Staff may become a customer and it is very important to establish a solid trading practice with them.

Our recommendations are:

  1. Add the staff member to the database
    1. Group under STAFF
    2. Set Trading Terms to suit
    3. Set as both a client and supplier
    4. When adding their surname, it is a good practice to add their surname as STAFF – MARY
    5. You can set a default discount (See billing process below)
  1. Adding an Opening Balance
    If the staff member has an opening balance from another system, add the balance as follows:
    1. Add the Staff member to the database as above
    2. Select the ‘Receipts’ tab
    3. Select the ‘Journal Entry’ button
    4. Enter the details and 'Add an opening balance'

  2. Editing/Deleting a Journal Entry
    1. Click on the entry with your mouse

  3. Billing Staff
    The problem for staff billing is that it can dramatically affect the overall profit calculation whilst increasing the sales values.
    For example:
    You make $5,000 sales for the week at a 30% margin (($1,500/$5,000) * 100% = 30% )
    A staff member gets $1,000 work done at zero profit (($1,500/$6,000) * 100% = 25%)
    What can be worse is that the staff member does not get billed and the costs are hidden in the weeks work as a reduction in profit/increase in costs ((($1,500-$1,000)/$5000) * 100% = 10%)
    This type of scenario can be very common when the owner of a business uses their position in the company to get products/work done for themselves
    The message is; be careful and use the following rules:
    1. Bill all work/sales be it to customers, staff, or owners, in all cases
    2. Be very careful about discounting. The idea that staff work does not cost money is untrue. The total sales will be used as a key factor in financial analysis
    3. Work on personal projects should be done after hours
    4.  Charge for all materials and offer cost + percentage or retail - percentage
    5. Always check staff invoices for accuracy of factors.

  4. Receiving payment
    1. All staff accounts must be settled by the 20th or each month due. Else it will affect your Debtors Recovery factors and important Ratio Analysis calculations
    2. Avoid becoming a bank for staff accounts
    3. Set up a weekly account payment/credit so that a method of payment it always in existence
    4. Staff can always have a credit balance as easily as a Debit Balance
    5. If it's complicated, it's wrong
    6. Receive payments as if the account were a regular customer account