New small business owners get advice from all different directions. Like when adopting a puppy or having a baby, suddenly everyone’s an expert and wants to share their opinion. If you’re just starting a business, it’s more important than ever to get your information from trusted sources. After all, the future of your business and the financial well-being of both you and your employees is what’s at stake.

What small businesses owners actually need

If you’ve recently started a business, or are thinking about starting one, you might have heard that you need workers’ compensation insurance. In most states, this is true for any business with at least one employee (even if they’re only part-time). You also may have heard about other types of small business insurance like general liability insurance or commercial auto insurance. Each of these coverages, along with many others, are valuable protections for your business and its employees, whether required by state law or not. 

Three scams targeting small business owners

Although small businesses have many legitimate needs, there are also several ways people may seek to take advantage of new small business owners. Here are three common scams you might find yourself targeted with. Each of these scams is particularly tricky to spot because they’re based on a grain of truth. Armed with the right knowledge, you’ll be able to identify the common indicators of a small business owner scam. 

Certificate of good standing scam 

You’ve just started a business, congratulations! This may have included registering with your secretary of state, applying for a business license with your city or county, and other legitimate legal steps. The last thing you want right now is to think your business isn’t “in good standing” with any government entity. That’s why this scam can be so effective at getting money from new business owners. 

Small business owners across the U.S. frequently receive letters in the mail shortly after forming their business entity (often an LLC). These letters claim to offer a “certificate of good standing” or in some cases a “certificate of status.” Either way, this is a bogus offer and it’s unclear what (if anything) business owners will actually receive if they send in the requested money. 

According to the Pennsylvania Department of State, such certificates are not required by the government and are usually only needed for things like business loans or mergers. If you do need one, the state offers a legitimate certificate of your business’s status for $40. Not, as the scam letters offer, $89.95 or more. 

Whatever state you live in, the scam remains the same. You’ll get an official-looking letter in the mail with a lot of misleading information so that business owners will easily mistake it for an official form. In all but the most egregious cases, these letters will have some indication (probably in very small print) that they are not in fact official, legal documents from your state. As you’ll see in the next examples as well, this scam relies on the naivety and good intentions of new small business owners who truly don’t want to be on the wrong side of any compliance laws. 

Labor law poster scams 

Once your new small business is up and running, you might be ready to hire your first employee. If you do, don’t forget the very real requirement in most states for workers’ comp insurance. However, beware of scams like this one that try to sell new employers overpriced labor law posters. 

While it’s true that employers do often need to display labor law and minimum wage posters to comply with Occupational Safety and Health Administration (OSHA) and Department of Labor (DOL) regulations, these posters are available electronically at no cost online. Here’s a link to OSHA’s website where you can download the poster for free. 

According to the Better Business Bureau, these scams often target new small businesses with scare tactics and threats of exorbitant “fines” for violating the law if they don’t send money to the scammers. 

To avoid falling victim to this or any other small business owner scam, make sure to read the fine print on any letters you get. It’s also important to do your research and find out if you’re genuinely required to do what the letter instructs. A simple online search for the type of “notice” you receive may reveal its bogus status. 

State periodic filing report scams 

After you’ve been in business for nearly a year, and you’ve successfully avoided giving your money away for free labor law posters or unnecessary certificates of status, it’s time for a new scam to emerge. 

Every state has some form of what’s known as periodic filing or a periodic report for businesses. Most states require it annually or every two years, though some states might have even less frequent requirements. Whatever the case, this periodic filing is a legitimate requirement from your state. What’s not legitimate are the letters you’ll get from third parties offering to perform the filing for a large additional fee. 

In Colorado, for example, an annual state business filing fee is just $10. Yet small business owners get letters in the mail offering to complete this filing for an additional $60 to $100 fee. Considering Colorado allows business owners to file this quick and easy form online for $10, there’s no reason to pay someone additional money to do it for you. But you wouldn’t know that from the letters you get in the mail! 

Once again, these letters look official. They have information about your business that can make them seem legitimate even though they’re not. 

Tips for spotting and avoiding small business scams

You may have noticed a pattern here. Each one of these scams plays on new business owners’ fears of stepping out of compliance with the law. Each scam delivers an official-looking letter by postal mail to the business’s registered address. It can be hard to believe something that looks so official and has so much of your information isn’t from a legitimate source. 

Here are a few tips for recognizing and avoiding these fraudulent and predatory scams: 

• • Read all letters closely: These “services” are required to disclose that they are not a government agency, not a bill or invoice, and not required by law. It’s this small print that allows organizations to legally send out these letters in the first place. 
  • Research your actual requirements: Many states, cities, and counties have a small business administration (SBA) that’s there to provide help and guidance to small business owners. Whether you perform an online search or call up your local SBA, you should be able to easily learn whether the letter you received references an actual requirement or is a realistic-looking scam. 
  • Don’t fall for scare tactics: Often, these types of scams rely on your fear of breaking a law. They may include warnings about financial penalties or even criminal charges, should you not comply with their request! It’s important not to panic. Instead, consult a professional or a trustworthy resource to learn more about your actual requirements. 

