Category: General

Originally Published by Cole Publishing

John Monroe understands the importance of setting goals.

In 2024, at age 60, he completed his sixth triathlon. Although he fell short of his six-hour goal, he posted a personal best swim time — despite having shoulder surgery in 2023. Monroe is already registered for his seventh triathlon in August 2025. And as a senior advisor at Violand Management Associates, Monroe also knows how to go about establishing business goals.

“If you want to accomplish something in your business, you’ve got to set goals,” he says.

Then, you need to tell others about those goals to help with follow-through, he adds.

“Most of the time when people come to us and they say, ‘Hey, I need help with my business,’ it’s really because they need accountability,” Monroe says. “They need somebody to hold them true to what they want to get done.”

Creating a roadmap

Monroe defines six qualities of a successful business owner as:

1. Know your mission, vision and core values.
2. Perform a company SWOT analysis.
3. Define company objectives.
4. Identify approaches and action items.
5. Develop budgets.
6. Assign responsibilities to your team.

These characteristics all come together in a business plan. A business plan sets a roadmap, describing how to structure, operate, and grow a business. While business plans are essential for startup companies, business plans are also vital for existing businesses, Monroe says. He suggests writing an annual business plan, outlining the major objectives to achieve within a year.

Writing a business plan begins with defining a high-level vision and mission statement. Vision and mission statements help business leaders determine why they’re doing what they’re doing. Why are you and your employees working for the company? A vision statement ideally looks 10 years down the road and describes an organization’s aspirations.

The company’s core values and company culture flow from the vision and mission statements.

“Honestly, core values are what millennials and the Gen Zer’s are looking for. What is your culture? What do you stand for?” Monroe says.

SWOT analysis

Next, Monroe recommends a SWOT analysis to evaluate an organization’s strengths, weaknesses, opportunities, and threats. How does the organization compare to the competition? One weakness might be response time. If the competition responds to a customer call within 30 minutes versus your 60 minutes, that might be a weakness to focus on.

“Why are we slow at answering calls? Are we servicing too big of an area? Do we not have enough people? What is it that’s making that a weakness?” Monroe says.

A SWOT analysis should provide some items to focus on in the next year or two. 

“Fix some of your weaknesses, improve some of your strengths, or take advantage of the opportunities that are coming,” Monroe says.

Objectives and action items

From the SWOT analysis, businesses should develop a couple of major objectives. 

“If it’s really overarching, and it’s very large, you can have lots of approaches and action items under it,” Monroe says.

He recommends limiting the number of business objectives you set. 

“If you start setting four, five, and six major business objectives, you’re probably going to find yourself not completing your business plan,” he says. 

An example of a business objective is to improve COGS (cost of goods sold) by implementing operational efficiencies, which look different for each company.

Once you set a couple of business objectives, you should develop approaches to meet those objectives. The list of approaches describes the change to take place over a month, quarter, or six months; whereas, a list of action items shows the daily and weekly tasks. Action items should include a due date and a person who’s assigned the task.

Smart budgeting

The fifth quality of a successful business owner involves budgeting, not just dollar-wise, but also time, equipment, and personnel. 

“What are the things that we need to be putting in place? They involve capital. They involve technology. Marketing. People,” Monroe says.

Lastly, Monroe advises management teams to share their business plan with others in the organization.

“Let your company know that you have a plan: ‘This is where we’re going.’ And make sure the people that are involved in the plan recognize what piece they have in it,” Monroe says. 

To track progress, he recommends regularly scheduled follow-up meetings, either weekly, biweekly or monthly.

Plan and adjust

Even with a clear business plan in place, obstacles can surface. 

“Remember, you’re running a business, and the business is going to get in the way of doing some of the business plan actions,” Monroe says. “It doesn’t mean that we abandon the business plan. We may have to adjust the business plan. We may have to adjust the timeframe. We may have to adjust the people that we’ve devoted to it.”

Every fall, Violand Management Associates holds business planning retreats to guide business leaders as they set objectives and budgets for the coming year. Participants use Excel spreadsheets, QuickBooks, or online templates to create their business plans. Monroe says he has worked with clients who scribble ideas on a piece of paper and call it their business plan. That’s not enough, if an organization really wants to achieve its goals, he says

“We highly recommend that people use a standard template for their business plan,” Monroe says. “It needs some sort of organization.” 

An effective business plan aligns with a company’s vision and mission, focuses on what’s critical, and identifies key performance indicators to measure progress. Although a business plan is a formal, written document, it’s also dynamic and adaptable as circumstances change. 

Management teams often write business plans in the fall of the year to implement in January, but business plans can be written and adopted any time of year. A well-written business plan gives organizations a guide for problem-solving and decision-making. Business plans also give organizations a leg up on the competition. Experts estimate that companies that create a business plan grow 30% faster than those that don’t.

“Write the plan,” Monroe says. “Give yourself a chance to grow your business 30% faster than the rest of us.”

About the source: John Monroe, of Violand Management Associates, is an authority in sales, sales management, and entrepreneurship. He has worked for a Fortune 500 manufacturer and owned both a franchise business and a sales management consultancy. Monroe’s experience and coaching style, along with his ability to develop and motivate, help clients to exceed their goals in sales, cost control, and producing high-performing teams in any competitive environment. He earned his bachelor’s degree in economics from Clemson University.

Originally Published by Cole Publishing

Millions of motor vehicle accidents occur each year in the U.S. With so many drivers on the road every day and commercial insurance premiums and vehicle repair costs on the rise, organizations can’t afford to neglect driver and vehicle safety policies. Developing an effective fleet safety program lowers an organization’s risk level and protects company employees and assets.
John Brengosz, Loss Control Consultant for R & R Insurance, encourages organizations to take fleet safety seriously, because the consequences of a lackadaisical attitude can be deadly.

“Most people think the No. 1 way folks die at work is from falls,” he says. “It’s actually vehicle or driving-related fatalities.”
According to Brengosz, vehicles create the single largest risk exposure for a company, and personal injury lawyers complicate the issue.

