Accounting and Bookkeeping Articles

9 Steps in Properly Terminating Employees

One of the most difficult things you may have to do as a small business owner is terminate an employee.  Regardless of the reason for taking such action, it’s important that you follow a procedure that ensures you are not only legally protected but also respectful of the employee’s feelings as well.  Last week we shared the first 4 of 9 steps in properly terminating employees:

1.    Be objective

2.    Make it legal

3.    Work out the details

4.    Provide reasons, but don’t belabor the point

This week we’ll share the final 5 steps:

5.    Don’t blame or apologize. If termination is the result of poor employee behavior, you should have already issued various warnings and performance reviews as documentation.  The final termination meeting is not a time to assign blame.  And while you may very well express regret for this action, you should not apologize for your decision.

6.    Express gratitude for work done. Once you explain the reasons for termination, you can thank the employee for the work they have done.  In his article entitled “How to Respectfully Terminate Employees,” Lolito explains, “A terminated employee should understand that while the employment relationship did not work out, the employer appreciated her service and does not fault her in a personal sense.”  In the case of a layoff, offer to write a letter of recommendation and, if you truly valued their work, tell them you would be happy to have them back once the business can sustain that.

7.    Let the employee respond. It’s important that the employee have a voice.  Give him or her the opportunity to respond and react to the decision.  However, as mentioned previously, don’t allow the meeting to turn into a debate or negotiation.

8.    Wrap up loose ends. Be sure to have the employee sign all necessary paperwork, and then take measures to close down their appropriate accounts.  AllBusiness.com recommends, “Prepare to collect everything the company has provided to the employee, and consider which computer passwords, access codes, and permissions must be changed.”

9. Note lessons learned. Once the process is complete it’s important that you review the situation and see what lessons you have learned.  Do you need to create or modify your company handbook in order to address some of the issues you encountered?  Should you revise the job description to better attract applicants with the skills you require?  What types of training might be required in order to ensure that your employees are aware of your expectations?   All this will help you better prepare, and perhaps even eliminate, similar situations in your business’s future.

Termination is distasteful for both the employer and the employee.  However, if you could take measures to ensure it’s done properly, you will save yourself a lot of difficulty in the future.

Increase Your Appeal by Offering Tax Preparation Services

You can increase your income and your ability to maintain a staff of employees when you add tax services to your menu.  Consider the fact that many tax preparers make more money in the months leading up to the April 15 tax deadline than others make all year long! Since all individuals and businesses, small or large, are required to file taxes, tax preparation is a respected skill that will always be in demand. And many of your current and prospective clients would probably be happy to have you file their taxes as well as do your accounting for them.

Also consider who your clients will trust to file their taxes.  Countless individuals are scammed each year by people who claim to know what they’re doing.  More and more are becoming weary of tax preparers without any credentials.  The Tax Preparer Designation will put many of those individuals at ease, assuring them that you have been properly trained in tax preparation.

Take time this summer to acquire the expertise necessary to become a Professional Tax Preparer before next tax season.  UAC’s Professional Tax Preparer (PTP) program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), but it will also provide you with the following:

• 20 hours of valuable video instruction
• 2 instructional manuals
• Step-by-step instruction in becoming a sole practitioner
• One year of follow-up support from expert tax preparers
• The opportunity to earn valuable professional certification
• Our iron-clad, risk-free guarantee

Increasing your service offerings will increase your appeal and your bottom line.  Enroll in the Professional Tax Preparer Program today, and improve your competitive advantage while securing your business standing in the local community.

Resources

“How to Fire an Employee.” AllBusiness.com

Lolito, Michael J.  “How to Respectfully Terminate Employees.” 18 August 2008  Entrepreneur.com

9 Steps in Properly Terminating Employees

Donald Trump may have built a popular reality television series based upon his famous catch phrase, “You’re fired,” but in the real world, terminating employees requires more consideration, respect, and often, legal counsel.  Many small business owners are considering a serious reduction in staff in order to decrease costs and give their businesses a fighting chance of surviving the recession.  If you find yourself in the same boat, it’s important that you consider the legal ramifications for yourself as well as the emotional ramifications for your employee(s).  In this two-part series we’ll be sharing 9 steps that will help you best approach the process of terminating an employee.  In this article we will cover the first 5 of those steps:

1.    Be objective. Michael Lolito, in his article “How to Respectfully Terminate Employees” on Entrepreneur.com, explains that the decision to terminate should be a factual rather than an emotional one.  When making this decision you should collect all necessary paperwork.  In the case of termination, gather employee performance reviews, correspondence with the employee, and any written warnings that may have been issued.  In the case of a layoff, you may look into any paperwork required for severance pay and/or an extension of benefits.

