Many business owners do their best to keep overhead to a minimum. Buying only the essentials and making thoughtful, planned upgrades can help you to keep your budget balanced and to maintain a regular profit. However, before you write off employee time tracking software as an unnecessary and frivolous expense, take a closer look at some of the primary benefits associated with using this type of software rather than a handwritten timesheet.
1. Eliminate Calculation Errors
When hours and minutes worked are tracked on a written timesheet, someone has to add up all of those hours and minutes each week. This is typically an employee who is paid to do other important tasks rather than monotonous math calculations. In addition, another person typically must verify that the original calculation was accurate, and this is typically the business owner or a manager in a small business. Calculation errors are common and costly. This expense could be eliminated with automation timesheet software.
2. Save Time Processing Payroll
Just as there is a risk of error associated with manual calculations and verifications, there is also the issue of wasting value minutes or hours with these calculations. After all, if you have a dozen employees and must regular confirm that their math is accurate, this could take a few hours of your valuable time each week. Software programs typically calculate the hours for you. Some programs even allow you to import the data directly into your payroll processing platform.
3. Prevent Employee Time Theft
When employees are responsible for writing their own hours on a timesheet, some may fudge numbers here and there with the belief that it is innocent or that nobody would notice if they take a little more money regularly. However, this type of employee theft can be expensive. It also may be occurring with multiple employees without your knowledge. Automation eliminates the possibility of this type of expensive financial loss.
4. Avoid Loss Related to Rounding
Theft of hours mentioned above is intentional, but some of your employees may do their best to keep a very accurate accounting of their hours worked. However, if they arrived a few minutes late and rounded down for the sake of simplicity or convenience, this has the same overall effect as intentional theft. You will be paying them for minutes they did not work. Minutes can add up to hours, and this can result in thousands of dollars or more in loss over a year.
There is cost associated with investing in automated tracking software, but you can see that there are numerous financial benefits associated with using this type of program. In fact, in some situations, the up-front cost may be quickly recouped by the company.