If you are like most US businesses, payroll and associated costs form as much as 50% of your total budget. And like a lot of businesses, you may not be using automated time tracking systems.
Traditionally, payroll is a manual and labor intensive process, with employees hand-writing or punching in time cards. Not only is this process error-prone and rife with time padding and buddy punching, it’s a system that requires additional audit and reconciliation. There’s overwhelming evidence that streamlining the payroll process with a simple and automated time tracking system can significantly reduce payroll costs.
Let’s take a look at how an automated time tracking system can eliminate errors and increase accountability.
Reduce human error.
Let’s face it. Errors on time sheets are not exactly rare. For the most part, they are genuine human errors in rounding up or down, perhaps a misplaced decimal, maybe a miscalculation of hours worked. And then there’s those completely illegible timecards. Can you blame your payroll processor, if they couldn’t read the timecard correctly? Or even if they hit the wrong key? Automated time tracking systems reduce such human errors by close to 90%.
“Buddy punching” – the act of clocking someone in when they are not actually there – affects 75% of businesses in the US. It can cost businesses up to 7% of a company’s gross payroll annually. Let’s say your annual payroll is $ 250,000. That’s an additional $ 17,500 in payroll costs that you could easily avoid and send to your bottom-line, with automated time tracking. Then add in the costs of hour inflating. With a mobile time tracking solution, you have the added benefits of photos and GPS locations, to avoid these time theft issues.
Speed up payroll processing.
With all timesheet data collected digitally into a single system, you completely eliminate the need to collect manual timecards, transcribe them, calculate hours worked and manually update your payroll system. You can either integrate the data from your time tracking system directly to your payroll system or just export data from your time tracking system and import it into your payroll system. Automating this process can easily save you 50% of your payroll processing costs.
Eliminate material costs.
Automating your time tracking system eliminates several recurring costs associated with a paper-based system. Reduce the costs on paper, ink, storage, mailing. And win big for Planet Earth with an environmentally friendly digital system.
It’s a win-win-win for your employees (faster payroll), your company (reduced costs) and Planet Earth (reduced paper and ink). Time to make the move?
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