Payroll is the largest overhead segment for most small businesses and a significant portion of cost for all firms. Accurate employee time and attendance tracking for payroll reporting is key to profitability. A traditional punch time clock is often still a comfortable and easy choice; these legacy low cost time clock systems seem to offer a convenient and familiar environment for employees and seasoned payroll personnel.
However, for companies with more than 12 employees, or more than one location, or out-of- office workers a cloud based employee attendance software may be the best investment they can make to ensure security, efficiency and compliance. Real time, biometrically verified, encrypted data sent in proactive alerts keep admins informed of slack crews and unauthorized overtime to stay on budget and adhere to timelines. So, what is the trust cost of ownership when we consider a low up front cost solution?
By comparison the hard costs of a paper card time clock include ongoing purchase of time cards and ink ribbons, the time associated with employees reading their cards at the clock (holding up the line,) and time spent by the payroll team collecting, sorting, calculating, storing and manually entering the data from the cards. Significant soft costs can be very expensive and are often overlooked. Time fraud, wage theft, honest mistakes and human computational and keystroke error combine to sap profitability.
Online time clocks that are web based and use DEPENDABLE biometric verification offer scalability, control, agility, insight and flexibility. Although there is a subscription fee, this cost typically shows a most profound return on investment. By wisely choosing the superior performance of this type of management tool you can gain several significant competitive advantages. Cost overruns can be avoided; precise budgets can be projected and more importantly maintained. Not only will savings directly translate to bottom line gains, employees will be able to concentrate on core competencies with the peace of mind that comes from honest accountability.