Hiring dedicated and qualified employees is crucial to the success of small business management. New jobs for small businesses mean keeping track of an updated payroll as well as adding to company revenue, which can be calculated with accounting management software. Not only does job hiring advance the goals and innovation of businesses themselves, it also grows the economy as a whole. Small business growth contributed to almost half of new jobs in June, according to Small Business Trends.
Small business hiring increases as companies grow
The ADP National Employment Report revealed that U.S. employment increased by 188,000 jobs in June. Most of the hiring came from small businesses, with 84,000 jobs created by companies with fewer than 50 employees. Compared to small businesses, medium companies with 50-499 employees added 55,000 jobs while large businesses with 500 to over 1,000 employees hired 49,000.
The report for June indicates consecutive numbers of growth for small firms, with small businesses creating 6,000 more jobs in May, up from 57,000 in April. Among small businesses, companies with the fewest workers contributed most to job creation with firms of one to 19 employees supplying 54,000 jobs in June.
Of the industries in the report, growing the most with 161,000 jobs was the service sector, which factors in restaurant and retail workers in addition to financial and business professionals.
Healthcare mandate shows no effect on small business management so far
Despite fears that the government mandates under the Affordable Health Care Act would deplete small businesses of their limited resources, the survey shows this is not the case so far. After the act was passed, companies with 50 full-time employees are now legally obligated to provide health insurance coverage for their employees with a due date of Jan. 1, 2015, or else they will face a penalty.
Mark Zandi, chief economist of Moody's Analytics, stated that health care reform did not dampen job creation in June.
"The job market continues to gracefully navigate through the strongly blowing fiscal headwinds. Health Care Reform does not appear to be significantly hampering job growth, at least not so far," Zandi said. "Job gains are broad based across industries and businesses of all sizes."
To calculate how their small business may be impacted by the federal mandate as well as any other financial scenarios, companies can use accounting management software to see how they can comply with the law while maintaining their growth.