Three Tips for Successfully Hiring Your First Employee

Part of scaling up your business is getting the help you need, when you need it. For many businesses, there comes a point when the tasks that need to be done outstrip your capacity, but your time and expertise are incredibly valuable. This could be the perfect time to hire an employee or contractor. Here are my top three tips for getting it done:

Know What You Need

First off, when considering hiring or getting a skilled outside contractor to help you with tasks (ie a VA, a copywriter, a bookkeeper, etc.), it’s important to have a clear idea of what help you need from them. Take some time to identify what you want to take off your plate.

There are probably tasks in your business that are not your area of expertise. These tasks take you longer to complete than they would for someone with a higher skill level. These types of tasks are great to hand over to a contractor or an employee with a specific skill set.

There may also be tasks in your business that you are able to do well, and don’t mind doing, but they aren’t directly linked to the value you provide through your business. Tasks like these are also great to pass on to an employee, perhaps even someone who has similar skills to you and is interested in learning more.

Do the Math

Before striking out on your quest for an employee, it’s important to do the math and make sure you can afford the help. Ask yourself:

  • How much time will it save me to hire?
  • What else could I be doing with that time and how will this benefit my business?
  • How much will it cost me?

Hiring someone to help you in your business is an investment, so think about what you’ll gain. Then, weigh that against the cost. If it seems like hiring will ultimately be profitable and beneficial, do it!

Get Help if Needed

Does writing a job description scare you? Are you feeling too overwhelmed with the prospect to the put the time into hiring? It’s ok if you are – there is help. From business resource centers to getting advice from industry colleagues who have hired employees themselves, to finding a firm to help you, there are many different options here. Personally, I’ve enjoyed working with Ashley of Sprout HR, who helped me get clear and also be legally compliant throughout the hiring process. I also worked with my digital content assistant to put together a job announcement, description, and application form.

Another option in this department is considering partnering with other business owners. Sometimes when you need help with your workload, there’s somebody who might be willing to take on some of your clients. The terms of this relationship can be negotiated between you. As long as you have a good working relationship and hear good things about their working reputation, this can be a great way to get help with tasks!

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Two Helpful Tax-Time Solutions to Implement Now

Planning ahead for tax season pays off. Whether you’re chugging along on this year’s taxes or all done, here are a couple tips you can apply to prep for tax time, any time of year.

Set Money Aside Ahead of Time

I’ve spoken with many business owners who’ve told me they regretted not setting aside money for taxes. Some also tell me they were initially surprised by the additional self employment tax. Clients often come to me after they’ve been hit with the tax bill. At this point, we have to pay off the tax debt and save for this year’s taxes. Doing both is tough, and can make a real financial mess for new business owners. 

To solve this problem, I recommend two things. First, work with a tax preparer or bookkeeper who will help estimate a percentage to be held out for taxes. You can read more of my advice about working with a bookkeeper here. Putting money aside will help avoid that nasty surprise.  This can also be a precursor to implementing the Profit First system, which is designed to keep your business prepared to pay its expenses, and pay you a fair wage.

If you want to go the extra mile, you can also read my article 5 Steps to Prepare for Tax Time. Although recovery from this type of situation needs to be thorough, it’s a chance to implement new and better systems and get your business organized.

Learn to Read Your Quickbooks Reports

Bookkeeping is essentially a simple process, but it requires attention to detail. Whether you DIY your bookkeeping or work with a professional, hours can be saved by learning to read your QuickBooks reports. This can help you double check whether you’re entering everything correctly, or whether there’s any mistakes. Sometimes when I work with clients, we have a big mess on our hands that can be traced back to a few minor errors. Reading your reports regularly helps prevent this! If you’re interested in learning more, I offer QuickBooks trainings and love helping small business owners understand their finances better.

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Don’t Let Your Taxes Sneak Up On You, Do This Instead

Taxes don’t come out of nowhere, yet somehow it’s easy for us as business owners to get caught unprepared. As both a bookkeeper and financial coach, I see this often, but it has a simple fix. This month I’m reviewing mistakes women told me they learned from early on in their solopreneur careers. Let’s unpack this one:

The Mistake

One woman I spoke with told me she regretted not setting aside money for taxes. Some women also told me they were initially surprised by the additional self employment tax. Clients often come to me after they’ve been hit with the tax bill. At this point, we have to pay off the tax debt and save for this year’s taxes. Doing both is tough, and can make a real financial mess for new business owners. 

The Solution

To solve this problem, I recommend two things. First, work with a tax preparer or bookkeeper who will help estimate a percentage to be held out for taxes. You can read more of my advice about working with a bookkeeper here. Putting money aside will help avoid that nasty surprise.  This can also be a precursor to implementing the Profit First system, which is designed to keep your business prepared to pay its expenses, and pay you a fair wage. If you want to go the extra mile, you can also read my article 5 Steps to Prepare for Tax Time. 

Although recovery from this type of situation needs to be thorough, it’s a chance to implement new and better systems and get your business organized. I hope you appreciated these insights, stay tuned for next week’s article!

☮

Angela

How to Get The Most Value From Your Bookkeeper

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

As a business owner, every time that you outsource a task for your business, you want to make sure you are getting the highest value out of that task. Particularly if you are hiring a professional for services, such as a CPA or bookkeeper, they should not only provide the service you need to keep your financial records up to date. They should also be able to provide you with insight or advice into your business finances. They regularly see all the financial facts of your business right in front of them. If they aren’t interpreting and discussing with you the trends they see in your business,  or they aren’t talking about or making suggestions to support the health of your business , they are actually doing you a disservice. Financial professionals can easily access that information. Making sure you hire someone who is willing to talk to you about those things and provide information that will provide you with much greater value from this professional service. If you are able to apply these financial insights, your business will benefit greatly in the long run.

This point also illuminates the value of hiring a professional in the first place. Hiring someone who knows what they’re doing to both keep your books in order and analyze financial trends is important. Paying a professional a higher wage for a better quality work, rather than hiring someone who doesn’t do the job well, will greatly benefit you and your business. Someone who can provide you with valuable information about expenses, cash flow, profit margins, and other financial inner workings of your business can prove invaluable in the long term. Think of hiring a talented professional as an investment in your business’s financial wellbeing.

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

When you are looking to hire a CPA or bookkeeper, inquire whether their services include providing these insights and consultations. If you are already working with a particular professional, ask them if they are willing to start discussing their financial findings with you. If not, maybe it’s time to find someone else – because that valuable financial knowledge of your business is absolutely worth it. If you’d like to speak with me about my financial services, schedule a discover call!

Angela

Image Sources: Sergey Shmidt , Sharon McCutcheon

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