Business owners should be proactive in ensuring they have an efficient and effective payroll structure set up in their business even before they hire their first employee says Edmonton bookkeeping. The reason why, is because this should be figured out ahead of hiring staff, and a business owner may not know when their business is going to grow to the point of needing to hire an employee. If they create the system early on, then they know that they are covered for when that ability happens. This means, that if an entrepreneur grows quickly, they are going to be able to ensure seamless hiring of staff that can help them continue to grow their business.
A great place for entrepreneurs to start is to think about if they are going to be looking after their own payroll, or if they are going to be outsourcing it to an Edmonton bookkeeping company. While many entrepreneurs want to save money by doing as much in-house as possible, regardless of which way they choose, there is things to think about. If they are taking care of the payroll themselves, they need to consider what software program they are going to be using for it. If they are already using and accounting software in their business such as QuickBooks or QuickBooks online, there is a built-in payroll component to the software and they do not have to buy something specific. If they do not already have accounting software, you do not need to purchase one, because there is several different programs that they can purchase that are designed for payroll. When choosing which software program to use, they need to take into consideration what time tracking elements are most important to them, and that ensuring that this payroll program is going to integrate well with their bookkeepers accounting software.
Entrepreneurs should ensure that they are using a time tracking software, especially because most payroll programs have a time tracking element built into them. However, depending on the type of business different features may be important to include. For example, if a business has employees working off-site and away from the main office such as a plumber or an electrician, having a function such as GPS that will not allow an employee to clock in until they are physically on-site can be very helpful to ensure staff or where they are supposed to be, when they are supposed to be there, and for how long.
Many entrepreneurs do not think they need to utilize timesheets or time tracking because the trust all of their staff, however, Edmonton bookkeeping says it does not come down to a matter of trust is much as it comes down to protecting the employees to ensure they are getting paid for all of the time that they worked especially including overtime. It is also important that entrepreneurs are ensuring that salaried staff are utilizing timesheets in order to track days off and vacation time. This will allow their Edmonton bookkeeping company to use accrued vacation time appropriately, as well as keeping track of all of the vacation time that the employee is using.
Edmonton Bookkeeping | Most Important Parts Of A Payroll Structure
Creating an efficient and effective payroll structure does not happen by accident says Edmonton bookkeeping. It actually takes work to create all of the various parts to ensure that they are efficient, effective and work well together. As said by Atul Gawande, author of the book the checklist manifesto has been quoted as saying, ìwe always hope for the easy fix, the one simple change that will erase a problem in one stroke. However, few things in life work this way, instead, success requires making hundred small steps go right, one after the other, no slipups, no goofs, everyone pitching inî. An efficient and effective payroll structure is just like that, needing hundreds of things to work well together.
There are many places that an entrepreneur can start to create an efficient payroll system, and it does not matter which they start with, as long as they create all of the steps before they need to hire their first employee. The reason why, because if an entrepreneur waits until they either need to hire someone, or have already hired someone, they may be left scrambling to create a system, that may not work properly, or efficiently. As an entrepreneur hires a staff member, they need a certain amount of information in order to create their employee profile in their accounting software as well as have the right information to be able to pay them and directly deposit the money into their bank account. If an entrepreneur creates a checklist or a template containing everything that new employee needs to provide by the time that they are hired can create a lot of efficiencies. Typically employees need to provide a social insurance number, and date of birth, and address and banking information. Depending on what industry they are in, they might need a criminal record check, or proof of their tickets so that they can do the work they have been hired to do.
Once an entrepreneur has an efficient onboarding process, then they need to automate the processes when an employee is terminated or if they quit. Not only does that include needing a termination letter that legally covers an entrepreneur and what they must do to adhere to the labor standards, but to ensure that employees are getting what they are entitled to according to those same labor standards. Business owners should take into consideration that as long as they have employees, lose employees can either need to be terminated or quit at any time. Even the most positive employee and employer relationship might end in an employee leaving through no fault of anyoneís including an employee getting sick or injured. Being ready with a termination letter and policy says Edmonton bookkeeping can help an entrepreneur deal with this efficiently.
Great places to start include a great onboarding process, and what they need to do when an employee leaves. By doing these two things first, Edmonton bookkeeping says that entrepreneurs can ensure that they are ready to hire staff, and pay them properly as soon as they need to in their business. This way, an entrepreneur can feel free to scale of their business at a timing that is right for them.