Business Best Practices

Whether or not the number of people working from office buildings returns to pre-COVID levels, one thing appears certain: Remote and hybrid work models are here to stay. Business owners and other managers who rely on individuals who are working remotely full- or part-time are refining and elevating their management skills so that they get the best out of their employees.

While managing remote and hybrid workers bears many similarities to managing fixed-base teams, it also has some unique aspects. Here are several best practices you may want to consider and apply to your own situation, no matter your level of experience in prior management of remote workers.

Make Your Expectations Clear and Simple

Clarify the hours when employees should be available and accessible. Give employees performance goals and metrics that define success in meeting those goals. Lay out clear guidelines when it comes to after-hours work-related emails and text messages. You want employees to maintain a healthy work-life balance, one that prevents burnout, and ultimately, keeps them working at peak capacity for your business.

Communicate Regularly

Employees want to know how they are performing and whether they are on track to meet the goals you set for them. Check in regularly with them and communicate your satisfaction or your concerns about how they are doing. Regular check-ins are important; just be aware that you can overdo it, since too much oversight may be resented by employees who feel they are not trusted. It’s important to keep them in the loop about any changes in company policy when it comes to wages, benefits, job openings, promotion opportunities, and other changes that may impact them.

Depending on the demographic makeup of your remote employees, you may have to refine your communication style. Talk with your employees and solicit their opinions on what works best for them — texts, Zoom calls, or other forms of instant messaging.

Listen Attentively

Closely related to good communication skills is the ability to listen carefully and attentively to what your employees are saying. You want to give them the opportunity to express what they think about their workloads and talk about any stresses or frustrations they may be feeling. When you listen carefully to what your employees are saying, you are communicating trust and respect.

Build a Sense of Community

Some workers thrive in environments where they can interact and engage with fellow workers face-to-face. That engagement is less important to other workers. One of your goals managing a remote workforce should be to build connections to workers who feel isolated and out of the loop. Employees who feel this way typically do not perform at their highest level. By staying in touch and by organizing the occasional virtual — or in-person — get together in which you build connections and a shared sense of purpose with employees, you can create a sense of community that can have a positive impact on employees and their level of engagement.

Embrace Flexibility

A rigid approach to managing your remote employees may be limiting and not as effective as a more flexible approach. For example, once you determine that the work is being completed on time and is of a high quality, you may want to give employees some leeway as to the specific times they are working.

The work world has changed in numerous ways over the past couple of years. Your management approach has to stay ahead of these changes, especially when it comes to remote work, if your business is to continue to grow and thrive.

Fire, floods, hurricanes, earthquakes. When they happen, they can destroy buildings, equipment, and hard-to-replace data, and even injure or kill employees. It can take a business weeks, sometimes months, to resume operations after a disaster. Some businesses never recover. You can’t pin down the time or day when a disaster may strike your business. However, you can certainly prepare for one. Preparing for a disaster can minimize the potential damage and may protect you and your employees from harm.

Knowing what to do if a disaster strikes your business is half the battle. Savvy business owners draw up a disaster plan and update it regularly. They consult with experts and draw on lessons learned from the past. Moreover, they designate alternate business sites, emphasize data preservation, and ensure that the business’ insurance coverage is sufficient.This post is sponsored by https://fakewatch.is/ best replica watches our partners Wigs

Drawing Up a Disaster Plan

If your business does not already have a disaster plan, now may be a very good time to develop one. Consider forming a disaster planning committee and assign it the task of crafting and implementing a disaster plan for your business. Give committee members the opportunity to attend seminars, meet with experts, and take training courses related to disaster planning.

If your disaster plan is to have any value at all, it must, at a minimum, outline in detail all of the steps managers and employees need to take if disaster hits your business. An effective and workable disaster plan should cover personnel safety and management succession.

