If you are running a small business, you know how important it is to keep costs down and profits up. Being able to grow and expand your business can take up a lot of your time, but you may not have considered how you are losing money due to lost time. If you are using outdated or inaccurate time management systems, you need to consider how this is hurting your business. Read on to learn just how important accurate time keeping is for any small business.

Time Theft

Are you paying your employees for hours they haven’t worked? Are your employees utilizing buddy punching, where one employee punches in for another employee that is absent or late? Are your employees able to manipulate their own timesheets to add in hours that they didn’t really work?  Or do your employees always wait to clock out to squeeze a few extra minutes out of every day? Employees are entitled to overtime pay, but what about employees that purposefully over-inflate their hours to be able to take home more in overtime? All of these practices cause you to lose money, and it can be at an alarming rate. Imagine a company of one hundred employees who each misreport ten extra minutes a day, 5 days a week, for a whole year. For fifty work weeks that could be over four thousand hours you are paying your employees for that they never worked! Imagine the money you could save if everyone was reporting only the exact hours they worked!

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Time Spent Time Tracking

Yep, you read that awkward phrase right. A lot of time is spent trying to reconcile outdated timesheet systems at the end of the month, and tracking down gaps in time that are unaccounted for. If you use an outdated system it may get bogged down when too many people are clocking in or out, and may need constant maintenance to keep running. All of this takes up precious time that could be spent doing something else that would benefit your business. Reconciling timesheets is usually a job that managers and owners hate to do, but it is necessary if you don’t have good time attendance management systems. Upgrading to a better form of time tracking can save you time and money!

Losing Money By Trying to Save

Some business owners become overwhelmed considering the cost of new systems. They erroneously believe that by not purchasing newer technology, such as time tracking software, they are saving money. Not only are they still spending money on all of the office supplies they are still needing to buy, but on the labor of having an employee reconcile those outdated timesheets. When you are looking at a new method to manage your business you need to not only look at the upfront cost, but the savings over time. Sometimes an initial investment will actually be a very small price to pay in long term savings.

Human Error

We are all human, and get stressed on the job, tired from a night up with a baby, or have an illness that doesn’t allow us to perform our job well. Whatever the case may be, humans can make mistakes from time to time, including in time management. If your payroll and attendance system is confusing and stress-inducing, the employees you have conducting those tasks are more likely to make mistakes. These mistakes could be costly, not only in paying employees too much, but also if you don’t pay them enough and open your business up to liability and lawsuits. Using outdated time tracking methods can lead to an increase in human errors, and these can cost your business big time.

As you can see, having an efficient and easy way to track your employees’ time can result in big monetary savings for the employer. You may be losing money without even realizing it, and upgrading your time tracking could be the boost that your business needs. Timeco offers online employee time clocks that can keep an accurate count of all of your employee’s hours and end up saving you money! Don’t let your company bleed money through inaccurate time tracking—get a free demo of Timeco today!