While the three scams we’ve covered here rely on postal mail, there are even more ways to fall victim to online fraud. This link from the U.S. Small Business Administration has tips on avoiding online small business scams as well. 

Remember, one thing you may hear as a new small business owner is the need for workers’ compensation insurance, which is true for most businesses even if they have only one employee. To learn more about workers’ comp insurance and other types of small business insurance, check out our workers’ comp 101 resources.

The post Three scams small business owners should look out for appeared first on Pie Insurance.

If you’re a small business owner, we’ve got some great news. American consumers are supporting small and local businesses more than ever before. In 2021, American Express estimated small business Saturday brought in a record-high $23.3 billion. With the 2022 holiday shopping season upon us, a large majority of consumers say they’ll be shopping small again. This means now’s a great time for small business owners to capture new business and increase sales through the end of the year. 

For small business owners around the country, the holiday season represents a time you can capture a large amount of revenue. But it can also bring stress to small business owners and their employees. Here are our tips for helping your small business attract more holiday shoppers and reduce stress to make the most of the season. 

How can small business owners attract more customers this holiday season? 

From your store decor to your employees’ demeanor, here are a few ways to maximize your success during the holidays. 

Decorate for the holidays both in-store and online  

Don’t be a Grinch! Help your customers get into the holiday spirit by decorating your store both in person and online. For many customers, holiday shopping is enjoyable. On the other hand, rushing around from store to store to complete holiday shopping can leave many feeling overwhelmed.  

Your small business can go the extra mile to ensure customers enjoy the shopping experience by making small, yet valuable, gestures like offering food, drinks, and entertainment at your store. 

A few ways you can stand out from the mall and superstore crowd include: 

• • Having live, local musicians instead of canned Christmas tunes
  • Offering snacks from other local businesses to customers while they wait in long lines
  • Providing something warm to drink and a place to sit for shoppers who need to get out of the cold

If you have an online presence for your small business, you can still “decorate” and make the experience unique and enjoyable for customers. Consider giving your website a holiday face-lift for consumers looking to avoid the crowd by doing their gift shopping online. Be sure to offer the same holiday discounts online as you do in-store and make them prominent on your website so customers don’t miss out. 

Create holiday gift guides, gift bundles, and gift cards

Everyone has at least one person on their list they can’t figure out the right gift for. Help your customers complete their holiday shopping at your store by creating gift guides. You could make it simple and only offer a couple of guides like gift ideas “for him” and “for her.” But making more specific guides like “for outdoor lovers,” “for foodies,” and “for teachers” can help show customers that you have the perfect gift for everyone on their list. 

Another great way to sell more during the holiday is with bundles. Select three to five products that people often buy together and pre-wrap or package them as one product. Make sure you offer different bundles for the different types of people on your gift guide and consider offering bundles at different price points to accommodate everyone’s budget. 

Finally, for the truly hard-to-shop-for, make sure you have holiday gift cards available. Even if they’re just purchasing a gift card, shoppers love the option to make it look like a real holiday present. Printing some different holiday-themed gift cards can entice customers to pick up a few for the people on their list they may have forgotten about or just not know what to buy for.  

Offer discounts for Small Business Saturday  

If you aren’t already planning on offering any discounts for Small Business Saturday, you may want to rethink that plan. Falling in what is traditionally the busiest shopping period of the year (the weekend after Thanksgiving), Small Business Saturday encourages consumers to shop small and local.  

Small business owners can capitalize on this highly-profitable day by offering discounts and special offers. Just make sure your customers are aware of any holiday deals you plan on offering and how they can take advantage. Promote your Small Business Saturday specials through emails, social media, newsletters, and anywhere else your customers are sure to see them. Not least of all, use outdoor signs to grab customers’ attention as they walk down the street, especially if your small business is in a walkable local shopping district. 

How can small business owners decrease stress during the holidays? 

While the holidays are a great way to capture new business and increase profits, they can also be extremely overwhelming. This is especially true for small business owners and employees who may be working overtime to handle a sudden surge in sales and customers.   

Here are a few ideas small business owners can implement to help themselves and their staff decrease stress during the holiday season.  

Set realistic goals and expectations 

While small business owners often wear many hats, the truth is you can’t be everywhere at once. Working 15-hour days or selling out of all your products may seem like a great way to boost revenue, but it’ll take a toll on everyone. Instead, before the chaos of the season starts, sit down with your staff and set some realistic goals and expectations for your business. 

It can be helpful to look back on years past to know what you might be facing this year in terms of sales. If this is your first holiday season as a business owner, it might help to check in with others in your area and see if you can get an idea of what to expect. You can often find similar local business owners through your Chamber of Commerce or Small Business Administration. 

Stay organized 

Chaos is bad for business. No matter how organized you are the rest of the year, it’s easy to get overwhelmed and forget to complete basic tasks during the holiday rush. The best way to stay on top of the busy holiday season is to remain organized.   

Take some time at the beginning and end of each day to take stock of important things like receipts, customer orders, and other important documents. It’s always a good idea to write things down either on paper or in an online planner so you don’t forget. Don’t hesitate to go overboard on reminders to yourself and your staff during this hectic time. And don’t forget to ask for help when you need it.  