“That’s part of the problem now with fleet safety. These commercials run all the time, and they’re encouraging people to make a claim if they’re involved in an auto accident,” he says.

Brengosz says he knows that developing and executing a fleet safety program takes time and personnel.
“The good news is, a lot of fleet safety programs don’t cost a lot of money,” he says.

Vehicle Policies

An effective fleet safety program focuses on three elements: vehicles, drivers, and policies governing them both.
If an organization provides vehicles, then it needs to set some standards. Brengosz asks clients these types of questions:

• Are you an organization that likes to run those vehicles forever and just try to keep them up?
• Do you have a replacement schedule?
• How much are they driven?
• How far are they driven?
• How much are they driven on personal time?

He advises clients to develop vehicle use, replacement, maintenance, and inspection policies. “Remember what could happen if you got a vehicle in an accident and it turns out we haven’t kept up at all with maintenance,” he says.

Organizations can establish frequency guidelines for routine service based on the vehicle manufacturer’s recommended mileage or engine hours. They can track maintenance themselves or have the service provider track it. In addition to routine maintenance, organizations also should conduct periodic vehicle inspections.

“How do we know what the vehicle’s condition is if we’re not formally looking at it?” Brengosz says. He recommends checking the oil and inspecting the headlights, taillights, tires, and the overall condition of the vehicle. Look for dents or scrapes, because drivers don’t necessarily fill out accident forms like they should. In Brengosz’s experience, vehicle inspections sometimes turn up surprises.

Behind the Wheel

The second element of fleet safety involves the drivers. Question to answer include: Who is allowed to operate the vehicle? If an employee takes the vehicle home, is anyone other than the employee allowed to drive the vehicle?

“Don’t toss the keys to just anybody,” Brengosz says.

He advised organizations to screen drivers at the time of hire by requesting their motor vehicle record from a governmental or private service. An MVR, also known as a driver’s abstract, reports a driver’s accidents and violations. Once they pull an MVR, the next step is to compare the record to the company’s formal policy and the standards of an acceptable driving record.

“When I hear somebody say, ‘We just eyeball an MVR and make a call on it,’ the problem with doing that is a human’s ability to rationalize,” Brengosz says. They might rationalize that their No. 1 sales person or best repair person should be allowed to drive, despite their bad driving record.

“How is it going to look at a trial if you pulled an MVR, it was poor, and you still allowed the employee to drive?” Brengosz says. “My big advice is, if you’re going to take the time and expense to run the MVRs, have a formal screening system that allows you to compare an MVR to your own policy and make the call.”

Organizations should screen all employees with a vehicle assigned to them, employees authorized to use a vehicle or operate a pool vehicle, and employee’s spouses who are allowed to drive a vehicle the employee takes home.

“Trust me when I tell you, I have had some cases where some of the spouse’s driving records are horrendous. If you’re not checking them, you wouldn’t catch that,” Brengosz says.

Fleet Safety Manual Keys

Three basic policies should be included in an effective fleet safety manual. The first is driver eligibility and MVR criteria. The second is a personal use policy. Is a driver allowed to use the vehicle for personal use? Out-of-state vacations? What family members are permitted to drive, and what screening do they need to complete? The third policy, a non-owned vehicle policy, refers to an employee’s use of a private vehicle or rental vehicle for company business.

“For starters, we need them to provide proof of adequate insurance coverage of their own,” Brengosz says. “It’s also a good idea for them to prove, at least once a year, that they have a valid driver’s license.”

To reinforce these policies and other components of a fleet safety program, Brengosz recommends annual training.

“It’s good to have an annual training on defensive driving and what our company rules are for maintenance and operating vehicles, so everybody’s aware of them,” he says. In a training session, organizations can reinforce safety rules regarding seat belt use, traffic laws, locking vehicles, distracted driving, and backing up a vehicle.

“Driving is very much a habit. We want them to form good habits,” Brengosz says.

Equipped for Accident Reporting

Post-accident reporting should be discussed at least annually.
“You don’t have to have a horrible, terrible crash to have lawsuits,” Brengosz says. Thus, every company vehicle should be equipped with an Accident Reporting Kit.

“It’s good to have something that the driver can fall back on to make sure they document the scene, get the names of witnesses, and just do a good job of having the insurance company handle the claim,” Brengosz says. Employees involved in an accident should take good notes and clear photos.

“Insurance company claims adjusters say, all the time, that the party that does the best job documenting the damage and what happened generally wins when it comes to these accidents,” Brengosz says.

To improve their fleet safety program, many organizations invest in GPS monitoring to track speed, location, idling time, and other details. They also mount HD cameras on the front and back to show what drivers see at the time of an accident.

“There are all sorts of really cool monitoring you can do,” Brengosz says. “If you’re going to pay for that service, be sure you’re using the data and talking to your drivers.”
An effective fleet safety program requires time and resources to develop and implement, but the results are worth it because of the rising costs of vehicle repairs, insurance premiums, and insurance claims. Protect your vehicles, employees, company assets, and reputation with a comprehensive fleet safety program.

Originally Published by Cole Publishing
Nearly all worksite injuries and fatalities are preventable. John Brengosz, Loss Control Consultant for R & R Insurance, says one way to prevent workplace incidents is to determine the underlying causes and correct them. This requires a thorough incident investigation.
“Ideally, we would want to prevent somebody from getting injured. But at the very least, we want to learn from an injury so it doesn’t happen again and again,” Brengosz says.

Prepare a Response Strategy

OSHA encourages organizations to investigate all worksite incidents that result in injuries, plus close calls in which workers escape injury. Organizations are required to notify OSHA within 24 hours when incidents involve an amputation, loss of an eye, or admittance to a hospital.
Conducting a thorough incident investigation requires forethought. Injuries can occur at the most inconvenient times, so organizations should prepare an incident-response strategy in advance. Brengosz recommends developing several topic areas and questions based on the types of injuries that typically occur. Using this list, organizations are prepared to gather information, even in hurried or stressful situations.
In addition to this list, organizations also should fill out a standard incident investigation form. The form should include the injured employee’s name, time and date of the incident, department, and description of the incident.
“We don’t need to know the (employee’s) birth date, the hire date, or the rate of pay, for it has nothing to do with how this person got hurt,” Brengosz says. “We wasted a whole bunch of time just filling in boxes, and we haven’t even gotten to the investigation.”

