When you run a business, it’s easy to categorize everything as an expense or an asset. But, when it comes to your employees, it’s important to not treat them as a number on a spreadsheet as you would a bill or income. Employees are your company’s greatest asset, yet many companies fail to treat their employees as more than an expense. Ask yourself how you view your employees, or if you’re employed, ask yourself how you feel treated by your employer.
Happy employees go hand-in-hand with happy customers or clients. Poor customer service can typically be linked back to poor company culture. The way you treat your employees, or the way they feel treated, plays a huge role in shaping your company culture. You can create an open and welcome atmosphere or a
When you hire a new employee, it’s important to classify what kind of employee. Generally employees are divided into three groups: full-time, part-time, and temporary. To help you classify your employee correctly, take into consideration what their job duties will be and how many hours they will be working. Classifying employees correctly and fairly is essential when determining if the employee is able to receive benefits or not. Remaining consistent in your classifications is essential, as well as keeping up with any employment changes.
At times while running your business, there will be a need for a person and their skills that are special to one specific area, but the funds might not allow for you to hire someone on as an employee. There’s also the chance that the funds are there, but a full workload isn’t. Do you hire someone part-time? Or work with an independent contractor?
First, what are independent contractors? These are people you hire for their specific set of skills, and they work under a contract that you create. Contractor positions range from creative like social media writers, graphic designers, and photographers to seasonal positions like lawn care, snow removal, florists, and landscapers.
One would typically hire a contract worker when the need for a full-time or part-time employee isn’t there, or the funds restrict it. Reaching out to a contractor ensures you’ll be saving money while also getting the most for your dollar. Hiring an independent contractor is also a form of outsourcing.
A common misconception is that small businesses do not need a business lawyer. Nothing could be further from the truth. Regardless the size of a business, it’s always a good idea to have an attorney. It may be crucial to the success of your business. If the time ever comes that an unfortunate event arises and your company is in trouble, it could be too late to hire a lawyer.
When hiring a lawyer, make sure they are familiar with your industry and its legal environment. You should also be cautious of hiring an attorney that represents your competitors. As always, it’s better to be safe than sorry.
Accounting is an essential component of every business regardless of size. It’s important to keep in mind the basic do’s and don’t’s of accounting that not everyone may know, but should! These are common and often unnoticed mistakes that can lead to future problems.
Cash Flow vs. Profit
Don’t assume that profit also means there’s cash flow. What’s the difference? Cash flow is the inflow and outflow of money while profit is the extra money left over after expenses are deducted. It would be nice to assume that profit leads to cash flow, but that could give you a distorted view of how well (or not) your business is doing.
Bad Bookkeeping Records and Communication
Not taking your bookkeeping seriously nor communicating with your bookkeeper enough are simple mistakes that need to be avoided. Effective bookkeeping begins with recording each and every transaction. This includes not forgetting to record small transactions—these add up over time. Not only should your transactions be recorded, but they should be categorized. Organization is important for accurate records.
To have these transact