Empower your employees during the holidays

Your employees are an asset all year long, and even more so during the busy holiday season. From helping customers on the floor to processing online orders to fielding questions and complaints, your staff keeps your business running smoothly. 

Equip your employees with the resources and information they need. Make sure everyone is up to date on holiday specials and that employee workstations or registers are fully stocked before things get busy. 

Be sure to show your appreciation for your staff however you can. That could mean giving out holiday bonuses or gifts. Remember that your staff also needs time to complete their own holiday shopping. You might consider giving employees an extra hour of lunchtime once a week that they can use to run errands or even just to relax.  

Small business owners can win big during the holiday shopping season

The holidays should be an exciting time for small business owners. With plenty of opportunities to capture new business, you have a chance to finish the year out on a high note. Just be sure to take the time to check in if things start to get overwhelming. Encourage your team to power through the holiday season to end the year strong, and don’t forget to give everyone a little downtime when things slow down in January. 

The post Shopping Small May be the Next Big Thing for Small Businesses appeared first on Pie Insurance.

It’s the last quarter of the year and many small businesses are looking to fill seasonal positions to accommodate the rush of the Holiday season. The job market and projected spending are both areas to keep an eye on as we move toward 2022’s close, but there are still some excellent ways to bolster your numbers and many advantages of hiring seasonal employees.

Make sure all the customers that come your way are taken care of and review some of our tips for hiring before the Holiday season starts!

Establish your timeline

Be considerate of your potential new hires and your business by establishing your hiring timeline now! Review your numbers from last year to determine the busiest days and weeks leading up to and following the holidays. On days you were short-staffed in previous years, hopefully, you took a mental or physical note to have more employees ready to help where you need extra support. Use this information to determine how long you’ll keep your job listings open and when you’ll need new hires to start.

Along with the typical full-time or part-time descriptors, clearly list in all of your seasonal job descriptions when the interview periods will take place, when the interview process is projected to end, and when the start dates will be for those hired. This helps avoid any miscommunication that could result in a new hire having to reject a job offer or low application numbers due to ambiguous information. Start the recruiting process off on the right foot by respecting everyone’s time.

Keep an open mind

Many people use the holidays to earn extra money while on school vacations or to supplement a job that slows down during the winter months. Some might even be using the opportunity to explore a change in their career path by taking on temp work in an industry different from their current job.

Do not limit yourself to hiring people who only have a direct connection to your open position. Many soft skills acquired in other industries can apply to what your open position entails. Let your applicants show you how they can be a good fit for the position!

Depending on your small business’ industry, you might need a longer lead-up time for the hiring process, and there may be some compromises necessary when reviewing the level of experience your applicants possess.

College students, for example, will have less experience on their resume but might make up a majority of those who are willing to work during the Holidays since they have fewer family commitments and responsibilities. Keep your expectations reasonable and flexible, and you might be surprised at the caliber of people that you end up bringing on board.

Put time and thought into training 

Seasonal employees are often under-trained compared to their full-time counterparts; but why is this? An employee’s path to proficiency has to be shorter due to the time-sensitive nature of the Holidays. Unfortunately, training is the biggest hurdle to getting extra help on the floor. Therefore, training gets abbreviated and underprepared employees are left to learn as they go more than their full-time coworkers had to.

The amount of training your seasonal employee receives might need an overhaul if you want to provide the excellent customer service necessary in the coming months. Automate as much of the HR paperwork process as you can, especially if your new hires are considered contract hires. This way, time-consuming logistics can be taken care of beforehand instead of taking up valuable training time. 

Invest in new training platforms or ready-made resources already available to you from software and service providers you currently use. If your budget is tight leading up to the end of the year, consider applying for a small business loan or a business line of credit that can help you purchase the tools necessary for employee success.

Most importantly, build in enough training time in your onboarding process to make sure there is a solid period where your seasonal employees can focus on learning their roles without the added pressure of performing.

Have something to offer

Many employees looking for work this holiday season will be looking for the benefits you can bring to the table for them. Whether it’s competitive pay, flexible scheduling, attractive store discounts, or a foot in the door for full-time employment down the road, your position has to have perks. 

First, learn about the difference between seasonal employees and seasonal workers, and determine how your new hires will be reported on the books. This distinction is important due to employment laws and regulations. For instance, seasonal employees are entitled to some benefits while in general, seasonal workers are not.

If you are able, consider offering some select benefits for employees. This can help boost loyalty and potentially help in bringing back seasonal employees year after year! Discounts are a great way to reward seasonal employees for the hard work they put in during such a busy season. If possible, consider raising the discount percentage for a set period for all employees as a thank-you for full-time staff as well as an extra incentive for seasonal applicants.

Ask seasonal employees upfront if they would like to continue working beyond the holiday season to gauge their interest in full-time benefits. This can not only help you budget for the first quarter of the new year but also help start the clock sooner for employees who will qualify for benefits that continue working into January or February. 

Protect them and yourself

Make sure your business has sufficient insurance coverage to protect yourself against the higher number of cyber attacks during the holiday season. This goes back to the level of training new employees receive, and the serious consequences of gaps in cyber threat training, especially.

