Business.com |
- Audience Analysis: How to Use Social Media as Your Largest Focus Group
- What It Takes to Succeed in a Business Partnership
- The Next COVID-19 Stimulus Package: How You Can Take Advantage of It
- How to Reach Your Audience After They Leave Your Website
- 11 Tips Accountants Should Share With Their Clients
- The Best Payroll Software for Accountants
- How to Improve Work Performance With a Performance Improvement Plan (Plus PIP Templates)
- How to Calculate Gross and Net Pay
- How to Write Up an Employee
| Audience Analysis: How to Use Social Media as Your Largest Focus Group Posted: 22 Dec 2020 03:10 PM PST  What is social media, if not the world's largest database of consumer insights? Think about it: With as many as 3.6 billion social media users worldwide, there couldn't be a more fitting definition. For most companies operating today, most of their customers use social media on a daily basis. This redefines the nature of market and consumer research and transforms the way businesses use social media entirely. The problem is that social media is overcrowded, to say the least. It's full of both valuable and completely worthless social data, and the path to meaningful insights is often a long one. If only there was a way to cut through the noise and get right to the data important to your business …wait, there is one, and it goes by the name of "social media listening." What is social media listening?Social media listening is the technology that monitors social media for mentions of a company, its CEO, its entire industry, or whatever it is that signifies users' involvement with an organization or a cause. In simpler terms, it's fully automated, 24/7 monitoring of social media for mentions of any keyword. What you do with the social data insights afterward is limited only by your own resources. These are just some of the possible uses:
As you can see, the use cases of social listening are many, and so are the ways to get creative with it. In this article, we'll explore audience analysis through the lens of 24/7 social media monitoring with dedicated social media analytics tools. Let's dive in. Audience analysis: Getting startedSeeing how the nature of social listening is searching social media for posts from customers, audience analysis starts as soon as you start monitoring your social media mentions. That can take a simple brand name or a complex Boolean query – either way, your social listening tool will start pulling in social media conversations that make up a portrait of your audience. Most social listening tools will let you narrow the search down to a specific location or social media platform. This, together with any further search conditions you can specify along the way, empowers you to set the search in the right direction and collect only the data that'll help you examine a specific audience segment without all the noise. What you soon end up is a dashboard full of mentions analytics, from the prevailing sentiment of conversations to the biggest opinion leaders shaping the discussion and putting the most engaging content out there. We'll now go through some of the stats to see how social data can be translated into audience metrics. DemographicsDepending on how advanced your social listening tool is, you'll get access to an array of user data such as languages and age groups. Most tools will at least show you users' languages and locations, and this is the starting place of audience analysis. Locations and languagesExploring these metrics – that is, if you feed your social media listening tool every localized variation of your brand name, industry or any other seed keyword you might be tracking – gives you a basic understanding of your audience segments. Depending on where your customers are located and what languages they use on social media, you'll be able to target your messaging much more efficiently, covering every segment you can reach. Gender and ageThese are also key metrics in making up a portrait of an audience. Getting a clear breakdown empowers you to customize your content and make sure it's inclusive and diverse, which makes it more likely to resonate with all the audience segments you're targeting. You should also post your content on the channels most fitting for the different age and gender segments. Online behaviorsIt's not enough to know in what language and manner to talk to an audience; you also need to know where you'll reach your audience the most quickly. Social listening helps you get all the answers you need, since it lets you uncover the sources of mentions – i.e., the platforms your audience is most active on. Despite what the name suggests, social media listening often goes way beyond social media to the wider web and even offline, revealing the natural habitats of your audience. Again depending on how advanced your social listening tool is, you can search anywhere from social networks to TV and radio to know exactly what medium works best for any given audience segment. Opinion leadersNo audience portrait is complete without a comprehensive list of opinion leaders, key publishers, and major (or minor!) social media influencers. They serve as the main content creators for the audience, shape and reshape conversations, and build bridges between brands, institutions, communities, and their many target audiences. You can identify opinion leaders with social media listening in several ways. Depending on your ultimate objective, there are different approaches you can take to find your way to the loudest voices in the room.
Once you have a list of major content creators prominent with your audience, you can take these actions:
Interests, alliances and concernsThe beauty of social media is how much depth it gives to any audience research. People are eager to go on social media and share their thoughts on just about anything. For marketers, there couldn't be a better reason to move consumer research over to social media for good. With social media listening underway, learning about opinions, interests, alliances and concerns becomes a simple matter of setting up a search for all mentions of the topic, and then searching social data for relevant feedback. What's more, social listening tools empower you to research not just the potential of embarking on a trending topic but any topic and the way it resonates with your audience, however controversial and hard to study it might be. This means you get to research and test-drive content ideas with very specific audiences in mind. In short, whatever data is publicly available on social media can be fetched, searched, and benchmarked for effective content planning and informed decision-making for every audience segment. Wrapping upAudience analysis is a key part of effective content marketing. It's as rewarding as it is demanding, and thorough analysis is often a matter of careful, monthslong teamwork. However, there are ways to hack the system and use the data already out there, publicly available and relevant to your business. This data (like many of your audience members) lives on social media, and there are powerful tools to collect and process tons of social media posts to get you the insights you're after. I hope my overview of audience analysis with social listening tools gives you a new perspective on how you can use social media as your largest-ever focus group. With social media monitoring and analytics set up and fully automated, working with social data becomes a breeze, and there's every reason to implement it. |
