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Business owners should be working on the creation of an efficient and effective payroll system early on in their business ownership according to Edmonton bookkeeping, even if they are not ready to hire staff just yet. The reason why, is because an effective payroll system has several small, but important things that need to work well together in order to be efficient and effective. As Atul Gawande, who is the author of the book the checklist manifesto has said this: ìwe always hope for the easy fix, the simple change that will erase a problem in a stroke. But few things in life work this way, instead success requires making hundred small steps to go right, one after the other with no slipups, goofs and with everyone pitching in.î A payroll system is just like this, therefore it needs to be well thought out. If an entrepreneur starts creating the system early on in their business, they will be ready with a white hot out payroll system ready to implement as soon as their business needs.

There are several different aspects that an entrepreneur should think about when creating a payroll system, so there is no wrong place to start, but Edmonton bookkeeping recommends that entrepreneurs decide on what payroll frequency they would like to implement in their business. Why this needs to be thought about ahead of time, is that entrepreneurs can create a billing cycle that supports their pay periods. By avoiding a monthly billing cycle if they want to pay their staff more often, or moving to a weekly billing can ensure that they are bringing money into their business on a consistent basis, so that they can implement whatever pay. They want.

It is also important that as entrepreneurs are thinking about the payroll frequency, that they keep in mind when they should have their cut off and payroll dates. They need to ensure that when they do implement their payroll, that they are giving themselves a minimum of one week between the date of cut off and payday. There is for several reasons this is important. A longer cut off is going to allow an entrepreneur time to review the payroll that their Edmonton bookkeeping company has prepared. This is important to minimize errors, so that entrepreneurs can be certain that their employees are being paid accurately. Also, and so that an entrepreneur can have as much time as possible to ensure they have money in their bank account in order to cover payroll. If they need to engage in collection calls or generating more revenue, having a longer cut off time will give them the opportunity to do so.

By thinking about everything from the biggest things to the smallest things, entrepreneurs who were proactive in develop a system before they hire staff, can ensure that they are going to have a well thought out system that does not need many changes by the time they hire their first staff members. Having the system in place ahead of time can also ensure that as soon as an entrepreneur wants or needs to hire someone, they are prepared, so that they do not jeopardize the growth of their business.

Edmonton Bookkeeping | How To Develop A Payroll System

Many entrepreneurs do not understand how important it is to develop a payroll system says Edmonton bookkeeping. However, if an entrepreneur is serious about wanting to scale up their business, they need to have a payroll system in their business ahead of time. This way, as soon as an entrepreneur is ready to bring staff on board, they have the systems in place that are prepared for that to happen.

A great starting place is for business owners to consider what information they need from their employees to hire them and pay them. By consulting with Edmonton bookkeeping, the be able to figure out the most important information, and then create a checklist for their new hires. By giving them this checklist, the employees can send it to the business owner once they are hired, or bring it on their first day to ensure that an entrepreneur has all the information they need to enter into the accounting software. Ensuring they have information such as their social insurance number, their date of birth and address as well as their banking information so that they can direct deposit their pay into their bank account.

The next important thing for business owners to create, is a termination package that includes a termination letter that legally covers the business owner with what they are required to do according to labour standards, and ensures that they are covering off what their employees are entitled to. There are several reasons says Edmonton bookkeeping that entrepreneurs need to worry about create a termination package. The first reason is, as long as they have employees in their business, employees are going to choose to leave when the timing is right for them. Whether it is a new opportunity, a injury or an illness, an entrepreneur needs to be prepared because that could happen at any time. Especially currently with the number of millennialís that are entering the workforce, they are staying with their employers on average half the time that typical employees are staying with their employers. Therefore, entrepreneurs need to be prepared for a higher than average employment turn over rate.

If an entrepreneur is confused as to what they need to include in their hiring or termination packages, their Edmonton bookkeeping company can provide amazing guidance. Not only are they experts on payroll processes, they also are very well-versed in labour standards, especially when dealing with things such as overtime pay.

By creating a well-thought-out payroll system, entrepreneurs can grow their business worry free, knowing that as soon as their business is able to afford staff, they can go ahead and hire them knowing that they have got a great system for how to bring them on and pay them. This is extremely important and can give an entrepreneur peace of mind and the ability to grow their business as they see fit.