Tuesday, November 3, 2015

Importance of Correct Timekeeping

Know what is happening with your investment

Imagine if you just invested $50,000 into the stock market through a stock broker. When you gave your money to the stock broker, he told you that your money would be taken care of. You then asked him where he planned on investing your money, his response, “don’t worry about it”. Would you be okay with this investment scenario? If you put your hard earned money into the stock market, you want to know where it is going and how it is being spent.

Why would the scenario above be any different than you investing your hard earned money into your employees by paying them for the time? Your investment is the time employees use to help your company grow while getting paid. This is why correct timekeeping is a critical component of any organization.

Here are some of the issues that could occur by having incorrect or insufficient timekeeping:

  • Time Wasted – If you do not have a correct record of how much time your employees are really spending working, then it becomes very difficult to determine the return on your investment. It also becomes more difficult to identify processes that are inefficient.
  • Money Wasted – Every miscalculation in timekeeping records result in lost money for the organization. This will build over time resulting in a small miscalculation becoming a large monetary loss for the organization. To help eliminate these mistakes, it is important to spend a little more time on the timekeeping process.
  • Compliance with Tax Requirements – If your timekeeping records are inaccurate, then so are your tax filing for each of your employees.
  • Quality of Life for both Employee and Employer – Your employees are spending time working at your organization and they expect to be compensated appropriately. At the same time, you want to make sure that your organization is protected against time theft, human efforts, and other potential issues.

By having correct timekeeping processes and records, you help keep employees happy by paying them for the time they have worked and you help ensure that your monetary investment in your employees time is being used for it maximum potential.

For more questions on this topic, please feel free to email me at jhuff@hcsiinc.com

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