One thing for entrepreneurs to avoid is trying to set up an efficient payroll system as they are hiring employees for the first time in their business to advise Edmonton bookkeeping. An efficient and effective payroll system requires a lot of little steps to integrate well put together, and worked perfectly. This can only be done through deliberate thought and action, as well as research to ensure the right software is in place. If an entrepreneur is able to set up a great payroll system before they need to hire employees, they will be able to grow their business as quickly as they want, knowing the systems are in place to support employees as soon as it is needed.
One of the first things that entrepreneurs need to think about when setting up the payroll system, is how to onboard new employees. Not only do they have legal requirements from employees to ensure that they are legally employable in Canada such as social insurance number, but also their Edmonton bookkeeping company need specific information in order to enter the employees into the payroll software, and so that an entrepreneur can directly deposit their paycheck into their bank account. By creating a checklist, it can simplify the onboarding process and ensures that no matter who is managing it, all the most important information is obtained.
It is also important that once an entrepreneur has hired their first employee, there is going to be the potential to need to replace that employee at any time. Whether they are going to terminate that employee, or the employee leaves, it is going to be an eventuality for an entrepreneur. Ensuring they have a termination letter, and a process in place for managing employees that are leaving, not only can ensure that the process goes smoothly, but also that the entrepreneur is legally covered according to labor standards, and that the employers are giving the former employees what they are entitled to as well.
If entrepreneurs are questioning if there onboarding and termination process is robust enough, their Edmonton bookkeeping company can provide great guidance on this. Since bookkeepers typically enter employees into the accounting system, are well-versed on running payroll and no labor standards, they will make a great resource for entrepreneurs to contact any time they might have any questions. Even after they set up their system, bookkeepers can answer questions about overtime payment, vacation accruals, and help with service Canada payroll filings such as a record of employments.
Setting up a great onboarding system is one of the first steps to having an efficient and effective payroll system in place for their business. Ensuring that they can effectively bring employees into their business effectively is extremely important, and can help business owners whether they are the ones that are onboarding new employees if they’re handing it off to someone else, or asking their Edmonton bookkeeping company to do it on their behalf. By thinking what this ahead of time, they can be prepared for whenever they need to hire their first employee. If they have grown their business quite quickly, they might end up being sooner then they anticipated and being ready is important.
Edmonton Bookkeeping | Setting A Payroll For The First Time
Not only is it important for entrepreneurs to ensure that they have a great payroll system in place early in their business so that they can ensure they can hire staff whenever they need says Edmonton bookkeeping. But also, because as the average millennial enters the workforce, they are staying about half as long with their employers as the current average employee is. This means that entrepreneurs everywhere should prepare for higher turnover than they are used to, which means having an efficient payroll system in place is extremely important.
One of the first things entrepreneurs should think about is how their employees are going to track their time. This is not just important to help entrepreneurs guard themselves against employees who might steal time, but also important to protect employees as well, to ensure all of the time that they have worked, they will get paid for. Especially when it comes to overtime hours. There is many different software programs that business owners can choose from, with several different features. Depending on the business, an entrepreneur might need some specific abilities. For example, if a business owner has employees working off-site such as housecleaners, electricians, or plumbers, they may want to have a GPS feature Wilton that ensures an employee is on-site before they have the ability to clock in. Or, if an entrepreneur has multiple locations, they may want to feature that takes a picture of the employee as they clock in, to ensure that they are actually in the business when they clock in.
Many entrepreneurs believe that their salaried employees will not need to use the time tracking software or submit timesheets. However, it is important that they do, especially if their Edmonton bookkeeping company is going to be entering in payroll for the entrepreneur. That way, whenever that salaried employee takes a paid day off, or a vacation, the appropriate time accrued can be applied to their pay properly. If a salaried employee does not submit a timesheet, they might not have their vacation time used up properly, which becomes a larger issue if an entrepreneur pays out vacation time at the end of the year, or if that employee leaves the organization and needs the vacation time paid out, if it has not been properly used throughout the year, they will be getting paid out more than they are entitled to.
By setting up an efficient and effective payroll system with their Edmonton bookkeeping company ahead of time, entrepreneurs can be prepared for any time in their business that they need to bring on their first employee. If an entrepreneur is growing their business faster than expected, they will be glad they set this system up ahead of time, so that they can spend less time worrying about bringing on new employees, and continue to focus on growing their business, and meeting the strategic priorities of their business.