Small business entrepreneurs life is a hectic mess of professionalism and marketing that professionalism of yours, administration of for example company´s finances and developing for example the functions of the company´s products or services. Many of the self employed small company owners think that hiring an extra worker or an assistant would save money and time, but in many cases it means even more work, at least in the beginning of the employment since the introduction and the paper work hiring someone will cause.
When thinking of hiring someone the costs will play a big role as well, and the taxes. The benefit of the employing someone in regards the money it costs depends of course on the income and on the profit the company is making, and of course on how much time it will actually save and how much added value it has to the entrepreneurs own work. For the employer it is not simply the costs of the salary of the employee, but there are added costs from taxes and social security payments, health insurance and so on. In the salary of the employee you can add at least 40 percent of the costs to get the right expense.
Also the new payments in the accounting and the introduction of the employee to her work will take some time from the actual professional work. These can be however solved through proper recruiting and automatizing the whole salary payment. Many accounting companies offer these day electronically handled salary payments and electronic finance administration (in Finnish = sähköinen taloushallinto), in which the software counts and deals with money transactions. This can save actually some time and money as well. Employing can be useful if you are overloaded by work and profession which pays well.
When thinking of hiring someone the costs will play a big role as well, and the taxes. The benefit of the employing someone in regards the money it costs depends of course on the income and on the profit the company is making, and of course on how much time it will actually save and how much added value it has to the entrepreneurs own work. For the employer it is not simply the costs of the salary of the employee, but there are added costs from taxes and social security payments, health insurance and so on. In the salary of the employee you can add at least 40 percent of the costs to get the right expense.
Also the new payments in the accounting and the introduction of the employee to her work will take some time from the actual professional work. These can be however solved through proper recruiting and automatizing the whole salary payment. Many accounting companies offer these day electronically handled salary payments and electronic finance administration (in Finnish = sähköinen taloushallinto), in which the software counts and deals with money transactions. This can save actually some time and money as well. Employing can be useful if you are overloaded by work and profession which pays well.
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