A business owner knows the hassles of tracking time and attendance for employees — distributing paper timesheets, collecting timecards, adding and approving time totals, calculating data — all of which are subject to error. What business owners may not know is that automating the process can simplify and improve this necessary business requirement.

Integrated time and labor management systems streamline the payroll procedure by automating data collection. Not only do such systems reduce the time required to collect data, but they make the routine less error-prone and more efficient. Best of all, in the long run, they can significantly reduce the cost of payroll processing.

Automated Time and Labor Management Systems

Automated time and labor management systems use electronic time clocks and software to collect and analyze time and attendance data. They allow managers to review, edit and approve employee time for payroll processing in less time and with greater accuracy.

Automated systems can track employee time by several methods:

• Reading magnetic stripes or bar code time clocks using employee cards.
• Reading employee fingerprints via biometric terminals.
• Reading log-in times from a personal computer.

Benefits of a Time and Labor Management System

Less Paper

With an automated system, the inefficiencies and waste of a paper timecard system are eliminated:

• No more printing of paper timesheets.
• No time wasted transferring them to the appropriate employee.
• No data entry into the payroll system.

The costs associated with paper reduction alone can save a bundle.

Time Savings

Seven minutes. According to industry estimates, that’s the average amount of time it takes a supervisor to manually calculate timecard data for each employee during each pay period. By itself, seven minutes doesn’t sound like much, but it can be a big deal when applied to the time required to calculate total payroll hours for dozens or hundreds of timecards, two or four times per month. Automating the time and attendance process allows mangers to reallocate their time to other important business, and may even help reduce payroll staff.

Data Accuracy

According to the American Payroll Association, eliminating paper timesheets has been shown to improve payroll accuracy up to three percent. A time and labor management system automates the process of tracking employees as they check in and out for work, resulting in more accurate time data and fewer payroll processing errors. Data accuracy is invaluable when a company is audited and can provide a detailed trail of employee exceptions and manager approvals.

Less Lost Time and Increased Staff Productivity

An automated time and attendance system helps recover lost time by tracking actual time on the job more closely. Since employees know that they are being paid accurately and fairly for the hours they’ve worked, productivity can increase. In addition, accurate tracking can be used to develop employee reward programs as incentives for good attendance and disciplinary actions for poor attendance.

Reduced Overtime Costs

For hourly workers, excess overtime can be costly. An automated system allows greater visibility into the extra hours worked. Managers can run reports that identify employees who are approaching overtime and adjust schedules to avoid unnecessary costs. In addition, consistent application of pay rules and policies helps to control costs.

Labor Law Compliance

Complying with labor laws and time-keeping requirements is no longer an occasional activity — it’s essential. And it’s required for large and small companies alike.

An automated time and attendance system guarantees that management applies pay policies consistently to all employees. Archived records of time records and policies can help defend a company against non-compliance issues. In addition, audit trails are accessible so that any changes that are made and who made them are easily seen.

Integrating Time and Attendance With Payroll

Time and attendance systems are even more beneficial if they are integrated directly with a payroll and/or human resources program. Automating the entire process eliminates data entry into separate systems — and the potential for error that can occur with duplicate data entry processes.

Save Time, Improve Payroll Accuracy

Evaluating methods of managing employee time and attendance is a tremendous opportunity you have to help your clients evaluate payroll costs. Consider benefits that include time savings, improved data accuracy, decreased lost time and increased staff productivity and improved labor law compliance. With today’s modern time and attendance solutions companies of all sizes are turning to new tracking systems and effectively delivering the best return-on-investment (ROI).

Demonstrating a significant savings to your clients would strengthen your relationship as their most trusted advisor. Consider Paychex Time In A Box® for your client’s time and labor management solution. This product offers a PC-based time and attendance system that adds improved productivity, accuracy, and reliability to the payroll process. Employing user-friendly software and electronic time clocks, this automated system helps businesses minimize time spent compiling paper time sheets and gives the opportunity to reduce costs, save time and obtain better control over payroll. Paychex Time In A Box provides everything a business needs to automate time and attendance — thus making your client’s business life easier and improving their bottom line.

Visit www.paychex.com today for more information. Paychex is the preferred provider of Payroll and Retirement Plan services for AICPA Business Solutions. See www.cpa2biz.com/PaychexProgram for more information.