Business Accounting - Vyde

5 Tips on Tracking and Separating Your Personal and Small Business Expenses

It can be all too easy to allow your personal expenses get tangled up in your small business expenses. You’re shopping at Costco, getting things for your family, when you remember you need a couple things for the office. Before long it all ends up in the same cart and on the same receipt. In the moment, it may seem like the easier route to take. However, not separating business expenses from personal expenses can cause quite a headache for small business accounting, especially when tax season comes.

Here are 5 tips on tracking and separating business expenses for your small business:

1. Set up separate bank accounts. As a small business owner, your first order of business should be to set up a separate bank account. To learn how to do that, visit this post. If you are diligent about keeping expenses separate, you should only need to review your business bank account statements during tax season to find deductions. If you have multiple charges for your business on your personal account, it can be hard to remember which ones were business expenses. Which makes it easier to miss important business deductions. Separating your business bank account from your personal account adds a layer of protection. Which is especially useful if the IRS audits your business.
2. Learn to use a business credit card. Credit card statements can act as a proof of purchase when you don’t have a receipt. We do not recommend going into credit card debt on your business credit card. However, any interest you pay on the card is tax deductible. Building up a line of credit, earning points for travel, and receiving cash back on purchases for your business are added benefits of using a business credit card.
3. Keep track of expenses–both separate and shared. You don’t have to write down every cent you spend each day, but you do need to keep track somehow. Track business expenses using a simple spreadsheet once a week, or use a budgeting app like Mint for instant updates on where you’re at with your budget. Some business expenses will inevitably overlap with personal expenses. Cell phone bills, portions of your mortgage/rent, utilities, internet, etc. are all examples of overlap. Choose one account to pay these bills from and be consistent. Keep track of bank statements and receipts to refer to during tax season. The most important part of small business accounting is to set aside time each week to take care of small business bookkeeping tasks. Letting too much time pass between purchases and recording them in your budget increases error.
4. Set your salary as a small business owner. This can be difficult to do if your business’ profit fluctuates significantly from month to month. However, setting a salary to pay yourself as a small business owner helps you know how much money you’ll be bringing home each month, and how much money you’ll have to run the business. Just because you set a salary doesn’t mean it’s carved in stone. You can revisit your salary and adjust it quarterly, bi-annually, or once a year.
5. Consult a professional. As your business grows, you’ll likely need to hire a professional accountant or bookkeeper to help you keep track of business expenses and finances, pay taxes, and invest your money wisely. Vyde offers free small business accounting advice from professional CPAs who can help you navigate your business finances and answer any questions you may have.

How to Plan a Simple Small Business Budget

Whether you’ve been running your small business for years or you’re an entrepreneur just getting your feet wet, the importance of a small business budget cannot be overstated. You have to learn how to manage money before you can earn (or save!) it. A budget can track cash on hand, expenses, and how much revenue you need to make your business profitable.

Your small business budget doesn’t have to be anything fancy. It can be scratched out on paper with a pencil, laid out in a spreadsheet, or created using business accounting software, like Quickbooks. Set budgets for a determined amount of time such as, monthly, quarterly or annually. It’s best to create a budget for each of those time periods. Then you can compare your actual and forecasted expenses.

How to Set Up a Small Business Budget

Spreadsheets can really help you tackle your small business budget. As you create your spreadsheet, you’ll want to begin with your fixed expenses. These will include rent, loan payments, subscription costs, and the like. Next are your variable expenses which would include things like utilities, supplies, and labor.

Set a Budget

You can determine your budgeted expenses by averaging past expenses in each category. These expenses will likely change from month to month as different needs for your business arise. If you are just starting out and don’t have any numbers to work with, you can research the costs associated with your industry. Determine the averages based on your research, and then factor those into your small business accounting.

Forecast your monthly revenue and place it in a subheading titled budgeted income. Then, at the end of the month you can enter your actual expenses and actual income. You can then compare your budget with your actual numbers.

Analyze your Budget

Off to the side of the budget income and actual income you’ll need to determine the difference. This is the number you’ll want to reflect on at the end of each month. It is important to determine why your budgeted and actual expenses and income don’t match. Then you should make changes in next month’s small business budget to decrease the difference. By determining the reason for the difference, you can either identify potential problems. Which will help you fix it, or capitalize on a potential opportunity you had not noticed.

