Sunday, October 19, 2008

Is Employee an Asset or Expense?


Dear business owner, how do you know you have employed the right person for the job?

Many a times, when business owner do their accounting, employee's salary is often put under the company's expense column. But the question is, is this employee's salary really an expense to your company? If his/her salary can only fit in the expense column, then most likely you have employed the wrong person. Only if you can easily put his/her salary under your assest/investment column, then he/she is worth you hiring.

Dear business owner, here's a suggestion. Try changing your mindset and begin to see your employee's salary as an investment under assest column. If you find it very very hard to convince yourself to do that, most likely the right thing to do is to fire him/her and find one that you can easily put his/her salary as an investment under the asset column. When you find one that fit into this category, love and treasure him/her and see him/her as your investment. If you find a good investment, would you hesistate to pump in lots of money?

1 comment:

Jamie Phua said...

business man don't read blog...