When Should Your Small Business Hire More Employees?

Share on facebook
Share on google
Share on twitter
Share on linkedin
Reading Time: 3 minutes

Growth is the most important and exciting part of small business life. At the same time, growth phase poses a very challenging question “When is the right time to hire more employees?”. We can help you with the complicated decision of when to hire an additional employee or additional employees for your business. 

What Should I Consider in Making the Decision to Hire?

There are a number of complex factors to consider when making the difficult decision of whether or not to add a new employee or employees to your small business or family business. These include:

Turning Away New Business

Forced to turn down new work or new clients because you don’t have the personnel to take care of them? If so, that might be the easiest “no brainer” in the decision-making process. Secondly, are you so busy with the current workload that you can’t look for new business? In this situation, you may be poised to expand but need to shift some of the work to a new employee so that you can devote more time to marketing.

Expectation that your business will continue to grow in the future is also a good indicator. Although sometimes it’s hard to predict, but you don’t want to make a hire and then later find out you really didn’t need him or her. As small business accounting experts, we can help you with this difficult analysis.

Paying Overtime

Sometimes as a small business owner you are you forced to pay your current employees overtime, or worse yet overworking your current employees without extra pay. You don’t want to pay time-and-a-half for overtime, but you don’t want to have overworked, disgruntled employees in your small business either.

Suffering Deliverable Quality

One of the most important part of business if not the important part. Quality of work should not suffer. Period. If the quality of your work suffering due to labor shortage, then this is a “no brainer”. It sounds like you are ready to expand your small business.

Lack of Skills

Lack of skills is one of the important that can stop the growth of your small business. Does your current group of employees lack a certain skill or skills that would be helpful to the business.? For example, have you grown to the point where you need a full-time IT person? If so, you can fill in your company-wide skills deficit with the new hire.

Short-Term Cash Flow Issue

Hiring can lead to short-term cash flow issue if you are a small business. Can your small business afford to take a short-term financial hit? Hiring a new employee may result in a short-term cash-flow problem for your small business. Hiring a new employee is about more than just adding another employee to the payroll. For example, there may be costs associated with the recruiting process, costs that might not immediately come to mind. Depending on the line of business you are in, you may need to buy new equipment – anything from a computer to a pickup truck. Will he or she need a new desk? As small business experts, we can do the math for you and help you make this difficult decision.

Decision Time

When you carefully consider all these factors it may be clear that now is the time to expand. We will be talking about the best way to navigate through the hiring process in a future blog, but for now, keep these additional suggestions in mind. Do you have an employee already on board that is ready (and probably eager) to move up? It may be best to consider promoting him or her and making the new hire at the lower level. This is simply Employee Relations 101. Second, if this is a family business and you are hiring outside the family – perhaps for the first time – you need to be particularly careful to think about what the new hire will do to your family business’s chemistry. Finding the right fit is essential.

Are There Any Alternatives to a hiring?

Sometimes hiring a new permanent, full-time employee is not the best idea. Here are some alternatives:

Seasonal or Temporary Hire

This is a particularly good option where your workload is seasonal; for example, during the summer for a landscaping company, or around Christmas for a retailer. Knowing that his or her position is only temporary at the outset will assure that there are no hard feelings when the employment comes to an end.


Outsourcing some of the work to a private contractor or freelancer. This can be a great alternative, but there is one complication here that we can help you with as tax and accounting experts: the person you consider a freelancer may be considered an employee by the Internal Revenue Service. The rules are complicated and the financial implications can be significant, but we can help you through them.


 Finally, perhaps you are happy with the current size of your business. Perhaps it is a family business and your family is all happily employed. Sometimes the decision to not expand is the correct one.


As you can see, the decision to hire a new employee for your small business or family business can be complicated; we are here to help. Please contact us by email or phone. 

