Many business owners understand why creating templates and checklists are efficient in their business, but Edmonton bookkeeping says that this should also be extended to how efficiently business owner can manage their payroll. It is going to allow business owners to simplify their payroll processes. This is going to become very important because as the United States Bureau of Labor Statistics has shown, that while the average employee has stayed with their employer for an average of four point six years, the average millennial is only staying with their employer for an average of two point three years. As millennialís enter the workforce, business owners should get prepared for hiring more staff than ever.
When of the business owner hires an employee, they need to have a lot of very specific information, so that they can be entered into their accounting for payroll software. Especially if the person that is doing the hiring is not the person that is going to be entering this information into the software such as utilizing Edmonton bookkeeping company for this, they should have a template prepared, so that they can get all of the information that is needed. This will eliminate having to go back to the employee and get more information, or having someone forget to ask something important.
Not only is having a template important for hiring staff, but it can also help if a business owner needs to terminate an employee, or if the employee quits, so that a business owner can ensure that not only are they asking all of the important questions, but having a termination letter prepared can ensure that an entrepreneur is legally covered and what they need to do and say so that it is done correctly, regardless of who is doing a termination.
In addition to having templates on hand for the hiring and termination of staff, business owners should also know that there Edmonton bookkeeping company is going to be able to give them guidance on payroll processes as well as help with things like providing the record of employment and other payroll filings with service Canada. Since these are the professionals that typically are going to be entering new employees into the accounting system, as well as they know the labor standards, they become very important resource for entrepreneurs. They also quite often have their identification number with service Canada, so that they are able to go ahead and do important payroll filings that an entrepreneur might need such as a record of employment.
By thinking of these templates and systems and having them in place in their business ahead of time is very beneficial to the business owner. While they might not need to use them right away, having systems in place for when the need arises, means that as soon as a business has grown to the point of needing to hire people, they know what they need to do, and already have the templates and systems in place to ensure that it can be done correctly and smoothly.
Edmonton Bookkeeping | Creating Templates For Payroll Processes
In order to help a business owner scale up their business, Edmonton bookkeeping says that they should have a payroll process in place. This means, that an entrepreneur should have thought about but the software they are going to use for people, how they are going to track their employee’s time, how often they are going to pay their staff, and what cut off and pay dates they would like to use. The reason why this information is important to think about ahead of time is that if an entrepreneur can build their business with those things in mind, it can be easy to implement when the time is right.
One of the things that a business owner should think about before they hire their first employee, is deciding on what the right payroll frequency is for their business. This often depends on the industry that the businesses in, but more importantly the cash flow situation typically decides the payroll frequency. The more often cash is coming into the business, the more frequent an entrepreneur will be able to pay their staff. If a business owner is only billing their clients once a month, this may mean that cash is only coming into their business once a month. This is not going to work if an entrepreneur would like to be paying their staff biweekly. Therefore, if an entrepreneur increases the frequency of their billing, it can increase the frequency of the cash flow into their business that will allow them to be able to pay their staff more frequently.
Something else for entrepreneurs to keep in mind when they are deciding on payroll processes is when they should have their cut off and their pay dates. The recommended amount of time between cut often pay date is a minimum of one week, but if a business owner can have that time between cut often payday be longer, that advised. One of the reasons why it is important to have a longer cut off., Is so that an entrepreneur can enter in the payroll information accurately, and then have enough time to double check it. Another reason why a longer cut off. It is important, is so that an employer has a longer period of time to be able to bring money into the business to cover payroll if they do not currently have the money in their bank. Whether this means engaging in revenue generating activities, or collection calls, the shorter cut off time is, the less time a business owner will have to ensure they have money in their bank account to meet that payroll.
By having their payroll systems in place ahead of time, a business owner can ensure that when the time is right, they can hire their first staff, and have it be a seamless transition. Whether a business owner is managing their payroll, or if they are getting their Edmonton bookkeeping company to help, having systems in place ahead of time will make it easy and error-free.