Trying to run your own business is extremely demanding of your time and many talents. As your business is growing, it is impossible for you to manage each individual task. As a business owner trying to serve your clients in the best possible manner, it is imperative that you have a good staff around you to support the mission of your company.
You know it is very important to have a great office staff to deal with your clients and support you. These individuals have the most contact with your clients, so it is very important to have a friendly staff that is motivated in order to promote your business. In the same manner, it is also important to have a strong office manager to help you deal with the business side of your company. Finding the correct person for this position can be a monumental step for your business. You need someone who can work together with your C.P.A. to strategically plan for your company so your profits can be maximized while your taxes are minimized; therefore, increasing the net worth of your business.
The person for this position must meet many qualifications and have a basic business understanding. We understand what these qualifications are, and we can work with you to help you find the right person for your company. With the right office manager, you will be able to offload many of your responsibilities to this person so that you can concentrate on what you do best—working with your clients and growing your business! Qualifications that you should look for in an office manager include:
- Excellent oral/written communication skills;
- Problem solving skills;
- An understanding of your accounting basis;
- Ability to manage and prioritize multiple projects;
- Strong attention to details, and
- Ability to direct and manage others.
Once you find the correct support staff, they must feel motivated and satisfied in their job to perform at their highest level. You can accomplish this by:
- Promoting a friendly work environment;
- Compensating your staff appropriately, and
- Making sure they feel appreciated.
This should lead not only to a staff that is happy and productive, but to a staff who is loyal and will stay with your business for a long period.
Keeping Your Staff Happy
A company retirement plan can be a great part of your compensation package. A 401(k) plan is one type of retirement plan that offers a way for your employees to save money and tax dollars. You can also choose to make profit sharing contributions to employees’ accounts. These contributions can be treated as bonuses to your staff, and can also be deducted as an expense for your business, saving you tax dollars. Oftentimes, key employees see what a large benefit this type of plan can be to them, and are willing to meet certain goals in order to receive such bonuses.
The setup fees for a 401(k) plan in the first year are approximately $800-$1,000. The average annual plan administration fee range is from $500 to $3,000, depending on the number of employees participating in the plan. These fees can be deducted by the business or paid by the plan. If you set up this type of plan, you and the higher compensated employees are allowed to defer up to $17,500 pre-tax during 2013. If you are in the highest tax bracket of 39.6%, this deferral should save you $6,930 in federal taxes. If you are in Georgia, you will save 6%, or $1,050, on state taxes. As a result of this immediate tax savings, your take home pay will only be reduced by $9,520, and you will be putting away $17,500 for retirement.
While $17,500 is the maximum contribution, your staff can contribute a lesser amount. For example, if an individual only wanted to contribute $5,000 to their 401(k) and is in the 15% tax bracket, deferring this contribution will allow them to save $750 in Federal taxes and $300 in state taxes (assumes Georgia). Their take home pay will only be reduced by $3,950, while saving $5,000 toward their retirement.
For assistance in finding the right staff for your business, contact Henssler Financial at 770-429-9166 or experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
