Time tracking may not be the most glamorous part of business, but it’s critical for both small businesses and companies with a considerable workforce. Inaccurate time tracking can lead to payroll errors and compliance issues. Inefficient time tracking procedures can also become a drain on your staff’s productivity. Still, many companies are using outdated methods like spreadsheets and manual timecards to track their staff’s hours.
Timekeeping software can solve all of these problems, making your company more efficient and potentially more profitable. While there are some cost and inconvenience involved in making the switch, implementing timekeeping software has many benefits for your company, including saving money. Let’s look at some of the ways implementing timekeeping software benefits your company.
Reduce administrative burden with improved efficiency
Tracking hours manually can dominate your administrative staff’s time every week. Not only does your staff have to keep track of their hours every day, those in charge of payroll have to track down timecards, verify hours and ensure the accuracy of the information. All of this has to happen before payroll can be processed. If your company does government projects, you also have to deal with certified payroll and reporting. This means weekly reports and other tedious requirements. Time keeping software can solve all of these problems by making it much easier for workers to capture and report their hours. Software can also validate information, perform accurate calculations, reduce errors and streamline payroll processes. So, while it may take some work and expense to get started, you’ll save time and money in the long run.
Reduce payroll errors and compliance risk
Manual methods of tracking time typically include tracking hours by hand, often times on timecards. That information gets put into a spreadsheet or payroll system. This process may require that the same information be entered multiple times, leaving the door open for human error. Errors and inaccuracies can happen even if you’re using digital time tracking if it is not sophisticated enough to limit user error and misuse, like buddy-punches. This means the information you process payroll on could be inaccurate, costing you money. If you do government work, the inaccuracies could actually open you up to compliance risk and legal action. Timekeeping software that has been designed to validate information, prevent misuse and reduce errors can save your company money while reducing your risk of falling out of compliance.
Improved workforce accountability
Accountability can be problematic when it comes to manual time tracking. Buddy punches, off-site punches and simply not tracking time with precision are common issues when non-digital time tracking is used. Even digital time tracking, if it’s not sophisticated enough, doesn’t solve these issues. With the right software however, you can precisely track time, limit misuse and only pay for the hours actually worked. You can even set perimeters to completely disallow off-site punches . Time keeping software can also make it easier to track changing roles through the workday. This makes it easier for companies that do prevailing wage work to stay compliant.
Improved insight into your company
Competition is a part of business no matter what industry you’re in, which means you have to balance your pricing with your actual cost of goods and services. Without accurate time keeping, however, you really aren’t sure how much time and labor to account for when pricing. This means you may be undervaluing yourself or asking an amount that sends people running for your competition. By knowing your true labor costs, you can make better decisions and improve your ability to compete. Timekeeping software gives you that ability, providing you the insight you need to make better decisions for your company.
Tracking hours and processing payroll may seem like a mundane part of business, but it’s actually directly tied to profitability. When you implement timekeeping software into your payroll workflow, you increase efficiency, reduce errors and improve accountability so that you can be far more competitive. While you may be comfortable with your current timekeeping procedures, the benefits of implementing advanced timekeeping software make switching well worth the time and effort.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.