Monday Money Mindset: Budget for Hiring

Excited to hire? Plan your budget first—QuickBooks helps estimate salaries, benefits, and taxes for smart decisions! Start by running a Profit and Loss report in QuickBooks to see what you can allocate toward payroll. Factor in hidden costs like training and onboarding, and use QuickBooks’ budgeting feature to adjust your expenses as needed.

Run a Profit and Loss Report in QuickBooks

1. Log in to your QuickBooks account.
2. Navigate to the Reports tab in the left-hand menu.
3. Select Profit and Loss under the standard reports section.
4. Set the date range to view your most recent financial performance (e.g., last month, quarter, or year).
5. Review your total income and expenses to determine your current net profit.

Factor in Hidden Costs Like Training and Onboarding

When budgeting for a new hire, consider the following hidden costs:

• Training Costs: Estimate expenses for materials, time spent training, or third-party training programs.
• Onboarding Supplies: Include items like laptops, software licenses, and office equipment.
• Employee Benefits: Account for health insurance, retirement contributions, and paid time off.

Tip: Create a list of all anticipated expenses and input them into QuickBooks to see how they’ll affect your cash flow. A well-planned hiring budget ensures that your new hire contributes to growth without straining your finances. Need help creating one? A Chandler CPA, like AZ Easy CPA, can walk you through it.

Need help with your business finances? Contact Us! We offer monthly accounting and bookkeeping services, clean-up projects for past years, QuickBooks training, and phone consultations to help you stay on track.