Friday 12 July 2013

Timesheet Software - Eliminating Human Capital Dependence With Payroll Integration

Payroll is one of the most important aspects of business management no matter what niche your business belongs to or what size it is. If you have employees, you need to pay them for the hours worked. In order to ensure maximum profitability, it is essential for an organisation to be able to do that in a transparent and accurate manner. However, processing payroll can be an extremely time consuming and tedious task, if done manually. Timesheet software systems can help make that dreary task something that can be done within minutes and without any errors.  


What Exactly Are The Shortcomings Of Manual Payroll?

Well, for starters, manual payroll entails complete dependence on human capital to get anything done. This in itself is quite expensive as well as fraught with human error. Process of payroll preparation starts at the initial stage with capture of time and attendance data. When employees clock in, they get their time and attendance recorded either with time cards or with pen and paper timesheets. This data is later collected manually onto a paper sheet or excel spreadsheet at each pay-cycle.

In the absence of automated time and attendance clocks, you need human supervision of the employee clocking in and out to ensure there is no element of time theft. This of course further stretches your resources which are already quite thin if you are a small business. Once it is time for payroll, the employee hours need to be collected from whatever format they are were recorded in and transferred to paper timesheets. After that, this data needs to be processed by the payroll department to prepare wages for employees that are paid on hourly basis.

This process is no walk in the park either, by any stretch of imagination. Just imagine if you have to calculate wages of more than 20 employees most of whom have varying pay grades. You have to manually calculate wages of each employee separately according to his or her pay grade. In addition, you have to make complex calculations such as overtime, paid time off and sick leaves, and taxes and the rest of it.

Cost Of Manual Payroll Management


As you can easily imagine, all that time spent on monitoring employee time and attendance and the subsequent processing of employee payroll carries a certain cost. In addition, there is also an element of human error that can cost around one to five percent of your overall payroll costs. You require human supervision on each stage of time keeping as well as payroll processing to avoid any manipulation of the system and subsequent losses. All of this can be avoided by implementing the timesheet software system.

Modern time and attendance tracking systems are equipped with a software suite that automatically calculates employee hours, overtime, and other complex calculation. Entrepreneurs can export these detailed time and attendance reports into top payroll systems and get this extremely labourious task done with just a few clicks and without any possibility of human error.


To know more about automated time and attendance clocks, please visit AussieTimeClocks.Com.Au

No comments:

Post a Comment