Personnel Safety and Management Succession

An effective disaster plan should clearly identify safety areas for employees as well as an evacuation route. Specific individuals should be responsible for confirming that all employees have reached the safety area. The plan should outline a chain of command, indicating the responsibilities and duties assigned to each manager or employee during a disaster.

A list of emergency phone numbers — hospitals, doctors’ offices, and the company’s lawyers and accountants — is an important part of the plan. Be sure to include the home phone numbers of employees and the names of family members who can be contacted in an emergency.

Ensuring management continuity after a disaster should also be a top priority. That requires establishing procedures that detail the responsibilities and duties of each member of the management team in the days and weeks after a disaster. The procedures should clearly define a line of succession and give instructions on how to communicate any changes or information to employees, customers, vendors, and professional advisors. Creating and implementing these procedures helps keep your business operational during a difficult time.

Alternate Business Sites

Getting your business up and running after a disaster is much easier if you have an off-site facility for storing backed-up data vital to your operations. You’ll need to be able to access customer and vendor lists, accounts receivable records, and other critical records if you are to resume operations quickly. Make sure you identify and classify corporate data according to its importance and begin to back it up as soon as possible.

It may be worthwhile to look into alternate business sites, essentially office complexes with computers, work areas, and phones. When disaster strikes, you would move your personnel to the alternate site.

Insurance Coverage

Review your business insurance policies to identify any potential shortcomings in your coverage. Business interruption insurance, which compensates a business for the loss of all or a portion of operating income when normal operations are disrupted by disaster, is a key element in business insurance planning. Take the time to periodically reexamine your business’ umbrella liability, fire, vehicle, and property insurance. Keep several copies of all your policies at different locations.

Don’t Let Your Plan Gather Dust

Make sure key employees receive a copy of the disaster plan. Keep it updated. Practice emergency drills. A proactive approach can potentially minimize the impact of a disaster.

Like many small business owners, you may plan on working until you are ready to retire. And, once you reach that point, you may expect to sell your business and live off the proceeds. Or, you may have partners or children who can keep the business operating once you are ready to step away.

However, smart business owners plan for all eventualities. They plan for success but they have a fallback plan in case their efforts don’t bear fruit. As a business owner whose business is probably by far your biggest asset, it makes sense to think about those things that could go wrong and take steps to protect yourself now.

What steps should you consider taking that can protect your future financial security? Consider these contingency strategies:

Put a Retirement Plan in Place

The only constant in business is change. And many changes can harm a business’s financial viability. What would happen to your retirement dreams if your business experienced a serious setback? New technologies come along and make some businesses obsolete. New competitors erase older, established firms and economic downturns impact consumer and business spending. Natural disasters can seriously damage a business’s operations and cause widespread financial loss.

Funding a retirement plan during your working years can help protect your future financial well-being. Additionally, a retirement plan can provide important tax benefits. For example, your contributions to your retirement plan are typically tax deductible while earnings on investments in your retirement plan account grow tax deferred until you begin taking distributions.

As a small business owner, you can choose from a variety of tax-advantaged retirement plans. Each option has distinct advantages and disadvantages when it comes to costs and the burden involved in plan administration. The input from your financial professional can be helpful when reviewing the appropriateness of a particular retirement plan with regard to your business’s specific situation.

Establish a Buy-Sell Agreement

If you have one or more partners or co-owners, it makes sense to have a buy-sell agreement. A buy-sell agreement helps ensure that you (or your beneficiaries) will receive fair compensation for your ownership interest. The agreement also facilitates the orderly transfer of ownership and management. A buy-sell agreement can be drafted among shareholders of an S corporation, partners of a partnership or an LLC, or even between an owner and a key employee.

When carefully crafted, a buy-sell agreement can:

• Help provide a smooth transition of control, management, and ownership to those who wish to continue running the business
• Spell out the financial aspects of the transition
• Establish a fair and reasonable price
• Help ensure the financial security of your family and other beneficiaries in the event of your unexpected death
• Create a built-in buyer for your interest in the business
• Establish, under certain circumstances, an estate tax value for the stock.