| What It Takes to Succeed in a Business Partnership Posted: 22 Dec 2020 12:14 PM PST  The unprecedented nature of 2020 and the coronavirus pandemic has given many individuals the rare chance to venture into entrepreneurship. Starting a small business allows talented professionals to create offerings and services needed by consumers and explore new career opportunities. According to The Wall Street Journal, more than 3.2 million applications have been submitted for employer identification numbers (EINs) in 2020. Filing a tax ID typically signifies making significant strides forward in business, as this number is used to open business bank accounts and hire employees. As entrepreneurs file for EINs, they are taking care of other legal aspects of their small businesses, including registering necessary trademarks, obtaining business licenses and incorporating as entity formations. One business formation that is particularly popular with individuals looking to start a business with someone else is a partnership. Some entrepreneurs may have used time in quarantine to develop a business idea with a partner like a family member or close friend. They may plan to form a partnership for their new venture. Before you team up, however, there are a few important aspects to keep in mind about business partnerships. Follow these guidelines before getting started. 1. Research different types of partnerships.Going into business with a partner means understanding the manner in which they would like to run the business, and vice versa. A partnership entity formation comes in several structure options. General partnershipA general partnership, the most common type of partnership, establishes an agreement across the partners running a business. All profits, liabilities and management duties are to be divided equally across the partners. However, there is one downside to a general partnership. This entity is often considered to be unincorporated. It's a bit like a sole proprietorship in that there isn't limited liability protection. In the event business debt incurs, partners do not have a limit on their personal liability for the debts of the business. Partners would need to use their personal assets to repay the debt. Rather than risk this type of liability, partners may incorporate as a different type of partnership, such as a limited liability partnership (LLP). Or, they may choose to incorporate as a limited liability company (LLC). Joint venture partnership or silent partnershipJoint venture partnerships share most of the same similarities as general partnerships. However, a joint venture partnership differs in that it is temporary. This type of partnership is designed to expire. Typically, it is put into place to speed up certain business processes or when a phase of development is complete. A silent partnership is designed for partners that wish to be less active in the company. In a silent partnership, one partner is allowed to act as the financial muscle of the business. They help secure capital and make this their primary focus. As such, they do not participate in the company's daily operations. A different partner assumes this responsibility. Make sure to discuss with your partner beforehand what each individual will be held responsible for in a silent partnership. Limited liability partnershipA limited liability partnership (LLP) provides businesses with the same limited liability found in a limited liability company (LLC). This protection ensures that personal and professional assets remain separate. The personal belongings of a partner, like houses and cars, would not be used by the partner to repay business debt, for instance. You may need to determine if your profession allows you to incorporate under an LLP. This partnership structure is reserved for professionals in licensed professions by the state. Think doctors, lawyers, accountants, dentists, pharmacists and psychologists, to name a few licensed professionals. 2. Create a written partnership agreement.Now that you're familiar with partnership entity structures, it is time to draft a written partnership agreement. What is a partnership agreement? This is a document that holds each partner accountable for their roles and responsibilities within the partnership. You may already know that you will work together, but what does that work look like? A written partnership agreement outlines the following partnership clauses:
Do you need a written partnership agreement, or can you skip drafting this document?It is highly recommended partners create a written partnership agreement. An oral agreement, which is sometimes used in lieu of a written agreement, may create complications in a partnership. For example, it may become too difficult to recall the exact date when certain terms were put into place. What if your state of formation inquires into the written partnership agreement? Being unable to produce a written partnership agreement may put your partnership entity into hot water. It may cause your business to lose its credibility and potentially fall into bad standing with the state. 3. Obtain an EIN.Earlier, I mentioned that more than 3.2 million EIN applications have been filed in 2020. What role does an EIN play in the success of a business partnership? The IRS issues EINs to help identify the employer tax account of businesses. Many business owners use their Social Security number on business documents. In a partnership, however, this is not feasible. A partnership includes at least two partners, or owners. Therefore, an EIN must be used and applied for by at least one partner prior to launching a partnership. Over time, you may make small changes within your partnership. Amendments may be made to the written partnership agreement, new partners may be admitted, and the business itself may head into new and exciting directions. Discuss it all with your partner. Review and vote together on everything before moving forward – and enjoy the teamwork that being in a partnership brings you and your partner in business. |
| The Next COVID-19 Stimulus Package: How You Can Take Advantage of It Posted: 22 Dec 2020 10:06 AM PST  On Dec. 21, Congress passed a $900 billion stimulus package intended to mitigate some of the economic damage from the ongoing COVID-19 pandemic. At the time of this writing, President Donald Trump was expected to sign the bill shortly. It would be the first stimulus package signed since the $2 trillion Coronavirus Assistance, Recovery, and Economic Security (CARES) Act passed in March 2020. How important is economic stimulus to America's small business community? In a September 2020 Vistage survey of more than 1,100 SMB leaders, 58% of respondents said economic stimulus was critical to the health of their small business. What's inside the new $900 billion stimulus bill, and how will it benefit businesses and individuals if it passes? Read on to learn how you can take advantage of the new COVID-19 stimulus package. What's in the $900 billion stimulus package?The new COVID-19 stimulus package directs resources to established loan programs, extends additional unemployment benefits for up to 11 weeks, expands small business liability protections for those operating during COVID-19, and includes direct payments of up to $600 to individual taxpayers. Here's a closer look at the most impactful provisions in the bill. Funding for the PPP and EIDL loan programsIn March, Congress established the Paycheck Protection Program, which extended forgivable loans of up to $1 million to small businesses to help them pay wages, salaries, rent, mortgage and utilities. That program stopped accepting applications for funding in August, but the new funding would allow the Small Business Administration to issue more loans under the PPP. Of the new funding, $12 billion would be earmarked for minority-owned or very small businesses. "The big thing is there would be more PPP money available, and it would also allow for a second forgivable loan," said Mark West, national vice president of business solutions at Principal Financial Group. "So, some of those firms that already got [a PPP loan] may have the ability to get a second one." The new bill would also expand the size of maximum PPP loans to 3.5 times the amount of a business's payroll expenses and make PPP loan funding tax deductible. "[The PPP] is more finely tuned than the broad swath of the original program," said Joe Galvin, chief research officer at Vistage Worldwide. "In the original program, everyone could jump in and get the money. Some folks got the money that didn't need it." Under the new rules, small business applicants would need to demonstrate a drop of at least 25% in revenues over the past three quarters. Those who experienced a decrease of 90% or greater will get priority consideration, followed by those with a 70% or greater reduction in revenues, and so on. "What's powerful about this program is that it has finely tuned and nuanced provisions to help those who need it most," Galvin said. So, how can small business owners take advantage of the new and improved PPP? "It would seem that, with PPP loans, you would need to apply again," West said. "One thing we advocated for was a simplified process for smaller businesses