Until an entrepreneur needs to hire employees, they often are not thinking about how to scale up their business, or how to manage their payroll, however, Edmonton bookkeeping recommends that entrepreneurs automate as many processes as early on in their business as possible especially and including their payroll processes. The reason why is because having a process already in place can ensure that as soon as an entrepreneur is ready to hire staff, they have a process in place that makes it easy. The reason why having a process is important is in order for an entrepreneur to ensure they have as much information as they need at all times.
There is a significant amount of information that an entrepreneur needs to get from their staff in order to ensure a smooth payroll process. Their social insurance number, their date of birth, their address to name a few. However, if an entrepreneur creates a template, or uses the TD one form, all of the information that they need to ask their employees will be included in that form. Even better, they can provide a copy of that form to all of their new hires, and have all the information that is needed as soon as they are hired. This is especially important if an entrepreneur is going to use their Edmonton bookkeeping company to do their payroll activities.
Not only should entrepreneurs have templates in place for hiring staff, but it is also very recommended that entrepreneurs have templates and forms for all payroll processes including hiring, termination, one that employee decides to leave, so that entrepreneurs never have to remember what information is needed, but also what these templates and forms can do is ensure the business owner is complying with all labor standards and ensuring that the employee is getting what they are entitled to, employers are complying with the law.
When it comes to employees, business owners can also use templates and software to ensure that the hours that they are working are being accounted for on a timesheet, and with clocking in and out. These are very important tools to help an entrepreneur track the time that their staff is working, which is key for employees who are working on site. Some of the software programs utilize GPS and picture taking to ensure that staff is where they say they are, to ensure coworkers are not clocking in for each other, and to verify the timesheets. This is going to help an entrepreneur ensure that their payroll is accurate, especially if there utilizing their Edmonton bookkeeping company to manage their payroll for them. It is important for entrepreneurs to have all staff submit timesheets, even if they are salaried staff, to track days off and vacation, which is especially important if the staff member quits or is terminated, that they have the appropriate vacation time that they need to get paid out.
Using the software, checklists and forms can significantly benefit entrepreneurs in ensuring their payroll gets done accurately all the time. This is very important, not only to ensure payroll is carried out accurately, but that business owners paying staff according to labor standards, and that employees are getting paid properly.
Edmonton Bookkeeping | Best Payroll Practices
Having a payroll process in place in their business can significantly help entrepreneurs ensure that they can scale up their business says Edmonton bookkeeping. By automating processes, entrepreneurs can ensure that they are getting all of the information they need to enter employees into their payroll system and pay them accurately. Not only is this important on the hiring and termination of staff, but to manage the payment of employees as well as checking their time and verifying the accuracy of their timesheets. There is a number of templates as well as software programs that entrepreneurs can use to ensure payroll is implemented smoothly in their business.
Many entrepreneurs wonder what software they need to use in order to manage payroll, and if they already are using accounting software such as zero, Sage or QuickBooks, there is already a built-in payroll component to those programs. Especially if they are getting their Edmonton bookkeeping company to help them with payroll, this is the most efficient way to manage payroll. However, if they do not have an accounting software already, or they are not going to get their bookkeeper to help them with the process, there is specific software that they can purchase or download that has the primary function of managing payroll.
In addition to having software to manage payroll, it is also very advised for entrepreneurs to utilize time tracking software. There are lots of different options out there for entrepreneurs to look into, especially depending on what type of work they do, and if they have to manage employees that are working off-site and away from the business owner. Some of these options include software that has GPS capabilities, so that an employee can only clocking when they are on site, or that they take a picture of the employee to verify that they were where they said they would be. It is also extremely important for salaried employees to submit timesheets. This might be confusing, because since they do not get paid hourly, many entrepreneurs do not understand why this is important, but this is going to help a business owner as well as their Edmonton bookkeeping company to track time off and vacation time. Especially if vacation time is accrued, a business owner should ensure that they are appropriately paying out that time as the employee takes a vacation, so that it does not endlessly accrue.
By being aware of all of the templates and software needed to manage payroll smoothly, entrepreneurs can have those systems in place for when they are ready to start hiring staff. Having these processes in place ahead of time can ensure a smooth implementation of hiring staff, and paying them efficiently and effectively.