Staying competitive in today's marketplace can be challenging, especially for small companies that don't have the financial resources their larger competitors may have. If you are looking for some simple ways to cut your overhead costs in order to make your small business more profitable, you should consider switching to automated timekeeping for your employees.
Here are three reasons why automated time cards could prove beneficial to your company's bottom line in the future.
1. Automated time cards prevent human error.
Everyone makes mistakes, but when these mistakes are made on a time card, they could be costing your small company a significant amount of money. The American Payroll Association estimates that the rate of human error which occurs while preparing and totaling a manual time card is somewhere between 1% and 8%.
By switching over to an automated timekeeping system, you eliminate the need for employees to do any math manually. A computer will total time card hours and send the information over to your accountant for payroll preparation. Eliminating human error from the timekeeping process will help save your small company money over time.
2. Automated time cards reduce time theft.
When employees track their own hours, they may engage in a practice known as time theft. Failing to account for a long break, taking a longer lunch than recorded, and arriving late or leaving early without accounting for lost time are all forms of time theft.
When you make the switch to an automated timekeeping program, your employees will have to login and logout of the system for each break. This helps to reduce time theft, ensuring that you are only paying for actual minutes worked by each employee.
3. Automated time cards make accounting easier.
Payroll services play a vital role in any small business. When you make the switch to an automated timekeeping program, your accountant will be able to easily access the information needed to prepare paychecks, file tax documents, and pay for payroll-based insurance programs (like workers' compensation insurance).
Making the accounting process easier can also save your company money. Your accountant will need less time to complete payroll services, which will result in a reduction in your accounting-related expenses in the future.
Switching over to an automated timekeeping program might seem like a costly endeavor, but this is an investment in your small company's future. Automated timekeeping will reduce human error, track time accurately, and simplify payroll services. For more information, contact local professionals like Waggoner Frutiger & Daub CPA's.