Creating efficiencies in a business is extremely important to ensure businesses can appropriately scale up says Edmonton bookkeeping. Not only is this true for creating a workflow for the business, but also when an entrepreneur wants to scale up their business and hire employees. Developing an efficient and effective onboarding process can ensure that an entrepreneur is getting what they need from new employees. If an entrepreneur thinks about this before they need to hire someone, they can create a well thought out onboarding system that can ensure that as soon as their business is large enough to need another employee, that they are prepared.
One of the first questions that entrepreneurs ask is when do they know their business has grown large enough to require hiring a paid employee. Entrepreneurs often start out in business as not having enough time or money, and that tends to keep getting worse until they need to hire someone. But understanding when that threshold is is important says Edmonton bookkeeping. One of the first things that an entrepreneur should do, is try to save up enough money to have three pay periods as a question in their bank account. As they grow their business and get busier and busier, it does not matter if an entrepreneur needs help, if they cannot afford to pay that help. Therefore, an entrepreneur can generally afford to hire someone, when they have been able to save up enough cash flow in their business to pay three pay periods. If they have the money saved up, then an entrepreneur can use their own guidelines to figure out what makes sense. Is it once they have been working seven days a week for one month or two months? Is it when they reached monthly sales of a certain amount? As long as an entrepreneur has saved up pay periods, they can use any method to determine that, because they know that they will have the money to pay their staff no matter what.
The next thing that an entrepreneur needs to do is figure out an efficient onboarding process. That means creating a checklist of all the things that they need to give their employee as well as get from their employee to ensure that everyone has everything needed. Their Edmonton bookkeeping company is going to require an employeeís social insurance number, their address, date of birth and banking information so that they can enter them into the accounting software and issue payroll.
In addition to the information needed for legal employment and issuing payroll, an entrepreneur might need to give the employee an employment contract, a nondisclosure agreement, or an employee handbook. In return, an entrepreneur might need things like a criminal record check, a driving abstract, o a copy of all the employee’s tickets and licensing they need to do the job they were hired to do. By creating an efficient onboarding process including a checklist, means that an entrepreneur knows exactly what they need to give to their employee to ensure everyone has the information they need to do their job, and then into the accounting software, and pay them.
Edmonton Bookkeeping | Efficient Onboarding Strategies
If entrepreneurs do not think ahead of time about what needs to happen when they hire staff, they may end up not having the right information prepared for when their business grows to the point where they want to hire someone says Edmonton bookkeeping. An efficient and effective payroll system requires dozens of little tiny steps, often all working together in order to work efficiently and effectively. Therefore, an entrepreneur needs to think of a payroll system as a cohesive unit and implement each section deliberately.
For example, a business owner needs to determine how often they would like to be able to pay their staff so that they can set their billing cycle in such a way to ensure they have the cash flow in their business to allow them to pay staff when they wish. Edmonton bookkeeping says that if entrepreneurs do not think of this ahead of time, and simply implement a monthly billing cycle, because that is what was easiest as they were new in business, they might end up stuck with a cash flow cycle of only getting money into their business once a month. Which would make a biweekly pay period very difficult.
Another thing that entrepreneurs need to consider is if they are going to be doing payroll themselves or if they are going to outsource it to an Edmonton bookkeeping company. If they are managing it themselves, they need to have a software program they can use to run payroll. If they have accounting software in their business, that is going to be built in to the software. However, if they do not have accounting software like QuickBooks, they will need to purchase payroll software.
If an entrepreneur is purchasing a payroll software says Edmonton bookkeeping, the payroll software will have a time tracking application built within it, and before they purchase that software, they should ensure that they have the features they want in that time tracking software. For example, if an entrepreneur requires their staff to work off-site, they may want to ensure that their staff members are on site before they clock in. Therefore, having GPS enabled software is important.
If entrepreneurs think that this is not important to them, because they either trust all of their employees, and therefore they do not need to submit time sheets, or because they have salaried employees, who do not need to submit time sheets, Edmonton bookkeeping recommends that entrepreneurs rethink that strategy. Because a timesheet not only guards an entrepreneur against employees who are stealing time, but it actually protects employees by ensuring all of the time that they worked is accounted for, and payroll is issued for. In the case of salaried employees, they need to ensure that they are keeping track of their vacation time so that it can come off their accrual properly. Regardless of how an employee is paid, all entrepreneurs should ensure that all staff members are submitting time sheets. This is especially important if there payroll is outsourced to an Edmonton bookkeeping company, to ensure that while an entrepreneur might understand how employees are working, if an entrepreneur is not telling their outsourcing company, it might result in payroll getting run correctly.