Scaling HR Without the Headaches: What Bookkeepers Need to Know

As bookkeeping firms grow, so does the complexity of managing people. From payroll compliance to onboarding, HR issues can quickly become overwhelming—and risky—if not handled properly.

In an episode of The Successful Bookkeeper Podcast, Rhamy Alejeal, founder of People Processes, explains how small business owners (including bookkeepers) can scale their HR operations without increasing their liability. Whether you’re hiring your first employee or managing a growing team, there are key processes and systems that make all the difference.

Here are the main takeaways from the conversation:

🔁 HR Is a Repeating Process—So Systematize It

Most businesses treat HR as a series of one-off tasks: hiring, onboarding, time-off requests, terminations. But successful companies treat HR as a repeatable, documented process.

Why it matters:

  • Reduces human error
  • Ensures compliance with labour laws
  • Delivers a consistent employee experience
  • Makes it easier to delegate or outsource

What to do:

  • Create a checklist for each HR function (e.g., hiring, onboarding, termination)
  • Document steps for payroll, benefits, performance reviews
  • Use HR software to automate recurring workflows

 

⚖️ Compliance Is a Hidden Risk for Small Firms

Payroll mistakes, late filings, and improper recordkeeping can lead to fines, audits, or employee disputes. Even with just one or two employees, the risk is real.

Key risk areas include:

  • Misclassifying contractors vs. employees
  • Mishandling leave entitlements
  • Missing payroll tax deadlines
  • Poor documentation of employee performance or discipline

What to do:

  • Stay current with Fair Work obligations and superannuation rules (if in Australia)
  • Use cloud-based payroll software that includes compliance updates
  • If unsure, partner with an HR specialist or compliance service

 

💬 Communication Is Part of Risk Management

According to Rhamy, many employee problems come down to unclear expectations and inconsistent follow-up. Small business owners often avoid difficult conversations, which leads to misunderstandings, frustration, or legal exposure.

What to do:

  • Set clear expectations in writing (role descriptions, KPIs, working hours)
  • Hold regular check-ins—even with casual or remote staff
  • Keep a written record of any performance issues or agreements

 

📈 HR Supports Business Growth—It Doesn’t Just Manage Risk

Strong HR systems don’t just protect you from penalties—they also support a scalable business. When onboarding is smooth, employees feel confident. When performance reviews are fair, staff are more engaged. When your HR tasks are automated, you can focus on strategy.

What to do:

  • Build a simple onboarding sequence that includes tech setup, training, and welcome steps
  • Create a 30/60/90-day check-in template for new hires
  • Use digital forms to collect and store employee data securely

 

Key Tools for Small Firms

If you're not ready for a full HR department, start with lightweight, cloud-based tools:

  • HR software: Employment Hero, Gusto, BambooHR
  • Payroll & compliance: Xero Payroll, KeyPay, QuickBooks Payroll
  • Documentation: Google Workspace or Microsoft 365 for storing templates, policies, and meeting notes

 

As your bookkeeping business grows, HR can no longer be an afterthought. From hiring to compliance, the risks are real—but so are the opportunities. With the right systems, you can reduce errors, protect your business, and create a better experience for your team.

For more great content, check out The Successful Bookkeeper Podcast!

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Michael Palmer

Article by Michael Palmer

Michael is the Head of Community for Pure Bookkeeping, the host of The Successful Bookkeeper podcast, and an acclaimed business coach who has helped hundreds of bookkeepers worldwide overcome their fears, exponentially grow their businesses, and achieve the quality of life they've always wanted.