What Happened to Work Ethic?

Blame it on the pandemic for changing the behavior and attitudes of millions of Americans — especially the American worker. When workers were forced to work from home, we were given (though not by design) the opportunity to reevaluate our priorities. 

office staff meeting around conference table

To summarize several studies, what America workers now say is more important:

  • Be and stay healthy.
  • Eat right; exercise often.
  • Pay equal attention to physical vs mental health.
  • Appreciate life over a job.
  • Put personal freedom above financial goals.
  • Rely less on large gatherings for entertainment.
  • Put relationships above a standard of living.
  • Put our own views ahead of public health officials and politicians.

Basically, American workers, post-pandemic, look at life as is more important that a job, and if that job can be performed over a computer from home, that’s even better.

It’s a far cry from the pre-pandemic times with life centered around the workplace and companies dreamed of expansion to multiple locations. How an office looked, worked, and functioned were considerations when deciding where to work. Now, it’s not about space, it’s about people…and the shift requires big changes in how companies shape, manage, tend, and lead their people.

The American work ethic in terms of productivity, creativity, and resourcefulness has not changed … after all, we are still proud, free, and strive for success. So employers are understanding the importance of offering, where possible, flexibility to work remotely. The challenge to reengage people back into the office, at least for the foreseeable future, is dim.

On reflection, is it so bad to want to be near our children and loved ones, putting fewer miles on our car, eating lunch from the refrigerator rather than a restaurant, and still be a contributing factor to the American workforce? History will know soon enough.

An Accountant Can Do What?

We all know that as a small business accountant we help you to keep your eyes on your business, employees, and customers while we provide regular financial reports and statements that help managers make informed decisions with the most up-to-date data. We help by overseeing payroll and estimating tax payments throughout the year, and make sure our clients are in compliance with all regulatory and reporting required by the government. 

accountant speeding through day at her desk

You hire us because you value strategic advice and want someone else to watch the finances so you can concentrate on your customers, employees, and strategies. 

But what else can we do? You might be surprised…

A. Want to expand or start a new business? We can help you prepare what you’ll need to convince investors and lenders to help with startup costs.

B. Too many moving parts in your business? We can help you figure out what’s important and where the revenue stream is sourced. We can help sort your key performance indicators (KPI’s) and suggest or provide all the tools needed to measure progress.

C. Need someone to listen and support you? Being a business owner is tough, and it can be lonely when things are hard. We can help by giving you a non-judgmental ear or help you cope with stress by breaking down big problems into smaller, more manageable parts.

We are more than good software. The most important thing we can do as your accountant is to make your business better! As your accountants, if we don’t have the answers, we know who does.

Small Biz Outlook 2023

Small Business Expo in Cincinnati is in the rear view mirror, but those who attended were determined to make this a healthy business year, in spite of recent dark clouds. There’s one thing small business does well —we’re nimble and very bullish about our businesses.

Since 1973, the National Federation of Independent Business (NFIB) has tracked and recorded Small Business Economic trends via questionnaires mailed to their members. We thought it would be helpful to share a few of the numbers.

Of note for 2023 is their Small Business Optimism Index that shows an overall Index of 89, after their 49-year average of 98. The reason for the dark clouds? Inflation!

Stressed businessman looking at laptop screen in modern office.

While the survey tracks labor markets, capital spending, sales and inventories, compensation and earnings, borrowing and credit markets, inflation was what hit small business owners the hardest. 

This Inflation information should be informative for our readers to measure their performance compared to the rest of the small business world:

The net percent of owners raising average selling prices decreased 4 points from March to a net 33% seasonally adjusted, the lowest since March 2021. Unadjusted, 12% (up 1 point) reported lower average selling prices and 48% (down 2 points) reported higher average prices. 

Price hikes were most frequent in construction (59% higher, 7% lower), retail (59% higher, 8% lower), wholesale (54% higher, 14% lower), and finance (52% higher, 5% lower). 

A net 21% of small business owners plan price hikes (down 5%).

Consumer spending increased, but consumers were purchasing product from inventory made in prior quarters. Those small bank failures that made the news were not due to bad loans but to poor risk management! Even as the Government was pouring massive Covid relief into the economy, banks allowed those deposits to be withdrawn in 24 hours.

For those who enjoy tracking where your small business stands compared to other small businesses, read the entire report (Copyright NFIB Research Center publication: NFIB Small Business Economic Trends, April 2023).