Question Witnesses

Brengosz recommends investigating an incident as soon as possible, after medical care is provided, but while the incident is fresh in the minds of the people involved.
“You have to go out and talk to people and look at the scene as soon as you can,” he says. In addition to interviewing the worker involved in the incident, investigators also should interview witnesses.
“I rarely see any witness statements when reviewing completed investigations,” Brengosz says. “Maybe it’s a case that, ‘We’ve had enough.’ By the time we talk to the injured party, we think we’ve already ‘wasted too much time on this’ and just want it to be done. I understand that. I don’t like it, but I get it.”
A supervisor or lead person should complete the investigation report, not Human Resources or a Safety Committee, Brengosz says.
“Those folks can answer questions or help that person do the investigation, but it really should be the supervisory person to take responsibility for the injury and the fix,” Brengosz says.

Ask For the Injured Employee’s Account

In addition to answering the supervisor’s questions, injured employees should write their own version of the incident as a stand-alone document.
“It’s good to get their unfiltered description of how they were injured in case the story changes two years from now when we’re at a work comp hearing,” Brengosz says. Realistically, the supervisor’s and employee’s descriptions of the incident should be a close match.
“If not, you have to go back to the drawing board, and there’s more work to do,” he says.
Investigations can be tricky if the injured employee or the supervisor broke a safety rule or operational rule. They won’t necessarily jump in and admit it.
“The best way to address that is to have other people reviewing the completed reports,” Brengosz says.

Conversate, Don’t Interrogate

He tells supervisors to take a friendly approach when conducting an incident investigation.
“It’s way more effective if the supervisor can make it a conversation and not an interrogation,” he says.
He also suggests recording the interview, as long as the employee agrees to being recorded. A recording allows for a free-flowing conversation. It also creates an audio file that can be reviewed by others in the future. The conversation should begin with the employee describing what occurred. Afterwards, the interviewer can ask questions and gather details.
“If you’re just talking to them and having a discussion and asking questions, you don’t have to spend all this time writing things down and potentially missing important things that they’re saying,” Brengosz says, referring to the benefits of a recorded interview.

Avoid Sarcasm, Blame & Threats

Brengosz recommends using a tone of voice and mannerisms that invite employees to open up.
“Go in with the attitude of ‘We’re not doing this to trap you. We’re really doing it to find out what happened,’” Brengosz says. Avoid sarcasm, blame, and threats. Instead, investigators can encourage collaboration by asking employees for solutions: “What are your ideas to prevent this from happening again?”
“That gives them a chance to weigh in, too,” Brengosz says.
If investigators don’t think employees are being completely truthful, Brengosz recommends revisiting the facts.
“If the story changes, use tact and try to clear that up,” he says.

Get Everyone Involved to Review

In addition to filling out reports, investigators should take photos and videos to document the conditions at the work site.
Once the initial investigation concludes, the next step is a management incident review. The injured employee, supervisor, safety committee rep and human resources rep should meet with a high-ranking person in the company.
“I’m a huge fan of letting top management see those reports so they know what’s going on and also what we’re doing to stop the constant repeat of the same injuries,” Brengosz says. “I think it’s important for people working for your organization to know that you’re diving into this stuff and solving it.”
After reviewing the incident together, the management group should discuss what changes and training need to occur. Brengosz also recommends that safety committees review the incident investigation reports.
“Maybe somebody in that safety committee has seen a similar type of an injury or situation. They might know something that nobody else knew or realized to help the situation,” Brengosz says. “I don’t think this gets done enough.”

Learn and Take Action

The final step in the incident investigation process is to learn something from the incident and take corrective action.
“Don’t complete these reports, throw them in a file, and they never see the light of day again,” Brengosz says.
Although it’s easy to blame the incident on carelessness or failure to follow a rule, it’s better to determine the underlying causes of an incident. Then, identify what changes need to be made to prevent further incidents.
“It’s very common for me to see an organization that has all sorts of injuries related to lifting and material handling. I will ask them, ‘Hey, do you do training on material handling, lifting, use of hoists, etcetera?’” Brengosz says.

Accidents Are Costly

Preventing incidents from happening is a key to productivity and job satisfaction. A safe workplace also saves an organization money. Accidents can be costly. Brengosz estimates that organizations paying $1,000 for a worker’s compensation claim actually pay double in other “hidden” costs.
Organizations can demonstrate their commitment to workers’ health and well-being by maintaining a safe workplace, prioritizing safety training, and thoroughly investigating incidents. Incident investigations help organizations determine the root causes of an incident, so they can develop solutions that prevent the incident from recurring.

Originally Published in Dig Different

Employment laws change with time. Employers and Human Resource leaders who follow the latest directives not only avoid lawsuits and fines but also maintain a healthier, happier workplace. Over the last year, the U.S. Equal Employment Opportunity Commission acted on three labor regulations that affect U.S. employers. The EEOC enacted the Pregnant Workers Fairness Act of 2023, published a technical assistance document regarding artificial intelligence’s impact on employment discrimination, and accepted public comment regarding the elimination of noncompete agreements. Let’s take a look at each of these three, labor-related matters affecting today’s workplace.

Pregnant Workers Fairness Act

The Pregnant Workers Fairness Act of 2023 took effect in June. This law requires employers with 15 or more employees to provide reasonable accommodations for qualified employees and job applicants with temporary physical or mental limitations due to pregnancy, childbirth or related conditions.

Brian Bean, Executive Claims Consultant at R&R Insurance, says the new law builds upon the coverage of the Pregnancy Discrimination Act which prohibited discrimination based on pregnancy, childbirth, or other related medical conditions.

