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Time clock and payroll software were created to help employers track employee time and attendance accurately. There are many benefits to using this solution outside of time monitoring, including improved payroll, easy access to data, and accurate job costing.
While the benefits of using online time clock software are many, there are also some disadvantages, both of which we’ll address in this article.
The Pros of Using Time Clock Software
There are many pros of using time clock software—far too many to mention here! To help you come to an informed decision without overloading you with information, we’ve laid out the most significant benefits of using modern time clock and payroll software.
Improved Payroll and Record-Keeping
The main benefit of using online timesheet software is improving recordkeeping and payroll accuracy. The software eliminates the need for manual timesheets, which are often riddled with errors. Even the most minor mistakes can result in incorrect calculations that affect employees’ paychecks.
Employees can clock in and out, track breaks, and request time off with time clock and payroll software. The system automatically calculates any overtime based on state and federal regulations. This information can be seamlessly transferred to payroll for accurate processing—a pro for any business!
Centralized Data Storage
Maintaining employee records is a crucial piece of the time tracking process. The FSLA (Fair Labor Standards Act) requires employers to retain time tracking data for at least two years—this can be difficult with many employees.
Automated time collection and reporting allow you to keep all data secure in the cloud. You don’t have to re-enter it manually, which can save you money. Another benefit of storing data in the cloud is that it can be accessed from any internet-connected device.
Additionally, you can use self-service portals for your employees to access their records. Providing employees with this information and making them feel empowered can boost their overall satisfaction and productivity.
Accurate Job Costing & Bidding
Spreadsheets and paper time cards aren’t the best tools for accurate job costing. It can be challenging to determine what an employee was working on and when—not to mention that manual time entry is notoriously inaccurate.
You can easily estimate project budgets and track your costs more accurately using time clock software. Employees can change between jobs and tasks with just a few taps. You can then analyze this data in detail to make informed decisions and allocate labor costs correctly.
You can avoid over-estimating and under-estimating costs with real-time data, thereby providing your customers with accurate quotes.
The Cons of Using Time Clock Software
While time clock software can be a great tool to help manage your workers, it comes with specific challenges that you need to consider before investing.
Waste Resources If Too Complicated
Perhaps one of the most significant cons of time clock software is that it is more complicated to use than a spreadsheet or punch clock. While these apps have been streamlined to make the time tracking process as simple as possible, there is still a learning curve when making the transition.
If you implement time clock and payroll software that is difficult to navigate or use, technologically challenged employees are going to suffer greatly—both in terms of morale and productivity.
Luckily, this issue can be avoided by investing in a employee timesheet software that is easy-to-use with a friendly user interface. Most solutions offer a free trial; this allows you to test the interface and navigability yourself, along with employees at all levels.
Negatively Impact Employee-Employer Relationship
Many employers are concerned about the negative impact of time clock software on employee-employer relationships. While most people benefit from being responsible for their time management, some may feel like they’re being spied on and less free to do their jobs.
Regardless of the benefits, using a computerized time clock can damage trust between employers and employees. When employees do not trust their supervisors, they may resort to other means to rip off their employers.
If you decide to implement time clock and payroll software, you need to be transparent about how it will impact your workers. Explain the benefits of using a modern solution which may include:
- Accurate and on time pay
- Control over their own time
- Less micromanaging
- Flexible access
Think about what is most important to your workers and relay how an online timecard system can address those needs.
May Require Additional Devices
With traditional time tracking, employers had to maintain a few centralized job clocks. Employees would then line up at the beginning or end of their day to punch time. Many employers prefer this method of time tracking as they can easily keep an eye on their workers from one location.
However, this isn’t always accurate or efficient and may be the reason you’re considering upgrading to modern timesheet management software. The issue is that because many of these solutions are web-based, they require works to use internet-connected devices—which most punch clocks are not. This means that you may need to purchase new devices if you decide to invest in time tracking software.
On the other hand, many time tracking solutions come equipped with kiosk options; this allows workers to track time from a centralized shared device.
Whether you need payroll software or time tracking, integrating time clock and payroll software is a wise choice—regardless of some potential downsides. The best solution will integrate with your payroll and work together to streamline your workflow processes.
It will also help you analyze your data, turn it into actionable insights, and produce reports that will keep your company on track. So, when looking for time-tracking software, choose wisely!