Having an up-to-date cyber insurance policy (as well as other well-known types of small business insurance such as worker’s comp and general liability insurance) will signal to seasonal staff that you can handle whatever comes your way. New employees who receive work emails, or who will be handling service requests, will not have the weather eye that longer-tenured employees have and can easily become prey to phishing emails and other fraudulent tactics. Having solid insurance coverage will give your new hires peace of mind as they navigate the holidays in their role.

Give them a reason to stay

With job satisfaction at record lows, it’s more important than ever to do whatever you can to foster employee loyalty and retention, even among seasonal staff. 

While much of what comes your way this holiday season is out of your control, do whatever you can to foster an encouraging and supportive environment for your staff, regardless of their time working with you. Kick favoritism to the curb and provide equal opportunities for staff to shine and receive recognition for outstanding work. 

Collect feedback on how you can better equip your staff to handle difficult situations and customers. Giving them more deciding power or powerful scripts to go off of can create higher confidence that leads to higher engagement in their work. 

When you have thoughtful planning, a flexible mindset, and benefits and protective measures in place, you’ll be able to sift through the current labor market and hire the right people to keep your business running throughout the holiday season.

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.

The post A guide to holiday hiring appeared first on Pie Insurance.

Did you know up to 53% of small businesses combat lawsuits every year? Business lawsuits are much more common than they seem and having the proper small business insurance in place is critical.

At the same time, it can be challenging to know what kind of insurance you need without overpaying for policies and coverage you don’t need.

Two common forms of insurance for small businesses are general liability and business owner policies. These two policies have some overlap, important differences, and exclusions.

Read on for the basics of the coverage and limitations of each policy, average costs for common coverage, and special business situations. You’ll soon be prepared to shop for the best policy for your company!

General Liability Policies

A general liability policy is one of the most basic safeguards for small businesses– it protects them from common mistakes and accidents.

What’s covered?

• Property damage: for when a member of your landscaping crew accidentally breaks a window with a fallen branch
• Bodily injuries: for when a client slips and falls on wet floors during a house cleaning visit
• Advertising/personal injuries: if your marketing materials make a false claim against a rival company

General liability insurance covers you when you’re sued, including attorney fees, court fees, and settlement money up to your policy limit. General liability coverage is considered the minimum amount of coverage your business needs, no matter how careful you are as the owner.

Special considerations

General liability insurance offers excellent protection in many common business scenarios. It gives you peace of mind in the case of legal action, but it isn’t always the perfect solution.

General liability insurance doesn’t cover many everyday needs, like workers’ comp or data breaches. You may overpay for additional coverage if you’re eligible to bundle policies within a business owner’s policy.

Business Owner’s Policies (BOPs)

A business owner’s policy is the preferred choice for many small business owners. This is because a BOP includes a general liability policy and adds further coverage.

However, BOPs aren’t for everyone or every business. There are restrictions on who can have a policy, including company size and industry risk.

What’s covered?

• General liability: for property damage, bodily injury, and personal injury
• Property damage: for when your business equipment is damaged in a fire
• Business interruption insurance: covers lost income when you can’t complete a job for reasons beyond your control, like if an employee is sick for several weeks

You can often add additional coverage to your business owner’s policy for less money than buying the policies separately.

Common additions

• Workers’ compensation: if an employee is injured on the job and has medical bills or lost wages from an extended recovery
• Data breach: if your system is hacked and client information is compromised
• Professional liability: if your professional advice or services cause damage to your client
• Commercial auto insurance: covering any vehicles used in your business

A BOP can potentially offer the most customization for the lowest price, but not all businesses are eligible.

Frequently asked questions: special cases

Many people started a new business or side hustle during the pandemic. As a result, you may feel like you don’t fit neatly into typical business categories. Here are a few common special cases.

I’m a freelancer or solo-preneur. Do I need business insurance?

Yes! A business with only one employee (you) still needs business insurance. Even if your production is small right now, you never know when you could face a lawsuit. Talk with a qualified insurance provider to understand the best coverage for your risk and income.

I have a small business in a high-risk industry. What kind of insurance is available to me?

Small businesses in high-risk industries still need general liability coverage and other specialty insurance. For example, an auto repair shop may use garage liability insurance, which includes general liability and other industry-specific risks.

How do I know if my business is high risk?

It may be difficult to know if your business is considered high risk, be it from personal experience or from searching the internet. The best way to understand your available options is to talk with an insurance provider about your business and desired coverage.

Thinking about a general liability or business owner’s policy?

While most businesses aren’t required by their state to have general liability insurance, many choose this coverage because the benefits far outweigh the premium expense. On the other hand, most businesses are required by state law to have workers’ comp insurance, which is a common addition to business owner’s policies.

Remember, every situation is different and not every business is eligible for a BOP. Do your research and speak with a trusted advisor.

Thanks for reading! Please note that this content is intended for educational purposes only. As best practices change regularly, you should refer to your trusted advisor for specific counsel.

The post Business owners’ policy vs. general liability insurance appeared first on Pie Insurance.

