Is having employees leaving a dent on your profits? It is time to look into your accounting to evaluate performance.
There are two popular business expenses that greatly affect revenue; payroll and inventory. Keeping adequate control of both expenses will keep your profits in good shape.
The following are steps to consider when managing your employees:
Corporate Organizational Chart. Small businesses should take for example these types of structures even if your business is not a large corporation with a tall flashy building. These charts work well with any small business with employees in order to better structure job duties, responsibilities and identify unnecessary positions.
This structuring is done to help establish policies, rules and ways of working. It also helps in reaching business objectives by maximizing workflow. Without this chart, employees will basically be all over the place and consequently will cause the whole workforce to be slow, causing an unnecessary economic leak. Organizational structure improves efficiency by providing clarity to employee regarding their duties, responsibilities and reporting to the right superior.
Think Outsource. Depending on the type of business you have, sometimes it will be more cost effective to hire an independent company to deliver a specialized service at an affordable rate as an alternative to having an employee with a full salary. For example, you can outsource your accounting to a local firm and meet with your accountant monthly or quarterly to discuss your finances. If you’re a healthcare practitioner you can outsource your billing to local or online companies specializing in billing and coding. Before taking such action be sure that this won’t negatively affect your quality of service or product for your clients or business objectives.
Minimize Overtime Costs. By having an organizational structure in place along with a time and schedule system, businesses could save a lot of money by avoiding paying overtime. According to the Fair Labor Standard Act (FLSA ) the overtime pay rate for eligible employees is one and one-half (1.5) times their regular working hour rate of pay. A time and schedule system is an effective way organizing employees.
There are more methods available to improve employee efficiency however, I am not a specialist in human resources but I do recommend hiring a consulting HR firm that can help structure your company to improve efficiency and save money.
If you need assistance with your business finances or taxes feel free in contacting us at Business Solution Center | Eeliffee@bsctexas.net | 956-466-4503 in Brownsville Texas.
Post by Eeliffee Garcia