Many business owners are familiar with the importance of creating systems, templates and checklists in their business to increase efficiencies, Edmonton bookkeeping recommends that entrepreneurs create these systems for managing payroll and hiring staff as early as possible in their business. The reason why is to help an entrepreneur be ready for when they need to hire their first employee. This can ensure that not only are they onboarding employees accurately and efficiently, but they also need to ensure that they have systems in the place prepared for when they need to replace employees as well. Doing this before they a ready to hire staff is important so that they can have the systems in place to ensure their doing it accurately and seamlessly.
One of the first things that entrepreneurs need to create is a template to onboard new employees. The reason why is because they need a large amount of information from the new employee, and entrepreneurs are not necessarily going to be the one entering the information into the accounting software. Having a template, means that an entrepreneur can do it themselves, were handed off to their Edmonton bookkeeping company to take care of, and ensure they have all the information needed. Not only is it important to have a template for all of the information that is needed, but business owners should ensure that they also have an employment contract created and ready for when they hire staff as well.
Even the best relationship with their employee is going to guarantee that an entrepreneur is not going to have to replace them. Either employee might need to be terminated by the business owner, or they decide to leave due to accident, illness or a variety of other reasons, as long as entrepreneurs need staff, they will be replacing staff. Especially since the average millennial entering the workforce is staying with their employers for half the time than the average. This means that entrepreneurs need to ensure that they have a template for when staff leave including a termination letter is going to legally covers a business owner and what they need to do to adhere to labour standards while ensuring that the employees leaving are getting what they are entitled to according to labour standards as well.
Entrepreneurs should never feel like they are creating these templates completely alone, they can always use their Edmonton bookkeeping company as a sounding board for many of the payroll processes that they are creating. The reason why is because often they are going to be the ones entering this information into the accounting system, and therefore they know all the information that is needed. Also are familiar with labour standards and rules, especially when dealing with things like overtime. Also, bookkeepers often have their own ID number with service Canada, means they can help an entrepreneur with a variety of payroll filings including the record of employment forms.
It is important for entrepreneurs to ensure that they have systems in place prepared for when they hire staff, so that they can ensure they hiring people correctly, and ensuring that they are adhering to labour standards.
Edmonton Bookkeeping | What Systems Are Needed To Manage Payroll
In order to help a business owner scale up, they should be creating payroll systems as early as possible in their business, Edmonton bookkeeping says ideally before they hire their first employee. This way, they know exactly how to pay their staff, with what frequency, and be prepared to track their time to allow an efficient and accurate payroll system. If entrepreneurs do not think of this ahead of time, they may be left scrambling, and finding things out the hard way such as they cannot afford to pay people biweekly, or that they really need to ensure that they are implementing appropriate time tracking.
One of the first things that entrepreneurs should figure out, is what the payroll frequency is going to be in their business. Sometimes, this depends on the industry that the business is in, but more often than not it is dictated by the cash flow situation. The more often an entrepreneur is billing their clients, the more often they can bring money into their business. That means, an entrepreneur might make the decision to build a client biweekly or weekly instead of monthly, to align with their payroll goals.
It is also extremely important that entrepreneurs are thinking ahead of time to time tracking software. This is most important says Edmonton bookkeeping in instances where the employees are not going to be working on site, such as plumbers or contractors. Therefore ensuring that they have a time tracking software that verifies that they are where they say they are such as a GPS system that will only allow an employee to clock in when they are where they are supposed to be. There are many different software is with a variety of capabilities depending on what the entrepreneurs’ needs are.
It is also important that an entrepreneur is ensuring that all staff are submitting time sheets, regardless of if they are hourly or salary. This is not just to guard against time stealing, although that is one of the functions. This is important if they are getting their Edmonton bookkeeping company to enter in payroll information because they are not working in the office, and they do not know if people are taking days off for vacation, but they need to ensure that they are accounting for that time. If the salaried employee takes a week vacation, by submitting a time sheet will allow the Edmonton bookkeeping company to ensure that they are taking that time off of their vacation accrual.
By creating these systems ahead of time, can help entrepreneurs stay organized and ready for onboarding new staff whether it is one or many. This will help a business owner scale their business up, and to grow their business without stalling the growth due to payroll issues.