If your small business employs workers, it’s essential that you pay them on time and accurately. A payroll management system can help make this task easier and help you avoid costly mistakes.

Should I outsource payroll management?

Your workers’ comp premium is calculated based on your company’s annual payroll. Payroll includes employees’ total compensation, including bonuses, commissions, vacation and sick pay. Each year, your insurer conducts an audit to calculate your actual payroll for the year. If you overestimated your payroll, you’ll receive a refund or credit. Conversely, you’ll owe money if payroll is underestimated.

Payroll management is a catch-all term for running payroll, paying payroll taxes, and storing the related documents. If you’re in charge of payroll management, you can reduce the time you spend calculating payroll taxes by implementing a payroll management system. To get started, determine which parts of the payroll process you want to outsource and which you’d like to continue managing in-house. Certified payroll specialists, certified public accountants and bookkeepers can help. It’s important to note that even if you delegate some of these tasks to outside vendors, you’re still responsible for reviewing and approving payroll and ensuring the information you provide to the vendor is current and accurate.

If you’re confident you can handle payroll on your own, payroll software can save time, automate some of the tasks and reduce the risk of making errors. In fact, more 55 percent of small businesses manage their payroll online, according to the National Small Business Association’s 2019 Technology & Small Business Survey. However, while payroll software can save small business owners time, you’ll need to know how payroll works to set up the software correctly and identify errors.

How to set up a payroll management system

Assuming that you’ve already set up your employer ID number (EIN) and have collected the necessary forms (W-4, state income tax withholding, and I-9) from each employee, the experts at Motley Fool say the next steps are to:

• Obtain a state tax ID number for every state in which your employees live
• Choose a payroll schedule, whether it’s weekly, bi-weekly, or semi-monthly
• Implement a time-tracking system to track hourly employees
• Open a separate payroll bank account for payroll reconciliation
• Collect direct deposit bank information from your employees
• Agree on each employee’s hourly wage or salary

Except for time tracking, all of this information goes directly into your payroll software.

Then, according to Nerd Wallet, the next steps are:

1. Tracking employee hours. Many payroll products offer integrations with time-tracking apps or include time-tracking features. You also can use paper time sheets or a time clock.
2. Calculating gross pay. By implementing time clock software that integrates with your payroll software, you won’t need to enter each employee’s hours manually.
3. Subtracting payroll deductions (pre-tax, tax withholdings, and post-tax).
4. Calculating net pay.
5. Calculating employer payroll taxes, which are based on employee compensation. These taxes include:

• • Federal unemployment tax
  • State unemployment tax
  • One-half of Medicare and Social Security taxes (FICA)
  • Local taxes

6. Reconciling payroll. This means checking your work and ensuring your expected payroll matches the actual payroll. While it may seem unnecessary to complete this step, since payroll software automates the process, mistakes can happen.
7. Reviewing any figures that seem higher or lower than expected. Your payroll software should automatically flag potential inaccuracies but double-check your calculations.
8. Preparing payroll journal entries. A payroll journal entry includes all the costs to process payroll, including wages, employee- and employer-paid payroll taxes, and payroll deductions. Payroll software often integrates with accounting software to automatically prepare payroll journal entries.
9. Running payroll, which means approving direct deposits and checks. It typically takes a few days for direct deposits to land or for checks to be printed and distributed. Some payroll products offer same-day or next-day direct deposit; others require five business days. To make payroll by payday, allow time for processing.
10. Making tax and benefits payments. Luckily, most payroll management systems will calculate, file and pay federal and state payroll taxes on your company’s behalf. In addition, your payroll software usually withdraws enough from your bank account each payroll cycle to make these payments on time. If you manage health insurance or retirement plans through the same service, you might also be able to make those payments electronically, too.

How to maintain payroll records

Once you get into the habit of running payroll, your work isn’t done. Be sure to:

• Update employee records as needed. This can be done via self-service online or paper forms, depending on your system.
• Save your records. The Internal Revenue Service requires businesses to keep employment tax records for at least four years, while the U.S. Department of Labor requires companies to keep payroll tax data for at least three years. Your state may have additional record-keeping requirements.
• Back up electronic records provided by payroll software on a separate device or platform.

If you’re concerned about how miscalculating your expected payroll will affect your workers’ comp premium, some companies—including Pie—offer pay-as-you-go billing. This means you won’t pay an initial deposit for coverage, and you avoid the potential for an additional bill after your annual audit.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

The post Small business payroll: things to consider appeared first on Pie Insurance.

As your business grows, whether that means more employees, more clients, more revenue, or all of the above, there will inevitably be more “cooks in the kitchen.” And this can mean a greater risk for errors. These errors may include typos, unmarked checkboxes, overlooked emails, missed deadlines, or any number of mistakes that cost your business and your customer time and money.

Everyone makes mistakes now and then, and they don’t often cause any real problems. For those rare times when they do, most businesses cover themselves by carrying errors and omissions (E&O) insurance. While having an E&O insurance policy is important, it’s vital to take preventive measures so you don’t have to use it.

