There comes a time for any business, no matter what the size, that it's time to replace or eliminate an employee's position. This article is written for the business owner who has a bookkeeper and has given some thought to this topic. As business owners, we need to make tough decisions all the time. Perhaps, one of the hardest decision involves eliminating or reducing the hours of an employee. Lets face it, nobody likes to terminate an employee, especially in this economic environment. We all know, that its important to care about other people, so this type of decision is special and often is hard to make. Sometimes your perception of the problem is blocked by your feelings for the employee. So instead of making a decision, your perception creates a series of thoughts about the problem that results in no decision. This is article is written to help you realize that it's time to make a decision.
As a small business owner, its tough to make this type of decision, because there may be no one to talk too, and also if you really haven't had the sufficient time to devote to this problem. Here are 10 reasons or indicators to help you make that decision or to reinforce your decision to change your bookkeeper. If you can identify with a couple of these reasons or perhaps just one, and you believe that the problem cannot be fixed, then it may be time to terminate your bookkeeper or reduce their working hours.
1. Financial information is always received late and when received, it has mistakes.
2. You or someone in your family have the time to do the bookkeeping and are financial and computer savvy.
3. Someone in your family lost their job(s) and you need to replace their income.
4. You want to get more involved in the accounting because you are too dependent on the bookkeeper and your bookkeeping doesn't seem as complex as they make it out to be.
5. You have discussed this problem with your employee, have concluded that it can't be fixed and you have made every effort to be fair and equitable.
6. The communication avenues are poor and you don't understand what the bookkeeper is saying.
7. Your bookkeeper seems too busy for new tasks and you believe that the new tasks are important and should be handled by your bookkeeper.
8. Your bookkeeper lacks a sense of urgency and priorities.
9. Net profits are shrinking and you think you have too many people employed.
10. Other people have mentioned that's its time to terminate your bookkeeper or reduce the bookkeeping hours.
If you have experienced some of the above indicators, it may make sense to consider to internalize the bookkeeping within the family, assuming the replacement person is able to learn how to be computer and financial literate. Like any other accounting related decision, consult with your CPA or accountant to obtain their input.
As a small business owner, its tough to make this type of decision, because there may be no one to talk too, and also if you really haven't had the sufficient time to devote to this problem. Here are 10 reasons or indicators to help you make that decision or to reinforce your decision to change your bookkeeper. If you can identify with a couple of these reasons or perhaps just one, and you believe that the problem cannot be fixed, then it may be time to terminate your bookkeeper or reduce their working hours.
1. Financial information is always received late and when received, it has mistakes.
2. You or someone in your family have the time to do the bookkeeping and are financial and computer savvy.
3. Someone in your family lost their job(s) and you need to replace their income.
4. You want to get more involved in the accounting because you are too dependent on the bookkeeper and your bookkeeping doesn't seem as complex as they make it out to be.
5. You have discussed this problem with your employee, have concluded that it can't be fixed and you have made every effort to be fair and equitable.
6. The communication avenues are poor and you don't understand what the bookkeeper is saying.
7. Your bookkeeper seems too busy for new tasks and you believe that the new tasks are important and should be handled by your bookkeeper.
8. Your bookkeeper lacks a sense of urgency and priorities.
9. Net profits are shrinking and you think you have too many people employed.
10. Other people have mentioned that's its time to terminate your bookkeeper or reduce the bookkeeping hours.
If you have experienced some of the above indicators, it may make sense to consider to internalize the bookkeeping within the family, assuming the replacement person is able to learn how to be computer and financial literate. Like any other accounting related decision, consult with your CPA or accountant to obtain their input.
About the Author:
Learn how QuickBooks Online provides the essential online accounting tools to manage your business and the freedom to access your financial information from work, home, or the road. Sandor Lenner, C.P.A. has provided accounting services for 35 years. He is also a Certified QuickBooks ProAdvisor and provides QuickBooks online support for a Miami Accounting CPA firm.
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