By now, you’ve probably seen the new buzzword “Quiet quitting” floating around. Coined in 2022 and popularized through TikTok, the term refers to an employee who remains working but reduces their performance to the bare minimum required to keep their role. 

On the other hand, critics of the term say that “quiet quitting” is simply accomplishing the essential duties and refraining from going above and beyond the job description without adequate compensation, avoiding the glamorization of hustle culture.

Whether a result of a favorable job market for employees or a new shift in priorities to a more sustainable work-life harmony, if you suspect quiet quitting is taking place at your organization, it could be time to take action. Instead of coming down harshly with written warnings or other punitive measures, consider a supportive leadership approach, addressing the root causes of employee dissatisfaction.

Keep reading for a few suggestions to get you started.

On the macro level:

• Implement employee wellness programs designed to reduce stress and improve physical and mental well-being, such as an incentivized movement challenge or free access to a mental health app like Headspace.
• Add some perks, such as a sponsored weekly, in-house yoga class or a program led by an instructor certified in mindfulness-based stress reduction methods.
• Encourage employees to take vacation time to reduce burnout. If an employee doesn’t feel empowered to take time off, there could be underlying issues in your company procedures that need to be addressed.
• Add training programs so that employees can have a chance to develop new skills. 
• Add an education reimbursement program where employees can return to school and earn a degree or certificate related to their job.
• Ensure that employees’ health plans include a substantial mental health component.
• Partner with a child-care and/or senior-care agency to reduce the stress of finding support for families who need it. Providing care support will especially help women re-enter the workforce, as they have been impacted most by the increased care demands brought on by the pandemic.
• Bring back the company holiday party, annual picnic, or movie night so employees can socialize with each other again. If you have a fully or partially remote team, a virtual party during work hours is also a great option, and there are companies that can help you facilitate one that’s fun for all.

On the micro level:

On the individual level, and especially for team members you suspect could be quiet quitting, it’s a good idea to conduct a formal process of setting goals.While this is generally accomplished during annual or seasonal employee performance reviews, it doesn’t have to be. It can be very effective to sit down with an employee and simply ask what they want to get out of this job and what they want their future to look like. Have a conversation with team members. 

Goal-setting encourages well-being and can give an employee something to strive for. In addition, refreshing goals quarterly can help a team member re-engage with their role. It can also help a supervisor identify an employee who might be happy doing another job, creating the opportunity for a reassignment that is advantageous for both parties.

Increasing Employee Engagement

Anything that can help to refresh and rejuvenate your employees will help reduce a culture of contempt in your organization. While many of these approaches come with some associated costs, it’s essential to consider the alternative cost of an underperforming team or even the cost of a new hire. So start your approach with an initiative that will have the most significant impact on the well-being of your team—and unless you’re already doing most of the above, that probably isn’t a pizza party or free SWAG.

A new year is a perfect time for a fresh start for you and your organization for many reasons, whether it’s a familiar milestone you celebrate with friends or the beginning of your organization’s fiscal year. Below, we lay out five ways you can welcome 2023 and make it your most intentional year yet.

1. Decide on a theme for 2023

Setting a theme for the year can help you refocus your efforts to align with your goal or mission throughout the year. Meditate on your progress in 2022, how you’d most like to spend your time in the new year, and any achievements you’d like to accomplish in the next 365 days. We’ve outlined a few suggestions to help get your creative juices flowing:

• Growth and improvements to your organization. Many business leaders want to see growth and improvement in their organizations, but it’s important to remember that there’s power in specificity. How do YOU want your organization to grow and improve? Quantify that statement; otherwise, you’ll be hard-pressed to stay focused on your theme.
• Downsizing, cleansing, or simplifying. Perhaps business has proliferated so much in the past year that you need to sit back, de-clutter, re-design, or even clean your office.
• Could it be time to launch that new service you’ve been dreaming of? 
• Giving back. If everything is humming along nicely, now could be a great time to start giving back to your community through your time, services, or financial resources.

Once you’ve decided on your overall theme, create a plan of realistic tasks and timelines that align with your chosen theme.

2. Attend a retreat

If you need to regroup and rejuvenate from a stressful holiday season (or even stressful year) then a retreat can do just the trick. A retreat is a time to step out of your day-to-day responsibilities in order to set goals for your business and make a plan. Often, a retreat can afford us greater clarity in our direction and concrete steps to implement them.

