Sales commissions are often a difficult thing to balance and manage for any startup company. The sales people want their commissions yesterday and the business is afraid if they do not pay the sales commissions immediately the sales people will stop working. However, a business needs to understand the process of generating revenue, entering deposits, reconciling books, calculating commissions, transferring funds if necessary, and finally paying the sales people their commission. A business generates revenue from clients and looks to pay sales people a commission for bringing that business to the company. In a perfect world money would be paid by the customer and the sales commission would be immediately deposited into the sales person’s bank account. However, the reality of the situation is that money does not typically enter a company on a single day. Revenues typically trickle in over a 30 day… Read more!
This week’s post will be short because there is no exact answer to the question that has been posed all week by clients. How do you know when a potential employee is a good fit for the company? For most business owners finding quality talent which also syncs with the work techniques and attitudes of the other employees is an incredibly difficult task. Many fortune 500 companies have begun using extensive personality profiling to place employees in the optimal role for their personality, but for most businesses this is not an option. The first step to having successful employee integration what their company needs, and set reasonable expectations for that employee. Too often people hire an employee with the intention of them filling one role, but within a very short period of time the person is filling multiple roles which are often disconnected. For… Read more!
Bookkeeping is the least sexy of all the business processes, and is often viewed as a chore more than anything else. Most business owners do not pay attention to their bookkeeping process except once a year when taxes are due. Unfortunately, the people who decide it is important are often the ones who are finding out there is an issue with their bookkeeping process. Problems with bookkeeping often lead to increased accounting costs, fees for unpaid taxes, higher tax burdens, or penalties for payroll taxes. With the tax deadline recently behind us this is a great time to look at your company’s bookkeeping process and see if there are ways to improve the process or reduce costs. The costs associated with bookkeeping are primarily staff, software, payroll processing, and accounting fees at the end of the reporting period. For the average small business the… Read more!