It’s scientifically proven that if you put $100 in a Mason jar, bury it 2ft deep in your backyard and dig it up a year later, the jar will still have exactly $100. A bank savings account will yield roughly the same return these days. The stock market could snatch away the entire Benjamin plus broker fees. So where does a small business turn to for a solid investment…one that has a proven track record?
Most small business owners are too busy working their business to become experts at different types of investment strategies. In today’s economy, it’s likely that a small business owner has all her net worth tied to the business operations. If that is the case then it’s critical to know how to minimize costs, maximize savings, and get the most out of every dollar spent. One way to save is by utilizing all available tax deductions. This article at MSN.com outlines several often overlooked tax deductions for small businesses. Another tactic is to strategically invest in marketing, technology, training, quality vendors and other ideas presented in an article by Entrepreneur.com. These investments can yield higher visibility, more efficient operations, better customer service and increased profits.
For many service-oriented businesses, the single highest capital outlay is spent on payroll, often up to 80% of total operation costs. Salaries can be negotiated, but they are a constant. The wages for hourly employees are much harder to predict and control, especially if these are remote employees without direct supervision. Hours fluctuate and overtime can accrue. 2012 saw a 32% increase over 2008 in employees’ lawsuits alleging that they were owed overtime. The best way to prevent these claims is to diligently track, manage and control the hours of employees. The worst way to track employee time is by handwritten timecards (because they are dependent upon the honor system). These handwritten timecards must be collected and manually calculated and processed.
A more efficient method is the use of a system in which remote employees must call to clock in and out of jobs. A telephone timekeeping system captures accurate time and serves as an employee management system. Timecards are automated and can be exported to payroll services such as QuickBooks, ADP and Paychex. Users will pay a monthly fee for the timekeeping service, but the investment yields a direct return in payroll savings and in time saved processing payroll. In a study by the American Payroll Association, it was estimated that a telephone timekeeping system can save a small business between 2-6% on payroll expenses. A 4% savings means that for every $1.25 invested in a telephone timekeeping system could yield $7 in return. An illustration of these savings is found here.
Use Mason jars to store canned vegetables, not to bury cash. Invest in a product in which you are the expert…your own small business and choose your strategy wisely. For proven results that yield a direct return on your investment, the solution is quite simple; a telephone timekeeping system.