Three Reasons You Should Invest In A Clocking Software For Your BusinessShare
One of the main challenges in running a business with multiple employees is keeping track of their work hours and calculating the payroll. If you are using the manual clocking system, you can attest to the above statement.
For instance, manual clocking wastes a lot of time because you have to take all your employees' time cards and manually fill in the data in a spreadsheet before calculating the payroll. However, you can quickly solve the above problem by simply investing in clocking software. Clocking software is fully automated, and thus it can save you a lot of time and effort in tracking your employees' work hours.
With that said, here are three benefits a clocking software provides over a manual time card system.
Preventing Time Fraud
Time fraud refers to employees clocking in hours that they have not worked. For instance, an employee can easily lie about working overtime by clocking in additional hours on their time card, yet they did not work overtime. Additionally, it is pretty easy for an employee who is not present at the workplace to ask a colleague to clock in their time card in their absence. Thus the absent employee still gets paid for the time they did not put in.
In the above scenarios, your business loses money due to time fraud. However, you can prevent time fraud by investing in clocking software. Unlike manual clocking, clocking software is automated. Thus, employees do not have an opportunity to conduct time fraud because the clocking software keeps precise track of each employee's work hours. Hence, the employees cannot manually clock falsified work hours.
A major problem with manual clocking systems is that they waste a lot of time for the business owner and the employees. For instance, employees waste a lot of time filling in their time cards and waiting in line to get their time cards punched. Remember, the time wasted still reflects in the time cards, and thus you still pay your employees for the time wasted. Additionally, when it comes to payroll processing, a lot of time gets wasted in going through all the time cards and creating a payroll spreadsheet.
However, clocking software eliminates all the time wastage and makes payroll processing easier. As far as payroll processing is involved, you can automatically have the clocking software synced with your payroll processing system. Thus, the payroll system utilizes the data provided by the clocking software to process each employee's payroll.
Therefore, you no longer need to calculate the payroll manually, which saves time in your day to focus on the more critical aspects of the business.
Manually keeping track of employee work hours and processing payrolls is a daunting task. Remember, humans are prone to making mistakes when calculating manually. As a result, businesses that operate a manual clocking system can make accounting mistakes that negatively affect the business.
For instance, it is quite possible to overpay some employees due to a mistake in calculating their work hours. In the long run, such accounting errors can easily damage your business's finances. Alternatively, you may underpay some employees, resulting in disputes between the business's management and the employees. However, clocking software can help you eliminate human error because it is fully automated. Thus, nowhere in the clocking system or payroll processing is human intervention required.
Therefore, all the accountability gets handled automatically, thus eliminating the occurrence of accounting mistakes. To learn more, contact a company like Commercial Technology Group.