When an entrepreneur is new in their business, they often do not think about payroll yet, because they do not need to employees yet says Edmonton bookkeeping. However, a business owner should be thinking of these things early on in their business, and the earlier the better. The reason why is because in order for a business owner to be able to scale up their business and hire that first important employee, they need to have systems in place ahead of time so that it can be a seamless transition from a business with no employees, to a business with staff.
One of the things that an entrepreneur should be thinking of, is how often they are going to be paying their staff, cut off and pay dates. The reason why this is one of the first things that a business owner should think about is that the frequency of the payroll is going to depend on the business owners’ cash flow situation. The cash flow in a business is dictated by how often money is coming into the business. If an entrepreneur is only building their clients monthly, they are only going to be getting money into their business primarily once a month. If an entrepreneur wants to pay their staff biweekly, they may decide to build their clients every two weeks, or even every single week, in order to help bring money into their business on a more spread out basis, so that they can ensure they have money coming into their business to be able to pay their staff every other week. They can only create these systems if they are thinking about it early on in their business.
It is also important for a business owner to think about time tracking abilities before they have the need to track their employees’ time. Edmonton bookkeeping says that there are lots of different software programs and apps that are dedicated to time tracking and timesheets. The type of business that entrepreneur has may present different needs for their time tracking software. For example, does an entrepreneur have employees that work off-site, if they are working away from their business, perhaps a software with built-in GPS that only allows an employee to clock in when they are at the job site. Or if an entrepreneur is not going to be at the workplace all the time, having an application that takes the picture of the employee to ensure that they are actually at work, can help an entrepreneur do the tasks that they need to, will ensuring that their staff is actually at work.
Edmonton bookkeeping says these are some of the things that an entrepreneur needs to keep in mind when they are new in the business so that when they hire their first staff member, they can do so easily, but systems that they already have in place. By thinking about these things early on in their business, an entrepreneur can implement that system no matter how fast their business grows, because they are ready.
Edmonton Bookkeeping | Why Templates Are Important For Managing Payroll
Many entrepreneurs already know how important templates and checklists are for maintaining order in their business says Edmonton bookkeeping. However, many entrepreneurs do not think about creating templates are checklists for managing hiring staff until there in the process. However, the recommendation is for entrepreneurs to create the systems in the templates ahead of time, so that when they hire their first employees, they can be ready and have a seamless transition.
For example, when an entrepreneur is hiring employees for the first time, not only are they most likely going to ask their Edmonton bookkeeping company to help the process, they also need a bench of very specific information such as the employee’s date of birth, address and social insurance number. In order to ensure that they ask all of the right questions, and then give that to is going to be entering into their accounting software can be very important. By creating a hiring template, or using a TD one form that they can, an entrepreneur will be ready to have the information that is needed to hire a staff member, regardless of who is entering it into the accounting software.
Not only is it important to have a template for hiring staff, but having systems in place for when staff quits, or are terminated is important as well to ensure that not only is it being done correctly, but that the employer is adhering to labor standards, and the employee is getting what they are entitled to. If this system is not automated, a business owner may end up missing information, that could create problems for them.
It is also important for entrepreneurs to know that there Edmonton bookkeeping company can provide guidance to them on payroll processes. Often, they are the ones that are going to be entering new employees’ information into the accounting system, and they often already have their identification number with service Canada so that they can do are always and another payroll filing. But also, bookkeepers often have knowledge about labor standards, making them an important resource for business owners.
Once an entrepreneur has their hiring and termination templates all figured out, a business owner should figure out time tracking and timesheets next. Regardless of if their staff is hourly or salary, an entrepreneur needs to have a system in place for time tracking, not only to guard against time stealing but to ensure the business owner is paying their staff correctly every time. A timesheet is also important for an entrepreneur to track vacation time used so that it gets accounted for properly by their Edmonton bookkeeping company.
By thinking about these payroll processes before they have their first employee can help a business owner be prepared for whenever they need to hire someone. If their business is growing quite quickly, they will be very grateful to have these processes already in place, allowing them to start hiring staff as soon as they need them in their business.