in getting forgiveness. "The last thing you need to have happening for businesses that are really in a tough spot and trying to work through the time that we're in is to add complexity and red tape to their ability to get forgiveness on a loan," he added. "That's not where they need to be spending their time; they need to spend it on their business, helping employees and taking care of themselves." Similarly, the measure includes additional funding for the SBA's Economic Injury Disaster Loan program, which is intended to relieve small businesses affected by natural disasters. "It also looks like there is another wave of EIDL loans as well," West said. "There's another $20 billion there, it looks like." Expanded unemployment benefitsThe bill includes an expansion of unemployment insurance benefits, increasing typical benefits by $300 per week for up to 11 weeks for workers unemployed due to the COVID-19 pandemic. The expansion is the first since the Federal Pandemic Unemployment Compensation from the CARES Act expired in July. "One of the unintended consequences of employment benefits is it impacts those businesses looking to hire workers, especially [the] low end of wage scale," Galvin said. "It means they're potentially making more than they would be at work. We saw a tremendous talent crush … for industries that are doing well; the war for talent and tactics used to recruit are aggressive as they were a year ago. That's putting pressure on CEOs to focus on employee engagement and retention." Direct payment to individual taxpayersThe second COVID-19 stimulus package includes another round of direct payments to taxpayers, this time up to a total of $600. These payments are subject to similar limits as the first ones: Taxpayers who make more than $75,000 per year will see reduced payments. COVID-19 testing and vaccine fundingThe bill would provide $20 billion in funding for the purchase of vaccines, plus $8 billion to support distribution of the COVID-19 vaccine. It would dedicate an additional $20 billion to states to support COVID-19 testing. Other provisions in the new COVID-19 stimulus billThese are some additional measures in the second COVID-19 stimulus package that are tangential to small business:
What about small business liability protections?When lawmakers were debating the stimulus package, liability protections for small businesses operating during COVID-19 were a sticking point. Small business liability protections would insulate operational businesses from lawsuits related to COVID-19 if they could demonstrate they were operating in good faith and following established safety guidelines. Those liability protections did not appear in the version of the stimulus package to be voted on by Congress. "It appears that [SMB liability protection] is not built in to this," West said. "They've left that on the sideline along with … more dollars going to state governments. It appears both of those issues were left out and will be discussed another day." Some states have adopted small business liability protection measures, including Georgia, North Carolina and Utah. Without any federal liability protection, small businesses will have to consider the laws in the states where they operate. You can take these measures to limit your risk of a lawsuit related to COVID-19:
[Read related article: The COVID-19 Return-to-Work Guide for Small Businesses] How can small business owners take advantage of the new COVID-19 stimulus package?To ensure your business has access to whatever relief or funding it might require, it's important to understand how to take advantage of the measures in the new bill.
Consult business experts to come up with the strategy that best suits your business. [Looking for knowledgeable business professionals and experts? Join the business.com community.] What's next for the American economy?While the COVID-19 pandemic rages on, there is now a promising vaccine and a hope for a post-COVID 2021. According to Galvin, the Vistage data suggests CEOs are heading into the new year with some optimism for what comes next. "[Small businesses] were thinking 2020 was going to be a great year, but it cratered, as we all know," Galvin said, adding that SMB leaders are still bullish about their prospects in 2021. "When you look forward, 67% of CEOs expect increased revenues next year, and 55% expect increased profits. When you talk about expansion – and CEOs are trying to plan in a most uncertain economic environment – 43% plan to increase expenses, and 64% plan to increase their workforce." This data suggests that, while many businesses remain hampered by COVID-19 and restrictions put in place by state and local governments, the fundamental economic conditions beneath the surface of the pandemic remain strong. "The economy is not broken; it was shut down," Galvin said. "The question is, when can we open it back up?" [Read related article: How to Reopen During COVID-19: Lessons From Entrepreneurs Who Have Done It] Until the public health situation is under control and businesses can operate without pandemic-related restrictions, Galvin suggests that SMBs focus on doing right by both their employees and customers. That includes providing the safest possible workplaces and storefronts, remaining extremely communicative and transparent, and taking proactive steps to guarantee the safety of all who interact with your business. "Ultimately, on the other side of this, employees and customers will reward or punish employers or suppliers at the end of the pandemic," Galvin said. |
| How to Reach Your Audience After They Leave Your Website Posted: 22 Dec 2020 08:30 AM PST  Marketing teams are responsible for getting visitors to your site, but that's only half the battle. There's a good chance that most people who make it to your online store leave without ever buying a product. While that might sound bad at first, it's better than you think: Instead of trying to sell products or services to someone unfamiliar with your brand, you're now tasked with reaching people who know about your company but are not yet customers. There are plenty of ways you can target these visitors and turn them into customers. We will cover how to establish audience segments and how to use email and social media to connect with people who have previously visited your site. Let's start by talking about what you can do behind the scenes to improve the performance of your retargeting campaigns. Establish customer segmentsEvery business has customers that fit into multiple categories based on their preferences, pain points and goals. The culmination of these traits makes up different audience segments. For example, an online pet store would likely create segments for different people, depending on the animals they own. The marketing team would look at user behavior and purchase history to determine what type of promotion has the best chance of seeing a conversion when sent to a specific customer. Imagine if this company promoted a deal for 50% off all cat supplies. Do you think it would be more effective to retarget every customer who visited the website or only those who browsed cat products and content? The truth is, there's nothing wrong with putting this promotion directly on your website. But when retargeting, use personalized content to your advantage. If your goal is to get more targeted conversions from customers who visited your website, it's best to create content based on their preferences. You can learn more about your audience by reviewing your Google Analytics account, as well as your email and social media data. Break your customers up into groups based on the type of products you sell, and create campaigns that appeal to each customer subset. You'll want to use these buyer personas to develop retargeting campaigns that get results for your business. Encourage email sign-upsOne of the best ways to reach users after they leave your website is through email. It's estimated that 4.4 billion people have an email account, which means you have a great chance of reaching potential customers through this platform. The key to using this strategy to retarget customers is to gather their email addresses before they leave. You can accomplish this task by putting an email signup form in a prominent place on your website. Use your website's sidebar or a popup campaign that asks users to sign up for