Let’s break down when it’s the right time and how to handle payroll without losing your sanity.

You’re ready to hire when you’re consistently turning down good work because you don’t have time. If you’re working 60+ hour weeks for months and still can’t keep up with demand, it’s time to get help. Look at your finances too. Can you afford to pay someone for at least 6 months, even if business slows down?

Start by identifying what tasks eat up most of your time that someone else could handle. Administrative work, customer service, or routine tasks are often good starting points. Don’t hire someone to do the work only you can do, hire them to free you up for high-value activities. Also consider, could you outsource specific tasks to freelancers or contractors? This gives you flexibility without the commitment of payroll, benefits, and employment law compliance.

Once you’ve decided to hire, payroll becomes your new reality. Payroll software makes this manageable.

QuickBooks Payroll works well if you’re already using QuickBooks for your accounting. Everything integrates seamlessly, and you can run payroll right from your accounting software. You’ll need to set up employer’s liability insurance, workplace pensions, and potentially offer benefits. You’ll need to familiarise yourself with and adhere to all relevant employment laws, including those related to minimum wage, working hours, and workplace safety. 

Set up a payroll schedule and stick to it. Most small businesses pay weekly or monthly. Whatever you choose, consistency is key. Your employees need to know when they’re getting paid, and you need to plan your cash flow accordingly. Keep detailed records of everything. Hours worked, overtime, sick days, holidays, document it all. This protects both you and your employees, and you’ll need these records for tax purposes.

Your first employee is a big step, but it’s also the foundation for growth. Take your time to find the right person, set up proper systems, and don’t be afraid to ask for help when you need it.

Got questions about managing your books? Schedule a call and let me know what you’re struggling with, we’re here to help!