Entrepreneurs are capable of creating and maintaining a small business budget. However, it’s best to consult a professional CPA or financial advisor to cover all of your bases. A CPA can factor in any important legal and financial obligations you may have with the IRS.

Having a small business budget can help your business in numerous ways. You can improve business operations, create accurate estimations and effectively manage your profits. All of which lead to a more successful business and life.

FAQs for Small Business Budgeting:

Why is a small business budget important?

A budget helps track cash flow, expenses, and revenue, crucial for business profitability and financial health.

What tools can I use to create a small business budget?

You can use spreadsheets, business accounting software like Quickbooks, or even pen and paper to draft your budget.

How do I set up a small business budget using spreadsheets?

Start with fixed expenses like rent and loan payments, then list variable expenses such as utilities and supplies.

How do I determine budgeted expenses if I’m just starting out?

Research industry costs to estimate averages for your expenses. Adjust as needed based on your business’s specific needs.

Why is it important to analyze budget variances?

Analyzing differences between budgeted and actual expenses/income helps identify potential problems or opportunities for improvement.

How to Get a Tax ID Number From the IRS For Your Small Business

Any new entrepreneur quickly realizes there is a lot to do to get your business up and going. Between websites and marketing, business licenses and bank accounts, there’s not a lot of time to focus on the tax aspect of your business until…well, tax time. When starting a small business, you’ll need to obtain a Federal Tax ID number from the IRS in order to file taxes and have your business be recognized. This is also referred to as EIN, or Employee Identification Number. Here’s how to get one:

Apply Online. The quickest and easiest way to obtain an EIN is through the IRS website. You must complete the application all at once because you can’t save it and return later. Have your Social Security Number handy, as well as your business information. Apply for your EIN online here.

Apply by Mail. A mail application for an EIN generally takes about four weeks to be processed. You’ll need to send a Form SS-4 as your application. See where to send your application to here.

Apply by Fax. Complete the SS-4 and send to the appropriate fax number found here. The turnaround time for an EIN application through fax is about four business days.

Apply by Telephone. This method is for international applicants only. International applicants may call 267-941-1099 (not a toll-free number) 6:00 a.m. to 11:00 p.m. (Eastern Time) Monday through Friday to obtain their EIN. The person applying for the EIN by telephone must have all information pertaining to the SS-4.

Other Important EIN Information

In order to obtain an EIN, your business must be located in the United States.
Only one EIN can be granted per eligible person per day
If you have misplaced your EIN, do not apply for a new one. Find out what to do if you’ve lost your EIN here.
For more information on obtaining an EIN, visit the IRS website.

Have a question about obtaining your Tax ID number from the IRS? Give us a call, we can help!

Frequently Asked Questions:

Why do I need a Tax ID number (EIN) for my small business?

A Tax ID number, also known as an EIN, is essential for filing taxes and establishing your business’s identity with the IRS.

What information do I need to apply for an EIN online?

To apply online, you’ll need your Social Security Number and your business information readily available.

How long does it take to get an EIN through the mail?

Generally, it takes about four weeks for the IRS to process a mail application for an EIN using Form SS-4.

Can I apply for an EIN by fax?

Yes, you can apply for an EIN by fax using Form SS-4. The turnaround time for fax applications is approximately four business days.

What should I do if I’ve lost my EIN?

If you’ve misplaced your EIN, do not apply for a new one. Instead, follow the appropriate steps outlined by the IRS to retrieve your lost EIN.

