In your company, every minute counts—and lost time means lost money. Tracking employee time accurately and efficiently is a cornerstone of good business, helping to boost productivity, gain insight on key data points, and increase your bottom line.

Although proper time management is critical, so is using the right technology. According to a study by TSheets in 2017, 38% of employees who track time still use manual processes like paper time cards and punch clocks. Traditional methods leave room for human error, billing inaccuracies, misplaced money, and lost time—risks all businesses want to avoid.

Using a cloud-based automated system will streamline your entire time tracking process. Technology like When I Work, TimeTrex, and TSheets use software like GPS tracking, mobile optimization, scheduling systems, to-the-second tracking, and facial recognition, to simplify any headaches associated with traditional time tracking. And it’s all stored online in the cloud to be easily accessible from anywhere, for both you and your employees.

Time tracking is so much more than just logging employee hours. Here’s how using an automated timecard tracking system will save you and your business valuable time and money in the short- and long-term.

Reduce human error and fraud

Nobody is perfect. Human error happens frequently when calculating employee hours, and employees themselves can commit fraud by buddy punching or clocking hours they haven’t actually worked. This can cost your company thousands of dollars. Mistakes are difficult to catch, and if they are, it leads to more work to correct the mistake on employee paychecks. When data collection and calculations are automated, and time clock systems with GPS are used, the computer does the work instead, reducing human error and derailing fraud.

Streamline payroll

Time tracking software allows you to streamline your payroll process with electronic records. You can update your system to include your company’s payroll policies for vacation, paid time off, and other forms of absence. Also, you can integrate your time tracking software with a direct deposit payroll system, cutting down on paper, printing, and distribution costs. By automating your payroll, you can reduce the costs of processing and manual labour, as well as have an accurate electronic record at your fingertips.

Collect valuable data

Make informed estimates, rather than guessing. Using an automated time tracking system stored in the cloud allows you to see accurate results and use this data to inform your decisions. Timesheets demonstrate employee productivity levels and show overtime costs, helping you to allocate their time properly and see where you might need to hire another position. Timecard data also helps to predict job and labour costs and compare them to industry standards, allowing you to make business decisions using precise numbers and statistics—no guessing involved.

Avoid litigation

Are you tracking off-the-clock working hours and overtime for your employees? If you aren’t using time management tactics effectively, your business could be hit with an expensive Fair Labour Standards Act (FLSA) lawsuit. He-said-she-said discrepancies and internal policy conflicts can be settled with accurate timesheet records, proving employees work time, breaks, and overtime. If you don’t have records available, it may leave you and your business responsible for back wages, overtime wages, damages, and attorney fees. Avoid costly lawsuits with proper time tracking, and cover all of your bases with an Employee Agreement Checklist to set expectations (and eliminate any face-to-palm moments).