Before Your Next Hire: The Back-Office Systems Every Growing Business Needs
Hiring your next employee is exciting - it means your business is growing! However, growth has a way of exposing cracks in processes that can’t keep up.
A common mistake that businesses make is assuming the old way of running things will work as they scale - this can create serious headaches such as compliance issues and inaccurate financials.
Before you post that next job listing, make sure these back-office systems are in place.
A Real Bookkeeping System
If your books are still living in Excel or on a spare napkin, it’s time to fix that. With more employees, compliance becomes more difficult to manage - and even more important to get right. QuickBooks Online, NetSuite, Xero, or whatever system fits your budget and size needs to be a priority.
More importantly, someone needs to own it and keep the financials up to date - whether that is you, your in-house accountant or outsourced bookkeeper.
A Payroll Process You Can Count On
Nothing diminishes employee trust faster than consistent payroll errors. Before bringing on more team members, you need to ensure you have a proper payroll system in place - one that tracks withholdings, direct deposits, and year-end forms without piecemealing it every two weeks.
While there are many payroll systems out there - Gusto, ADP, Paycom - the best one is the one that works best for you. The key to a great payroll system is one that is set up correctly from the beginning.
An Onboarding Process That Is Actually Outlined
An employee’s onboarding experience sets the tone for their entire experience. A common misconception is that onboarding processes need to be complicated - which is false. They just need to be consistent. At the bare minimum, their accounts need to be operational (and with the correct access levels), paperwork ready to roll, and introductions to key contacts and stakeholders. One of the most underrated, but effective, tools is a checklist. By standardizing the onboarding process, you aren’t forced to reinvent the wheel every time you bring a new team member on board.
Basic HR Documentation
In tandem with the onboarding checklist, having a basic and easy-to-understand employee handbook is key for both management and employees. Keep in mind, it doesn’t need to be a novel. Some of the basics include: attendance expectations, a consistent payroll schedule, code of conduct, and some type of organization chart that details the chain of command.
This ultimately protects your employees - and it protects you.
Cash Flow Tracking
While revenue is exciting, cash flow is the real heart of a business. As bills pile up, payroll grows, and invoice count increases, you need to know where your cash is and what the next 60-90 days look like. The difference between making confident, proactive business decisions and reacting to surprises comes down to one of the most effective tools - cash flow forecast. When reviewed monthly, this is one of the most powerful habits businesses can build.
Growing a Team is Exciting, but Growing a Business is a System
The businesses that scale well are the ones with a back office that can support the growth without falling apart. If you’re approaching that next hire and feeling like your systems are held together with duct tape, it’s worth having a conversation before things get complicated. At Ledford & Co., helping businesses build that foundation is exactly what we do — so you can focus on what you’re actually good at.