There are two basic types of buy-sell agreements: cross purchase and entity purchase (stock redemption). With a cross purchase agreement, the remaining owners agree to buy the departing owner’s interest in the business individually. With an entity purchase agreement, the business itself agrees to buy the selling partner’s ownership interest.

Life insurance is a common way of funding a buy-sell agreement. The proceeds of the policy are used to buy out the departing owner’s interest in the business.

Develop a Disaster Plan

No matter where your business is located, it is a wise precaution to assume that a natural disaster will impact it at some point. Adequate preparation can minimize damage to your systems, your equipment, and your physical plant, and may even protect you and your employees from harm. A key component in preparing for a natural disaster is a disaster plan.

Your disaster plan should include sections on personnel safety, management succession, and data preservation. It should outline the steps employees and managers must take in the event of a disaster.

Is your business thinking of moving to a new location? No need to worry, we got you covered with some tips for the journey!

Why are you relocating?

It’s important that you first consider why it is necessary to change your location. If you’re certain about the move, you should be able to fully answer the following questions.

• Are you moving for a new market to give you more opportunity than your previous one?
• Are there lower costs to run a business in this new area? Following that, are there better tax rates in this new area?
• Do you intend to keep the same employees or hire new ones?
• Do you have access to a better hiring market for new employees?
• Will there be a better quality of life in the new area?

Create a Moving Plan 

1. Figure Out a Specific Location

You need to figure out a specific office location for where you want to move. This space should be considerate of the market of clients you want your business to reach. You also should be paying attention to the leasing options, given that you most likely will be renting space in a new area. It’s also important to consider how far away this new location would be for your employees. Are the employees still going to be able to commute or will you need to give relocation bonuses to incentivize employees to follow your business?

2. Create a Moving Budget

Moving isn’t going to be expense-free. It is crucial to figure out the logistics of the move and calculate the expected expenses in advance. This also includes choosing a reputable moving company to help you move as easily as possible. It’s important to ask for quotes ahead of time so you can properly plan your budget, as well as read reviews so you have the best movers.

3. Give a Heads-up

You must let people know that you are moving before you do so. Tell employees and clients that you are changing locations. Give as much notice as possible so everyone can manage this situation in their own way. Some people are going to part ways with your business because they can’t also change locations. Be mindful and respectful of their decisions.

4. Dealing with Equipment

Make sure to have a plan when moving your important servers and technical equipment. Having IT support professionals create a plan for your move is very important. They can help create an easy transition that otherwise could have been a nightmare. It’s also important to figure out if you need more equipment and to order that ahead of time. Determining storage needs is also important because you may not need as much equipment if moving to a smaller office area.

5. Update Location Online

Don’t forget to change your office location on Google and other local listings, as well as your social media profiles so customers will be able to find you after the move. You should update your company website and email signatures to reflect this. Another important aspect to consider is getting new business cards and signs to reflect your business move.

6. Final Details

Make sure your information is registered with the government so you have the correct tax information with the IRS. Also, be sure you understand the mailing situation with your new business location because you will get an influx of mail and shipments during the transition.

Good luck with your new business location!

If you think your accountant’s skills are only helpful at tax time, think again. As a small business owner, accounting is vital to your business in various ways you may not realize. A trusted accountant can be one of your top allies in establishing and maintaining a successful business. Read on to learn our top tips about how accounting can help your business succeed.

Accountants are usually the first to come to mind when you consider general bookkeeping tasks and filing taxes; however, an experienced accountant can be a tremendous asset to any small business as part of its financial advisory team. Here are five ways accounting can benefit your business.

1. Accounting keeps your business finances organized.

Simply put, accounting is the way a business tracks financial activity. As a small business owner, you probably already know you can’t run a successful business without accounting. When you consider the numerous financial actions that occur in a business on an ongoing basis, you can imagine how easy it can be to become adrift in a sea of receipts, invoices, bank statements, and financial forms. Accounting solves this problem by implementing a record-keeping system to maintain all of your business’s financial records and activity. With that information at your fingertips, you are always organized and able to pull any records you need at a moment’s notice.

