Letting go of an employee is, without a doubt, one of the hardest tasks for any business owner or manager. It’s an action that should always be considered as a last resort after all other measures have been exhausted. Ideally, with strong hiring practices, effective onboarding, and continuous performance management, you can reduce the likelihood of reaching this point. However, if termination becomes necessary, it’s crucial to handle it professionally, compassionately, and within the bounds of the law.

Preventing Termination Through Proactive Measures
To minimize the risk of having to terminate employees, here are some best practices for hiring and onboarding:
Thorough Vetting During the Hiring Process
Use a multi-step interview process that includes both technical assessments and behavioral questions. In a bookkeeping firm, quizzing candidates on their knowledge of accounting principles, QuickBooks Online, and specific error-detection tools like Level Copilot can provide insight into their competency.
Check references and verify past employment to ensure you’re hiring someone with proven reliability and skills.
Proper Onboarding and Training
Create a structured onboarding program that includes training on company policies, tools, and expectations. Provide hands-on training to familiarize new hires with the workflows and software they’ll use daily.
Set clear expectations from the start, so employees understand their roles and responsibilities.
Continuous Monitoring and Feedback
Use tools like Level Copilot to monitor daily bookkeeping tasks and identify potential errors early. This proactive approach not only maintains quality but also helps employees understand where they need to improve.
Schedule regular check-ins to discuss performance, address challenges, and provide constructive feedback.
Understanding Legislative Requirements
Before taking any steps toward termination, familiarize yourself with the labor laws in your area or country. Employee rights, notice periods, severance pay, and legal grounds for termination vary by jurisdiction. Consulting with an HR professional or employment lawyer can help ensure compliance and protect your business from potential legal disputes.
Implementing an Improvement Plan
In most cases, termination should not come as a surprise to the employee. If performance issues arise, address them early by putting the employee on a formal improvement plan (often called a Performance Improvement Plan or PIP). Here’s how to do it:
Clearly Define the Problem
Be specific about the performance issues or behaviors that need improvement. Use examples and data to back up your observations.
Set Achievable Goals
Outline measurable goals the employee needs to meet within a specific timeframe. For example, “Reduce data entry errors by 50% over the next 30 days.”
Provide Support and Resources
Offer additional training, mentorship, or tools to help the employee succeed. Show that you’re invested in their improvement.
Monitor Progress
Schedule regular follow-ups to review progress and provide feedback. Document all meetings and communications for future reference.
Establish Consequences
Clearly communicate what will happen if goals are not met, including the possibility of termination.
Conducting the Termination
If the improvement plan does not lead to satisfactory results, and termination is unavoidable, follow these steps to handle the process professionally:
Prepare Thoroughly
Gather all documentation related to the employee’s performance, the improvement plan, and any prior communications.
Plan the meeting carefully, ensuring it’s held in a private setting where you can communicate respectfully.
Be Direct and Compassionate
Clearly explain the reason for the termination and reference the steps you’ve taken to address the issue.
Avoid personal criticism and focus on facts.
Outline Next Steps
Provide information on their final paycheck, benefits, and any severance pay (if applicable).
Offer assistance with the transition, such as providing references or helping them find new opportunities.
Remain Professional
Keep emotions in check and maintain a calm demeanor. Treat the employee with dignity and respect throughout the process.
Other Considerations
Protect Your Team and Business
While it’s important to support the outgoing employee, don’t forget about the impact on your remaining team. Communicate openly with your staff about the situation (without breaching confidentiality) and reassure them about the path forward.
Learn from the Experience
After the process is complete, take time to reflect on what could have been done differently to prevent the situation. Whether it’s improving your hiring process, providing more robust training, or implementing better performance management systems, there’s always room for growth.
Final Thoughts
Terminating an employee is never easy, but when handled thoughtfully and professionally, it can be a necessary step to protect your business and ensure the success of your team. By investing in strong hiring practices, ongoing training, and proactive performance management—including leveraging tools like Level Copilot to automatically identify potential employee performance issues early—you can create a workplace where both employees and your bookkeeping firm thrive.