Small businesses are considered to be the backbone to the economy. The 2014 U.S. Census Bureau reported 99.7 percent of companies in the United States are small businesses. Many employees need to be accounted for when it comes to employee time tracking and hours worked. If not accurately and properly documented then your payroll could be suffering in return. In this article you will see why tracking employee hours worked is important for small businesses.
Using a Modern Time Clock System
Time clocks have come a long way since the original development back in 1888. An employee time clock was designed to track hours worked by employees so employers knew how much money to compensate their workers. Fortunately, technology has evolved to help companies just like yours to track employee hours effectively and efficiently.
Modern time clock systems allow small businesses around the world to accurately track their employees’ time worked while producing accurate time cards and reducing payroll expenses. An online employee time clock system is completely cloud-based which means you can access your account from anywhere that has an internet or mobile data connection.
Small businesses are also introduced to various features and settings for employee punching when using a modern online employee time clock. Some of these features and settings include GPS, Geo-Fencing, IP restrictions, facial recognition, fingerprint reading, and mobile app clock in. These robust features allow the employers to know exactly who is punched in and from where they have punched in at all times. This prevents time theft, punch rounding and buddy punching. According to a 2017 report by HR Daily Advisor, buddy punching alone can cost United States employers an estimated $373 million annually.
5 Various Ways Small Businesses Track Employees’ Hours
Every company has their own way on how they track employee hours worked, but it could be costing them big money if it is not done properly. I put a brief list of the most common methods small businesses use to track employees’ time and what each method is known for.
- Online time clock software – is a modern way that is saving companies a lot of money and holding employees accountable for their time. Hours are automatically calculated and time cards are immediately available to be exported to payroll.
- Handwritten timesheets – prone to errors and mathematical mistakes. Employers are likely to round minutes to the nearest quarter of an hour which could result in paying an employee more money for time they did not work.
- Excel worksheet – easily calculated if Excel formulas are properly implemented, but can be difficult to track decimal hours and overtime.
- Traditional punch clock – time consuming to add total hours at the end of the week for payroll. Also known to be a longer process for employees to clock in and out.
- Employee’s word – employers deal with the issue of dishonest employees when it comes to reporting their hours. This in return can dip into payroll budgets and cause profit issues.
Try an Online Employee Time Clock System for Free
Since payroll errors seem to be an issue with small businesses, it is encouraged to try a modern time clock for free. Find a company that offers a free trial so you can see if it is worth the investment for your company and employees. Entrepreneur.com reports that payroll mistakes can cost approximately $4 to $9 each pay period. Although this may not seem like a lot of additional expenses for some, this number can increase rapidly over time.
In addition, it is important to note the importance of proper employee time card tracking in the event of a company audit. Companies across the globe should always have accurate employee documentation to supply if ever asked by authority. Upgrade your company by increasing time card accuracy, decreasing payroll errors, and saving money.