2. Accounting ensures that you’re keenly aware of your business’s financial position.

Once your business finances are organized, you will use that information to generate reports that help you understand your business’s financial position. You may think you don’t have time to run a business and tackle accounting, which is understandable. Most business owners happily outsource accounting to a qualified firm. If that’s the route you choose for your business, you need to discuss your financial position with your accountant. They can help you understand the reports and statements that reflect where your business stands financially. This knowledge is vital to making the best decisions for your company.

3. Accounting guides decision-making regarding your small business.

With ongoing and accurate insight into your small business’s finances, you will understand how your business performs and make wise decisions that are data-driven, not gut-influenced. For example, let’s say your main product requires a component that could be purchased from an outside source or manufactured by your company in-house. It will be easy to decide whether to purchase or produce that component for the best financial outcome with reliable accounting. This fact-based approach goes a long way in avoiding costly decision-making errors over the life of your business.

4. Accounting makes it easy to track accountability and financial errors.

No one wants to consider fraud as an issue in their business; however, a 2019 research study exploring fraud in small businesses found that 30 percent of small businesses experience fraud. The most common type is asset misappropriation. A sound accounting system can remove any worry that such an occurrence gets out of hand. With your pulse on your business’s finances via accurate and timely accounting reports, an issue will be detected sooner rather than later, which could save you thousands of dollars in the long run.

5. Accounting can help you grow your business.

With regular financial statements and insights such as cash flow projections and potential expenditures, you can plan for your business’s future more accurately. Decisions like whether to purchase new equipment, when to expand and when to add (or cut) employees are all decisions accounting can help you make.

So, in addition to budgeting, preparing taxes, and monitoring income and expenditures, accounting can breathe the life of growth into your small business and provide you with peace of mind knowing you are doing all that you can to ensure success.

Contact our accounting firm to get started.

Source for point 4, above: Bunn, Esther; Ethridge, Jack; and Crow, Kaili, “Fraud in Small Businesses: A Preliminary Study” (2019). Faculty Publications. 34.

When you start a business, there are endless decisions to make. Among the most important is how to structure your business. Why is it so significant? Because the structure you choose will affect how your business is taxed and the degree to which you (and other owners) can be held personally liable. Here’s an overview of the various structures.

Sole Proprietorship

This is a popular structure for single-owner businesses. No separate business entity is formed, although the business may have a name (often referred to as a DBA, short for “doing business as”). A sole proprietorship does not limit liability, but insurance may be purchased.

You report your business income and expenses on Schedule C, an attachment to your personal income tax return (Form 1040). Net earnings the business generates are subject to both self-employment taxes and income taxes. Sole proprietors may have employees but don’t take paychecks themselves.

Limited Liability Company

If you want protection for your personal assets in the event your business is sued, you might prefer a limited liability company (LLC). An LLC is a separate legal entity that can have one or more owners (called “members”). Usually, income is taxed to the owners individually, and earnings are subject to self-employment taxes.

Note: It’s not unusual for lenders to require a small LLC’s owners to personally guarantee any business loans.

Corporation

A corporation is a separate legal entity that can transact business in its own name and files corporate income tax returns. Like an LLC, a corporation can have one or more owners (shareholders). Shareholders generally are protected from personal liability but can be held responsible for repaying any business debts they’ve personally guaranteed.

If you make a “Subchapter S” election, shareholders will be taxed individually on their share of corporate income. This structure generally avoids federal income taxes at the corporate level.

Partnership

In certain respects, a partnership is similar to an LLC or an S corporation. However, partnerships must have at least one general partner who is personally liable for the partnership’s debts and obligations. Profits and losses are divided among the partners and taxed to them individually.