Not only is it important for entrepreneurs to have payroll process before they hire their first staff says Edmonton bookkeeping so that it can be a seamless transition. But also, because since the average millennial coming into the workforce is staying with their employer for half as long as the average employee is currently staying, entrepreneurs should get ready for a higher turnaround in business, which means having an automated and defined payroll process can save time and reduce errors.
Before a business owner hires their first employee, they should be thinking about things such as payroll frequency and cut off and paydays. This might seem too early, but one of the most important reasons why a business owner needs to think about it right away because what the cash flow in a business is, will dictate how often an entrepreneur can pay their staff. This can sometimes have a lot to do with the type of industry the entrepreneur is in, but it is also dependent on how often than entrepreneurs billing their clients. They may decide to build their clients weekly instead of monthly to increase the cash flow in their business to allow them to pay their staff biweekly.
It is also important for an entrepreneur to ensure they have a software program for payroll, or if they are going to get there Edmonton bookkeeping company to help them with that. If the business owner already has and is using and accounting software such as Sage or QuickBooks, those programs already have a built-in component for helping with payroll. However, if an entrepreneur does not have the software, there are software programs that are specifically designed to do payroll as their primary function.
In addition to payroll software, business owners should also think about how they are going to track the time of their employees. This might include hiring specific time tracking software, especially if employees are going to be working okay from the main business. Utilizing software that have GPS to ensure an employee is where they are supposed to be when they clock in, for software that takes a picture of the employee to show where they are when they clock in can help ensure accurate time tracking. Edmonton bookkeeping recommends that business owners are tracking everybodyís time, not only to guard against time stealing, but it also protects the employees to ensure that they are getting paid accurately, and even for a salaried employee to ensure their vacation is accruing and getting paid out accurately.
They sooner an entrepreneur can think of these variables in their business, the better so that when the timing is right for them to hire their first staff member, they have thought about all of the most important aspects, that can allow a smooth transition from being the sole worker to managing staff. If a business owner grows their business quickly, having the systems in place early is important.
Edmonton Bookkeeping | Why Growing Businesses Need Defined Payroll Processes
What is going to ask the entrepreneur to scale up their business quickly, is creating templates and checklists for payroll processes says Edmonton bookkeeping. While many entrepreneurs understand the importance of checklists and templates, they may not think of it in terms of payroll processes. As Atul Gawande, the author of the checklist manifesto says about checklists ìwe always hope for the easy fix, the one simple change that will erase a problem in a stroke. But few things in life in this way. Instead, success requires making a hundred small steps go right, one after the other no slipups, no goofs, everyone pitching in.î Payroll is a lot like this, a business owner must ensure that a hundred little steps are followed accurately to ensure that employees are onboarded properly, and paid accurately.
Not only is it important to have templates and checklists in place for payroll, but business owners need to do this before they have their first employee. Whether or not they are entering the information themselves, or they are getting their Edmonton bookkeeping company to help, having templates in place can ensure all information that is needed is obtained, and anyone can end to be information into their accounting software, leaving the entrepreneur free to continue working on their business.
Four hirings, business owners should have a copy of the TD one form, which has a national as well as provincial version. They can simply email or give it to new hires so that everyone has the into the accounting software. Also, it is important for entrepreneurs to have a template and letter for termination of an employee. This allows an entrepreneur to ensure they are following labour standards, ensuring that an entrepreneur is doing things legally, which covers both the entrepreneur and the terminated employee. These things need to be in place prior to hire any employees because an entrepreneur might never know when they need to use it.
If an entrepreneur has any questions about the payroll process, if they have an Edmonton bookkeeping company, they can help provide guidance not only on payroll process, but with labor standards since they often have worked with numerous different businesses and are familiar with standards, and filing requirements. Also, they often have their own ID number with service Canada, which means they will be able to help a business owner with any filing may have including a record of employments.
By thinking about these checklists and templates ahead of time, entrepreneurs can ensure that they are ready to hire staff, as soon and their business is able to, and that they have all of their systems in place for managing payroll and even terminating them if necessary. By having these ahead of time, a business owner can ensure that they have a smooth and seamless hiring process that allows them to ensure they are adhering to labor standards, to allow them to scale their business up seamlessly.