paper timesheets

6 Ways Paper Timesheets Are Costing Your Company Money

6 Ways Paper Timesheets Are Costing Your Company Money

 

Paper timesheets might seem like an easy way to cut costs at your company, they can be easily printed, it’s easy to input information on them, and they cost very little compared to the newer automated systems. However, the American Payroll Association shows that paper timesheets are actually costing your company valuable time and money in at least six ways.

 

1. Inaccurate Time Recording

Depending on how your business records time there are a variety of ways a record on your time sheets could be inaccurate. A punch clock on the site could be a couple minutes slow, or someone could write in the time that they think they arrived or should have arrived, or someone could forget to clock out or record project changes. While these could seem like small inaccuracies or minor issues they can cost your company hundreds if not thousands of dollars in the long run if not caught. Or it could cost your company time and money in follow up in order to correct these issues. Mobile timesheet apps allow for an accurate punch in and out as well as ease when switching projects so that you can manage an accurate payroll and billing.

 

2. Productivity Loss

Accurate timesheet data can be an important tool in understanding how your employees work on your sites. It can allow for you to see who is being scheduled and how often which can also help you to see if anyone is scheduled for overlapping projects resulting in overtime and if someone else has more time in their schedule. These small but crucial pieces of information can help you build schedules that better utilize your employees, and having all of the information in one place makes it easier for you to see the information. You won’t have to spend less time tracking down all of the timecards and re-inputting the data; therefore, having more time to spend on other aspects of your business.

 

3. Lack of Notification

It can take a day or two of phone tag in order to find out more information if you have questions about someone’s timecard, or to track someone down in order to get their timecard. With mobile or computerized timesheets, employees can immediately submit timecards as your pay period comes to an end and you have the ability to comment on any parts of their timecard you have questions over. You can set up alerts so that you know when timecards have been submitted to the back office. It also allows for employees to see when their timesheet has been approved or rejected by issuing notifications for employees so they can keep informed on the timecard’s progress.

 

4. Verification

Paper timesheets have a certain level of trust between employees and their employers, and while that trust is probably well-deserved updating to mobile or computerized timesheets acts as a second layer of verification if payroll ever comes into question. Mobile timesheet apps can be used to accurately clock in or clock out employees, as well as record the location of the clock in, clock out, or project change. This greatly benefits your business as it can provide an accurate picture of the hours required for a specific job, stop buddy punching or other similar practices, as well as refute any dispute to your project’s billable hours. This not only protects you but saves you money.

 

5. Audits

Unfortunately, audits happen. And with the rise in wage and hour litigation, it is imperative that businesses keep their timesheets in case something should arise. By using paper timesheets, which can be easily lost or damaged you’re putting yourself and your business at risk. Switching to a mobile timesheet app, on the other hand, means that everything will be backed up either in the cloud or in your business’ computer system. So if you were to get audited you wouldn’t have to spend too much time or energy looking for your old timesheets, you’d be able to pull them up with ease.

 

6. Lack of Interconnectivity

Using paper timesheets means that you have to input all the data into your payroll or billing, or input the data into your project management app, just adding more steps for yourself or your back office workers. By adding a timesheet app that can connect and work with your existing construction and accounting software, you will be able to easily access your timesheet information when looking at payroll, billing, or creating the schedule instead of having to pull out individual timecards for weeks or months at a time.

 

These six reasons are costing your company money and time that could be spent growing your business. By switching to a mobile timesheet app you’re investing in your business and helping it grow.

 

Learn More

 

Sources: 

Bloomburg BNA 

Subcontractor Software Demo

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