future content through email. If the person reading your message visited your site and found a helpful piece of content or product, they may subscribe to your email list. Now that you have some email leads, you can create a drip campaign designed to retarget customers who didn't complete a purchase on-site. Use what you gleaned about various users during the signup process to deliver high-quality, personalized content and offers that appeal to their pain points and goals. Personalized email messages can result in 26% more opens, which means more people may read what you have to say. If people find your email relevant, they are likely to click through and visit your website. You won't convert every email subscriber, but you will drastically reduce your cart abandonment rate and reach more customers than you would otherwise. Use Google remarketing toolsGoogle's Remarketing Ads give business owners the tools they need to connect with consumers using hyper-focused advertising. In fact, you've likely encountered these ads while browsing the internet. Here's how it works: Someone lands on your website and starts browsing but doesn't make a purchase and eventually leaves. Next, the user decides to go to another website and start reading about something totally unrelated. When they glance at the new website's sidebar, they see an ad for your business. Depending on their stage in the buying journey and your campaign's effectiveness, you can get them to come back to your website to complete their order. The best part about these remarketing ads is you have control over how they are presented to users. We suggest using the dynamic remarketing option if your goal is to get consumers to come back and place an order. Dynamic ads change based on how individual users browse your site. Now, if someone adds a specific item to their cart but abandons your website, they see advertisements for the exact product they were looking at with a custom offer. This trigger could be the deciding factor in their purchasing decision. Create dynamic creative ads on FacebookWhile we are on the topic of reaching consumers with personalized promotions, we have to mention Facebook's dynamic creative ads. Facebook is one of the most popular social media websites in the world, with 66% of all internet users having a Facebook account. Facebook's dynamic creative ads are slightly different from the similarly named Google ads, but they are just as powerful. Social media advertisements are a great way to convert visitors into customers, but they are also extremely effective at building brand awareness. You want to consider your intent when using this tool for your business. Creative ads allow business owners to upload multiple images, headlines, offers and descriptions designed to reach specific audiences. Next, the algorithm creates personalized advertisements for customers based on their interests. The best part about this system is it can pick and choose how to serve these promotions to get more traffic on your website. The reason 26% of consumers make purchases after clicking these ads is that they are relevant to their interests and pain points. You can create targeted promotions designed for people who know about your website but haven't yet completed an order. Final thoughtsMost people who make it to your website for the first time leave before they ever complete an order. A whopping 69.57% of consumers abandon shopping carts after adding products, and many more people leave without getting that far. Reaching people after they leave your online store is one of the quickest ways to build your audience and get more sales. Review the retargeting options listed above, and think critically about how you can use these tools to connect with more potential customers. If you're unsure where to start, look at your website traffic and see how most people find your site. Use this data to start building more awareness on platforms where you're already seeing success, and then branch out to lesser-used platforms as your company grows. |
| 11 Tips Accountants Should Share With Their Clients Posted: 22 Dec 2020 08:00 AM PST  As an accountant, your job is easier when your clients keep meticulous records and properly track their expenses. Of course, as any accountant knows, most clients are far from perfect on this front. And sometimes, newer or especially challenging clients might not realize how negatively their errors and disorganization affect your work. However, with a little bit of coaching, your clients can easily change their ways and streamline their processes so that you can better serve them. Start with these 11 tips, and then, as clients heed your advice, consider giving them more guidance specific to their finances, industry or company structure. 1. Don't mix personal and business expensesA fundamental tenet of business accounting is to separate business expenses from personal ones; however, your clients may not be aware of this precept. For example, a new business owner might not realize that storing receipts for business purchases made using one's personal credit card in company files is problematic. Stress to your clients that they should maintain business bank accounts and credit cards separately from their personal accounts and cards. Advise your clients to link their business accounts – not their personal accounts – to their expense tracking software. 2. Go automated, but always double-checkSome business owners prefer to track their spending and income manually. You should discourage this habit and point your clients toward accounting software. Explain to your clients that, by linking their program to their business bank accounts and cards, the software automatically logs all transactions, eliminating the need for (and time involved with) maintaining spreadsheets manually. 3. Choose software platforms that integrate with one anotherInform your clients about the importance of integrating their accounting software with their payroll solution. Payroll is a major expense for businesses – your clients' accounting software should be linked with the payroll platform they use, and vice versa. An accounting platform that doesn't track payroll is an incomplete tool, as is a payroll program that doesn't transmit information to the accounting software program. Many payroll programs offer ample integrations – and plenty more. 4. Don't overlook benefitsIf your clients offer benefits to their employees, you should stress to your clients that tracking their company's spending on premiums and other benefit expenses is crucial to accounting. Government regulations regarding benefits and payroll abound, and you and your clients should be sure all their benefit practices are compliant. You can suggest buying software that handles payroll, benefits and tax compliance in one fell swoop. Speaking of compliance … 5. Keep up with tax deadlinesSome of your small business owner clients might not realize they might need to pay quarterly taxes. Explain these taxes to your clients, and stress their deadlines, paperwork requirements, and the criteria companies must meet to be exempt from quarterly payments (although, as you know, few small businesses are exempt). You should also discuss a plan for your clients to set aside enough money to cover these taxes. When payment dates arrive, work with your clients to ensure payment and proper form completion. Make sure your clients record their payment amounts, as they're important for the next tip. 6. Don't skimp on profit and loss statementsA great tip, one that makes your job easier, is to teach your clients how to create a profit and loss (P&L) statement and then to update those P&L statements quarterly. You'll want to explain to your clients that P&L statements indicate how close their company is to meeting its financial goals. Encourage your clients to compare their P&L statement for one quarter to the statement from the previous quarter to identify changes in revenue and expenses. 7. Stay on top of client paymentsAdvise your clients to stay on top of their clients. Experts recommend that, at most, 15% of a company's invoices at any one time go unpaid, and you should make sure your client knows this. Educate them on best practices for pursuing unpaid invoices, including the option of adding late payment fees. Then, turn your client's attention to their own payment practices. 