“This act is just a step further and requires an affirmative right for accommodation. It’s not just discrimination, but providing reasonable accommodations,” Bean says.

Examples of pregnancy accommodations include flexible work hours; a parking space located close to the work entrance; opportunities to sit down; additional break time to rest, eat, drink water, or use the bathroom; appropriately sized safety apparel and uniforms; leave or time off to recover from childbirth; and the ability to be excused from strenuous activities or activities that involve exposure to compounds not safe for pregnancy.

Bean says that many employers were already offering these accommodations, and the 2023 law now legalizes these common practices. “It treats pregnancy like a disability,” he says. Pregnant workers are subject to the same analysis as an Americans with Disability Act reasonable accommodations request.

Artificial Intelligence in Hiring

The second change in 2023 was the EEOC’s anti-discrimination guidance publication related to the use of software, artificial intelligence, and algorithms in employment selection procedures. Current labor law prohibits the use of discriminatory selection procedures and employment tests. The EEOC’s guidance on this matter doesn’t carry the weight of federal law, but employers are smart to take note of it, nevertheless. 

“You better believe, if there are lawsuits … courts are going to look at this document,” Bean says.

Artificial Intelligence (AI) can streamline the hiring process by more easily advertising jobs, reviewing applications, screening candidates, and testing. AI is the ability of a digital computer or computer-controlled robot to mimic human intelligence to reason, learn, self-correct, and perform complex tasks.

“AI is supposed to be an excellent tool to help overworked people narrow down and screen employees,” Bean says. AI becomes problematic if it disproportionately screens out a protected class, like women, minorities, or people with a criminal record.

“If you have a very legitimate business reason for the selection criteria that excludes people that might be discriminatory, it’s OK,” Bean says. For example, recent drunk driving convictions might exclude job candidates from being hired as service technicians if the technicians would be driving a company van or truck.

However, employers without a legitimate reason for using selection criteria that excludes a protected class can get in legal trouble. For example, facial recognition software can be deemed discriminatory if it’s used to analyze job candidates’ emotions for desirable traits and assigns more negative emotions to minority candidates.

Bean cautions against implicitly trusting technology and AI shortcuts. He tells employers who want to purchase AI products and services to carefully screen the vendors first. Evaluate all business-operating software before purchasing, he says. He also advises employers to audit their hiring practices or hire a third party to conduct employee selection audits.

“Ultimately, the buck will stop with you, no matter what data you use, what program you use, no matter what,” he says. Labor laws apply to AI processes just like they apply to traditional employee selection procedures.

“Is AI the savior of HR? Well, maybe,” Bean says. “It’s a great tool in some areas, but man, it’s going to require some oversight, a lot of audits, and a lot of reviews. The biggest issue is, you better proceed with caution.”

Noncompete Agreements

The final labor regulation is a proposed, nation-wide elimination of noncompete agreements. Noncompete agreements restrict workers who leave a job from starting a competing business or working for a competing employer. Traditionally, state governments have determined the scope of noncompete agreements. Some business leaders argue that noncompete clauses should remain under state governance. They contend that the federal government would overstep its bounds by enacting a U.S. law prohibiting the widely accepted practice.

In a Notice of Proposed Rule Making published in 2023, the Federal Trade Commission says noncompete clauses are an unfair method of competition. The FTC accepted public comment in 2023 on its proposed ban of noncompete clauses. According to the FTC, the clauses significantly reduce workers’ wages, stifle new businesses and new ideas, exploit workers, and hinder economic liberty.

“The argument is these noncompete agreements have gone too far. They affect workers that they really shouldn’t be used against or restrict where they go or what they do,” Bean says.

Whether the FTC’s proposed rule will take effect remains uncertain.

“Just because they draft it doesn’t mean they’ll enact it,” Bean says. He encourages employers to submit their comments to the FTC and keep an eye out for what’s happening on the federal level.

“Make sure you’re at least compliant with the state you’re in,” he says.  

Stay Educated

Remaining compliant with noncompete clauses and labor laws protects workers’ rights and safeguards businesses against legal challenges. When labor law and business practices align, employers save time, money – and their reputation.

Some employment law is easy to understand, while other regulations are more complex. Bean says a common mistake employers make is not asking for help in complicated employment matters. He advises employers to check with an attorney or insurance agent for guidance when faced with confusing employment regulations and governmental guidance.

“You want to put procedures in place and learn about discrimination and other employment issues to avoid problems,” he says.

Employers are subject to at least two sets of rules related to fair employment: federal and state laws, and potentially, municipal labor regulations. Education is the key to keeping up with the latest employment rulings and legal precedents, Bean says.

Originally Published in Plumber Magazine

To run a successful operation, employers must safeguard their greatest asset – their employees. The unpredictability of accidents and injuries in the workplace requires employers to be ready at all times to respond to any given situation. As soon as they hire their first employee, employers assume a wide range of legal obligations. One of these legal obligations involves worker’s compensation claims. Every state has its own worker’s compensation act, with differing laws and legal precedents.

Brian Bean, Executive Claims Consultant at R&R Insurance, says worker’s compensation requires a different way of thinking than other personnel management practices.

“Worker’s comp is in its own little world. It operates by its own set of rules, its own set of principles, its own set of laws,” he says. “Employers who figure that out quickly function better in it. Employers who resist against it tend to have a lot more problems in claims management.”

Bean warns employers not to take a smug, know-it-all approach to work-related injuries.

“Anytime you think there’s certainty about worker’s comp, you really shouldn’t think that way. You need to get to the facts. Feeling less certain about it is actually a healthier way to deal with it. It makes you investigate more and get on it quicker,” he says. Don’t ignore a situation, he advises.

“The faster you ask questions, the better to find out what’s happening. People are the most honest right after things happen. That’s when you have to try to lock in statements and testimonies and get it to an adjuster,” he says.

