The energy drink, Red Bull, is a money trap. $3 is cheap for a Monday morning kickstart. But you see a case for $35 at Costco. That’s half-price! You run over an old lady and load a case into your cart. Your Monday boost is now a daily habit that’s killing your health and budget. Likewise, the habit of using handwritten timesheets to track labor costs is a money trap.
The Cost of Using Handwritten Timesheets
A small business study 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 associated with these extra unearned wages, such as workers’ compensation and payroll taxes.
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.