Using Excel spreadsheets to calculate staffing costs
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- Aldous Phillips
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1 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C Using Excel spreadsheets to calculate staffing costs Open the file Business profit_loss 2007_08. A screen similar to the one shown on the next page should appear. If you have a different page on your screen: select the symbol, É, at the bottom left-hand corner of your worksheet select the overall 2007_08 tab at the bottom of the worksheet. This page records any income received by the business as well as all the business expenses. These amounts are totalled elsewhere and then entered on this worksheet at the end of each month. You will look at this worksheet in more detail in Session 7. You will not be entering any data in this particular worksheet this session. Along the bottom of this overall 2007_08 worksheet, you will find another 12 tabs one for each month of the financial year. Only 6 tabs are visible at any one time. You will need to use the arrows at the bottom left-hand corner of the screen to bring the rest of the tabs into view as you need them. Prevocational Mathematics 1 of 12
2 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs 2 of 12 Prevocational Mathematics
3 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C These worksheets (July 2007 to June 2008) are for the employer to record the staffing costs for his/her employees. Some formulas have been embedded in certain cells in the worksheet so calculations for items such as superannuation, workers compensation insurance (Workcover), leave loading and so on, occur automatically. These formulas are similar to the formulas that you have used previously when calculating staffing costs for an employer. The results may be slightly different from those that would be calculated by hand. This is because the computer deals with unrounded values and also caters for the extra day in a year (or 2 days in a leap year). Remember, you used 52 weeks for a year rather than 52 weeks and 1 day. Let s have a closer look at one of the Staffing costs worksheets now. Select the July 2007 tab at the bottom of the screen. The following worksheet should now appear. This worksheet is set up to record the staffing costs of 10 different full-time or part-time employees for the month of July. The names of the employees are to be recorded in cells B4 to K4. The weekly wage of each employee is then recorded under the employee s name in cells B6 to K6. Wage-related expenses are automatically calculated once the weekly wage has been entered. Let s enter some data and see what happens. Note: As you work through the following example, if any of the cells in your worksheet contain #####, you just need to make that column wider for the numbers to appear. Prevocational Mathematics 3 of 12
4 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs 4 of 12 Prevocational Mathematics
5 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C Select cell B4 and type the name Adrian. Select cell B6 and enter Adrian s weekly wage of $500. Prevocational Mathematics 5 of 12
6 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs Select anywhere on the worksheet (outside cell B6). Amounts for wage-related expenses for Adrian for the month of July are now automatically calculated. According to this, for the month of July 2007, Adrian s employer will need to: pay $2200 in wages to Adrian contribute $198 to Adrian s superannuation fund set aside $29.17 for holiday loading and $83.33 for leave entitlements pay $30.13 for workers compensation insurance. Adrian s employer pays a total of $ in wages and wages-related expenses for Adrian during the month of July The accumulating annual total is the total cost of wages and wage-related expenses for Adrian for the financial year. Because July is the first month in the financial year, the total for month and the accumulating annual total are the same. 6 of 12 Prevocational Mathematics
7 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C Now select the overall 2007_08 tab and look at the changes that have occurred in that worksheet. Notice that the staffing costs for Adrian for the month of July 2007 have automatically been transferred into this worksheet. This amount should be the total staffing costs for the month of July. Since Adrian is the only employee entered so far, Adrian s staffing costs will also be the total staffing costs for the month. As no income and no other expenses have been recorded, the business is showing a loss of $ ( ) for the month of July. Now you are going to add another employee in the month of July. Select the July 2007 tab. In cell C4, enter the employee name Suzanne. (You may need to widen the column if the name is too long for the current column width.) Enter Suzanne s weekly wage of $ in cell C6. Select anywhere on the worksheet (outside cell C6) and the wage-related costs for Suzanne will be automatically calculated. Prevocational Mathematics 7 of 12
8 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs The wage-related expenses for Suzanne have been calculated and recorded in the same way as they were for Adrian. Now look at the Totals column (column M). These amounts are the total amount the employer is required to pay in each category during the month of July The total staffing costs for these 2 employees for this month is $ This amount should appear against Staffing costs in the overall 2007_08 worksheet. 8 of 12 Prevocational Mathematics
9 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C Select the overall 2007_08 tab and check that the total staffing costs for July ($ ) is recorded against Staffing costs in this worksheet. The total staffing costs for the 2 employees, Adrian and Suzanne, for the month of July are $ Since this is the only amount recorded in this worksheet so far, the business is recording a loss of $ Prevocational Mathematics 9 of 12
10 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs Select the August 2007 tab at the bottom of your screen. Notice that the employee names from the previous month have been transferred into the same column in this worksheet. The accumulating annual totals for each employee ($ for Adrian and $ for Suzanne) have also been carried forward from the previous month. Assume that both Adrian and Suzanne receive the same weekly wage in August as they did in July. Enter Adrian s weekly wage ($500) into cell B6, and Suzanne s weekly wage into cell C6 in the worksheet. Select anywhere on the worksheet outside cell C6. You should now have the following amounts on your Staffing costs for August 2007 worksheet. 10 of 12 Prevocational Mathematics
11 Running a small business Using Excel spreadsheets to calculate staffing costs Topic 9 Unit C Notice that many of the amounts are slightly higher for the month of August than they are in the month of July. This is because there is one more working day in August than there is in July It would be very time consuming to calculate the exact amounts by hand. However, it is fairly simple to set up a program to deal with the different days in a month. (You are not expected to program this.) The accumulating annual total for each employee is the total of all the staffing costs for that employee so far in the financial year. The accumulating annual total for Adrian at the end of August is $ This is the sum of the staffing costs for Adrian July ($ ) and August ($ ). Similarly, Suzanne s staffing costs in July were $ and in August were $ Her accumulating annual total is the sum of these two costs. $ $ = $ Prevocational Mathematics 11 of 12
12 Topic 9 Unit C Running a small business Using Excel spreadsheets to calculate staffing costs Select the overall 2007_08 tab. Notice that the staffing costs for the month of August have been automatically transferred into this worksheet. The total staffing costs for the year can be found against Staffing costs in the Total year column. In this case the total staffing costs for the year (so far) are $ Because only staffing costs have been recorded, this business is showing a loss of $ for the months of July and August. 12 of 12 Prevocational Mathematics
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