The Rules of Eligibility

Employers can avoid common pitfalls related to worker’s compensation by understanding when their employees are covered by a claim and when they’re not. Basically, employees are covered when they are in the course and scope of employment. What exactly does that mean? Some of these examples may surprise you!

An employee who is on the clock is presumed to be in the course and scope of employment. However, they can be off the clock and still be considered to be employed in a usual and customary way.

One of the most puzzling claims for employers involves employees who have a little too much fun on the road. Whether they’re traveling for work or attending a business conference, employees who are intoxicated and injured are likely to have a legitimate worker’s compensation claim. Courts have ruled that just because employees are drunk, they aren’t removed from the course and scope of employment if they are participating in an employment-related activity. Although they are likely to be eligible for worker’s compensation, they probably will get hit with a reduction in an indemnity for safety violations.

However, an employee who is drunk at the workplace will likely be deemed to be deviating from the course and scope of employment. Thus, the employee would not be eligible for worker’s compensation, if injured.  As always, there can be exceptions.

Even a terminated employee can be eligible for worker’s compensation. For example, terminated employees are covered when they come to the workplace to collect a final check or participate in an exit interview. If injured, the employee likely has a compensable claim.

The Personal Comfort Doctrine

Another compensable claim involves an injury or accident that occurs when employees leave the workplace to go to a coffee shop next door during a paid break. Although they are off-premise, they are on a paid break, so they’re considered to be in the scope of employment. Paid lunch breaks off-premises would also be considered in the course and scope of employment. Contrast this to an unpaid lunch break in which an employee slips and falls or sustains an injury at a nearby café. The employee wouldn’t have a compensable claim.

Then there are examples related to the Personal Comfort Doctrine which covers work-time breaks for using the bathroom, smoking, snacking, and drinking water. Injuries or accidents that occur during comfort breaks fall within the course and scope of employment – even for employees working from home who fall and injure themselves on their way to the bathroom.

Personal Comfort claims are routinely covered by worker’s compensation. Sports-related injuries also may be covered for employees who are injured while playing sports during a work break.

“Basketball hoops are a good example. If you play a pick-up game, then there’s a chance someone will get hurt,” Bean says. “It’s better not to have that stuff around, because if you put it up and leave it up, it’s pretty good evidence that you’re condoning it. It becomes usual and customary, and you’re going to have a worker’s comp case you didn’t expect.”

Business or Pleasure?

That brings up the question of off-premises recreation and social events.

“You’ve got to have fun, but don’t take unnecessary risks, and choose your activities carefully,” Bean says.

Courts have upheld a number of claims related to injuries that occurred away from the workplace. Employees have received worker’s compensation for injuries sustained at a donkey basketball community fundraiser, a baseball game given as a reward for meeting a sales goal, and a school dance in which a teacher chaperone was injured doing the limbo.

Yet employees aren’t covered at every off-premise location or employer-organized event, only those in which the employer derives benefits other than just improved morale. If attendance isn’t mandatory, then employees are less likely to be covered at the event.

“What you need to do as employers is make it really clear that it’s truly voluntary. There are no repercussions for not going to it,” Bean says.

On the Road

The use of company vehicles opens up a lot of liability issues and worker’s compensation risks. Bean advises employers to develop clear policies for company-owned vehicles. Policies should define when workers are using the vehicle for employment (a compensable claim) or personal travel (not compensable).

In a related example, an employee injured while on the commute to work or to a job site isn’t covered by worker’s compensation. Employees participating in employee-sponsored carpools aren’t covered, either, as long as participation in the carpool is voluntary, and the sole purpose is transportation to and from employment. However, if the employee is running an errand requested by the employer, then the employee is covered, whether the employee is in a personal or company vehicle.

Traveling employees also are covered by worker’s compensation. They receive door-to-door coverage from the time they leave home to the time they return. The exception is when they deviate from their business activities to engage in an activity for a private or personal purpose.

These scenarios are just a small sampling of the incidents that employers encounter. Understanding the intricacies of worker’s compensation helps employers manage their claims sensibly and effectively. Bean advises employers to be attentive to their state’s labor policies and relevant legal precedents. He also emphasizes the need to investigate claims quickly and thoroughly.

“You need to find out what’s going on, so proper decisions get made whether you defend a case or fight a case or accept a case,” he says.

Every employer who makes safety a part of the organizational culture promotes a sense of order that safeguards their workforce. By proactively fostering a safe work environment, employers can reduce the number of on-the-job injuries and subsequent workers’ compensation claims.

Originally Published by Prosperity Bookkeeping

Does your business accept credit cards? If the answer is Yes, is your company PCI DSS compliant? If your answer is, “What does that mean?” then read on. PCI DSS is short for Payment Card Industry Data Security Standard. All merchants who accept credit cards for payment are required to follow certain guidelines – the Payment Card Industry Data Security Standard. The PCI Security Council develops and promotes these global data security standards to support safe transactions for everyone.

Is My Small Business Required to Be PCI Compliant

You’re probably wondering if you, as a small business owner, need to become PCI compliant. PCI DSS pertains to all organizations that process card payments, regardless of the organization’s size or transaction volume. You might use Intuit QuickBooks applications to process credit card payments. QuickBooks is secure and PCI compliant. However, other factors aside from QuickBooks can compromise the security of your payments. Using QuickBooks payment services isn’t a silver bullet to become PCI compliant.

What are the Requirements of Becoming PCI Compliant?

PCI standards cover 12 requirements related to the secure handling, processing, and storage of sensitive credit card and debit card data. Read the 12 requirements to learn about QuickBooks PCI data security services.

Why is Compliance So Important?

Protecting your customer’s payment information is important because hackers are a real threat. Cybersecurity measures to protect sensitive data can protect your small business from a data breach. If a data breach occurs, your company may be liable for fines, penalties, legal fees, and remediation. The increased security of being PCI compliant helps ward off this threat.

What Services Offer Compliance & Validation?