Errors and omissions can be costly to your business both in terms of reputation and money. As a business owner, you want to grow your business but you might be afraid of the additional risk that comes with doing so. If you find yourself struggling to balance growing operations and minimizing the risk of errors and omissions, don’t throw in the towel just yet. Here are three tips to keep your business moving forward without increased risk tagging along.

Use technology to automate and reduce errors and omissions

As we mentioned before, making mistakes is human nature. So, what if the work isn’t being performed by humans? Technology can remove human hands from the routine processes your business deals with daily. With automation, the opportunities for human error become dramatically lower. Lucky for you, technology makes it easier than ever to automate manual, error-prone business processes.

Tasks like data entry and documentation can be automated to save employees from spending their valuable hours on repetitive work. Removing employees from these processes reduces the chance for errors and creates a better experience. Your employees can then spend more time doing what you hired them to do — conducting business and building strong client relationships.

Standardize processes to reduce errors and omissions

For the tasks you can’t automate, the next best thing is to standardize. It’s easy for mistakes to slip through the cracks when everyone is doing things their own way. Creating standard operating procedures can help ensure employees are taking the right steps at the right times, thus reducing the chances of mistakes. This is especially important concerning safety at your company. Having standardized safety training, manuals, operating procedures, and processes helps reduce both the risk of human error and injury. In this way, standardizing can pull double-duty by helping reduce both your E&O exposure and your workers’ compensation insurance claims.

It’s a good idea to build checks into your standardized processes to ensure things are done correctly. In many cases, simply having an internal review process can catch would-be E&O issues before they have the chance to do harm.

In the event that an error or omission isn’t caught in time, having a standardized process helps you gather more details like who made the mistake, how it happened, and how it could have been avoided. You can use this information to prevent future mistakes by designing onboarding and ongoing training practices to address areas with a high tendency for error.

Emphasize continuing education to reduce errors and omissions

As your business expands make sure you’re encouraging both long-time employees and new hires to grow alongside it. Continuing education requirements are only mandatory for employees in certain fields but they can benefit workers in every industry and role. A staff with updated knowledge of current best practices for their job will deliver better results and are less likely to make errors at work.

As a small business owner, you have the power to ensure your staff remains up-to-date on your industry’s best practices. You can also empower your employees by helping them obtain professional certifications so they can continue doing their best work. Encouraging your employees to sharpen their skills can benefit your business in ways far beyond reducing the risk of errors.

You don’t have to choose between growing your business and reducing E&O exposure

Too often, business owners feel like they have to make a choice between growing their business and reducing risks. The truth is, just because you’re growing and expanding doesn’t mean your risk has to grow as well. While these tips can help you maintain an environment free from egregious mistakes, the right insurance coverage can protect your business from the financial impacts of errors and omissions.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

The post Grow your business, not your risk appeared first on Pie Insurance.

Nobody loves tax time. As a small business owner, you’re busy enough without the added stress of filing taxes each year. Unfortunately, filing your small business taxes isn’t optional. The good news is, it doesn’t have to be a huge headache. If you’re looking for ways to save on time and money when filing taxes for your small business, you’re not alone. Here are five tips to help you make tax season less of a headache for your small business.

Hire a tax professional

You may think it’s going to save you time and money to do it yourself but it can cost you more in the long run when you spend your valuable hours working on something that’s not your area of expertise. Not only will hiring a professional save your sanity, the cost of a tax professional is a business expense you can write off (thus lowering your taxable income!).

Using a professional can also make a difference in your tax liability because a pro knows things you don’t, and can recommend the best way to file for your situation. So, while it’s tempting to DIY, seasoned small business owners have learned the hard way that it really pays to hire a professional.

Don’t wait until the last minute

Nobody sets out to be late with their taxes, but it’s easy to put them off when you’re busy running your business. Besides receiving a faster tax refund (or not paying penalties and interest if you owe money), there are plenty of reasons starting early will save you time and money in the long run.

Starting the process early gives you the time you need to gather all the documents and information needed to claim deductions. Since many people wait until the last minute, getting a head start also means you’ll have more time to discuss your financial goals with your accountant. You’ll also save money by avoiding late fees and missed deadline penalties.

Pay your estimated quarterly taxes

What’s better than paying taxes once a year? For many small businesses, the answer is “paying taxes four times each year!” We know, it sounds horrible. Who would want to pay taxes more often than they absolutely have to? But for small businesses, paying taxes all at once can be a large burden.

You can manage your cash flow and make sure you’re not stuck with a giant bill by setting aside money each month and paying federal and state quarterly estimated taxes. If you decide to hire a tax professional, this person can calculate your company’s estimated taxes and help you pay them easily—or even automatically—each quarter. You can even pay both state and federal estimated taxes online using an electronic bank transfer at no extra cost or with a credit card if you choose (typically with a processing or convenience charge).

Stay organized to save time filling your small business tax returns

You don’t want to be caught scrambling to find important information and documents when tax season rolls around. You can save time (for yourself) and money (on your tax professional) by staying organized throughout the year.

This means:

• Keep clear records of all business income and expenses
• Preferably, use a bookkeeping system that syncs with your credit cards and bank accounts
• Use separate bank accounts and credit cards for your business and personal expenses. Small business owner tip: you don’t necessarily have to open a credit card in your business’ name, as long as you dedicate one of your cards solely to business use.

