Anyone who lives in Ontario can tell you that one of the big things on everyone’s mind is the new minimum wage increase that is going to be implemented during 2018 and 2019. Of course, a minimum wage increase is going to have effects on your small business. This is why it is worth looking into account services such as bookkeeping services for small business.
When will the minimum wage increases come into place in Ontario?
The minimum wage is going to be increasing from the old $11.60 an hour up to $14 in 2018 and $15 in 2019. These new totals are not universal for all workers, there are still specialized minimum wages that are increasing by other amounts. For workers that receive a special wage increase based on their professions, they are also receiving a minimum wage increase by the same percentage. For workers that are under the age of 18, they are receiving an increase up to $13.15 in 2018 and $14.10 in 2019. If all of those numbers are making you feel overwhelmed, don’t fear. That is why business accountants are here to help you. Our bookkeeping services for small business is designed to specifically help you in handling all of the sudden changes.
Which industries will be impacted the most?
One of the industries that is going to be hit hard by the minimum wage increase is the restaurant industry. The restaurant industry has relied on cheaper labour in order to balance expenses alongside the cost of food. However, by mandatorily increasing the amount that restaurant owners have to pay their workers, this effect will be felt throughout the entire industry. While the push of the minimum wage increase was intended to increase the standard of living for many lower income workers, many sceptics are arguing that this will hurt lower income workers as many of them are now going to be losing their jobs as businesses attempt to recoup the added costs that they now suffer from.
As a small business owner, your workers are your business. Having a dedicated workforce is something that ensures quality for you and your customers. You want to avoid having to do anything that would ruin the relationship that you have with your team. As such, our bookkeeping services are sure to help your small business balance your account and keep the respect and dedication of your workers. A method that many other small businesses might turn to is to simply increase the cost of their product. This method is a terrible solution to solve their increase in operating cost that their small business is now going to have to face. Instead of increasing prices, a good transparent accounting service will be sure to help you find a fair and balanced way to balance your business account, without having to impact employees..
Having an increase in operating cost is a nightmare for any small business. When balancing your account is equivalent to walking a tight rope, a sudden unavoidable change like this can spell doom for any company not prepared. Having a good transparent bookkeeping service is something that can help you regain your footing and walk with more confidence.