“Time is money” may be a popular adage, but it’s also the truth, especially for companies tracking time and paying wages to a considerable workforce. Many companies, however, are using outdated methods for tracking time that actually cost both time and money, like spreadsheets and manual timecards.
Switching to timekeeping software can solve this problem, allowing your company to more easily and accurately track hours. While there is a cost and some inconvenience involved in implementing software, there are also long-term benefits, including saving money.
Not sure that it’s worth the time and trouble? Let’s look at some of the ways implementing timekeeping software benefits your company.
Reducing administrative burden
How much time do you spend tracking, verifying and confirming hours every week? What does it take to find and correct errors? If you’re like many companies, you spend a lot of time just trying to get everyone paid correctly. If your company does government projects, there is the additional burden of certified payroll and reporting. This means weekly reports and complying with a lot of other burdensome requirements. If you do these tasks manually, or through spreadsheets, you’re sinking even more time into payroll each week. You’re also probably making errors that open your company up to risk, including financial penalties. The right timekeeping software can solve this by making it easy and efficient for you to track time and make corrections. Software can also help validate information and calculations to further reduce errors.
Reducing errors and risk
If you’re not using software to track time, you’re probably keeping track of it by hand. For many companies this means that workers manually track and write down their time on timecards. That information gets put into a spreadsheet or payroll system. This process may require information to be entered multiple times, each time a potential point of error. This method of time tracking also relies on people to be accurate and timely. For companies doing public works projects, this is even more troublesome since prevailing wage issues come into play. As you can see, there are many areas where mistakes can be made. Unfortunately, every mistake in recording hours worked can mean you’re paying too much, or risking compliance issues and penalties. Timekeeping software reduces the need for manually marking down hours and re-entering the same information into multiple systems. It also makes it easier to find and resolve errors.
Manual tracking makes accountability difficult. Buddy punches and off-site punches cost your company money and make it hard to get a real idea of how much time it takes to complete projects. Digital timekeeping can greatly improve accountability, allowing you to only pay for hours actually worked. Sophisticated time keeping software can record punches along with the time and location of the punch. You can even set perimeters for when and where employees can clock in. If you do prevailing wage work, you can use timekeeping software that allows employees to change their roles throughout the day. These benefits improve the accountability of your staff while reducing your company’s risk.
Improves bidding and ability to be competitive
Bidding is a critical part of business for construction companies. The balance between being competitive and profitable is reliant upon accurate information on material costs and labor expenses. Manual time tracking, however, can be inaccurate and error prone. This can make it difficult for you to create accurate bids. If you bid too low, you’ll lose money. If you bid too high based on inaccurate labor costs, you may not win as many bids. Timekeeping software gives you a more precise picture of labor closes so that you can create accurate bid and be more competitive.
Timekeeping may not seem like a critical part of business, but in reality, it is directly tied to profitability. By implementing timekeeping software into your payroll processes, you’ll be more efficient, reduce errors, see improved accountability and even be more competitive. And although making the switch to timekeeping software may seem a bit daunting at first, the long-term benefits make it 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.