Best case scenario, staying organized helps you move more efficiently through tax season. Even in the worst case—a dreaded IRS audit—all this organization will pay off as you’ll be confident your books are in order and that your tax returns were done correctly because your tax professional had a clear picture of your business financial records.

Classify your business correctly

One of the first orders of business after starting your own company is to choose a business structure. Whether you operate as a sole proprietor, partnership, LLC, or another type of business, the way you classify your company has a lot to do with how much you pay in taxes. Failing to classify your business correctly can result in overpaying on your taxes. If you are unsure if your business is correctly classified, consult your accountant or attorney for guidance.

While it’s always best to start off right, one nice thing about taxes is they can be amended and corrected. If you started your business recently and think you may have not filed correctly, it may not be too late to request a change. Talk to your accountant to see if filing your business taxes in a different way could save you money.

Tax season doesn’t have to be a burden for small businesses

Tax season happens every year, whether you feel prepared or not. As a small business owner, these tips can save you time and money by allowing you to spend less time worrying about filing your taxes and more time running your business. We won’t say following these tips will make you enjoy tax time, but being prepared can at least help you dread it a little less.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

The post Five tax tips for small businesses appeared first on Pie Insurance.

Do you have a management style? Have you had a supervisor or mentor whose approach to managing employees is one you’d like to emulate? Here are some tips for finding a voice that will inspire and engage your employees.

As a small business owner, when you first began managing employees, you likely adopted a management style that you picked up from someone else. Or, maybe you read popular business books and decided to use some of the tactics you gleaned from your readings. There are many approaches to leadership, and a good leader can adapt their style to the specific situation.

No matter how you choose to lead your team, you want to employ a management style that feels authentic to you. To find the style that’s right for you ask yourself:

• Does motivation come from empowerment or direction?
• What does a healthy team dynamic look like to me?
• Do I believe in structure or freedom of choice?
• What do I value more: goals or relationships?
• Would I rather make decisions on my own or collectively?
• Do I focus on short- or long-term goals?

These are just a few examples of questions to ask yourself to help you refine your signature management style.

Four types of management styles

Four popular management styles include:

Authoritarian, autocratic, or bureaucratic leadership: In this approach, an individual has total decision-making power and absolute control over subordinates. An authoritarian leader makes decisions with little or no participation or creative input from their team members. In this approach, managers dictate policies and processes and supervise employees directly.

This style can be appropriate for industries and organizations where decisions must be made quickly, tasks must be performed a specific way, and there is scant room for mistakes (think construction, manufacturing, military). It also can be useful in situations where you are the most knowledgeable person in an organization. For example, this approach is best for teams that need to follow a specific process to mitigate risk precisely. It can also be effective when managing workers who miss deadlines, departments experiencing conflict, or teams that need you to make quick decisions.

However, experts caution that being too controlling can negatively impact creativity, ideas gathering, motivation, and trust within the team. An autocratic management style also may make it difficult to see things with a wider, more strategic view.

Democratic, participative leadership: With this style, the manager sets goals, guides team discussions, and makes the final decisions. Because they recognize that employees have valuable insights, democratic leaders actively consult them. As a result, this leads to fresh ideas that they likely wouldn’t have had on their own.

To manage differing opinions, participative leaders work to build a culture that supports healthy debate. They ensure that mutual respect is a priority on the team to inspire participation from everyone. However, this management style can slow down the decision-making process, especially if team members are involved in every decision.

The delegating, “laissez-faire” leader: The French phrase “laissez-faire” loosely translates to “let people do as they choose.” In short, it means letting things run their course without interference. With this style, you empower your team to make decisions and organize its own processes with little or no guidance.

As you may have guessed, this approach can be a slippery slope; situations can devolve into chaos if your employees aren’t motivated or highly skilled. And, as the leader, you will still be held accountable for the outcome. It can be effective for your small business, however, if processes are simple, deadlines are flexible, and workers are driven, creative, experienced, and knowledgeable. To ensure that things move forward appropriately, you’ll need to delegate the right tasks to the right people.

The transformational leader: Consistently productive, long-lasting teams often have transformational leaders. These are supervisors who have high expectations and set a positive example for their employees. Transformational leaders have integrity and high emotional intelligence. They motivate people with a shared vision of the future, and they are skilled communicators. Most are empathetic, authentic, humble, and self-aware.

Transformational leaders inspire their employees because they expect the best from everyone and hold team members accountable for their actions. They motivate without micromanaging. By setting clear goals, this type of leader generates high productivity, engagement, creativity, forward-thinking, and resourcefulness.

While a certain leadership style may be impactful in a specific job, experts say the best style is a blend of several. Knowing which style to use in each situation comes more naturally with time, practice, and emotional intelligence. Remember, most leaders borrow from various styles to achieve various goals at different times in their careers.

Five tips to get started

To develop your own management style to run your small business:

1. Find a mentor with more experience and ask how they developed their style and what worked for them.
2. Be authentic by choosing a management style that aligns with your morals, temperament, and strengths.
3. Try various approaches in different situations, then assess the outcome.
4. Ask for constructive feedback from people you trust to grow and strengthen your leadership skills.
5. Be flexible and open to changing your leadership approach over time.