Improve Your Online Presence Part One: 8 Steps for Reviewing Your Website

Your website is often the first introduction of your small business to potential clients and customers. Keeping it in perfect condition can help boost sales and keep your image looking sharp. Make it a priority to review the functionality and usability of your small business website at the beginning of each year, so you can catch and correct and bugs sooner rather than later.
While doing a complete overhaul and review of your website can sound like a daunting task, taking a systematic approach to the job can simplify things. You can take care of these items yourself, or ask a client, friend, or family member to do the following:

Check all links on the website. Make sure each link directs properly and none are broken or linked incorrectly.
Review all content for spelling and grammatical errors. Small business websites generally contain a lot of information and even the slightest grammatical or spelling error can send the wrong message to clients. Keep your focus on the most important and most visited pages of your site, rather than reviewing old blog posts for grammatical issues.
Update the appearance of your website. Not all small business websites need refreshing, but updating even just the homepage of your site can give it a more modern look and feel as you start the new year. Add current photos, remove outdated features, and keep it simple. Make sure the overall appearance of your website conveys the message you want it to.
Keep your brand at the forefront of your website. Make sure your logo is the focus of at least one page, and place it on other pages within your site as well. Keep colors and design consistent with your brand. Your website should look uniquely yours.
Think functionality. Make sure your site is easy to use. Items should be in their usual places on the website and your navigation bar should be simple and straightforward. Compare your sites with others in your industry to improve functionality.
Refresh testimonials. Clients who are thinking about using your services or purchasing your goods don’t care what Joe Smith said back in 1999. They would rather know what your clients are saying now. Solicit testimonials from current clients via email or social media and keep your published testimonials within the last five or so years. Hint: adding credentials behind your reviewers name is an added bonus and makes your small business look more credible. (ex. “I love this business!” -Joe Smith, CEO at XYZ Hospital)
Social media. If your small business is on social media, those links need to be on your website. Direct clients to your social media accounts for the latest happenings within your business, since they are likely updated more often than your website.
Make your contact information visible on every page. Your business name, address, phone number, and email should be on every page of your website. Keep it readable and easy to find.

Keep in mind that a functional, attractive and error-free website is extremely important, but don’t get so hung up on perfection that you neglect other aspects of your business. You could probably spend all year updating, tweaking, and perfecting your website but 2016 is calling and it’s time to go out and make your small business more profitable than ever!

Read the rest of the series here and here.

3 Tips on Tracking Mileage and Deducting Vehicle Expenses for Small Business Owners

Tracking mileage and vehicle expenses is not normally at the top of a small business owner’s to-do list. In fact, the job often gets lost in the day-to-day hustle and bustle of running a successful business. So how do you keep track now so you don’t have to panic come tax season?

1. Keep track of miles driven for business. If you track nothing else vehicle-related for the rest of the year, tracking mileage is the most important task. You cannot deduct vehicle expenses if you don’t know how many miles you’ve driven. The IRS wants to know the total number of miles you drove for your business in a given year in order for you to claim the Standard Mileage Rate. Your commute to and from the office is not deductible; however, almost all other business travel is. The most accurate records are those that are calculated the day you traveled for business or shortly after. While a paper and pencil mileage log works just as well as anything, there are several ways to utilize technology to keep track. Logging the miles on your GPS may provide you with the most accurate record without much maintenance. Apps like Mileage Log+ or Everlance automatically calculate your distances by entering where you’re leaving from and where you’re going.
2. Calculate all vehicle expenses.This may sound like a daunting task, but if you travel a lot for your small business, it’s not a bad idea. Keep a notebook in your car where you jot down miles driven, gas and oil changes, tire rotations, car washes, parking fees, registration and license fees, insurance payments, lease payments, repairs, and maintenance. Keep your receipts for these expenses as well. You may opt to use the Standard Mileage Rate come tax season, but it doesn’t hurt to have all records of vehicle expenses so you can compare the two methods and see which will offer the greatest deduction.
3. Use the Standard Mileage Rate. Rather than adding up all business-related vehicle expenses in a year, the IRS offers the Standard Mileage Rate which provides a 57.5 cent deduction (2015) for every mile driven for business in a year. To figure your standard mileage rate, simply take the number of miles driven total and multiply it by the current standard mileage rate (which changes every year). Most small business owners opt for this quick and easy method and even end up getting a larger deduction by going this route.

But what if I haven’t been tracking mileage or vehicle expenses?

You’re not completely out of luck if you haven’t been tracking mileage this year. While the IRS does not prefer reconstructed records after the fact, if you can prove you drove to where you said you drove, you can still deduct your mileage. If you maintain a calendar, appointment book, or planner, you can go back through your records and calculate your mileage based on the appointments you attended and the miles you drove. You will only need proof of records if you were to be audited by the IRS, which is a small risk, but still a possibility.

