If you’re a Small Business Owner, and you don’t own an accounting, technology, or HR firm, it’s highly likely that you did not start your business so that you could do bookkeeping, accounting, taxes, IT, human resources, or recruiting.
Yet many small business owners feel an obligation to “do it all,” whether to save money or to “prove themselves” to the doubters and naysayers. But at what cost?
A CPA Practice Advisor article reported that millions of small businesses spend billions of dollars to manage HR. And hiring the wrong person can cost you up to 25 times their base salary, especially when you calculate lost time and decreased morale.
The Hiscox Small Business Cyber Risk Report noted that 47%, of small businesses had suffered at least one cyber-attack in the past year, and those, 44% of them said they “had been attacked two, three or four times.”
And with all the new tax law changes (sales tax included); the insurmountable pile of receipts, invoices, and credit card statements; and the highly tedious manual data-entry for A/P, A/R, and payroll — your time is spent working in your business, instead of on it.
Here are 6 great tips from outsourced functional experts to get you out of the back office and back in to your passion.
Move your accounting platform into the cloud.
Cloud-based accounting software can be accessed from any device with an internet connection. And if you have a smart phone, you can even download an app. Online accounting allows you (and your accountant) to have real-time access to your financials, it’s cost effective, and easy to use. Most importantly, cloud software can integrate with a whole ecosystem of apps and add-ons to make your life easier. We suggest QuickBooks Online or Xero, depending on your needs.
Ditch the “paper” in your HR Paperwork.
Consider using technology-based solutions for managing the new-hire paperwork process, tracking time and attendance, managing schedules, and even running payroll. For example, we love T-Sheets and Gusto, both of which integrate seamlessly with multiple cloud accounting solutions.
Know your wage and hour laws.
Violations of wage and hour laws can lead to significant fines and penalties. Things to watch out for are classifying people who should be employees as independent contractors, misclassifying exempt employees who should be non-exempt, and failing to properly pay employees for all compensable time. This is one area where we suggest working with a seasoned Employment Attorney.
Embrace the integration possibilities.
Connect your bank feeds to your accounting platform, use apps to simplify expense reporting, and automate invoicing and paying bills. Check out ReceiptBank and Expensify, two of our favorites.
PRO TIP: Connect your apps to each other, too!
With Receipt Bank, both you and your employees can easily choose a reimbursable employee expense OR a receipt for a non-reimbursable business expense. With an integration to both Gusto and QuickBooks Online, Receipt Banks knows how to code and report each! There is no data entry necessary to get your employees reimbursed through payroll and both types of expenses into our General Ledger accurately.
Master the interview.
Use a phone screen as a significant time-saver for both you and your applicants. You can quickly determine basic skills, compatibility of needs, and desired compensation are a match. And, learn to conduct an effective interview that includes both competency and experience based questions, and focuses on culture and core values fit.
Are you interested in a guide to understanding innovative interview questions? You can download it here!
Don’t be afraid to ask an expert.
Outsourcing some -or all- of your back-office functions can be a great option. And, it doesn’t have to break the bank. It shouldn’t be surprising that when you are able to focus on your customer, rather than on back-office functions, you will improve both your productivity and your profits.
We’re here to help! Contact us today for a complimentary consultation.