8. Stay current on vendor paymentsYour clients likely hire third-party vendors for key services, and that means paying them. Advise your clients to set firm vendor payment terms such as net 15, net 30, net 60 and net 90 to keep their finances in check. Then, teach your clients how to implement these payment terms. Explain that, with these terms in place, your clients will know exactly when to expect funds to leave their accounts, making expense tracking – and your job – much easier. 9. Receipts matterYour clients pay their vendors after receiving invoices, but invoices themselves are not payment. That's why you should advise your clients to count not invoices as documents of payment, but receipts. If your clients send vendors money via ACH payments, the receipt can be the bank statement that reflects the transaction. When your clients invoice their clients, the receipt can be the bank statement that documents the payment. 10. Look inside the companyPaying employees, of course, is a crucial part of any business, but employee wages are a fraction of a company's labor costs. Your clients must also cover payroll taxes and benefit premiums. These costs add up quickly, and it's extremely bad practice for clients to cut back on employee compensation after realizing they've overspent. The only feasible path for avoiding these extra costs involves clients looking inward. For example, are there some roles that are better filled by independent contractors than employees? Tell your clients that, if the role involves work that can be done at any time and with business decisions independent from the company, they can likely classify these employees as independent contractors. That means no benefit offerings or tax payments. 11. Choose the right business structureOften, your clients have chosen their business structure before seeking your services. What your clients might not know, though, is that they can change their structure if another option is more advantageous for them. For example, if your client finds that the pass-through taxation of their partnership makes it difficult to separate their business expenses from their personal ones, you can suggest to your client that they switch to become a C corporation. No matter your client's needs, be prepared to explain the ins and outs of all business taxation structures – and stress how software programs can make navigating these rules significantly easier. How to help your clients – and yourself – follow these tipsIf there's one big takeaway from all these tips for accountants to give their clients, it's that accounting and payroll software makes following these suggestions significantly easier. These software solutions neatly and accessibly compile the financial information needed for P&L statements, streamline payroll and benefits administration, ensure tax compliance, and distinguish business expenses from personal ones. Some programs even streamline client-accountant teamwork. Gusto is a great example. It offers your clients user-friendly payroll and benefits administration designed for small businesses, Plus, clients' employees enjoy unique Gusto benefits, such as Gusto Cashout and the Gusto Wallet app. It integrates with small business accounting, time-tracking, point-of-sale, and expense-management tools to give your clients more peace of mind around payroll, benefits, and tax compliance. And as an accountant, your firm gets access to Gusto payroll for free ‒ just onboard one new client per year. Alongside its payroll and benefits suite for businesses, Gusto offers accountants its Gusto Pro program. Using Gusto Pro, you can quickly view all of your clients and their payroll information. Your workflow will be streamlined, giving you extra time to consult your clients on all the tips on this list. And if you want to expand your skill set while earning CPE credits, Gusto offers a People Advisor certification program. Refer your clients to Gusto's payroll and benefits systems; they get a one-month free trial, followed by exclusive discounted monthly fees after the trial ends. With such fair prices and extensive features, Gusto is a great solution for both you and your clients. Become a Gusto partner today to streamline not just your clients' accounting, but your own workflow. |
| The Best Payroll Software for Accountants Posted: 22 Dec 2020 08:00 AM PST  Many accounting software programs cater to business owners who don't have the time to delve into their business's accounting matters nor the money to hire accounting teams. However, there are accounting software applications that exist for accountants like yourself. Digitizing your firm's accounting practices can far better organize your clients' financial information than doing so manually, all while making this information more readily accessible. Many accountants help businesses, especially small businesses, with their payroll. However, no two payroll software programs offer accounting firms the same set of functions. And since most internet searches for accounting software return results that are intended for business owners instead of accountants, it can be hard to find resources that adequately explain exactly what accountants need in a software solution. Some payroll software programs for accountants go well beyond basic accounting tasks. You might also find programs that allow you to expand your services from accounting to advising. Other programs come with tools to connect your clients to the program for their own internal needs. We've assembled this list of the most important features of payroll software for accountants. Here are 11 must-have features accountants should look for in a payroll software solution: 1. Cloud-based modern dashboardTo provide top-notch accounting services, your firm needs an easy-to-use launching pad. A payroll software program with a cloud-based modern dashboard is a great start. From this dashboard – which you can access from anywhere and at any time – you'll be able to quickly generate a list of your clients, the number of employees they have, their entity types, locations and more. You can also see the health insurance, 401(k)s and other benefits that your clients offer their employees. 2. Compliance supportAs an accountant, one of your key roles is to ensure your clients comply with federal, state and local tax laws. Your payroll software should have built-in tools for ensuring client compliance from the time checks are cut to when tax returns are filed. Ideally, the software platform is updated each time new tax legislation is enacted so you and your clients are always compliant. 3. Ample integrationsIt's imperative to choose a payroll software provider that supports ample integrations with your time-tracking, point-of-sale system and human resources programs, among others. These integrations simplify and streamline your work as well. 4. Payroll listsAn accountant-friendly payroll software program should display clients' upcoming payrolls and their due dates. Using this list, your firm can plan ahead to ensure that your clients run their payrolls on time. Many payroll solutions provide ample notifications as well to prevent a payroll from being missed. 5. Real-time alertsIn addition to notifications about upcoming payrolls, many payroll software solutions alert you to serious issues that could significantly delay payroll from being met. For example, if your client is facing a delayed payroll due to a miscalculation, a misclassification, or another error, as their accountant, you'll be notified about that and can quickly resolve the question or issue so that your client can make payroll in time. Top-notch payroll software for accountants also alerts you when your clients are laying off employees. In addition to real-time notifications, you receive strategic resources you can share with your clients to help stabilize their finances and minimize future layoffs. These resources also enable you to act as more than just a number-cruncher. 6. Streamlined accounting workflowsNo payroll software can conduct a conversation on your behalf with your clients, but the best payroll software for accountants can streamline your number-crunching and compliance work – and these workflow efficiencies allow you more time to spend advising clients how to best run their business. 