll services, while also solidifying their role as trusted advisors and leading to increased client satisfaction and positive reviews.

Commonwealth Business Services

John Coleman

Owner