Computer services firm predicts business spurt

By Jim Obert

Business Today

In 1977, CPU Inc. was founded by Frank Jones and Jim Vandeven as a service bureau specializing in data processing for area CPA firms. As technology evolved, so did CPU. It is now a full-service computer consulting and services firm with more than 200 clients in Southeast Missouri and Southern Illinois.

At its inception, CPU provided outsourced data processing services such as time and billing, fixed asset accounting, job costing, general ledger and payroll. CPU continues to provide outsourced services, but it also helps businesses implement computer systems, software and networks.

"Over the years we shifted our direction as technology evolved," said Frank Jones, CPU president. "We keep up to date on needs analysis, systems design and support."

Jones thinks the nation's economy is getting stronger, and demand is on the rise for networking upgrades.

"There was a big push about four years ago when the Y2K concern caused business to upgrade their networking infrastructures to make sure they were Y2K compliant," said Jones. "A lot of companies have not made major upgrades since then."

Jones said several years of a slowed-down economy has been an impediment to computer-related upgrades, "but we're starting to see increased activity in that arena again. Demand is coming back for networking upgrades."

Mike Unverferth, CPU sales manager, said CPU underwent a major upgrade about two years ago.

"Hardware, software, everything," said Unverferth. "We bought new payroll service software and added numerous services. We attracted a significant number of new payroll clients." Unverferth said the average payroll client has 35 to 40 employees, and several clients have more than 1,000 workers. He said most businesses outsource their payroll because government reporting requirements have become increasingly complicated.

"It's become more difficult for businesses to do payroll in-house. That's a growth area for our business," he said, adding that CPU can process a payroll and email the client a check file so checks can be printed; however, most clients have CPU print payroll checks or make direct deposit into employees' accounts.

Jones said he's excited about ACCPAC, a complete business accounting and management product.

"That's what we'll be working on to get more customers on the accounting system," said Jones.

Payroll services are a major part of CPU's business -- last year the company processed about 8,000 W2 forms. But another division of the firm focuses on being a computer value-added reseller.

"This company started when computers took up a whole room, and they were too expensive for the average small company," said Unverferth. "But as they evolved, we've been able to help many of our original processing clients install computers and networks."

CPU supplies their clients with systems and components from Intel, Microsoft, HP, 3Com and other big names in the industry. Services include hardware, software, programming, cable installation and network support.

CPU employees visit businesses to conduct a needs analysis, then assist with a systems analysis and design. Custom programming services can solve a myriad of database problems.

A full range of pre-configured and custom-built servers are offered. Work stations can be configured in tower, mini-tower and desktop cases. Notebooks are available from HP, Acer, IBM and Toshiba. CPU also offers printers by HP, Okidata, Lexmark, Epson and Canon.

Accessories and peripherals include hubs, fiber optic cable and cabling supplies, switches, routers, scanners, surge protectors, battery back-up units, disks, tapes and connection cables.

Jones and Unverferth have degrees in computer science and business from Southeast Missouri State University. They say business at CPU stayed steady during the economic downturn. Both believe the economy is on the rebound, and they say they're ready for more business.

"We keep up with technology," said Jones, "in order to provide our clients with the best possible solutions."

PICS -- Mike Unverferth, CPU sales manager, checks payroll service customers.

-- Frank Jones, CPU president, talks to a client about ACCPAC, a complete business accounting and management product.

-- Technician Roger Essner works on a PC work station at CPU.