Why Accurate Time Keeping Is Important to Your Business and Your Bottom Line
May 22, 2018
In the business world, time is money — and a web-based timekeeping system can help you keep every dollar and every minute in your company accurate. If you are using a manual “clock” or punch-in system at your business, you could be losing a lot of money through human error or dishonesty. In addition, inaccurate payroll timekeeping systems can mean legal problems down the line.
The importance of timekeeping in business cannot be overstated. There are many reasons why you will want to ensure your time clock system for business is as accurate as possible:
- The Department of Labor (DOL) demands it.The DOL has meted out millions of dollars in fines to companies who were inaccurate when it came to overtime, pre-shift activities and more. Even inaccuracies of just a few minutes can add up, which is why every fraction of a minute counts.
- The IRS may audit you.When you are audited, you will be asked to account for any discrepancies even if they are just a few minutes. Any inconsistencies can mean significant fines. When you switch to an automatic timekeeping system you may even be able to print audit reports, which can help you prepare for tax obligations. With an automatic system, you can also show auditors you have taken all steps possible to keep accurate records.
- You need to pay the right wage and overtime.Inconsistent pay will lose you the best workers while any inaccuracies in the timekeeping can mean you end up paying more than you need to, which cuts into your profits. An automated timekeeping system helps keep things uniform and accurate, which is fair to everyone.
- You can avoid violations of the Fair Labor Standards Act (FLSA). If you underpay employees in wages or overtime, you may be noncompliant and may be faced with FLSA fines as well as a demand to pay all back wages owed. Even if you do everything possible to be fair to your employees, inaccurate timekeeping can keep employees from getting their full, fair paycheck and can cause your organization to run afoul of FLSA laws.
- It keeps employee morale high.Happy employees make for productive workers. When you switch to an automatic timekeeping system, employees no longer have to spend their time clocking in and clocking out, which means one less task for them. Workers may also be happier with a system that’s fair to all and ensures they get every minute of wages and overtime owed to them.
- It can help you address concerns with timekeeping at your company.If you have remote workers, you may need a remote system which accurately keeps track of time worked, even when a worker is on overseas assignment or is working halfway around the country. If security is a concern, you may need a time system that uses fingerprint scanners or other systems to keep everything secure and accurate. Today’s timekeeping systems have these and other features to address the risks and demands of your organization.
Protect Your Bottom Line
BCM Payroll offers web-based time keeping in addition to our payroll services. We offer customized payroll throughout South Central, Pennsylvania and Western Maryland to help you honor your employees, stay efficient and enjoy the payroll features you need to run your business successfully.
