Accurate and up-to-date record keeping is one of the most crucial elements of a successful business – no matter what size. Chief among these types of record keeping is timekeeping – keeping track of the hours the members of your team bills to the company, as well as time off for vacations and sick leave.
Why is accurate timekeeping so critical? Here’s a look at some of the problems that can arise if it isn’t accurate:
- Wasted time. If you don’t have a precise record of how much time your workforce is really investing, then there’s no way to judge your return on investment and resulting company profitability. You also prevent yourself from being able to identify processes that are inefficient (for example, accurate timekeeping can help you determine if there’s a particular task that takes your employees a long time to complete on a regular basis, and therefore could benefit from automation, additional training, and so on).
- Wasted money. Small business owners especially need to spend their money wisely. Even if your timekeeping records are only off by a small amount, the resulting loss in profitability can really mount over time – and you may end up spending even more money trying to correct mistakes.
- Tax compliance issues. As we’ve discussed before, tax compliance is not a nice-to-have. It’s a necessity. Accurate timekeeping ensures accurate tax filing for each of your employees.
- Employee (and employer) quality of life. Your employees want to be compensated appropriately for the time they spend on the job. And you want to make sure that you’re protected against time theft, human errors, and other potentially big problems. By ensuring that both issues are being addressed efficiently and professionally, you make everyone’s work-life a lot more enjoyable.
*Editor’s Note: Apex Payroll is a partner with the Medical Association. To receive up to 20% off your payroll fees, and to discover other Apex Payroll services, click here.