Importance of Having Time and Attendance System for Your Small Business
October 24, 2015
Inaccuracy in timekeeping can be disastrous to a small business, particularly one in services sector as workforce is its largest expense. Without accurate time and attendance information, issues like employees being not paid properly, non-compliance and decreased employee morale will arise. Managing employees, the biggest asset for a small business, becomes easy with time and attendance system as it provides accurate and reliable information.
Here we have discussed briefly on some reasons for your small business to have time and attendance system.
Most of the small businesses pay their employees on hourly basis. Not tracking time and attendance efficiently results in overpaying. As the employees will be recording their own time-in and time-out for each work day, the likelihood of inaccurate working hours documented by employees is very high in manual timekeeping.
Automated time and attendance system on the other hand efficiently tracks the working hours of each employee and ensures that the employees are only getting paid for what they did. You will also get a better insight into your employees’ work, the amount of hours they are putting in and the return on investment of their work. This information is very crucial in appropriately allocating the labor.
Processing payroll using the manual process – collecting time cards and manually reentering the data into payroll system – can be tedious and time taking. In general, many small business owners spend more than 5 hours at the end of each pay period to process the payroll. By switching to automated time and attendance system, you can drastically reduce this time to less than half an hour.
Reduced Human Errors
In manual system, you will be maintaining huge amounts of paper-based employment and timesheet data files of your employees. Working with this type of records can be both time consuming and inefficient. There is always a risk of human-generated payroll errors, time theft and increased overtime costs. Automated time keeping systems reduce this risk as they generally are 99% accurate compared to manual systems by eliminating errors in data entry and calculations.
Automated time and attendance systems generally allow employees to securely access their timekeeping and employment data. This plays a major role in improving employer-employee relations. Also since time and attendance system guarantees timely and accurate pay, employees are likely to be happy.
Today, with increased enforcement of the laws related to employee compensation for worked hours, it is very important to ensure that your time and attendance system is in pace with the requirements. Automated time and attendance system ensures that you have all the required information to comply with laws regarding time and attendance. This helps you in avoiding penalties and possible law suits.
Switch to an automated time and attendance system, and eliminate the risks involved in manual process while managing labor costs and maximizing profits.