7. Training and certificationsSome payroll platforms for accountants include training and certification programs. Using the courses available from these payroll platforms, you can build your expertise and advise your clients on not just payroll, but benefits and HR, too. This boosts the value you provide to your clients as a knowledgeable small business finance expert with whom your clients enjoy talking. 8. Partner badges and directoriesThe best payroll software programs for accountants generate partner badges that you can display on your website. Additionally, business owners looking for new accountants sometimes find them on payroll software platforms' websites, which often include directories of trusted accountants – which could include you. 9. Referral toolsLet's say you've taken on a new client. Shortly after working with them, you discover their in-house accounting software is impeding their ability to properly track their finances. If you've chosen an excellent payroll software program for your accounting firm, you can refer your clients to your program, and that's not all. 10. Client trials and discountsYes, connecting your clients with better accounting software makes your job easier – when their financials are complete and well organized, you can serve clients better, and it saves your clients money. Some payroll software programs come with free trials and discounted monthly rates. And since you might be advising clients on their finances, too, your clients will trust appreciate you connecting them with affordable, excellent accounting software. 11. Free subscriptionWhat if you didn't have to pay for payroll software? Some payroll solutions for accountants know that you will refer and successfully onboard your clients to their product. And using the software yourself makes it even easier to explain the value to your small business clients. With user-friendly features, learning opportunities and paths toward financial advising, free accounting software can be hard to resist. The payroll software for accountants with all-of-the-above featuresIf you want all-of-the-above payroll software features for your accounting firm, Gusto can give you exactly what you need. Gusto's user-friendly dashboard and alerts streamline your accounting tasks. Use Gusto to keep your clients' information neatly organized, build a schedule of upcoming payrolls and gather all the tools necessary to act on any urgent client needs. Plus, because Gusto is cloud-based, you can assist your clients from the office or at home. With Gusto, you can also become an advisor to clients. Use Gusto's People Advisor certification to earn CPE credits each year, and enhance your current accounting knowledge with more information about successful business finance and team-management practices. Since Gusto's online dashboard facilitates quicker workflows, you'll have plenty of time to advise your clients, too, and you can introduce your clients to Gusto's affordable small business payroll solution. Gusto client referrals take only a few clicks. Your referrals give your clients a month-long free Gusto trial and up to 20% discounts on their monthly fees. Plus, as long as you onboard one client to Gusto per year, you won't pay to use it. If all this efficiency, expertise and unparalleled client service sound like what you need, become a Gusto partner now. |
| How to Improve Work Performance With a Performance Improvement Plan (Plus PIP Templates) Posted: 22 Dec 2020 07:30 AM PST  Not every business is going to be filled with star employees who always meet or exceed all of the expectations placed on them. For employees who don't fall into that category, the responsibility of helping them boost their performance often falls on their managers. A popular tool to set them on the right path is a performance improvement plan. This document sets expectations with the goal of helping the employee improve their performance. To get the most out of a performance improvement plan, managers need to have a clear understanding of what it is, what to include in it and how to develop it. What is a performance improvement plan?A performance improvement plan, or PIP for short, is a document created by a supervisor or manager that outlines what employees can do to achieve their performance goals. In many instances, these plans are meant for struggling employees, though they can be used for employees who are already doing an excellent job but have opportunities to grow. The document outlines the following:
Since performance improvement plans can have a negative connotation, many human resources professionals have long believed that they were best implemented when employees' struggles became noticeable and action was needed to correct unsatisfactory performance. However, as the workplace continues to evolve, some HR professionals are changing their tune. Seeing the benefit performance improvement plans can have on employees who are already doing an excellent job and have the potential for even better performance, these plans are no longer being used just for struggling employees. "Employees who hear 'performance improvement' may assume that something isn't right or there are dire consequences as a result of being placed on a PIP," said Leanne E. King, president and CEO of SeeKing HR. "This is truly a negative reaction to what is often an attempt to correct or redirect the behaviors of an employee." This is why King added that the preferred term is "development plan" for employees who are doing well and ready for a new assignment or responsibility. "The catch is in the culture of the organization," King said. "It's all in how the process is communicated with employees. Using a single-document performance plan with a check box for improvement and development gives employees a better indication of what may be the next steps, step up or step out." How a performance improvement plan works in 5 simple stepsTraditionally, a performance improvement plan follows a series of five steps:
What are the benefits of performance improvement plans?A performance improvement plan, or a development plan, can be beneficial for employers and employees. As an employer, you want to get the best from your employees. After all, higher-achieving employees can equate to a higher return on your business investment. Simply telling employees they need to do better usually won't have the desired result. Instead of sending these underperforming employees off on their own to figure it out, managers need to be proactive by clearly identifying areas for improvement and laying out a path forward for the struggling team member. At the other end of the spectrum, identify your high performers and set benchmarks for them as well. "Research shows that significant value for the company can be easily generated by benchmarking the top performers in a structured way, seeing how they operate, and then building those outcomes, tasks, decisions, and methodologies into how everyone else can improve themselves," said Josh Rovner, an author and consultant in the space of building effective organizations. "This is how you can create and use a performance improvement plan for everyone in the company, not just the underperformers." These are some additional benefits of offering performance improvement plans: It helps employees take responsibility.If staff members are not aware of how management sees performance, they can't take responsibility for it. A performance improvement plan equips team members with the information they need to take responsibility for their performance and work toward improving it. It can increase staff retention.As job roles evolve, your staff may not be aware of how their role affects the company or if it even matters. When employees know exactly what is expected of them, it can empower them by showing them they make a difference and give them goals to work toward, which can help you retain otherwise bored and unmotivated staff. Feedback is valuable.Offering a documented understanding of how employees are doing and where they can improve helps them feel engaged and improve within areas they may not have realized they were lacking in. It removes the element of surprise.If an employee ultimately needs to be terminated for poor performance, the process might be easier for both parties when the performance issues have been documented through a performance improvement plan. Workers who are terminated will already know their employers' expectations and have some warning of what's coming when they see they aren't hitting their goals. [Read related article: How to Fire an Employee the Right Way] How to develop a performance improvement plan process and what to includeDeveloping and writing a performance improvement plan is a straightforward process. Step 1: Identify if a PIP is needed.Sometimes, having an informal conversation with a subordinate or documenting an issue by email is enough to improve performance. An example of when a PIP might be needed is with a sales agent who isn't meeting their sales quotas. If a PIP is needed, move on to step two. Step 2: Focus on behaviors.Outline the behaviors that need to improve and get to the root cause of the issue. These are some examples of actionable goals:
