The Second Way: Payroll Processing
Last time, we talked about how an automated time and attendance system would help you better manage overtime, when compared to the typical manual time card or timesheet based system.
Now, let’s consider an area where software-based automated systems — whether installed locally or web-based — can save you a ton of money over a manual or paper-based system: payroll processing.
Two Ways to Save
Automated systems save you money two ways on payroll processing, by making the process:
- More efficient.
- More accurate.
More specifically, here’s how each of these benefits helps you…
More Efficient Processing
If you’re still adding up timesheets or time cards by hand, you know how time-consuming this can be. The American Payroll Association has estimated it takes an average of around five to six minutes to total and audit each employees’ time card or timesheet. You don’t have to have many employees before that time really starts to add up.
And let’s think about what happens after you add up those time records. Just knowing how many hours an employee worked won’t get their paycheck cut. You’ve still got to enter those hours worked to your payroll software or payroll processing service, so employee paychecks can be calculated and printed.
An automated time and attendance system will calculate total hours worked for all your employees in a matter of seconds. Then, the time can be exported directly from the time and attendance system to your payroll software or processing service. No totaling by hand and no manual data entry required.
What used to take hours by hand can now be taken care of in a matter of minutes. Think of what you could accomplish with those extra hours every week!
More Accurate Processing
When time records are added by hand and data is entered by hand, mistakes are bound to creep in from time to time. Especially if time records are handwritten or the printing is smudged, you can misread one number for another. Even when they’re clearly printed, it’s easy to transpose digits or to leave out one number in the middle of a long column.
In fact, the American Payroll Association has estimated clerical error rates from manually totaling employee hours can range from a low of 1% to as much as 8% of your total payroll.
Of course, when there’s an error in totaling somebody’s hours, or in transcribing those hours for payroll processing, there will also be an error on the employee’s paycheck. Depending on which way the error goes, this can lead to an unhappy employee or unhappy management. Either way, this is the kind of error that needs to be corrected right away… but fixing it can absorb valuable time that would be better spent on more productive tasks.
The easy answer, of course, is to make fewer errors. Unfortunately, that’s far easier said than done. We’re human, and human beings are prone to making mistakes from time to time, no matter how careful we might be.
Automate Your Payroll Processing
Enter time and attendance software. By automatically totaling up each employee’s work time, and exporting that time directly to your payroll processing software or service, time tracking software can virtually eliminate clerical and data entry errors — reducing the errors on your employee paychecks.
The result? Happier employees. Less time spent on going back and fixing errors. And more time for you and your staff to focus on the important parts of running your organization.
When you automate your time and attendance tracking, you will spend less time on payroll preparation, and your payroll will be more accurate. This saves you money by allowing you to process payroll faster, with fewer resources required.
Want to see for yourself how much you could save with an automated time and attendance system from Acroprint? Click here to calculate your savings.
When you’ve grown tired of adding up time cards by hand and manually inputting data to your payroll processing system, check out Acroprint’s automated time clock software. Whether you’re interested in installed software or the security and convenience of a pay-as-you-go web service, all our solutions offer automatic totaling of employee hours (including overtime) and simple exports to most major payroll software and service providers.