Hiring happens long before an employee actually starts working for your company.

For example, every year, during my annual planning meeting, I fill out my organizational chart for 10 years, 3 years, and 1 year. From there, I look at the staffing needs the company may have in the near future and begin thinking through what support will actually be needed as we grow.

On the organizational chart, I fill out:

• Job title
• Full time or part time
• Wage

This part forces me to get clear on what I actually need instead of hiring when things are already overwhelming and emotionally heavy.

Once the role is mapped out, I use that information to create the job posting and begin preparing for the hiring process. The hiring timeline I typically anticipate is about three months; from the moment I begin planning and preparing for the position to the moment someone is officially hired.

That three-month window is incredibly important financially.

During those three months, every single time I process payroll, I transfer the equivalent of that future employee’s payroll amount into savings. I treat the payroll expense as if the employee already exists before they even join the company. This gives me a real-life test run.

If transferring that money into savings immediately creates stress or cash flow problems, then I know the business is probably not financially ready for the hire yet, and I am able to assess the sales goals and make shifts as needed. But if the business can comfortably absorb that future payroll amount while continuing to operate normally, then I know I am hiring from a place of stability, and the process will feel far more supported financially.

By the time the employee officially starts, there is already money set aside to support onboarding, training, payroll timing differences, and the natural ramp up period that comes with bringing someone new into the company.

That preparation changes my emotional and mental well-being as a leader. When payroll is planned ahead of time, I can focus on mentorship, communication, and helping the employee succeed instead of constantly stressing about whether the business can financially support them. It creates a calmer environment for everyone involved.

Final Thoughts from Your Favorite Accountant 🧡

If you are thinking about hiring, start preparing financially before you ever post the job listing.

Build the role on paper first. Forecast the payroll. Start transferring the future payroll amount into savings during the hiring process so you can test whether your business is truly ready to support the growth you are planning for.

Hiring feels very different when it is built with long term vision (10yr, 3yr, and 1yr) instead of emergency mode (needing someone yesterday).

Because at the end of the day, cash flow isn’t luck, it’s strategy. And it’s my goal to make that strategy as simple as possible for you.

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