The energy drink, Red Bull, can be a money trap. For example, you drink a can of Red Bull once a week for a kick start on Monday mornings. Who could blame you? Mondays are Mondays. It’s an excellent $2.50 a week investment. But then you see a case of Red Bulls for $32.50 at Costco. That’s 24 cans at $1.35 each, about half the convenience store cost. “What a deal!” you exclaim and run over a little old lady in your excitement to load the case on your flatbed shopping cart. Your Monday treat is now a “get me through hump day” Wednesday habit and a TGIF fix. The $ 2.50-a-week pleasure escalated into an indulgence more than double the cost and blew your budget (we won’t mention the health issues). Likewise, unchecked labor costs will torpedo your business. The best place to start is by eliminating handwritten timecards.
The Cost of Using Handwritten Timesheets
A study of small businesses revealed that employees steal 10 minutes a day from their employers. This time theft happens when remote employees use handwritten timecards. You may be aware that this practice occurs in your company but don’t know how to stop it, or you haven’t considered it a big deal. It is.
Let’s illustrate, and we’ll assume that your employees are twice as honest and accurate as the average employee, and you only lose 5 minutes a day per employee.
- At $12 an hour, that’s 20 cents a minute x 5 minutes a day = $1 a day per employee
- 15 employees = $15 a day, $75 a week, and $3900 a year in unearned, non-productive wages.
Ouch! Handwritten timecards are painful!
Then consider the payroll expenses such as workers’ compensation and payroll taxes associated with these extra unearned wages.
Stop Time Theft with an Online Time Clock System
Use an online time clock system to stop time theft. The use of simple technology puts money back in your pocket. For example, your cost for using our time clock app for 15 employees is $89 a month, $1068 a year. We already determined that you’re losing at least $3900 a year + workers’ comp and payroll taxes. Your net gain is $2800 a year in easy money that’s not taxed.
Then consider other tangibles such as no-show alerts and the seamless QuickBooks Interface that drastically cuts processing payroll time. You make more money and get a system to help manage your employees. Check out our survey of customers and how most report saving at least 5% on labor costs.
Don’t allow inaccurate timekeeping methods to be a money trap for your small business. The costs are real, must be counted, and are avoidable. The excitement over more money in your bank account and a management system to make your life easier will eliminate your need for Red Bulls.