It's the season of gift giving, evaluating team performance, and bonuses, and for many business owners, that can bring up hard questions. Can I afford to give out bonuses this year? What if it's not as much as last year? How much is fair? And how do I reward my team without draining my cash or putting my business at risk?

In this episode, reformed corporate CFO and founder of Kickstart Accounting, Inc.'s Danielle Hayden walks you through a simple, repeatable framework to help you decide if, when, and how much to give your team in bonuses that's fair, financially sound, and aligned with your business's core values. 

Key Takeaways: 

• Profitability Comes First: Only give bonuses when your business is profitable. A healthy, sustainable company is the best gift you can give your team.

• Protect Your Cash Flow: Separate accounts for operations, taxes, and savings (including bonuses) will help you plan ahead and avoid surprise shortfalls.

• Use Data, Not Emotion: Base your decisions on your financial reports and goals, not guilt, pressure, or last year's habits.

• Reward Performance with Purpose: Tie bonuses to performance and your company's core values, using consistent criteria your team understands.

• Timing Matters for Taxes: Be consistent year over year, and confirm with your accountant when it makes the most sense to issue bonuses based on your filing method.

Topics Discussed:

(00:00 ) Intro: What You'll Learn in the Episode

(01:46 ) Step 1: Pool Your Business's Profitability – Is Your Business Profitable Enough for Bonuses

(03:38 ) Step 2: Check Cash Reserves – Why Cash Savings and Planning Ahead Are Essential Before Paying Bonuses

(06:39 ) Step 3: Set Your Bonus Pool – How to Calculate a Realistic Bonus Pool 

(08:18 ) Step 4 & 5: Define Eligibility + Allocate Bonuses – How to Fairly Decide Who Qualifies and How Much to Award

(11:03 ) Step 6: Decide on Timing – When to Pay Bonuses for the Best Tax Results and Long-Term Consistency

(13:20 ) Outro: Kickstart's Team Bonus Worksheet and Resources + Like, Share and Subscribe!

Resources:

KSA Tax Partners | https://ksataxpartners.com/

Book a Call with Kickstart Accounting, Inc.:

https://kickstartaccountinginc.com/book-a-call/ 

Connect with Kickstart Accounting, Inc.:

Instagram | https://www.instagram.com/Kickstartaccounting

YouTube | https://www.youtube.com/@businessbythebooks 

Facebook | https://www.facebook.com/kickstartaccountinginc