Here is one thing that you better ask your online bookkeeping service, and not Santa: can you afford to give your employees generous holiday bonuses this year? What about special gifts for your best customers? Although both of these gestures can go a long way toward ensuring good cheer for your business, the cheer will be over if the cost of your generosity ruins your budget.
Small Businesses Plan to Give
According to Bloomberg Businessweek, 55% of small businesses plan to offer their employees some form of yearend bonus. This is pretty good, considering the fact that small business hiring rates have been down for the past few months. The number is up from 38 percent last year. So, how do these businesses know they can afford these gifts? According to Businessweek most of these business have been playing it cautious lately, and come to the end of the year with business up and more money to spend than they had planned on. As a result, they can pass on the unexpected additional income to their employees.
Tapping the Experts: Online Bookkeeping Services
It is important to note that these small businesses (most with one to ten employees) were keeping tabs on their financial status. They were being cautious, because they did not want to overspend their budget and be stuck in a lurch if business did not go as well as planned. Possibly at least some of these businesses were listening to expert financial advice, allowing them to be ahead of the game at year end.
How could a small business afford the expert advice? For many small businesses across the country, the answer is online bookkeeping services. These services offer all the benefits of an in-house bookkeeper with some added bonuses. For example, how many small businesses can afford the services of someone who is more than a bookkeeper; someone who is a financial expert, who has experience working with growing businesses and helping them succeed? Someone who can see potential red flags and offer warning, helping the small business avoid financial suicide? While this level of skill is out of the reach of most small business payroll, online bookkeeping services allow those same businesses to tap into the expert pool without breaking the bank.
Giving with a Plan
If you are in the mood to provide your employees and loyal customers with a bit of extra cheer this holiday season, it is important to do so wisely. Don’t shoot for the moon, instead, know what you can afford. Stick to a budget and your generosity will be appreciated, while keeping the financial leverage you need to succeed. Businesses that give recklessly without a financial plan put themselves on the track for being in trouble when January rolls around. Contact your online bookkeeping services today to develop your plan for the holiday season.