Why paper timesheets are hurting your business
Are you a business owner and are you currently using paper time cards for your employees? If so, you might be interested in learning why paper timesheets are hurting your business.
The cost of using paper timesheets
Surprisingly, there are still a lot of businesses out there using paper timesheets or spreadsheets. There are several different reasons why some businesses may still be using paper timesheets or spreadsheets. Some simply don’t want to spend the money on a time tracking solution. Others may simply not know where to start in finding the right time tracking solution. Not using a digital time tracking solution, is ultimately a lot more costly than using one. Let’s delve into why paper cards aren’t a great idea:
Time theft or time forgery prevention
Believe it or not, 75% of businesses in the US suffer from some form of time theft. You might probably be thinking, “Not my employees!”, but the American Payroll Association has estimated that 75% of businesses are affected by time theft and can cost businesses up to about 7% of their annual gross payroll. So if your business is paying about $500,000 annually in payroll, you could be losing $35,000 due to time theft. Now that’s a good amount of money!
Inaccurate Job Costing
Do you ever wonder if you are going over budget on projects? In fact do you find out in time or ahead of time before expenses go over budgets? Using paper timesheets means that there is a lag time between getting job costing updates and time worked collection. This isn’t optimal for businesses trying to keep a close eye on spending figures.
Stop chasing employees for timesheet
Using paper time cards usually means that, employees have to hand in their time cards in person or need to be contacted in order to collect hours worked. This can be a painful and time-consuming process, chasing and tracking down employees for hours worked. It gets even worse when you have employees working from far remote regions and they can only be reached by phone.
Clerical interpretation errors
Have you ever tried to read bad handwriting? Interpreting a 1 or 7, or trying to understand the notes that were written for each time entry can lead to errors. Bad handwriting can lead to uncertainty, assumptions and obviously, room for time record errors. Switching to a digital time tracking program will get rid of these problems.
Spend less time doing payroll
Spending time chasing employees is not only frustrating but also very unproductive. Sometimes, there’s a ton of time spent re-entering handwritten time entries into a computer system, which can also introduce it’s own problems. Your payroll employees or you could be spending that time focusing on other parts of the business than to be chasing employees. Moving away from a paper timesheets can lead to a lot more productivity.
DCAA Contract Work
Do you bid for government contract work? If so you will be subjected to DCAA contract work requirements. DCAA requires you to be able to keep an audit trail of your time entries. This is a nightmare if you are solely dependent on paper timesheets. Failing to meet the requirements and being on the losing end a DCAA audit will lead to huge fines or even possibly a few years in prison.
There are countless reasons why you should move away from paper time sheets or Excel sheets. The biggest reason to move away from paper time sheets is that paper timesheets are a lot more costly to maintain. Stop the time theft in your business and increase productivity with a time tracking solution.
Looking for a time tracking solution? Check out Timeero GPS time tracker.