Adding an Office Administrator

This sheet helps you decide when to add an office administrator: the signs to watch for, what the role owns, whether the math works and how to hire it right.

When the owner does the books at night, it's time.

First hire off the truck · usually part-time to start

$500K–$1MTypical revenue range

10+ hrs/weekOwner time spent on admin

$56KExample loaded cost per year

$93KAdded revenue to pay for it

Is it time?

Tick what's true for your company today

Signs it's time · check what's true today

Invoices go out days or weeks after the work is done
DSO is over 45 days and nobody calls on late invoices
Payroll and bills get done at night or on weekends
Calls go to voicemail while the owner is in the field
Books aren't closed monthly, or close late
Vendor bills are paid late or early-pay discounts are missed

What they own

Same-day invoicing and A/R follow-up calls
Timecards and payroll prep
Phones, customer records and scheduling support
Vendor bills and A/P entry (owner approves payments)
Month-end support so the books close on time

Their scoreboard

DSO
Days to invoice
Close by the 10th

Does the math work?

Example pay · 20% burden · 60.3% gross margin

The example (per year)

Base salary (example)$45,000
+ Labor burden & benefits (20%)$9,000
+ Phone & software seats$2,000
= Loaded cost per year$56,000
÷ Gross margin60.3%
= Added revenue to cover the role$92,869

Payback: Invoicing 7 days faster on $1M of sales frees about $19,000 of cash (7 × $2,740 a day).

Does the math work for you?

Put in the pay you would offer and your own gross margin.

Base salary ($)

Burden & benefits (%)

Phone & software seats ($)

Your gross margin (%)

Loaded cost per year

Added revenue to cover the roleLoaded cost ÷ gross margin

Making the hire

Hire it right

List every task you'll hand off before you post the job
Part-time is fine to start; grow the hours with the workload
Give system access with the owner approving every payment
Split duties: whoever enters bills should not also sign checks

Common mistake

Handing one person bookkeeping, deposits and check-signing with no review. It's the most common setup for fraud in a small company.

How to pay it

Hourly or salary. A small quarterly bonus tied to DSO or an on-time monthly close keeps the focus on cash.

The first 90 days

Day 30: invoices go out the day work is done. Day 60: runs payroll prep. Day 90: books closed by the 10th.

Ranges reflect common green-industry practice, not rules; your margins, service mix and the owner's strengths decide the timing. Salaries are examples only; use local market pay. Revenue needed uses the example company's 60.3% gross margin.

Key idea: The first hire buys back the owner's time. Spend it on selling and running crews.