TAX TIP OF THE DAY... should I hire an employee?
Forwarding this post is a great holiday gift for a small business owner.
Many small business owners come to the conclusion that it is impossible to succeed because most of their profits get paid back out in taxes, insurance and other admin fees. So how do successful businesses do it? What is their secret?
It's like diagnosing a stalled automobile... First, review your pricing. Second review your advertising. Third review your tax minimization strategy. Let's assume that you are happy with all three... read on.
THE SECRET WEAPON... The next step to catapulting a business to the next level is hiring an employee to take over admin. duties. If you can push a few time consuming items off your plate, then you can spend more time doing what drives sales... selling to even more customers, servicing just 3 more customers per day, returning calls to hot leads, etc. If you can answer YES to all of these questions, it's time to consider hiring an employee:
1) Do you have duties that you could train an assistant to do on their own? (telephone, scheduling, answering questions, paperwork)
2) Are you consistently running behind on returning customer inquiries, invoicing customers, completing work in the pipeline?
3) Are you losing work because your completion date is too far out for potential customers?
4) Are you able to forecast how many more billable hours or additional invoiced dollars you could receive if you no longer had to complete the admin. duties from 1) above.
5) Do you have enough admin. work to give a part-time employee at least 25 hrs per week of work?
Did you answer yes to all of the 5? Then read on...
The last step is most crucial. THIS IS NOT A DO IT YOURSELF PROJECT. You can't just pay people. There are rules, applications, matching taxes, insurance requirements and penalties. Discuss the issue further with your CPA.
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If you need any help... www.baboiancpa.com