Many entrepreneurs may not understand how important it is to create efficient payroll systems before they hire their first employee, but Edmonton bookkeeping recommends that this is the perfect time to do it, to ensure that they have systems in place to ensure they do it correctly from the beginning. As Atul Gawande, the author of the book the checklist manifesto has said, ìwe always hope for the easy fix: the one simple change that will erase a problem in a stroke. But few things in life work this way. Instead, success requires making a hundred small steps go right, one after the other with no slipups, no goofs and everyone pitching in.ì Is extremely important for entrepreneurs to ensure they have these systems and checklists in place to ensure that hiring their first employees is a smooth process.
One of the first things that an entrepreneur should consider is having a template that they can give the new employee when they are hired that will allow them to get all of the information that is needed to enter into the accounting software when they are hired. Not only that, but having an employment contract is important so that as soon as an entrepreneur hires their first staff member, they can ensure that they have all the information they need and the staff will have a contract.
It is also important for entrepreneurs to ensure that they have a termination process including a letter at the same time they are creating their template for hiring staff. The reason is, Edmonton bookkeeping says that as long as an entrepreneur needs staff for their business, they will need to replace that staff from time to time. Whether the entrepreneur terminates the staff member, or if the employee leaves for a variety of reasons, an entrepreneur should ensure that they are handling the termination accurately, and up to labor standards, so that the employer does what they are legally required to do, and the former employee gets what they are legally entitled to.
Business owners should not feel like they are alone in this process, because they can always call on their Edmonton bookkeeping company to provide guidance on a variety of payroll processes. They often know what information is needed from employees, and they also are often very familiar with labour standards due to working with a variety of businesses. Bookkeepers also are very familiar with a variety of rules such as how to handle overtime, labor standards and vacation accruals. They also often have their own identification number with service Canada, which can allow an entrepreneur to ask them to handle a variety of payroll filings including generating a record of employment.
By creating these systems and templates ahead of time, entrepreneurs should ensure that they are ready to grow their business by adding staff whenever their business is ready. This is especially important if an entrepreneur is growing their business quickly, to allow them to efficiently hire the staff they need to continue to grow seamlessly and correctly.
Edmonton Bookkeeping | Creating Efficient Payroll Systems
There are many things that an entrepreneur should be thinking about and how to manage their payroll, even before they hire their first employee says Edmonton bookkeeping. The reason why, is so that a business owner is prepared for how they are going to be handling paying the staff that they bring on board. By being ready ahead of time, can help an entrepreneur scale their business up efficiently.
The first thing that an entrepreneur needs to think about is whether they are going to be handling the payroll themselves, or if they are going to be getting their Edmonton bookkeeping company to handle that for them. If they are hiring it out, they do not need to worry about software. However, if an entrepreneur is going to be doing it themselves, if they have an accounting software already like QuickBooks, they should understand that the software already has a built-in system for managing payroll, so they do not need to be purchasing additional software. Or, if they are getting their Edmonton bookkeeping company to manage their bookkeeping, but they are going to manage their own payroll so they do not have an accounting software, there are a variety of programs out there that not only can manage payroll, that can help an entrepreneur manage time tracking and timesheets for their employees too.
The reason why it is important for an entrepreneur to think about time tracking this early as well is so that they know how their employees are going to account for the time that they are at work. This may not be vitally important if an entrepreneur is always going to be at their business, and all of their employees are going to be working in the office. However, businesses like plumbing companies, contractors, and construction workers are often working on-site, and not usually seeing the business owner at the beginning middle and end of their day. For this situation, time tracking software can be extremely important to business owners to ensure their staff shows up to work on time and are where they are supposed to be. The software can include features such as a GPS tracker to ensure that an employee is on-site before there able to clock in, or that they have to take a picture of themselves as they clock in to show that they are where they are supposed to be.
It is important that entrepreneurs get into the habit of ensuring that all of their employees are submitting timesheets. If they are getting their Edmonton bookkeeping company to handle payroll, this is especially important to ensure that all of the hours that are being tracked are accurate, and days off and vacation time is properly recorded and accounted for. Especially since their bookkeeper is not going to be working on site, to verify that these employees were where they said they would be, And to ensure that vacation time is utilized appropriately.
Creating these payroll systems in their business before they are needed, an entrepreneur can ensure that they are ready to scale up their business as soon is the business is ready. Especially if an entrepreneur is growing their business quickly, doing this sooner rather than later is extremely important to ensure they do not lose momentum as they add employees.