Many entrepreneurs may not consider how important it is to create an efficient payroll system early on in their business says Edmonton bookkeeping, but it is actually extremely important. The reason why is because in order for an entrepreneur to be able to scale up their business, they need to have a system in place that is going to allow them to scale it up. This means having templates and protocol in place designed for onboarding employees and paying them.
There is many things that entrepreneurs can create when developing a payroll system for their business, but a great place to start, is with the hiring of an employee. There is several things that their Edmonton bookkeeping company needs in order to create their employee profile in the accounting software that is going to issue their payroll. Rather than trying to think of all of the various things that they need to provide, and hoping they or whoever is onboarding a new employee will think of it, if an entrepreneur creates a checklist of all the things they need their employees to provide when they get hired can help automate this process.
As soon as they have an efficient onboarding procedure including an employment contract, the second thing that an entrepreneur should create is a termination letter and package. Many entrepreneurs think that this is a pessimistic view thing, but Edmonton bookkeeping recommends this is done, because they never know when they might need to terminate an employee, or have them leave. Even the most positive employer and employee relationships will end through no fault of anyoneís. Perhaps the employee will get sick or injured, have a spouse get a transfer out of the city, get pregnant or retire. Employees will tend to leave the business but it is the best timing for them, which means an entrepreneur should always be prepared to have the information on hand that will allow them to end the employment in a way that ensures the entrepreneur is doing what they are legally required to, and the employees are getting what they are legally entitled to.
If an entrepreneur is confused as to what should go into their onboarding package, or in a termination letter, they should remember that a great resource is with their Edmonton bookkeeping company. They are extremely efficient at running payroll from other companies and can help other entrepreneurs to create a great payroll system. They also are well-versed with what the labor standards are, and can even help with filings with service Canada such as obtaining a record of employment for staff. Business owners should be confident that they have a great resource to call upon to ensure that they have an efficient and effective payroll system for hiring employees.
It is important for entrepreneurs to ensure that they have a system of bringing employees on board even before they have the need in their business. That way, an entrepreneur is not limited to how fast they can business, and can scale up their company as quickly as they want as long as they have systems in place.
Edmonton Bookkeeping | Most Important Aspects Of An Efficient Payroll System
Even for an entrepreneur has a payroll to manage, Edmonton bookkeeping says that they should ensure they have an efficient payroll system. This includes ensuring they have checklists of information they need, and templates in place. While many entrepreneurs understand how this can help create efficiencies in their business, but the same is also true for creating efficiencies with their payroll. As Atul Gawande, the author of the checklist manifesto says this about creating checklists and efficiencies: ìwe always hope for the easy fix, the one simple change that will erase a problem in one stroke. Few things in life work this way, instead, success requires making hundred small steps go right: one after the other with no slipups, no goofs and everyone pitching in.î In order to have an efficient and effective payroll system, the entrepreneur should ensure that all of the little steps are done properly.
One of the first things that business owners should start with when they are creating an efficient and effective payroll system, is predetermined payroll frequency that they are going to use to pay their staff. The reason this needs to be one of the first things to think about is that their cash flow in the business is going to dictate how frequently they are going to be able to pay staff. And the thing that controls cash flow in the business, is the billing cycle that an entrepreneur uses. Therefore, if an entrepreneur wants to be able to pay their staff biweekly, they need to ensure that they have a billing cycle that is going to bring money into their business more than once a month. If an entrepreneur does not think of this ahead of time, Edmonton bookkeeping says that they may get into the habit of billing their clients at the end of the month, which will give them the cash flow they need.
The next thing that entrepreneurs need to figure out, is if they are going to be managing the payroll themselves, or if they are going to be outsourcing it to their Edmonton bookkeeping company. The reason this is important because they have to figure out what software they need to use if the right to manage it themselves. If they are not going to manage it themselves, they need to ensure that their time tracking software is going to integrate with the accounting software that their Edmonton bookkeeping company is going to use. Every small step along the way is going to affect the other and an entrepreneur should ensure that they have a system that works seamlessly with each other to avoid grading problems when they do hire their first staff members.
When entrepreneurs thinking about which time tracking software they use, they should consider all of the various features they would like to have. They should keep in mind that time tracking is not just to guard against time stealing from employees, but also to ensure that the employees are protected as well by getting paid for all of the time that they have worked, especially including over time.
By ensuring they have a well thought out system, including checklists and templates, business owners can ensure that their payroll system works efficiently together and with their Edmonton bookkeeping company to ensure that they are managing their payroll not only efficiently, but accurately from the beginning of the staffís employment with the business.