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This article is written for the small business owner who has a part or full time bookkeeper and has given some thought to terminating that employee. As a small business owner, tough decisions are made all the time and this one is very important. There comes a time for any small business owner, to make a change, either to replace or eliminate an employee’s position. Terminating an employee, especially in this economic environment is emotionally draining, especially for long standing employees. We all know, that its important to always care about our employees, so this type of decision is very important, and often is hard to make. Sometimes your perception of the problem is blocked by your feelings for the employee, which frequently results in no action. This is article is written to help you understand that now, be the correct time to make a decision.

Most small business owners do not have anyone to consult with, so the decision to terminate an employee may be hard to make. Also, other business priorities may be preventing you from giving the requisite time to analyze this problem. Below are 10 reasons to assist you in making that decision, or to reinforce your decision to change your bookkeeper. If you are able identify with a couple of these reasons, or just one, and you are of the opinion that the problem cannot be corrected, then it may be time to terminate your bookkeeper or reduce their working hours.

1. Financial information is always received late and when received, it has mistakes.

2. You or someone in your family are financially and computer savvy and have the time to do the bookkeeping.

3. You need to replace the income of your wife, your parents, your in-law(s) or other family members.

4. You are too dependent on the bookkeeper and your bookkeeping doesn’t seem as complex as they make it out to be.

5. You have discussed this problem with your employee, have concluded that it can’t be fixed and you have made every effort to be fair and equitable.

6. You don’t understand what the bookkeeper is saying.

7. Your bookkeeper seems too busy for new tasks and you believe that the new tasks are important and should be handled by your bookkeeper.

8. Your bookkeeper comes in late and leaves early and doesn’t get all the wok done.

9. Net profits are shrinking and you think you have too many people employed.

10. Self Realization – A little birdie or an inner voice tells you that it’s time to terminate your bookkeeper or reduce their bookkeeping hours.

If you have experienced some of the above indicators, it may make sense to consider to internalize the bookkeeping within the family, assuming the replacement person is able to learn how to be computer and financial literate. Like any other accounting related decision, consult with your CPA or accountant to obtain their input.

Tags: Accounting, advice, bookkeeping, family, family business, finance, frugal, Internet Business, online business, quickbooks, small business, sole proprietor