It is really important for business owners to think about what payroll system they are going to implement in their business, and what their onboarding strategy is going to say Edmonton bookkeeping. The reason why they should think of this ahead of time, so that they can have a system in place ready for when they are business is ready to onboard employees to help an entrepreneur grow.
One of the first things that entrepreneurs want to have sorted out, is how do they know it is the right time to hire an employee. Is it when they get busy enough that they are working seven days a week, is that when they reached a certain percentage of sales? Edmonton bookkeeping says a great rule of them to abide by his ensure that they have a minimum of three pay periods saved up in their bank account. This way, an entrepreneur can ensure that no matter if their business slows down slightly, they are going to have a cushion built in order to allow them to pay the person that they have made a commitment to.
The next important thing that entrepreneurs should keep in mind that is important when they hire an employee, is having a checklist created for what they need to get from that employee. Employers need to get a certain amount of information legally in order to hire a person, and also to pay them up properly. They need a social insurance number, date of birth and address as well as banking information. However, entrepreneurs depending on their industry and their business may have other requirements such as an employment contract, a nondisclosure agreement, criminal record checks, drivers abstract, or copy of all of their licenses and tickets that requires them to do the job that they have been hired to do.
If an entrepreneur has a checklist or a template to follow, it does not matter if they remember what information is needed or not, or if they give the task to someone else, is always going to be done accurately and consistently. This is especially important if they are getting their Edmonton bookkeeping company to enter employees’ information into their accounting software. By ensuring there bookkeeper has all of the correct information all of the time, they will never waste time with having to ask the entrepreneur to provide information that they did not provide in the first place.
It is extremely important that entrepreneurs are thinking of these processes ahead of time, so that by the time they are business is ready to have staff hired, an entrepreneur already knows exactly when the timing is right for their business, as well as what information they are going to need from that employee. This way, a business owner can focus on growing their business, knowing that as soon as they are able to onboard new staff, they have systems in place to support that.
Edmonton Bookkeeping | The First Steps To An Efficient Payroll Process
Entrepreneurs may not consider that a payroll process is as complicated as it actually says Edmonton bookkeeping. In fact, it has several very small steps that need to go correctly in order to ensure the payroll is done accurately all of the time. As the author of the checklist manifesto, Atul Gawande, says ìsuccess requires making hundred small steps, one right after the other with no slipups and no goofs with everybody pitching inî. This is especially true when it comes to an efficient payroll system. If an entrepreneur expects a smooth process, they should start thinking about it well before they need it in the first place.
One of the first things that an entrepreneur should consider is if they are going to do it or if they are going to outsource their payroll to the Edmonton bookkeeping company. That way, they can verify if they have the software needed to do payroll, or if they even need to worry about it. Once they have that figured out, they need to figure out what time tracking software they are going to use. Even though many entrepreneurs say that they trust their staff members, it is not just to guard against time stealing, but time tracking is designed to protect employees as well to ensure they are getting paid accurately hundred percent of the time as well.
Depending on the business are the industry, it might be important to have a variety of features in the time tracking software that they use. If they do not think of this when they are thinking of what payroll program they need, they might buy a payroll program that does not have the features in time tracking that is necessary. For example, if a business has the staff working away from the office, or separately from the business owner, such as a housecleaner, or an electrician, it might be a great tool to have a GPS function built into their time tracking program that will require an employee on-site in order to be able to clock in.
Not only should entrepreneurs be ensuring that their hourly staff are tracking their time, but it is important that salaried staff also provides timesheets. If they are outsourcing their payroll to an Edmonton bookkeeping company, that company will need to know if that salaried staff has taken a day off, or vacation, so that they can appropriately use the accrued time to pay for their time off. I a salaried employee is not providing a timesheet, and Edmonton bookkeeping company does not know if they have used up vacation time. Which can create lots of problems if that employee is terminated or quits, and they have a large amount of accrued vacation that it looks like they have not taken, when actually they have taken vacation time, but it was not accounted for properly.
All of these little tiny steps must be taken into consideration in order for an entrepreneur to develop a payroll system that not only makes sense, but works well together to ensure an entrepreneur is paying their staff properly all the time. By ensuring their thinking of this ahead of time, a business owner can put this together in a well thought out manner. If entrepreneurs are not thinking of this ahead of time, they may be setting their payroll system up reactively, which might mean it has problems, errors, or does not work well together or even at all.