A retreat can be made on your own or with a group of specific team members. Typically, the events of a retreat include a combination of planning and brainstorming sessions, education, team-building, and social activities.

If a retreat sounds like too much work, then a quick vacation (or even a staycation!) might be in order so that you can enter the new year with a relaxed mind.

3. Learn from 2022

If 2022 was bumpy for your business, now is a great time to perform a detailed review. Consider your wins and losses, review your finances, and determine opportunities to improve your service, product, internal procedures, or work experience. Doing so will help you learn what went wrong and explore why. From there, you can brainstorm ideas on how to learn from any mistakes and avoid making them in 2023. Consider making this process structured in a way that affords you the greatest clarity, such as an after-action review.

4. Select a word for 2023

If setting a theme is too complicated, how about selecting one straightforward word for 2023? Here are some ideas:

• Abundance (think big, go after large contracts and big projects, etc.)
• Creativity (think outside the box, innovate, incorporate design)
• Community (hone relationships, support marginalized groups, give back)
• Gratitude (celebrate small wins, reward your team)
• Service (support the community with your talents, volunteer at a local nonprofit, etc.)
• Fun (encourage play, add spontaneity into your workplace culture)
• Prosperity (create an equitable work environment, align your spending with your morals, fortify your organization for future generations’ benefit)

Once you think of the best word for your year ahead, make it impossible to forget by writing it on post-its, setting it as your phone background, or even incorporating it into your email signature to reinforce your priorities. 

5. Make a profit plan (AKA forecast)

Making a profit plan for the new year will help you hone in on the profit amounts you want to achieve. Understanding how much volume you need to reach and what you can spend will avoid surprises at year-end. It’s good to reevaluate your standing on a monthly and quarterly basis, so you have time to adjust your deliverables, revenue, or expenses to meet your goals. 

Whether you do one or all of the ideas listed above, we hope you have an exceptional 2023 and that it’s your best year ever, whatever that means to you.

The word “audit” can be thrown around often in workplace conversations. It could refer to a review of your organization’s digital media presence or the assessment of internal procedure effectiveness. However, when used by an accounting professional, the term “audit” has a precise meaning. Keep reading to learn more.

Financial Audit

A financial audit is an official service designed to inspect an organization’s accounting records, technology, and processes. An audit can only be conducted by a licensed CPA who is independent of the organization, meaning that the CPA performing the audit must have no relationship with the organization, its owners, or its employees. This requirement exists to avoid any compromise to the audit or appearance of impropriety. 

To conduct an audit, the CPA performs a set of tasks that review the company transactions, balances, and accounting processes, called an audit program. The audit program is custom-designed for the company based on the risks perceived by the audit team, the type of organization being audited, and other factors. Once the audit has been completed, the auditor will issue a formal report stating the findings of the audit. The report typically includes a letter, financial statements, and footnotes.

The auditor’s report can be utilized by the company’s management and third parties, such as lenders and stockholders.

While there are mandatory audit requirements for large public companies, government institutions, schools, and nonprofit organizations, these aren’t typically applicable for small businesses due to the expense. There are other assurance services that can be more helpful for small businesses. They include compilations, reviews, and agreed-upon procedures. Let’s learn more about them.

Other Assurance Services

An audit falls under assurance services in accounting, and it’s the most stringent of all. But there are other types of assurance services available, like:

Compilations. In this type of engagement, the CPA performs basic checks on your financial statements and puts them together with a cover letter. It basically tells a third party that you have a CPA, but it provides the least amount of assurance service.

Reviews. In a review, there are a few more checks, tests, and inquiries, that a CPA will perform before issuing financial statements. This service provides more assurance than a compilation but less than an audit.

Agreed-upon procedures. An engagement with agreed-upon procedures is a very specific engagement where one aspect of the business is reviewed in accordance with a specific goal.

When small businesses are asked for documents from an accountant by a bank or lender, they can often provide these lower-level assurance reports, and the reports will not only suffice but save money.

IRS Audit

The term “audit” can also be used informally to define an inspection more narrow in scope, such as an audit performed on an organization by the IRS or a state agency. There is no assurance provided in this type of audit. This audit aims to produce whatever records the organization is asked for to verify the numbers it sent to the agency. These types of audits can occur randomly or as a result of suspected fraud. 

Audits performed by the IRS or a state agency can be stressful and unpleasant experiences. Having your accountant support you along the way can be reassuring.