One of the ongoing challenges of any business is keeping track of the time employees work. Proper record-keeping requires much more than simply writing down how many hours your employees work each day. In addition to tracking hours worked each day, a business must also record sick time and overtime, nighttime differentials, commissions, and so on.
You Need A Time Keeping System
You probably already have some kind of system to help make the process go smoothly and accurately. If you are like most small businesses, you use a time-and-attendance system involving time cards and maybe even a time clock.
One of the challenges that businesses face with their time keeping systems is that people are prone to making errors. Human error accounts for the vast majority of payroll management mistakes and it can be costly. The more your system relies on manually inputting time-and-attendance data, or information, the more likely it is to be incomplete and inaccurate.
A more automated time keeping system on the other hand, allows businesses to easily manage the process of keeping track of actual hours worked. Accuracy can be vastly improved and tampering with time cards, etc. can be minimized or eliminated. Many automated systems are designed to work with popular payroll and tax programs, as well.
Which Time Keeping System Is Best?
The fact is that the "best" time keeping system for your business will be determined by your budget, your particular payroll model, the number of hourly employees you have on your payroll, and what additional features you want to have.
But the fact remains that having, or installing, a comprehensive and integrated time keeping system will not only improve your payroll process, but will actually improve your company's bottom line through lowered costs in your payroll management and in increased productivity.
3 Reasons to Reconsider Your Current System
1. Reducing Your Labor Costs. You already know that payroll is one of, if not the, largest expenditure in your company's P&L. et, the more accurate and streamlined your time keeping system is, the more accurate your actual labor costs are calculated. While no owner wants to be viewed as a "Scrooge", it benefits no one when your payroll is erroneously inflated due to manual input errors. This can be prevented or vastly improved by implementing a system that accurately tracks your employee's working hours in real time.
2. Improved Compliance Practices. By choosing a good payroll software for your company, you will make it easier to access all of your payroll information in one place, whenever you need it. One of the greatest benefits for payroll management professionals is the vast array of powerful and comprehensive software tools available to them.
Whether cloud-based, or installed software, having the latest and best HR tools can make your payroll management and HR work far more efficient and manageable. Because of the Government’s ongoing monitoring of accurate employee compensation by employers, it’s necessary to have in place an automated timekeeping system and save yourself from the costly penalties that can result from labor disputes.
3. Increased Automation=Decreased Human Error. Automation will decrease the amount of time you and your employees spend tracking, completing, submitting, reviewing, and correcting time sheets or cards, hours worked, etc. Depending on your current system, how many employees you have, and the size of your payroll staff, these tasks can be overwhelming - and costly.
How Much Should You Keep In-house?
The key is to think strategically, and act tactically. In other words, anticipate your needs and expected growth while taking steps today to improve and streamline your current processes and systems. In many ways, your time keeping system can be seen as the scorecard that helps maintain your business. Paying your employees as cost-effectively as possible makes good fiscal sense!
With the wide variety of tasks and accountabilities HR professionals are responsible for managing, having the best tools at their disposal becomes an ever-present concern. Programs evolve, technology changes, and what was purchased and installed three years ago, for example, may not be sufficient for today.
And while investing in the best available software for your HR functions is a viable option, another direction you can consider is outsourcing. This can be simply outsourcing one process such as payroll. However, with a full-service provider such as Accuchex, you have additional options for outsourcing as well.
Let Accuchex help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.