3 Tips on Making Your Small Business New Year’s Resolutions Last All Year

Most people who are familiar with new year’s resolutions are also familiar with a feeling of defeat within a few weeks or months of setting their goals. They realize they’ve gotten too busy to achieve them, that their goals are too challenging or overwhelming, or they just abandoned them completely without reason. In fact, 46% of people give up on their new year’s resolution by the end of January, and 64% give up on their goals within six months.

This is true in the workplace, as well. So how do you set new year’s resolutions for your small business that will outlast that fresh start enthusiasm? Here are three proven tips on making your small business new year’s resolutions last all year long:

Be really specific. The goal that continually tops the list on personal new year’s resolutions is “lose weight.” For small businesses, it is simply, “increase profits” or “grow my business.” What is missing in these statements? Specificity.

Would you be happy losing one pound? How about increasing your yearly profits by $50? If you aren’t specific in your goals, it’s nearly impossible to create a plan to carry them out. If you can use numbers in your small business new year’s resolutions, do so. For example, “We will take our annual sales from $150,000 to $200,000 in 2016,” or “We currently have 200 clients. We will obtain 100 new clients in 2016.” Specific statements like these give you a benchmark to analyze data.

Tip: Make your small business new year’s resolutions pack an extra punch by putting your statements into a can-do format using words like “will” or “can,” rather than “hope to” or “want to.”

Create a plan of action, and then set the wheels in motion. Small business new year’s resolutions don’t resolve themselves. You and your employees will have to work together to create a plan and stick to it to accomplish the goals you set. For each goal you decided on, list the action steps it will take to make it happen. For example, if your goal is to obtain 100 new clients in 2016, your actions might be:

-Spend 10% more on advertising/marketing efforts

-Hire two new employees focused on client acquisition

-Hold one meeting per month to discuss ideas for new client acquisition

Each of these tasks should be assigned to someone on your team, and given a deadline. Employees should report the progress of these action steps regularly to help you stay on track with your small business new year’s resolutions.

Review regularly and especially at year-end. Your small business new year’s resolutions can ultimately become a plan of action for the year, and thus should be revisited and even tweaked or edited accordingly. Plan to review your new year’s resolutions quarterly, and then a large year-end review for your entire staff. Schedule specific meetings for discussing these goals now so you don’t haphazardly throw something together at the end of the first quarter.

When you review your small business new year’s resolutions with your team, be sure to discuss which items you can check off your list, what worked, what didn’t and why. Do what you can to move the team forward and continue working on the goals throughout the entire year. By making this a yearly process, you can see and record noticeable changes in every aspect of your business, according to the goals you set.

FAQs about Setting Small Business New Year’s Resolutions

Why do many small business owners struggle to maintain their New Year’s resolutions?

Small business owners often face challenges due to vague goals, lack of specific plans, and insufficient follow-through.

How can I make my small business New Year’s resolutions more specific?

Specify goals using measurable metrics like revenue targets or client acquisition numbers. Utilize words like “will” or “can” for added commitment.

What steps can I take to ensure my resolutions translate into actionable plans?

Break down each goal into actionable steps with assigned responsibilities and deadlines. Regularly review progress and make necessary adjustments.

Why is it important to review small business resolutions regularly?

Regular reviews help track progress, identify successes, and address challenges. They ensure alignment with long-term business objectives.

How can I ensure my team remains committed to our resolutions throughout the year?

Foster a culture of accountability by involving team members in the resolution process, assigning tasks, and holding regular progress meetings.

5 Ideas for Creating a Culture of Gratitude at Your Small Business

Although the holiday season can increase stress in the home and workplace for many, it’s also a time when we focus our thoughts on a spirit of giving and gratitude. There’s no reason to leave your attitude of gratitude at home though. In fact, bringing it with you to the workplace can actually increase your business success.