Step 3: Provide proof with specific examples.If you don't have specific examples of the problem to give the employee, hold off on submitting the performance improvement plan and start documenting them as you see them. Provide as much detail as possible in the examples. Outlining specific examples with dates is the best way to avoid legal issues. Step 4: List your expectations.As part of the performance improvement process, specify your expectations in the areas where the staff member needs to improve. Expectations are different from job duties; do not pull these expectations from the employee's job description. Instead, as noted by Winston-Salem State University, "the basis of an effective performance plan is developing and communicating clearly defined performance expectations to assist the staff member in understanding how the duties and responsibilities should be performed. Performance expectations should focus on end results, not just activities." [Read related article: Setting Clear Expectations for Employees] Step 5: Offer resources.Expecting workers to improve on their own is not always realistic, especially if they have been struggling for a while and clearly aren't sure where to turn for help. Offering resources can put a positive spin on the performance improvement discussion and give employees a way to succeed. These are some examples of resources you could include in the performance improvement plan:
Step 6: Create a timeline.A defined timeline can help team members achieve their goals in a reasonable time frame and track their progress. A typical timeline for performance improvement is 30, 60 or 90 days. Your timeline should provide structure and offer realistic, achievable goals. Step 7: Sign off on it.Your performance improvement document should conclude with a place for all parties involved to date and sign. Free performance improvement templatesYou can find a wide selection of templates online to help you develop your PIP. These are some free templates to guide you in laying out the PIP: |
| How to Calculate Gross and Net Pay Posted: 22 Dec 2020 05:16 AM PST  Of your many responsibilities as a small business owner, ensuring that employees' pay is calculated accurately ranks near the top of the list. This means withholding the correct amounts for federal income tax, state income tax, Social Security and Medicare. You also need to factor in other deductions, such as those for employee health insurance premiums and contributions to retirement accounts. Failure to make the proper deductions from an employee's wages or salary could get you in trouble not only with your staff but also with the IRS. However, preventing the legal and employee-related headaches that stem from payroll mistakes isn't difficult if you know how to properly alculate gross pay and net pay. What is gross pay?Gross pay is the amount of an employee's salary or wages before any deductions. For example, if an employee has a salary of $35,000 per year, that employee's gross pay is $35,000. The gross pay of an hourly employee who works 30 hours and makes $15 per hour is $450 for that pay period. For an hourly employee, wages can include breaks, on-call time, overtime, travel time and training. Gross pay is the starting point for all calculations related to tax and employee compensation. [Looking for payroll software to take these calculations off your plate? Check out our recommendations for the best online payroll software] What is net pay?Net pay, commonly called "take-home pay," is the amount paid to employees after federal, state and local income taxes, as well as other deductions for health insurance premiums and contributions to retirement accounts, have been withheld from their gross wages or compensation. How to calculate gross payBecause you don't pay employees for an entire year of work in a single paycheck, you need to know how to calculate gross and net pay for each pay period, which could be weekly, biweekly, semimonthly or monthly. Follow these steps to calculate gross pay per pay period for a salaried employee: 1. Divide the annual gross pay by the number of pay periods in the year.For example, if an employee has an annual salary of $35,000 and you pay them biweekly, this would be the calculation: $35,000/26 = $1,346.15 2. Add bonuses and commissions, if applicable.The next step is to add any additional compensation the employee may have earned during the pay period. For example, if your business offers an annual holiday bonus of $100 per employee, payable in the last paycheck of the year, you would add $100 to the employee's gross pay for the pay period. Using the example above, this would be the calculation: $1,346.15 + $100 = $1,446.15 Follow these steps to calculate gross pay for an hourly employee: 1. Multiply the hourly wage by the number of hours worked during the pay period for which you're writing paychecks.For example, if an employee is paid $15 per hour and worked 20 hours over a two-week pay period, this would be the calculation to determine their gross pay for the pay period: $15 x 20 = $300 2. Factor in overtime.The next step is to add any overtime the employee may have worked. If you pay time and a half for overtime hours, the employee would receive the regular hourly wage of $15, plus another $7.50 for each extra hour on the job. So, if the employee above worked 5 hours of overtime, this would be the calculation to find their gross pay: $300 + ($7.50 x 5) = $337.50 Calculating net payCalculating an employee's net pay for any pay period involves subtracting tax withholding and other payroll deductions from the gross pay for that pay period. Start with gross pay for the pay period. Then, follow these steps: 1. Make voluntary pretax deductions.Items in this category are deductions that aren't required by law. Rather, employees opt to have them withheld from their paycheck to lower their taxable income and payroll taxes. Contributions to a retirement account, such a 401(k); some health benefits; and commuter benefits qualify as voluntary pretax deductions. Pretax deductions are taken before mandatory payroll taxes are applied. For example, if an employee contributes $75 per paycheck to a 401(k) plan and $50 per month to their health insurance premium, you would subtract those two amounts from their gross pay to figure out their net pay. 2. Subtract federal tax withholding (mandatory payroll tax).Here, you'll need information about the employee's filing status (single, married filing jointly, married filing separately, head of household, and widow or widower with dependent child) and withholding allowance. The withholding allowance refers to exemptions a taxpayer can lawfully take from his or her income to reduce the amount of income that would otherwise be taxed. Each exemption drives down the amount of tax you can deduct from an employee's paycheck. You can find filing status and withholding allowance details on IRS Form W-4, Employee's Withholding Allowance Certificate, which an employee must complete and submit to you upon starting work at your company. It's illegal for an employer to assist an employee in filling out Form W-4, but you're allowed to refer those who need help doing so to a withholding estimator tool available from the IRS. You also need the IRS' tax withholding tables, which, starting in 2020, can be found in the agency's Publication 15-T. IRS Publication 15-T (2021)-Federal Income Tax Withholding Methods contains the most current tables. The tables provide the correct percentage of federal income tax withholding from gross wages, based on an employee's filing status, withholding allowance and the range into which the employee's salary falls. 