Still using paper time cards? Is the headache of missing time cards, missing information and inaccurate time because of a dash to get payroll processed got you down?
If you wondered if paper time cards are impacting your business negatively, you would be right. Labor is a major prime cost to operate your businesses and inaccurate reporting and tracking means lost company revenue.
Here are five ways your business could be losing money due to paper time cards.
How is paper time cards costing your business.
1. Manual Errors
With Paper time cards relying on an honor system with both the employee and the administrator, issues are bound to arise. Paper time cards rely heavily on memory. Completed time cards at the end of the day or week create incorrect entries or uniform entry of time. Additionally, manual data entry or content into your accounting system can also lead to billing and time errors.
2. Employee Self Reporting
Have you rounded up numbers or time for easy of calculation? You can be confident that employees do too. According to the American Payroll Association, paper time cards results in ten minutes per employee per day in lost company earnings. This time could be from early checkout, late login, long lunches or just ‘rounding off the hours’.
Per month Cost!
10 minutes a Day times 25 days a month = 250 minutes extra Pay!
Employee time is also lost during ‘buddy punching’. Buddy punching happens when an employee clocks in for a late or missing staff or worker. This is the biggest loss in payroll dollars for employers.
3. Loss of Productivity
Efficiency in workforce, means productivity can be monitored. If a crew is constantly dealing with the back a forth of time tracking to and from the office, it creates further inefficiency in the workplace. Ever wonder where your employees are? If yes, then you know what we mean when we say that paper time cards are a major time sink and contribute to a drop in productivity. With a Job and GPS tracking software in place, you save a ton of administrative time that is otherwise spent on auditing work and time in your team.
4. Inaccurate billing
Mobile and remote businesses that are billing customers from paper time cards are sending delayed and often inaccurate invoices. Both under billing or over billing clients harms your business. When issues arise with service or work done, You risk a loss of customer faith if you are unable to provide electronic evidence, it leaves you with no resources to respond. Automated GPS time tracking, proves exactly when, where and how long your employees were working on a project. Accurate reporting of Time and attendance for projects, gives you the upper hand with customers that seek refunds, discounts for quality or work being done.
5. Job Costing
Businesses rely on accurate costs for labor as they correlate to jobs, tasks and work done. With reporting issues tied to your accounting and billing, the accuracy of paper time cards further reduces portability. If tasks and jobs are not tracked on work done accurately, budget projections and potential project pitfalls are not caught in time to maintain profitable margins.
Issues with overtime, scope creep, customer decision making and management issues leave administrators guessing. Many times the response time is delayed and work halts or continues with margin to suffer.
Why Worksana Cares...
At Worksana we are passionate about helping business owners like you build and grow your business. Our simple and powerful GPS time tracking app integrates with payroll as well as accounting software for easy gather and report time, jobs and tasks for your team.
Still unsure about switching over to an app-based time tracking system? See a demo or schedule a one-on-one. We have a love it or leave approach to your businesses. No Contract, No upfront set-up and only pay for what you use.