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.
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