For small businesses to thrive under any economic circumstances, they need the right tools for the job. With the help of small business management software, leaders can ensure that employees are being paid the correct rates and that all financial accounts are properly organized and recorded. Business management technologies can help executives stay on top of their game in the face of changes by automating some accounting processes, leaving more time to address important issues such as onboarding new staff members and meeting customer needs.
One significant event that could leave enterprises in particularly pressing need of better accounting software is an adjustment to the national minimum wage rate, currently $7.25 per hour. Whether the rate at which workers are compensated should be adjusted has been a major topic of conversation as of late in light of President Obama's proposal to increase it to $9 per hour during his February State of the Union address.
Minimum wage, maximum benefits
According to a recent survey of 500 small business owners by Greenberg Quinlan Rosner Research on behalf of Small Business Majority, raising the minimum wage periodically is favored by 67 percent of enterprise leaders.
"This new national poll confirms what we've been saying all along – increasing the minimum wage will help small businesses, not hurt us," said Lew Prince, co-owner of Vintage Vinyl and a leader in Business for a Fair Minimum Wage. "As I recently testified before Congress, workers will spend their minimum wage increase at local businesses buying the basics they can't afford now."
The annual minimum wage adjustments would provide continuing benefits to business owners. If the government required companies to pay employees with inflation in mind, owners would be better able to predict labor costs and gauge consumer demands, Prince added. Sixty-five percent of respondents agreed that raises would have positive effects on their company.
The Economic Policy Institute (EPI) has also determined that raising minimum wage could boost the economy as a whole. In a 2009 study, the agency stressed that these pay increases would act as a direct act of relief to workers and stimulate spending as a result. When the federal minimum wage was increased from $5.15 to $5.85 per hour in 2007, the result was $1.7 billion in additional spending. In fact, each time this basic rate was improved, consumer spending followed suit.
For small business owners, changes to the minimum wage could be an exciting opportunity, representing a chance to kick revenues into high gear and apply these positive outcomes to important aspects of their enterprise. However, to support success, business management tools should be in place. With the smart use of technology to keep companies running smoothly, executives can be sure they're achieving the best bottom lines possible.