Subscribe to Our Newsletters

Crypto Tax & Accounting Newsletter


Cross-Border Tax Newsletter

Sign up for our Newsletter
Over 100 5 Star Reviews!
Based on 107 reviews
powered by Google
Annie Phillips
Annie Phillips
12:35 10 Oct 21
Turn around time was amazing on the project I needed done. When you don’t understand all the different forms... communication is key and you will get that here. They are there to explain what and why you need it.read more
Meru Kapadia
Meru Kapadia
23:33 01 Oct 21
I usually don't write reviews much as everyone has different experiences, but definitely wanted to share the positive... experience I have had here and why I would recommend them to all my family, friends and co-workers.I got a referral for here from a friend, so thought of giving them a try over my old CPA firm. I have been going here for a couple years now and have to say they are top notch. They are always responsive and willing to work with me even when I am delayed. I generally like to ask a lot of questions and not once did I feel like they were annoyed by it and would very thoroughly and positively answer all my concerns with detail explanations. Even during the pandemic, they worked with me 100% virtual and it was seamless. Overall, I am very happy with this firm and will continue with them for the foreseeable future.read more
Kevan Shah
Kevan Shah
21:45 01 Oct 21
I’ve been going to them for 3 years now for multiple of my businesses. I changed to them after I had problems with my... previous CPA firm and I’m so glad I did! Best decision I ever made for my businesses. They have saved me thousands of dollars over the years as well as deal with my immensely complicated tax filling issues. No matter when I call, they always help answer all my questions (and trust me I have a lot) and put my mind at ease on all my concerns. I feel as if I am family the way they take care of me. The quality of their work has not changed; very consistent and professional. It is an understatement when I say I highly recommend them.read more
Maunil Shah
Maunil Shah
16:19 01 Oct 21
AKIF CPA is the best place for your tax needs! Saim has been easily available for my all my questions and concerns. ... Couldn’t ask for a better firm that provides excellent service and a familiarity with their clients. I always recommend family and friends to AKIF CPA!!read more
Shah Hussain
Shah Hussain
03:58 01 Oct 21
Hello AKIF CPA,I wanted to share my experience with you, your team and whomever may be reading this message. My most... humble thanks to you and your team for a being such great part of my success.You have done a fabulous job for us this year, and since you took over our books (during our most devastating times) you have literally taken weight off of our shoulders.Thanks for bringing everything up to date and also providing us with numbers or as you call it consultations, ahead of time so we could seal the holes.Great work!!!Shah H.read more
Sumit Dalwadi
Sumit Dalwadi
04:57 30 Sep 21
The professionals at Akif have been absolutely amazing! Quick to answer all the questions I had and always available... to offer their guidance.read more
Calvin R
Calvin R
20:21 29 Sep 21
I recommend these guys! I will be going back next year. They made everything simple and we understood what was... happening. There we issues with our taxes due to our previous accountant and these guys fixed everything. They answered our questions and service was always with a smile.read more
Ammoria Daniels
Ammoria Daniels
02:11 16 Sep 21
We contacted Akif with an urgent matter regarding corporate taxes. Akif immediately understood what was needed and... within days had everything ready to sign. The level of service we received was amazing and unmatched. Waqar expertise in trucking industry made our situation seamless. His communication was outstanding; I heard from him daily and could have been completed sooner if I was as fast as he was 😃 Highly recommended!read more
Joe Paneitz
Joe Paneitz
18:30 18 Aug 21
What an absolute pleasure to work with this CPA firm. My business is already seeing such a positive impact and growth.... I cannot believe I didn't connect with them sooner. This firm is helping in so many ways! 5 stars is an understatement! Thank you so much for your help AKIF CPAread more
Helptest ARCpoint Labs
Helptest ARCpoint Labs
15:02 18 Aug 21
The firm is quick, responsive, and has the latest technological software. Thus far, I have been with them for 3+ years... and will continue to work with them even after relocating. They make it easy even when I'm miles away. Would highly recommend them.read more
Luz Tipaz
Luz Tipaz
16:06 13 Jul 21
Saim and his team are the best CPAs in town. I have been their client for years. All started when I needed help with... company structure with multiple companies and then accounting and Taxes. I have been very happy ever since. Thank you AKIF CPA.read more
Maria perez
Maria perez
18:31 08 Jun 21
Me and my husband have been getting all of our personal Taxes, business Taxes, monthly bookkeeping, accounting and... payroll done with AKIF CPA. Recently, we had more stuff come up and had detailed analysis done on capital gains, single family rentals (SFR) and business disposition. You will only know how great this CPA company is until you have worked with them and given them a chance. Words can’t describe our experience. AKIF CPA gets the job done every time - very reliable, professional and affordable.read more
Afnaan Amin
Afnaan Amin
22:14 02 Jun 21
Very good experience, we had unique situation in regards to cross border income as Canadians currently residing in the... US. Income on both sides of the border through completely different channels. Everything was very easy and completed timely, I also had lots of random questions and Mohammad provided top notch service along the way and even after we finished our taxes!! Highly recommended.read more
Ryan Paton
Ryan Paton
10:56 08 May 21
I moved to the USA from Canada late 2018 as part of a promotion/relocation for work. For my 2019 returns, I used an... accounting firm recommended by the local Canadian social club in my city, which was a terrible experience. They were slow to respond to inquiries and would follow up in piecemeal requests which dragged out my return process over several months, often asking for information I had already provided.For the price I paid, I vowed to find better service. I found Mohammad online and decided to reach out. Mohammad was extremely responsive, took care of my US and Canadian returns as well as my wife's business returns in a timely manner. Overall, it was a very positive experience and I would recommend him to another in my situation.read more
Tuan Vo
Tuan Vo
01:59 20 Apr 21
I relocated to Texas from Alberta, Canada and needed a CPA to help me with my cross-border taxes as I was not happy... with the CPA that I used previously. During my interviewing process to find another CPA, I had good feedback from Mohammad as he was able to answer my questions regarding my unique tax situation with expertise, and importantly to me, in a timely manner. I decided to use his services for the current tax year and I have nothing but compliments for the work Mohammad provided. If you are in need of a professional cross-border CPA, I highly recommend reaching out to Mohammad Akif.read more
See All Reviews