For some Prosperity Bookkeeping clients, this isn’t their first time hearing about PCI Compliance. Intuit recently sent a reminder to active QuickBooks Payments clients. As part of the Intuit Terms of Service, businesses are required to be PCI compliant. Additionally, credit card companies like Visa, Discover, and MasterCard also require PCI DSS compliance validation. More reasons to check out PCI compliance! Several cybersecurity companies offer services that lead to becoming PCI compliant. Intuit partners with SecurityMetrics and offers a partner discount to active Intuit QuickBooks Payments accounts.

Can My Company Become PCI On Its Own?

If you’re like most small business owners, you don’t welcome an annual fee for PCI compliance validation. Fortunately, you can become PCI compliant on your own. Start by completing a Self-Assessment Questionnaire that fits your level of credit card transactions. Next, review the 12 requirements of PCI DSS compliance. Complete the requirements, and keep documentation of your compliance efforts.

Where Do I Look for More PCI DSS Information?

PCI DSS compliance certainly takes time and effort, but a strong data security foundation benefits your small business in the long run. By protecting customer payment data, you prevent data breaches that can potentially put your company out of business. PCI Security offers multiple data security resources for merchants. For more information about credit card payments and other accounting practices, contact Prosperity Bookkeeping, a Wisconsin company providing professional bookkeeping services to manage day-to-day business finances, contributing to an organization’s stability and prosperity.

Originally Published by Prosperity Bookkeeping
Summer is a great time of year in Wisconsin. Because of the warm weather and longer days, we have more opportunities to spend time on the beach, on the water or at the campground or ballpark. Now that the kids are out of school, it’s the perfect time for road trips and summer vacations. Unless your small business is super-busy in the summer, business owners can use summer downtime to relax and recharge. Everyone needs a break once in a while. Vacations help business owners lower their stress, resulting in a more positive outlook and renewed energy for their work. For many Wisconsin companies, business demands decrease in the summertime. Here are some ways to take advantage of the summer slowdown to propel your business forward.

Catch Up on Your Bookkeeping

Summer is a good time to tackle the tasks that you have been putting off. Busy business owners often let their bookkeeping slide. Maybe it’s been a few months since you reconciled your accounts. By keeping your accounts up to date, you won’t have the stress of recreating the past 12 months for year-end reports. QuickBooks makes it easy to reconcile accounts. You can set up your books so multiple accounts, like a savings account, checking account, and line of credit, automatically feed into QuickBooks. Reconciling the books is easier when you can see all of your accounts, current balances and the most recent transactions.

Dig Into Your Business Financials

We’re half-way through the year, so take some time to evaluate your finances. With a few clicks, you can view QuickBooks Online reports to compare the current financial year against the previous year. Have profits grown? QuickBooks enables you to create custom reports to evaluate key financial benchmarks. To do so, select a period, like a month, quarter, or year, and compare it with the matching time period from the past. For example, if your receivables are significantly lower, try to determine the cause. Are you behind on billing for the period? Did you lose a primary customer or experience weather delays? You won’t necessarily know these things unless you have a report system in place.

Explore Technology and Automation

Summer is a good time to assess your current bookkeeping systems and research technology and automation to streamline your business-finance tasks. Look for products that will speed up and improve the bookkeeping process. Test out the latest in artificial intelligence: Chat GPT, Bing Chat or Google Bard. AI can assist you with industry research, brainstorming, marketing content, and data entry. An AI virtual assistant can understand voice commands and perform tasks that make the business run more efficiently.

Declutter Your Office

Bookkeepers consistently put things in order, and your office is no exception. Cleaning and decluttering your office will make paperwork easier to find and your workspace a more welcoming place to spend your time. Reinvigorate your work space by deep cleaning your desk and office. Sort through the papers that have piled up. Discard any that no longer provide value, and scan and file the important documents before recycling or shredding. Organize your desk drawers by weeding out the extra pens, notecards, and office supplies. Place the most-used office supplies within easy reach. Discard or find a new home for anything that doesn’t belong in your office. Wipe down all surfaces, including the phones and computers.

Let Prosperity Bookkeeping Handle Your Finances

Summer gives us a golden opportunity to slow down and recharge, yet tackle some side projects, too. The Prosperity Bookkeeping staff is here to handle your bookkeeping when things get hectic. Contact us to manage your financial statements, payroll, and business advisory needs.

Originally Published by Prosperity Bookkeeping

QuickBooks Online makes running a small business so much easier. This industry-leading accounting software automates business-finance tasks and puts financial statements at your fingertips. QuickBooks Online is a real time saver, offering a range of finance and accounting solutions for small businesses. Despite all of its advantages, once in a while, QuickBooks Online throws a wrench in your ability to manage a clean set of books. For example, why does QuickBooks show a negative number when you make a deposit in Accounts Receivable? This is a frustrating feature of QuickBooks Online’s default process for recording upfront payments and downpayments.

QuickBooks Online Accounts Receivable & Aging Summary

Consider this accounting scenario. A customer owes you a $1,000 downpayment for a project that will cost $5,000. The customer pays you the downpayment, and you go through the process of receiving payment and recording it in QuickBooks Online Accounts Receivables. After recording the transaction, QuickBooks creates a $1,000 credit for the customer.
Now, suppose you want to look at what customers owe you money, how much, and how many days their invoices are overdue. You’d click on Reports, then Accounts Receivable Aging Summary. When you view this report, you’ll see that the $1,000 downpayment you recorded displays as a negative balance on Accounts Receivable.

How to Maintain Accurate Days Sales Outstanding

Why is this an issue? Frankly, because it messes with your books when you’re performing complex financial analysis. When you check the financial status of your small business, one of the numbers to consider is Days Sales Outstanding. Just in case you’re new to accounting, Days Sales Outstanding shows how long it takes for you to collect on an invoice. Part of the calculation of DSO involves the whole Accounts Receivable balance. When a customer’s large downpayments is recorded in Accounts Receivables, it throws off the total AR number, Downpayments falsely reduce the amount of the open invoice balance as a negative amount, and QuickBooks subtracts the downpayment.

