The importance of accurate timekeeping for a small business is just as essential and critical as it is for any large business, maybe even more so. Small businesses who rely on paper or manual timekeeping are risking compliance issues, paying employees incorrectly, and may be overpaying employees who are not accurately reporting their hours worked.
Businesses can easily address these issues by implementing a basic automated timekeeping system that produces greater efficiencies, saves money, and reduces compliance issues.
Timekeeping compliance is important for many reasons.
First and foremost, an automated timekeeping system ensures fairness. Accurate timekeeping from an automated system ensures employees are paid fairly for the time they have worked. It helps prevent wage and hour violations, as well state, federal, and local employment regulations.
Timekeeping compliance is essential for every business in today’s workplace. With an automated timekeeping solution, the worry about compliance with applicable state and federal regulations are alleviated as the system helps prevent errors. The capability of these systems can instill restrictions so that the business minimizes risk to legal issues. Ultimately, it can help protect employers from costly legal issues and litigation.
This additional layer of risk management and compliance also alleviates administrative burden on the organization’s internal payroll managers. By reducing tasks associated with these functions and improving the level of management oversight, employers and managers are able to allocate more of their time and talents to other areas such as growth, recruitment, production and other strategic initiatives that contribute to a prospering and thriving business operations.
Automated timekeeping helps boost productivity by monitoring employees. By tracking time, employers and managers can identify areas where productivity can be improved and address accordingly. Proper timekeeping creates accountability among employees and helps them understand that time is valuable to both the business…and to them.
Accurate timekeeping also helps employers plan and allocate payroll resources more effectively. By understanding how much time employees spend on different tasks, employers can make better decisions about staffing, resource allocation, and scheduling.
An automated timekeeping system is essential for today’s hybrid and remote workforce. With the ability to provide time tracking wherever an employee works, it helps ensure remote workers are accountable for their time and adhering to job expectations.
One of the most important factors that an automated timekeeping system brings to a business is trust. Effective timekeeping builds trust between the employer and employees. When employees know that their time is being tracked accurately, they are more likely to trust their employer, feel valued, and can forecast their payroll.
The investment in an automated timekeeping system is essential for a growing business. Instilling a proper timekeeping system now ensures that the business can continue to operate efficiently and effectively as its workforce grows.
As payroll professional, I have helped many small business owners evaluate their payroll service, automated timekeeping system, and how these platforms can integrate together to ensure the most accurate and efficient solution. I welcome the opportunity to meet with business owners and human resource managers to assess needs, identify objectives and make recommendations to support the company’s goals.
If you’d like to schedule a time to meet and discuss your payroll and timekeeping needs, please contact Zach Brady at [email protected] or by calling 909.946.2032. You may also schedule a virtual consultation with Zach here.
*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.