There are more than 2.1 million actively trading businesses in Australia. As of February 2017, there are over 12 million full-time employees. And they all need to clock in somehow.
That’s a lot of timesheets.
Now consider this: According to Intuit’s 2015 Financial Fitness Startup Study, 42% of business owners are using spreadsheets, and 22% of business owners use paper, pen and ledgers, to manage their finances. Managing payroll alone is a process that, on average, takes more than 10 minutes per employee at the end of each pay period. So for businesses with 10 employees or fewer, that’s an extra two hours spent on payroll every fortnight. But for businesses with a higher headcount, payroll can account for an entire day’s worth of work…or more.
Even worse, only 28% of small businesses say they rely on a bookkeeper or accountant, and that’s only because they can’t manage the books on their own. But do Australia’s actively trading business owners even realise that accountants offer payroll processing as a service? And are your clients among them? You should be asking yourself, ‘How can I let my clients know this is a service I offer?’
Payroll doesn’t have to be taboo among business owners.
The solution to better payroll processing and healthy finances lies in automated timesheets.
Timesheets that are both automated and accurate saves time and money on payroll. In fact, our research shows that business owners save an average of 2-8% on gross payroll costs each year—just by making the switch. That’s a big deal for small businesses with tight margins. On top of that, fast and easy payroll means that you can easily double your number of payroll.
Still not convinced? Here are five MORE reasons your clients should automate their timesheets.
1. Pay employees for time actually worked—not estimated.
It’s hard to fudge accurate-to-the-second start and stop times, especially when clocking in or out is as easy as the push of a button. But it’s hard to be accurate on a spreadsheet or paper timesheet. When in doubt, employees will guess how long they’ve been on the job (usually based on their schedule) rather than record actual hours. And those unworked hours and minutes add up.
On top of that, the time it takes for each employee to estimate how many hours they’ve worked each week can be unexpectedly time consuming. That’s time that could be better spent on another project. When all’s said and done, your clients might end up paying each employee for several hours of unworked time each week.
Making the switch to an accurate timesheet system could save your clients thousands of dollars in payroll costs immediately—simply by cutting out the possibility of timesheet padding.
2. To err is human–and automated timesheets eliminate human error.
Handwritten time cards are easy to mess up and easy to lose. We’ve heard horror stories of employee time cards being turned in on the backs of serviettes or the sides of coffee cups. A three could look like a five, a smudge could leave an entire week unreadable, or the employee could forget to fill out the time card entirely.
Entering those numbers manually leaves room for even more mistakes. Employees could fat-finger a number as they manually enter each time, or they could enter times incorrectly by accident. And, if a mistake is made, employees have to track that timesheet down and attempt to decipher and verify the correction.
Of course, if you’re in charge of running payroll, the correction process falls to you. How much time is wasted attempting to track down, read and process those time cards?
Automated timesheets eliminate human error. Employees can clock in with the click of a button, and that time is automatically recorded within the timesheet software, ready to be imported to your payroll processing software of choice. Those numbers can’t be fudged, smudged or lost, and thanks to automated mobile timesheets, serviette and coffee cup timesheets are a thing of the past.
3. Accurately and easily calculate job costs.
A paper timesheet can determine how many hours an employee has worked each day (you know, minus the rounding and timesheet padding), but it can’t give you a big-picture view of all the hours tracked against different projects, clients and locations. And because time is our most precious commodity, shouldn’t we know where it’s going?
Mobile, cloud-based timesheets have the ability to track time against multiple job codes, locations or projects, giving you a comprehensive overview of where hours are going in real time. From there, business owners can run filtered, interactive reports that allow them to see exactly how their business stacks up. The result is accurate job costing, precise labour costing and valuable business insight.
“We have a number of clients in construction and TSheets is our go-to app for them. I recommend it to every single one of them. It makes job costing so much easier. The reason it’s such a good fit for the construction industry is that you can be tracking time against each job, which is critical, and it takes way too long to manage paper timesheets when you’ve got different crews on different jobs.”
—Rachel Fisch (Fischbooks)
4. Take preventative measures, avoid penalty rates before they happen.
In the case of paper timesheets, employees are required to fill out their time, add up their hours and manage their minutes. Not only does this leave plenty of room for human error (and even more room for timesheet padding), but it could also result in employees working more than their fair share of hours each week. Unless employees dutifully add up their hours each day, to the second, they have no idea how many hours they’ve actually worked.
Automated timesheets help business owners avoid overtime surprises and give employees total visibility. All the employees have to do is clock in and clock out each day, and accurate-to-the-second timesheets do the math for them! They’ll know exactly how many hours they’ve worked and exactly how much time they have left before working overtime.
Customisable overtime alerts notify both employees and managers when 38 hours draw near, ensuring there are no surprises come payroll, which can cut penalty rates before they’ve incurred.
5. Reduce administrative time and get back to work!
Manually collecting time cards, deciphering them, recording the data, verifying the data and running payroll can take 10 to 12 minutes per employee (pending that employee’s time card wasn’t written on a plastic cup), and that’s a low estimate. Even for a small company with a handful of employees, that’s hundreds of hours’ worth of time that could be spent working on the business and pushing the needle. It’s no wonder payroll is such a dreaded word.
With TSheets, running payroll is as easy as the press of a button. Automatically collect, verify and approve employee timesheets from anywhere (no more chasing down messy serviettes). Those numbers are automatically imported for insightful reporting, accurate job costing and, most importantly, fast and easy payroll. A job that once took hours suddenly takes minutes, saving time and money for everyone involved.
Interested in learning more? Become a TSheets PRO!
Your clients will love you for sharing innovative new technologies that will help them save time, save money and gain valuable insights. And you’ll love TSheets for eliminating the multi-step, multi-hour payroll process we all love to hate.
“If something is all hype and no substance, I’m not buying it. But TSheets has a really effective app as well as a really engaging partner program…it’s very easy to refer my clients to TSheets.”
—Rachel Fisch (Fischbooks)