Here are five quick and easy ways to cultivate a culture of gratitude at your small business:

Give a straightforward and specific compliment. While not the most cutting-edge idea, it’s proven and it works. Offer a genuine compliment to a member of your staff and be specific and straightforward about it. Walk up to their desk, use their name, and let them know of something they’ve done that you’re grateful for. (“Jen, thank you so much for jumping in and helping me with that last minute meeting on Monday. I know it was a late night; I really appreciate you taking the extra time to make sure it was perfect. I couldn’t have done it without you!) If this seems out of character for you, try putting your thoughts into words and sending your message through an email or a quick note. Give the thank you you would want to hear for a job well done, and be the example in the office for employees to pass it along.
Bring a treat to the office. It might seem silly, but who doesn’t appreciate a fresh donut or a little jolt of caffeine to get through the day? A little thank you in the form of a treat goes a long way. Leave your treat in the breakroom with a quick note– “Hey everyone! Just wanted to say thank you for your efforts in helping to land that Smith account this week. I think you’re all great!”
Express your gratitude at the beginning of every meeting. It doesn’t have to turn your meeting into a sappy love fest, but a quick compliment to the team (or individual) on something they have done well since the last meeting starts things off on a good note and helps employees feel more confident and excited about their work.
Thank those you serve. Once you’ve created a culture of gratitude within the office, work on thanking the people you serve. A simple email or phone call to clients and customers to say “thank you for putting your trust in us” speaks volumes of the integrity of your company.
Find the good in everyday. Any small business owner can tell you that it’s not all roses and rainbows at the office. Many are stressed about deadlines, client retention, employees, taxes, and a long list of other common hurdles in business. With so many obstacles, it can be easy to focus on what is going wrong within the business. However, keeping a quick gratitude journal–just one or two lines each day–that recognizes what is going well in business can really turn the day around. Refer to it often and especially when things don’t seem to be going well.

Embracing a culture of gratitude in the workplace not only enhances morale but also fosters a positive environment conducive to productivity and success. Implementing simple gestures of appreciation can make a profound impact on employees and clients alike, ultimately contributing to the overall well-being of your small business.

FAQs for Cultivating a Culture of Gratitude:

How do I give effective compliments in the workplace?

Offer specific and sincere compliments to individuals, acknowledging their contributions directly. Whether in person, via email, or through a note, personalize your gratitude.

Why are small treats effective in showing appreciation?

Small gestures like bringing treats to the office demonstrate thoughtfulness and appreciation for your team’s efforts, fostering a positive atmosphere.

How can expressing gratitude enhance meetings?

Starting meetings with expressions of gratitude boosts team morale, encourages confidence, and sets a positive tone for discussions and collaboration.

Why is it important to thank clients and customers?

Expressing gratitude to clients and customers strengthens relationships, showcases your company’s integrity, and fosters loyalty and trust in your business.

How can a gratitude journal benefit small business owners?

Maintaining a gratitude journal helps shift focus from challenges to achievements, promoting a positive mindset and resilience amidst daily stressors in business operations.

6 Holiday Marketing Trends Your Small Business Should Take Advantage Of

It’s game time! According to the National Retail Federation, “20 to 40 percent of yearly sales for small and mid-sized retailers take place within the last two months of the year.” This is an important time of year for small businesses and holiday shoppers can often make or break a year for small business owners.

Brace yourself…is your company ready to take part in the $965 billion forecasted to be spent at retailers between November and January this year? That number is up 4% from last year, which could mean a happy holiday for your small business! Here are a few tips to get up with the times and make sure your small business marketing is on point this holiday season:

Get your website in the best shape it’s ever been. Americans plan to do almost half of their holiday shopping online this year, and one in five of those who own smartphones will use them to purchase holiday merchandise. This means that every button, link, and gadget on your site should be performing at it’s best.
Start early. Launch your holiday marketing campaign shortly after Halloween for best results. If you haven’t created your holiday marketing plan yet, now is the time! Look back on past years to see what incentivizes customers to come to you–whether it’s coupons, discounts, extended shopping hours, referral programs, or email campaigns, find what works for your customer base and use it to your advantage.
Have mobile on the mind. Almost all holiday shoppers have smart phones in hand as they begin their shopping. Whether they’re actually shopping, or just browsing for gift ideas on Pinterest, make your small business visible and at the forefront of their mind as they hop on the internet.
Make social media your best friend. Your customers love it and so should you. Make sure your social media sites are current by updating all cover photos to reflect a holiday theme. Offer exclusive deals and discounts for your social media friends and followers, and update your status regularly to keep your page looking fresh.
Offer free shipping. If you don’t already offer free shipping, now is the time. Customers love it this time of year, and they’re more likely to spend money at your business or store if they feel like they’re getting a good deal without leaving their home. In fact, 42% of holiday shoppers actually seek out shipping deals this time of year.
Consider Pay Per Click (PPC) advertising. If potential customers can’t find your business online, they won’t shop there. It’s as simple as that. Pay per click advertising during the holidays can really step up your marketing game and get your name out to potential holiday shoppers. Pay per click advertisements can increase brand awareness by more than 60%, which is especially helpful this time of year.

Small Business Owner’s Guide to Year-End Employee Bonuses & Holiday Gifts: Part 1

There is no one right way to show gratitude for your employees during the holiday season, other than to not show it at all. If you were to ask 20 small business owners what they do for their employees as a year-end reward, you’re likely to get 20 different answers. Many offer a cash bonus, some take the team to a nice dinner, some give individualized holiday gifts, and others throw a party for employees and their families. Small business owners can make their employees feel valued and appreciated, even on the smallest budget.

3 Ways to Give Year-End Employee Bonuses

If you’re planning to offer a cash bonus to employees, there are a few ways you can go about it. Here are three types of year-end cash bonuses to consider for your small business:

Performance Bonuses. Many employers are turning to performance-based bonuses to save themselves money and keep employees from expecting a given amount at the end of the year. The best way to do this is to give each employee individual goals to work toward at the beginning of the year, and then evaluate their performance based on those goals and other factors at the end of year. Goals may need to be adjusting quarterly, according to the employee’s progress. Scheduling a year-end interview with each employee will help you evaluate their performance and decide on an amount that works for you. This may end up being a percentage of their salary, or perhaps a flat dollar amount that is contingent upon them reaching their goals. This will motivate employees to work hard and give them some incentive to carry out their goals to the end of the year. This method can reduce hurt feelings if the bonuses are not even because employees know up-front how the amount is decided.

Non-performance bonuses. Some small business owners prefer to award year-end cash bonuses just to show their appreciation, without basing them on performance. Non-performance cash bonuses can also be a portion of the employee’s salary or a flat dollar amount. With non-performance bonuses, you’ll just need to make sure that everyone gets a fairly distributed amount to avoid contention and hurt feelings among employees who may not have been awarded as much.

Longevity bonuses. U.S. Bureau of Labor Statistics, people 35 years and younger change jobs every 18 months, and people of all age groups do so every three years, which motivates some companies to offer employees an incentive to stay put. Many employers offer bonuses for employees who have been with their 5, 10, 15, or 20 years, with a set amount for each milestone of employment. This can end up being less or more expensive for employers at the end of the year, based on how many awards must be given out and the years of service being rewarded. However, with this method, not everyone will get a bonus every year.

A Few Tips on Giving Year-End Employee Bonuses

Before you let yourself get overwhelmed with which type of bonus to offer, consider if offering a cash bonus is even in your accounting budget this year. If it’s not, choose another way to reward employees for a job well done. Many small business owners change their year-end bonus policy every year, based on the profits of the company during that year–and that’s completely fine. If your accounting and small business bookkeeping is up-to-date, you’ll likely have an easier time deciding how much to give.

If your company offers employee bonuses every year, but is unable to this year, be sure to let employees know as soon as possible so they don’t feel start prepping for their backyard swimming pool, like Clark Griswold in National Lampoon’s Christmas Vacation.

Be as fair as possible. While the actual dollar amount doesn’t have to be the same for each employee, bonuses do need to be distributed evenly and fairly. Make sure all employees are recognized during the holiday season–not just some. Bonuses should be consistent and unbiased.