How to Record Downpayments as Nonposting Transactions

So, here’s a bookkeeping option to consider if you want to record a downpayment and maintain a clean set of books. Instead of just receiving a payment like usual, use a nonposting transaction by creating an estimate. You may wonder how a downpayment becomes an estimate, but bear with me.
Before creating an estimate, make sure that partial billing is available to you on QuickBooks Online. Partial billing isn’t available in every QuickBooks Online version, so you may need to upgrade. You can access the option for partial billing in QuickBooks Online by clicking the gear icon > Account and Settings > Sales > Progress Invoicing > Edit. Toggle the switch to turn on “Create Multiple Partial Invoices from a Single Estimate Feature”, and click Update, Save, and Done.

How to Create a Partial Payment as an Estimate

The process to create and save an estimate is the same as creating an invoice. However, as a nonposting transaction, an estimate will not post to your sales account right away. Click New > Estimate > Customer Name. Once you create and save an estimate, QuickBooks gives you the option to create an invoice. QuickBooks’ prompts allow you to charge a percentage of the total project cost. In our example, you would charge 20% of the total amount due ($5,000) and for a downpayment of $1,000. Alternatively, you can create a custom invoice. Perhaps you want to collect upfront for the product but not the labor. To do so, click Custom Invoice and fill in the product cost. Of course, you can customize the invoice any way you choose – whatever fits your cashflow and customer relationship objectives. QuickBooks creates an invoice that’s linked to the estimate. Then, when the customer pays the invoice, apply the payment to the estimate. Click on Receive Payment, and apply to the invoice.

How to Invoice a Remaining Balance

When the project is completed, it’s time to invoice the customer for the remaining balance. To do so, look up the customer’s account, open the estimate, and bill out the remainder by clicking “Remaining Total of All Lines.” If a project takes a long time to complete, you might decide to invoice the customer in increments, instead of simply invoicing for a downpayment and final payment. An estimate allows you to do that. Additionally, estimate if the scope of work changes, you can add new product or service costs to your original estimate. It’s worth noting that applicable sales tax will be applied to the correct tax period for the additional costs but won’t affect the sales tax of the downpayment. You can adjust an estimate without affecting the transactions in a closed period.

How Creating an Estimate Improves Bookkeeping Accuracy

Collecting upfront payments helps small businesses cover its liabilities and maintain cashflow for day-to-day business operations. By creating an estimate instead of simply applying a downpayment to Accounts Receivable, bookkeepers keep a clean set of books. Small businesses gain accurate and valuable insights into their financial data in order to make smart business decisions.

Talk to a QuickBooks ProAdvisor

Prosperity Bookkeeping is a QuickBooks ProAdvisor that is eager to help small businesses get the most benefit from QuickBooks accounting software. A ProAdvisor provides accurate, up-to-date information about QuickBooks, answers questions, and offers advice. This blog is just one example of the value that a QuickBooks ProAdvisor brings to the table. Visit the Prosperity Bookkeeping YouTube Channel to see Kristie Van Pay, owner of Prosperity Bookkeeping, demonstrate how to handle partial payments. If you have questions about partial payments or other accounting processes, visit the DIY Support page to schedule a QuickBooks ProAdvisor support call.

Originally Published by Prosperity Bookkeeping

Picture yourself with a shopping cart full of school supplies at the checkout – and you grab the wrong credit card to pay for them. Oops! You just paid for your kid’s backpack and everything that goes inside with your business credit card. Mistakes like these happen. In order to maintain the integrity of your financial statements, you need to go through a fairly painless process to adjust your accounting records. But if this school supply scenario is more than just a one-time glitch, we need to have a serious conversation.

Maintain Legal Liability Protection

Commingling personal and business accounts is a big no-no for any business owner, but especially if you’re operating your business as an LLC, S Corp or C Corp and not simply as a sole proprietor. (For advice about choosing a business structure, read this article by the U.S. Small Business Administration.) By mixing business and personal funds, you’re acting as if you and the business are the same entity. Therefore, you put your personal bank account and assets at risk. Your business entity loses the legal liability protection that comes with its corporate structure.

Preserve Accurate Bookkeeping Records

The second reason not to commingling personal and business accounts relates to the accuracy of your bookkeeping records. If you make personal purchases with your business account, whether mistakenly or routinely, you should record these purchases in your accounting program. Accurate financial statements are important for three main reasons:

1. Improve your ability to make well-informed business decisions
2. Present legitimate financial data to lenders, partners, and other interested parties
3. Keep accurate books so it’s easier to prepare a business tax return

Can you imagine giving your business credit card to an employee and inviting the employee to buy groceries, lottery tickets, or gas? Of course not. The same policy applies to you. You shouldn’t use business accounts to pay for personal items. The correct way to compensate yourself as a business owner is to take a draw from the company or pay yourself a salary directly from a business account. After depositing the money in a personal account, you’re free to buy personal items using a personal checkbook or credit cards.

How to Adjust Your Accounting Records

Earlier in this article, I promised a fairly painless process to adjust your accounting records if you used a business account to purchase personal items. To adjust your accounting records, follow this 3-step process:

• Confirm that you have an equity account set up for Owner’s Draws in your chart of accounts (It may be called Owner Distribution, Partner Draw/Distribution, etc.)
• If an equity account doesn’t exist, create one
• Record the purchase as you would any other purchase, and classify it to the Owner’s Draws account

To reimburse your company for the personal purchases, you can transfer funds from your personal account to your business account. To adjust your accounting records, follow this 2-step process:

1. Create a deposit for the amount you are replacing
2. Code the deposit to the same account – Owner’s Draw

This zeroes out the transaction and corrects your bookkeeping records all at the same time.

Avoid Sloppy Business Operations

In addition to the school supply scenario, there are other scenarios to avoid related to commingling funds. Perhaps a client makes a check out to your name instead of your business’ name. Maybe you use one bank account for business and personal needs or move money back and forth between a personal and business account without documentation. All of these are examples of sloppy business operations that increase your liabilities. When you treat your business’ money the same as your own, you become personally liable for business debts and lawsuits. Don’t put yourself in that position!
For more business tips, financial advice, and a full line of bookkeeping services, contact Prosperity Bookkeeping. Prosperity Bookkeeping provides a proven process that will have you spending less than one hour per month on bookkeeping-related tasks.

