Advanced time clocking software enables businesses to integrate time and attendance with their payroll processing applications seamlessly, bringing a whole range of efficiency savings and business benefits. Find out more in our guide.
What is time tracking software?
Time tracking software, or time clocking software, is the software businesses use to record the hours their employees work. Time tracking is crucial in any business, with payroll, scheduling, budgeting and regulatory compliance often relying on accurate recording of hours worked.
Time tracking software digitises the previously ubiquitous methods of manual time tracking, where for many businesses pen and paper or punch cards reigned supreme. While benefiting from its simplicity, businesses can run into a number of issues as a result of manual time tracking.
The most important of these is accuracy; when relying on their memory to complete paper timesheets, it’s not uncommon for employees to erroneously record the wrong number of hours worked, or forget to complete the sheet entirely. Moving the data from manual timesheets to the payroll system is also a needlessly time consuming task for HR and payroll staff, not to mention the risk of human error in transferring the data. Manual time tracking methods are also fixed to the company’s site – something which is wholly inadequate for modern working patterns with many staff working remotely.
Advanced software for time tracking remedies these problems, while remaining simple to use for employees of all levels with clock-in methods ranging from facial recognition to mobile apps. It also improves security, ensuring that staff can only clock in and out for themselves, not their colleagues.
The problem with siloed systems for time and attendance and payroll
Manual methods of time tracking can cause a range of problems for payroll processing, as detailed above. But these problems won’t be automatically solved by investing in time tracking software if the technology can’t be integrated with existing payroll systems, and data still has to be ported over manually.
When data is siloed in this way, the risk of costly mistakes (i.e. under or over-paying employees) and the inefficient use of time for payroll, HR and finance teams is much higher. What this highlights is that fluidity of data and a single source of data truth within an organisation is of paramount importance. Simply embracing time tracking software isn’t a guarantee of this, if this can’t be integrated with payroll.
Benefits of integrating time tracking with payroll processing
Upgrading your business’ tech stack with the right time tracking software can transform accuracy, efficiency and much more besides in payroll processing.
Eliminate payroll mistakes and boost security
The best time tracking software ensures time and attendance data is accurate at source. When this data flows seamlessly into payroll, the chances of errors in employees’ final payslips drops precipitously. Not only does this eliminate the hassle that comes with correcting pay-related mistakes, it also maintains staff satisfaction and confidence in the payroll process.
This isn’t to mention the financial cost of payroll errors – with recent research suggesting that businesses are losing up to £150,000 per year this way. An additional benefit is an extra layer of data security. No longer will time data or the personal information of employees be left lying around on paper or require multiple staff members to manually transfer; it simply flows directly into the payroll application.
Adhere to all regulations
Modern businesses are subject to an ever-changing set of regulations when it comes to working time and pay. The larger your workforce, the more difficult compliance becomes, not to mention when employees are spread over various different regional jurisdictions.
Advanced time tracking software comes equipped with rules ensuring these regulations are faithfully adhered to, and updated when required. When integrated with payroll processing applications, businesses can be confident that they will remain compliant at all times. Integrated time tracking and payroll software also archives the hours staff work, and their remuneration, meaning the relevant data is available on demand for auditing purposes.
Make payroll processing a quicker and more efficient process
With integrated time tracking and payroll processing, your HR and finance departments are freed up to spend more time on value-adding tasks. Timesheet data, as well as all other personal and HR information, flows automatically between all relevant departments and applications, slashing the amount of repetitive menial work staff are required to complete. Unnecessary paperwork can also be eliminated, reducing the burden on staff and bolstering security.
Improve scheduling flexibility
With T&A and payroll integration enabling managers to track attendance in real time, it’s easier than ever to create balanced schedules that produce the most efficient outcomes and keep costs (including overtime) to a minimum. It’s the integration that is truly pivotal, enabling businesses to combine scheduling, budgeting and timesheet data to produce the best possible outcomes.
More powerful reporting
With all data available on one platform, managers can analyse payroll trends in more granular detail than ever. The best platforms enable you to pull comprehensive reports that are automatically “rolled up” into the most useful views. With payroll comprising the lion’s share of most businesses' expenditure, having instant access to these kinds of reports gives them an opportunity to make considerable savings by making data-driven decisions.