3. Deduct state and local tax withholding (mandatory payroll tax), if applicable.Unlike federal tax withholding, state tax withholding rates vary from state to state. There's no withholding to consider in Alaska, Florida, Nevada, South Dakota, Texas, Washington or Wyoming, as these states don't tax income. Likewise, state withholding doesn't come into play in New Hampshire and Tennessee, because both states tax only interest and dividend income, not salary and wages. You may need to deduct state income tax from more than one state if an employee works in one state and lives in another. However, some states maintain reciprocity agreements and don't tax out-of-state income. Illinois and Iowa fall into this category. This means that if you have an employee who lives in Illinois but works in Iowa, you wouldn't deduct state withholding for that employee. You can find a complete list of reciprocity agreements here. 4. Deduct the FICA (Federal Insurance Contributions Act) payroll tax.FICA payroll tax is made up of Social Security (OASDI) and Medicare tax. To calculate it, multiply the employee's gross pay for the pay period by 7.65%. Of this 7.65%, 6.2% is for Social Security and 1.45% is for Medicare. Here is the calculation for the FICA tax deduction for the salaried employee who earned the $100 bonus above: $1,446.15 x 0.0765 = $110.63 Here is the calculation for the hourly employee who worked 5 hours of overtime: $337.50 x 0.0765 = $25.82 There are a few caveats to keep in mind when it comes to FICA. For example, each year, the Social Security Administration sets a maximum withholding based on cost-of-living expenses. Once an employee's annual gross pay reaches this threshold – which was $137,700 for 2020 – you can no longer withhold the Social Security portion of the FICA tax. Additionally, in 2013, the IRS implemented the Additional Medicare Tax. Employers are now responsible for withholding an additional 0.9% from an employee's gross wages or salary if they reach a certain threshold. The applicable threshold depends on the employee's tax filing status. Currently, it's $250,000 for a married employee filing jointly, $125,000 for a married employee filing separately, $200,000 for an employee filing single, $200,000 for a head of household with a qualifying individual and $200,000 for a qualifying widow or widower with a dependent child. 5. Make other mandatory payroll deductions.An employee may be subject to wage garnishments for back child-support payments, delinquent student loans, unpaid taxes and/or credit card debt. In these instances, you'll receive a notice from the federal or state government alerting you to the required wage garnishments. The notice will indicate the exact amount to withhold from each paycheck. Payroll toolsMany companies offer payroll software that automates the process of paying salaried employees, hourly employees, and contractors or freelancers. Some of these vendors also provide free online tools that business owners can use to calculate gross and net pay. Here are a couple of options: ADP Salary Paycheck Calculator QuickBooks Paycheck Calculator Additionally, the IRS offers an Employer's Tax Guide that incorporates withholding information, instructions pertaining to withholdings and more. |
| Posted: 22 Dec 2020 04:01 AM PST  Ideally, your staff is always professional and never acts in a way that requires they be reprimanded. However, that isn't always the case for business owners. Some forms of behavior require immediate termination, while other types of behavior require that a less-drastic measure be taken. It's in these situations that a formal, yet less harsh, response is required. This is commonly called "writing up" an employee. As a business owner, it is important to know when to use this form of discipline and exactly how to do so. What is an employee write-up?Writing up an employee is a type of discipline. It serves as a formal notice that an employee's behavior is unacceptable and needs to improve or additional, more significant, consequences, may follow. A write-up is a formal letter that spells out what the infraction was, how the behavior must change and what you, the employer, will do if it doesn't. It is one step in the employee disciplinary process. Ronna DeLoe, an attorney with LegalZoom, said a write-up serves to both document employee conduct and establish an improvement plan. An employee write-up can include detailed documentation, including written witness statements. If the disciplined employee files a lawsuit for unjust termination, having documentation, i.e., the write-up, can be a key part of your defense. However, if you feel that the behavior or issue isn't a firable offense, you can include in the write-up a plan for improvement by the employee, including what they need to do to keep their job. The write-up can also specify a deadline for the desired performance you want from the employee. What to include in an employee write-upThere is not a standard form or template mandated by the federal government or state authorities. It is up to each business to create its own employee write-up form. However, it should contain the following elements:
Examples of write-up formsTo help you create your employee write-up form, you can find several templates online that you can customize to suit your business. Here are four templates you can use as a jumping-off point: When and when not to issue an employee write-upAn employee write-up should be one of many tools in your human resources toolbox. Typically, a write-up is issued for:
Certain behaviors fall outside the bounds of an employee write-up. For example, incompetence should not be addressed through a write-up; instead, it is best handled in your annual or semiannual performance review of the employee. In addition, the below actions represent conduct that would warrant immediate termination:
How to fill out a write-upWhile it isn't as serious as a termination letter, an employee write-up form still has consequences for employees and employers if it is not completely filled out or if the proper procedures aren't followed. Here are eight steps you should follow when writing up an employee:
Do not discuss the matter with employees who aren't involved in the situation. Employee discipline should always be held in strict confidence between those in the HR department, the employee and their manager. How to present a write-up to the employeeAn employee write-up should be presented in person, followed by an in-person conversation with the employee about your concerns. Because of the legalities involved, another person should be present, as a witness. Ensure that the tone of the meeting is one that communicates the objective is to help the employee. After the conversation, give the write-up to the employee so they can review it. Ask whether they have any questions. If they do, provide clear answers. Before ending the meeting, ask the employee to sign the form. Frequently asked questions about writing up employeesHow do you document disrespect?There are two ways to document disrespect. One is to cite details of behavior, not their attitude. For example, note that the employee remained on a personal phone call during a meeting. Be specific about the dates and times of these incidents. The second way is to include witness statements documenting other employee behavior, such as if the individual raised their voice. Does a write-up become part of the employee's permanent record?That is up to management. An incentive for improvement could be that the write-up will be removed from the worker's file after six months of successful performance. If the same issue comes up in many write-ups for different employees, should the company review its policies concerning that kind of behavior?Yes. The content of write-ups can serve as a diagnostic tool for identifying common problems. If there a company is plagued by the same problem, it can be a clear sign for a new policy on certain types of behavior. Are employee write-ups invalidated after a company revises its employee handbook?Most employee handbooks carry the disclaimer that the company reserves the right to change policies at any time. This ensures that any employee discipline remains intact. |
| You are subscribed to email updates from Business.com. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment