5 Reasons to Use a Time Clock for Payroll

Technology is rapidly changing –and today, there’s more tools available than ever to help make our lives easier and more efficient.

When it comes to time tracking, this is certainly true. Top time clock software is more advanced and convenient than ever –enabling employers to reduce errors, streamline payroll processing, and ensure accuracy.

But many companies are still using old or outdated time tracking systems –or manual timesheets. The general consensus among many is that these systems still work, so why change them? But the fact is that there are many reasons to upgrade to a modern time tracking system. Especially for companies with multiple employees –where payroll processing is more complex, and the chance of errors occurring is higher.

With this in mind let’s take a look at five of the top benefits that come from using a modern time and attendance software for employee time tracking –read on to see if it may be time for you to consider upgrading!

1.More Accuracy

Perhaps the biggest benefit of using modern computer based time clock software is the accuracy that it provides. With a manual time tracking system, it can be difficult to verify that an employee was there for the hours that they claim to have been. Without a time clock –there’s no record of time worked –aside from the employee’s notes or their word. This means that should an employee forget to write down their time, they will have to try to remember how many hours they worked –a difficult task, especially if they’re trying to recall their hours at the end of the pay period! A web-based time clock, though, helps to ensure accuracy. Employees log in via fingerprint, webcam, or via their phones –and their hours will be logged, ensuring accuracy and improving accountability on all fronts.

2.Time Savings

Manually tracking time can be a time-consuming process. Not just for the employees –but for those who are processing the payroll as well. Calculating, deciphering handwriting, and attempting to make sense of handwritten time cards is a tedious, and often long process that’s prone to human error. Employees often dispute their hours, and since there is no time clock –and therefore no proof of hours worked, it can be difficult to come to a solution. With an employee scheduling and time clock software, there’s no guesswork –and no disputes; helping to save time –and hassle.

3.Fraud Reduction

A robust time tracking system can help to reduce the chance of fraud or time theft from occurring as well. With a manual time card, it is easy for a disgruntled worker to adjust their hours in their favor, or to cover for a late coworker. In fact, the American Payroll Association estimates that time theft can cost companies up to 7 percent of their gross annual payroll. It’s also estimated that one-quarter of workers inflate their shifts over 75 percent of the time! An online time card system can help to ensure accurate record-keeping, keeping everyone honest, and on the same page.

4.Cost Savings

While many employers who are hesitant to implement a new time clock system –may be holding out due to concerns about the initial cost –in many cases, a robust time-clock system can actually help a company to save money. Time spent processing and manually entering data for payroll, fighting potential fraud, as well as correcting errors can often add up considerably. The American Payroll Association estimates that payroll automation can reduce payroll processing costs by as much as 80 percent! This potential cost savings is something that you’ll want to keep in mind if you’re considering a time tracking system.


Finally, time cards can be used to improve accountability –and ensure that employees are in compliance with their work agreements. Time clocks can be used to alert managers if an employee is late, absent, or leaves early –as soon as these things occur. This allows the manager to take action sooner, rather than later –and helps them to keep track of things far more easily than if they were using paper time cards.

If you’re on the fence about buying a time clock for your business –you’ll want to consider the advantages, and whether or not they would apply to your company. Most companies that implement an online time clock system, though, find that it streamlines payroll processing, ensures accuracy, improves accountability –and makes life simpler and easier for their team as well.