FAQs about Year-End Employee Bonuses & Holiday Gifts:

What are common methods for giving year-end cash bonuses?
Employers often opt for performance-based bonuses, non-performance bonuses, or longevity bonuses to reward employees at year-end.
How do performance-based bonuses work?
Employees are given individual goals to achieve throughout the year. Their performance is evaluated against these goals, determining the bonus amount.
What are non-performance bonuses?
Non-performance bonuses are awarded without specific performance criteria. They can be a portion of the employee’s salary or a flat amount distributed evenly among employees.
What are longevity bonuses and how are they earned?
Longevity bonuses reward employees for their tenure with the company, typically after 5, 10, 15, or 20 years of service. The amount varies based on the milestone reached.
How should employers approach year-end bonuses when faced with budget constraints?
Employers should assess their financial situation and consider alternative forms of recognition if cash bonuses are not feasible. Transparency and communication about bonus policies are essential to managing expectations effectively.

Small Business Owner’s Guide to Year-End Employee Bonuses & Holiday Gifts: Part 2

If you read our first post in the series on holiday bonuses and employee gifts, you already know that there is no one right way to show gratitude for your employees during the holiday season. The only way a small business owner can go wrong in this is to not show their appreciation at all. If a cash bonus isn’t in your company’s budget this year after you’ve consult your small business bookkeeping, there are still several ways you can show employees you care. Here are a few ideas to get you thinking about employee gifts this year:

Give the gift of time. Employees will undoubtedly appreciate an extra day or two off (paid, of course) a lot more than a $5 fruitcake. While this may inadvertently cost you money, it’s not money straight out of your pocket. You could either close the office a day or two early, or let employees know they have an additional day paid day off they can use at their leisure.
Throw a party. You can throw a Christmas party fairly inexpensively, if you plan it right. Hold the party during office hours with a sandwich platter and punch, or plan a more elegant or themed party for employees and their families on a weekend or in the evening after work. Purchase a few nice prizes to give away and offer some grab bags at the door filled with goodies.
Take your team out on the town. Whether you take your employees to a nice dinner, a ball game, or a night away at a nearby resort, they’re sure to appreciate the thought and effort put into planning an event where they get to mingle with their coworkers outside the office.
You can’t go wrong with gift cards. Everyone loves gift cards. They’re personal, but not too personal, and everyone is happy in the end. Whether you choose a $10 Amazon gift card or a $300 gift card for a luxury spa and resort, or anything in between, employees appreciate a little pampering during the holidays. You can even just opt for a Walmart gift card to help with your employee’s Christmas shopping or groceries, or a gas card to help them in their holiday travel.
Turkey and/or ham. A classic and common gift from employers–and one that won’t break the bank. Many small business owners make it a yearly tradition to provide the main dish of their employee’s Christmas dinner by giving a turkey or ham during the holiday season.
New computer or tablet. If you’ve got a large budget and opt not to offer a cash bonus, a computer or tablet is much appreciated and can also help employees be more efficient at work.
Satisfy their sweet tooth. Almost everyone loves a good box of something sweet. Think chocolate, toffee, caramel, popcorn, and other gourmet goodies. Be mindful of employees who don’t eat sweets and have a backup plan for them.
Give the gift of knowledge. Did you read an insightful, motivating, or great business book this year? Order up enough for the whole office and pass them around for employee gifts.
Calendars and desktop goodies. Think outside the box and give a unique desktop gift like a paper weight, hourglass, fancy pen, clock, or this bubble wrap calendar. This website has a plethora of uncommon and fun gift ideas for employees.
Meaningful office upgrades. Adding better equipment, safety measures, new computers, or ergonomic chairs are also good ideas when cash isn’t available for bonuses. Office equipment can also be deducted on your taxes–win, win!
It’s the thought that counts. If Christmas gifts and bonuses just aren’t in your budget this year, you don’t have to feel guilty by not doing anything at all. Share your genuine appreciation for employees by offering a thoughtful, handwritten card. Try to make up for tight funds at Christmas by taking a mid-year office field trip or adding an extra $100 to employees’ paychecks, just because.

Whatever you decide to do for employee gifts this year, make sure it is thoughtful and genuine. A little goes a long way with employees who work hard all year to make your company great. What are you giving out for employee gifts this year? Share your ideas in the comments below!

Resources

Category: Business Accounting