There are many other management styles in addition to the main types explored above. Take this quiz to learn which style you lean toward naturally and other approaches you might find helpful to incorporate.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

The post Discovering your management style appeared first on Pie Insurance.

This Sunday, January 23, is National Pie Day, an annual celebration of one of the world’s most delicious foods. National Pie Day was first commemorated in 1975 by a teacher in Boulder, CO (just down the way from our Denver headquarters, how fitting!) and became officially sponsored by The American Pie Council in 1986. It’s a day that’s meant to honor all things pie—baking, eating, and enjoying it around a table with family and friends.

Not surprisingly, National Pie Day holds a special place in our hearts at Pie Insurance. Why did we name our insurance company after a tasty dessert, you ask? We landed on Pie for a few reasons. When my co-founder, Dax, and I began laying the foundation for our company, we wanted it to be an insurance company that was completely different from all others. Insurance can have a reputation of being difficult, un-friendly, and cumbersome. We wanted to build a likable and straightforward company that made getting small business insurance “as easy as pie.”

We also were inspired by the other, less edible type of pie, the mathematical equation pi. There would be no Pie Insurance without the proprietary data and predictive analytics that power our business. With this unique data and our digital-first approach to insurance, small businesses and our more than 1,000 agency partners can unlock quotes in minutes and ultimately save up to 30% on their workers’ comp insurance. Basically, you can’t spell pie without pi and we couldn’t do what we do without a strong mathematical foundation.

Finally, we’re passionate about the “family aspect” that pie represents. Pie brings people together. People all across America have favorite pie recipes and related traditions—regardless of their varied backgrounds. We wanted to instill this representation in our own company culture at Pie Insurance. We set out to make it a place that reflects our shared values, while still celebrating the qualities that make us unique and different.

Clearly, life is not always “as easy as pie”—but we believe that getting insured should be. So while National Pie Day falls on January 23, we try to celebrate all year long, because life is way too short not to enjoy it. We invite you to have fun with us all week long.

John Swigart, Co-founder and CEO of Pie Insurance

The post Pie Day 2022 appeared first on Pie Insurance.

In the past, it was common for an employee to spend their whole career with the same employer. However, this trend has been steadily changing, more and more workers are leaving organizations after a couple of years to pursue better opportunities.

For most small businesses, losing two or three employees can significantly impact the company as a whole, especially if the organization has ten or fewer employees. One way to increase employee tenure within your small business is to ensure they know how much they’re appreciated.

It may sound simple enough; however, many who leave their job often do so because they don’t feel valued in their current position.

Here are a few ways you can show employee appreciation in your company.

Go the extra mile for your employees’ birthdays

For many, birthdays are an opportunity to celebrate. While a simple “Happy Birthday” and a card signed by everyone in the office is a nice gesture, going beyond that can be a great way to show employee appreciation.

How far you go to celebrate an employee’s birthday is up to you. Some organizations will often have lunch delivered for the office on birthdays, while others post birthdays on their social media accounts.

Here are a few other ideas on how you might celebrate the next birthday in the office:

• Decorate their desk or office space with balloons, banners, and happy birthday notes
• Allow employees to take their birthday off from work if they wish
• Bring in cakes or other sweet treats for their big day

Encourage and promote continuing education

While not every employee wants to go back to school, most are looking to improve their skills. Providing opportunities for continuing education and encouraging team members to take time off from work for classes, seminars, and workshops can be a great way to show employee appreciation.

Some organizations take it a step further and set up learning opportunities throughout the workday for employees. These workshops are a great way for workers to improve on skills that will help them in their current roles and prepare them for future positions within the company.

Provide a flexible work schedule

Now more than ever, employees are placing a focus on work-life balance. One way of supporting this balance is to allow employees to work from home.

While that doesn’t mean you need to allow your team members to work from home every day, throwing in an occasional day to work from home can do wonders for team morale and show your appreciation for their hard work.

Many companies have begun experimenting with hybrid schedules and have seen great success. Often a cadence of two to three days in the office and the remaining days at home provides an excellent balance for employees.

If your organization is planning on making the shift to a hybrid schedule or providing the option of working from home, you will want to make sure you have the proper support system in place. Nothing is more frustrating than not being able to do work while at home.

Here are a few items to help with the transition:

• Establish a way for your team to communicate throughout the day — messaging platforms like Slack, Microsoft Teams, and Google Chat are all great options
• Provide contact information on whom your employees should reach out to if they run into issues while working remotely
• Ensure you have someone who can help with technical issues as they come up

Employee appreciation is a dynamic part of supporting a team of people. As you get to know your team better, show appreciation in ways they find meaningful. Take every opportunity to let them know you see them and value their time and effort. Your workplace culture will benefit as your employees thrive.

Thanks for reading! Please note that this content is intended for educational purposes only. Any above reference to a specific company, method, or product is meant for educational purposes only and is not specifically endorsed by Pie. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

The post 3 meaningful ways to show employee appreciation appeared first on Pie Insurance.