new business should be rewarded.
by ed mendlowitz
202 questions and answers: managing an accounting practice
question: i got a new client because of one of my employees. do i have to give her anything?
more: why you shouldn’t sue a client | what to do when a partner becomes disabled | i’m just starting out; why join an association? | i’m 76. should i slow down? how? | ask for what you’re worth | two options for collecting past due fees | when board service gets tricky | eleven ways new staffers can help bring in business | busy season is over, so it’s time for some resolutions | want to merge? six steps to take | how to start providing family office services | every accounting firm needs quality control
exclusively for pro members. log in here or 2022世界杯足球排名 today.
response: wrong attitude! you should want to give her something. you should be happy that a staff person was able to bring in business.
many firms offer referral fees, bonuses or commissions. i suggest paying 10 percent of collections for five years, as long as the employee continues to work for you.
some pay it only for one year, and some indefinitely. ten percent seems to be a reasonable percent. some also pay it for the promised period even if the employee no longer works for them. a commission is a commission and it is good business.
i would encourage staff to try to bring in business, and tell them how. it is quite simple. tell them all they need to do is set up an appointment and you will take care of the rest. you can bring them to the meeting, and you can have them work on the account – that is up to you and there doesn’t seem to be a consistent policy for that. it also is dependent on the type of work and the level of service the client needs.
no matter what it is called, it is added to payroll and is subject to withholding and is reported on the w-2 statement.
when an employee recommends your firm it shows she or he likes working for you and likes what they do. that indicates the right culture – keep it up!