In business, your employees are your greatest asset but your greatest enemy too. If they are the right person for the job, they are a productive part of your team. They are then driving the company forward. On the other side of the coin, if they are not the right person or the right fit, they can cost your business on many different levels. On every one of these levels, they are a negative influence and your greatest threat. The correct employee can be your best advertising for 2 reasons: 1. They will tell everyone what the company does and 2. How they love working there. This will attract customers and prospective employees to the company. This is only good.
Finding the fit in crucial positions.
The accounting role is a critical and sensitive part of your business and caution must be taken to ensure the correct person is found to perform this role. In some instances, businesses, especially small businesses, may employ a person with low qualification to reduce the expenses or employ a family member. As I stated above, accounting is one of the most sensitive areas, the data obtained from the accounting department will determine the decisions that business will make, decisions that will affect the entire business. This data is also confidential and must not go beyond a certain levels of employee. The data coming from accounting should be accurate to help make the right decisions for the business.
Competence and experience
When you hire a person due to other reasons other than their competence, experience and knowledge you might run your business into the trouble of steering your business in the wrong direction. This may eventually lead to the collapse of the business. Accounting data will help you make decisions on where to invest more, where to reduce
expenses and even which operations to terminate; the consistent inaccurate data will lead to the wrong decisions which will result in the collapse of the business.
Finding the balance of qualification, experience and knowledge and the salary of the employee is difficult to do. Experience comes with a price tag on a proportional scale. Technical know how and qualification can out weigh the benefit of experience though. For most small businesses, the common method of finding the balance is finding a price they can afford and fitting the best into that price range.
Hiring the wrong employee can be a huge factor in the success of your business but it is a common mistake made by businesses. Find more about common accounting mistakes here.
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