Originally Published by Cole Publishing

Got a big idea for a new business? Well then, you need the Big 4 – an accountant, insurance agent, attorney, and banker. A successful business launch involves a jillion details, and many of these details require professional expertise. The Big 4 enables entrepreneurs to turn their business ideas into reality. Before opening their doors, new companies need to lay a foundation for operations. This foundation includes the legal documents to establish a business identity, organizational structure, and taxation.

“Anytime we’re creating a business entity, we’re always thinking through how an entity is going to be formed and also the tax designation you want,” says attorney Jim Ledvina, of the Law Firm of Conway, Olejniczak & Jerry, S.C. The structure of an organization depends on its activity, number of owners, and the goals the owners want to achieve. “There’s lots of ways to structure the entity, depending upon what folks are trying to accomplish,” Jim says.

Legal Structure of a New Business

New businesses typically fall into two categories, a limited liability company (LLC) or domestic corporation. For Jim’s clients, LLCs are the most popular business classification by far.
“The reason is, the LLC is significantly more flexible in terms of the management and control. The administrative requirements are not nearly as demanding as a corporation,” he says. Corporations are required to appoint officers and hold annual shareholder meetings and annual board of director meetings.
“That’s all very rigid in corporate law, versus an LLC, in which you can create any type of management structure you want,” he says.

Tax Classification of a Start-up

The second aspect to consider when launching a business is its tax classification. An LLC with a single owner falls under the disregarded entity status. Basically, the LLC is not taxed as a separate entity by the Internal Revenue Service, so the business owner doesn’t file a separate business tax return. All income and expenses flow to Schedule C of the owner’s 1040.
“It’s all very simple,” Jim says, and he means it. An LLC with a single owner is one of the simplest business structures that exists. When a business has two or more owners, it defaults to partnership tax status. However, the members of the LLC can elect to have their LLC treated as an S Corporation or C Corporation for tax purposes.

LLC vs. S Corp or C Corp

An S Corp has a “flow-through” tax designation. Thus, the business entity files an informational return, and income and loss “flow through” to a business owner’s 1040 via a K-1 IRS form. The percentage of ownership determines the share of the income or loss attributed to each owner. For an S Corp, business owners pay tax at the individual level and not the entity level. From a tax standpoint, it’s rare to have a C Corp because of what’s known as the “double tax.” With a C Corp, the entity pays tax. However, if the owners want to make distributions as a dividend, the owners would be taxed on the dividend. Hence, the double tax. Although tax legislation enacted in 2017 addressed the double tax, Jim says there’s still more benefits being an S Corp than C Corp.
S Corp owners can avoid some payroll taxes when making distributions. In addition, S Corps offer other tax benefits, depending on the activities of the entity. It’s best to consult an attorney and an accountant for advice.

Legal Documents for LLCs and Corporations

Both LLCs and corporations require a set of legal documents before the businesses open. A corporation files Articles of Incorporation, whereas an LLC files Articles of Organization. A corporation drafts bylaws and a shareholder agreement, whereas an LLC drafts an operating agreement. While the articles and bylaws are fairly standard and straightforward, the shareholder agreements and operating agreements differ significantly based on the entity. These agreements cover the management and control of the business. For example, an operating agreement outlines how decisions are made, who’s in control, who represents the business, and how an owner can sell his or her ownership interest in the entity.
“It’s not one size fits all. You might have silent partners, active partners, or individuals who want to be bought out,” Jim says. “You want to make sure you’re covering all the bases with documents that work appropriately for the business.”

Apply for an Employer Identification Number

Another legal document needed to open a business is an Employer Identification Number (EIN). Entrepreneurs will hit a roadblock at the bank if they don’t have an EIN. Banks require a business to obtain an EIN before opening a business banking account. Anyone can apply for an EIN at the IRS website at no cost. Obtaining an EIN is probably the simplest part of opening a new business.
In addition to filing for an EIN online, entrepreneurs can find sample legal documents on the internet. Entrepreneurs can do their own paperwork, but Jim advises against this, based on his experience. In one instance, a client brought Jim an operating agreement with language associated with real estate when the entity didn’t own any real estate.

“The language associated with valuing the real estate entity is going to be totally different than an operating entity,” he says. “There’s a big difference in how we draft the two.”

Role of a Business Law Attorney

Because opening a business involves complex legal details, an attorney plays an important role. Jim recommends working with an attorney who specializes in business law.
“You want somebody with a little bit of experience. They know what to look out for, and they know the issues and where the pain points may be,” he says. “If you have something complex, like multiple owners or unique situations, you might want to interview a couple of attorneys. Ask them about their experience and about the pros and cons of different types of entities.”

Role of the Big 4 for Entrepreneurs

Once you select your legal advisor, he or she will be able to recommend other members of the Big 4. A local financial institution can provide a start-up loan and a line of credit to support ongoing operations. Banks also provide financial services needed to pay employees, pay bills, receive payments, etc. A local insurance agent helps business owners mitigate risk with commercial general liability insurance and worker’s comp insurance. An accountant can set up sales tax, use tax, and employee tax withholding. Plus, accountants file taxes and ensure their clients comply with tax laws.
“If you make a mistake, especially on sales tax or payroll taxes, that’s almost always a death blow to an entity because the penalties and interest associated with those taxes are incredibly onerous,” Jim says.

A Successful Business Launch

Opening a business is a complex process, especially when it comes to paperwork. You can’t just step up to a legal document vending machine, drop in your coins and out pops the legal documents you need. If only a business launch was so easy! Consulting with an attorney, accountant, insurance agent, and banker can help you determine the best trajectory for your new business. These professionals know about tax implications and the federal and state requirements for start-ups. The Big 4 gives new businesses the big break they need to succeed.