2.    Make it legal. Whether you’re terminating or laying off an employee, you should consult with a lawyer in order to make sure that the process you follow is legal and will protect you from future lawsuits should a disgruntled employee decide to sue.  Also ensure that all necessary documentation has been gathered and filled out.  Your lawyer will probably offer you additional advice before meeting with the employee.

3.    Work out the details. Before meeting with the employee, you should work out all necessary details.  As mentioned previously, predetermine any type of severance package you plan to offer; the details of such a severance package should be based upon company policy or lawyer recommendation.  Also consider how long the employee will work for you before the termination is final.  Often, employers give the employee the option of working for the remainder of the week, or leaving immediately.  As long as the employee does not become violent or belligerent, you should not require an immediate vacation of the premises.

4.    Provide reasons, but don’t belabor the point. As soon as you know that termination is eminent, you should take measures to schedule an appointment with the employee. If possible, invite a human resource representative to witness the termination. Also avoid creating a tense and adverse environment for this meeting.  It should begin with reasons for the termination which are clear and to the point, however don’t belabor the discussion.  And while the employee may definitely want to voice a response, this meeting should not become a debate or negotiation.

Terminating an employee can be one of the most difficult things you do as a small business owner.  However, it’s often necessary to ensure the success of your practice.  One thing that could help is to offer employee training; it could boost performance and solidify an understanding of employer expectations.

UAC Offers Onsite Employee Training

UAC has been training professionals for 30 years in bookkeeping, accounting and tax services.  We know what your clients need; we know what your business needs.  And a knowledgeable, trained staff will do wonders for your bottom line.  Whether it be business management, accounting, or tax training, we can provide complete, onsite training for your employees.  And regardless of their positions, we can help them understand how their work contributes to your business model.  Learn more by visiting UAC’s website today!

Return next week when we’ll be covering the final 5 steps in properly terminating an employee:

5.    Don’t blame or apologize

6.    Express gratitude for work done

7.    Let the employee respond

8.    Wrap up loose ends

9.    Note lessons learned

Resources

“How to Fire an Employee.” AllBusiness.com

Lolito, Michael J.  “How to Respectfully Terminate Employees.” 18 August 2008  Entrepreneur.com

Have you ever been to a home that was last decorated in the 1970’s?  How could you tell?  Did the shag carpet give it away?  Or maybe the mustard yellow countertops?  Or was it the dark wood paneling in the basement?

Most people can tell when you’ve neglected a “look,” be it for your home, your wardrobe or even your business.  Unfortunately, when you neglect your business’s marketing materials for too long, your brand becomes tired and worn and your look suggests dated services and an old fashioned approach to financial management.

Your Brand

A brand is what sets a business apart.  When you “brand” your small business, you market it in such a way that anyone seeing your promotions will recognize them as belonging to your products and services.  If you have branded your business based on the quality of services you offer, all your promotional materials should somehow share that message.  And if you designed your website using two colors, those colors should also be found on your print materials, your business cards, and your signage.

So whether you’re establishing your brand for the first time or giving it a new look, you should consider the following two tips, as taken from Emma Johnson’s article entitled “Brand Makeovers”:

1. Broaden Appeal

Before the iPod, the iMac, and iTunes, Apple was considered a limited brand with a narrow consumer base.  That’s hard to believe now, where just about everyone has an iPod.  To achieve that widespread appeal, Apple updated their brand by marketing their new products to a broader demographic.

Perhaps you began your practice by offering specialized services to a narrow market.  As you revise your brand, consider following Apple’s lead by broadening your appeal.  You do this by making your services more accessible to a larger consumer base; what do you have to offer both the small dry cleaner down the street and the gym franchise that’s statewide?  Your brand should reflect your desire to offer accounting solutions to all businesses.

2. Differentiate

Update your brand to stand out from the competition.  You do this by differentiating your services from the pack.  Johnson uses Target as an example of a discount store that differentiated its brand as the one with high-style, fashion-forward products.  The result is a popular discount chain that attracts consumers interested in quality products with reasonable prices.

When you differentiate your brand you focus on those elements that set you apart from the competition.  Whether it be price, customer service or service offerings, you want your brand to appear unique and matchless.

All businesses need a makeover now and then.  Is yours due?  Consider these two approaches in revising your brand so that you can increase your appeal to more prospective clients.

More Than One Way to Market Your Practice

Branding is just one way to promote your business.  And if you want to grow your accounting practice, you’re probably interested in other, more effective ways of attracting new clients.  Unfortunately, many accountants and bookkeepers are unaware of how to market their services effectively.  That’s why, for 30 years, Universal Accounting Center has been training professionals like you how to promote their businesses.  The Universal Practice Builder program will train you in the following (and much more):

• Increasing your annualized billings by $30,000 within the next 12 months
• 12 proven marketing strategies that will increase your client base
• Techniques that can generate 15 to 25 qualified leads per month
• Creating your own customized marketing plan
• Effective phone marketing techniques

In a matter of hours, you will know exactly what you need to do to grow your business.  Advance your accounting practice to the next level and become the premier firm in your area.  To learn more, visit our website and listen to testimonials of our very own graduates, sharing what they found most valuable in this program.

Resource

Johnson, Emma.  “Brand Makeovers: 3 Lessons in Reinvention.”  24 November 2008  Entreprenteur.com

In this economy, the race isn’t won by the quickest, but by the most agile.  As you rethink your business, consider your flexibility.  Unlike large corporations that are unable to quickly change course, small businesses have the advantage of being quick and nimble, which just might be their saving grace.

The current recession is requiring many entrepreneurs to adapt and evolve their businesses, altering their approach to better suit the ever-changing market and consumer needs.  So stretch yourself as you consider how you might improve your flexibility by applying the following four tips.

1. Take advantage of technology

If you’re not careful, you could miss the technology train and all the great, economical marketing techniques that go with it.  The following two suggestions will lure the technologically savvy and/or those that are impressed with your ability to remain current:

Build a Business website. If you don’t already have a website, you should get one.  Progressive businesses have an internet presence; it speaks volumes of their professionalism and ability to keep up with current trends.  A good website will represent you well and increase your clientele.  It will also work 24/7 as a virtual receptionist, getting the word out about your business while you spend your time doing what you do best: accounting.  And if well developed, your business website can act as an inexpensive marketing tool and a good point of contact.  It can also help to further brand your business.

Universal Accounting Center (UAC) has a website development tool, available exclusively for accounting, tax, and bookkeeping professionals.  Visit our Accountweb site to learn more about how you can have a website of your own in a matter of days.

Take advantage of social networking.  From Facebook to Twitter, more and more businesses are taking advantage of social networking tools in order to broadcast news about their services, and most of these tools are free!

2. Rethink your marketing strategy

The same old approach you’ve used in the past probably isn’t very effective in this current financial climate. If you build a business website and take advantage of social networking, you’re on the right path.  Also consider other demographics that might now find your financial services especially helpful.  And don’t give up on prospects.  The recession has caused many to be more selective when it comes to spending their money; often this means that prospects take longer to commit. 

3. Listen to your clients

They can best tell you how to alter your approach in order to better suit their current needs.  Tap into their expertise as consumers to determine what they’re most concerned about; while you may not consider this a service your currently offer, you would be surprised at how appreciative your clients become when you resolve their financial concerns.  And isn’t that your expertise?

4. Expand your services

In listening to your clients and trying to better meet their needs, you will find that many desire you to expand your services.  Becoming a one-stop financial shop would be much more convenient for them, and lucrative for you!  Adding tax preparation services to your menu will increase your clientele while making your services more appealing to current clients.

The Professional Tax Preparer Program!

Universal Accounting Center’s tax preparer program contains all of the following:

• Video Instruction
• Full 1040
• Full Business Returns (1065, 1120, 1120S)
• Step-by-step instruction in starting a sole practitioner
• One Year Follow-up Support from expert tax preparers

And while many programs will lecture you on tax law and preparation practices, Universal’s program is effective because it provides the practical application that will perfect your skills.  Theory is taught as guiding principles, but the focus is on actually doing taxes to gain proficiency.

The PTP course consists of 20 hours of video training. Most tax preparation courses include books and some worksheets. Our training is very engaging and entertaining as seasoned tax preparers give practical advice on not only tax issues, but provide real-world solutions to give you the edge in productivity and profitability. Our instructors know what challenges you will face because they have been there themselves.

To be honest, you don’t need a Professional Tax Preparer designation to prepare taxes.  Currently, there are no qualifications for any individual to complete tax returns.  But in today’s world of complex tax laws and increasing tax fraud occurrences, tax payers are looking for specialists with credentials.  It affords clients peace of mind to know that the individual they’re working with is qualified and knowledgeable.  It also affords the tax preparer peace of mind to know they’ve been properly trained.  Universal recognizes the value of a professional designation and awards the Professional Tax Preparer designation to those who successfully complete the program.

Modules in the Professional Tax Preparer program include the following:

Module 1: Establishing the Tax Foundation

Module 2: Becoming the 1040 Expert

Module 3: Profitable Business Returns

Module 4: Building Your Successful Tax Practic

In just 20 hours you will be ready to face tax season with confidence and ease.  One tax season alone will prove lucrative enough to pay for the program 3 times over!  Increase your flexibility, and enroll in the Professional Tax Preparer Program today!