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Posted by on Mar 6, 2014 in Small Business Tips | 3 comments

Businesses Everywhere are Overpaying on Payroll. Are You One of Them?

Businesses Everywhere are Overpaying on Payroll. Are You One of Them?

This post is brought to you by TSheets, time tracking that is simple, versatile, mobile and loved by employees.

These days you won’t find a thriving business that gets away with using inefficient tools; they recognize what keeps them in business. A hammer or a nail gun?  A vacuum or a broom? Lawn mower or a flock of sheep?

While every business recognizes the losses (efficiency, scalability and profitability) of using inefficient tools in the field, they may still be losing money due to outdated payroll tools and processes.

Talk to me Goose.

According to the The American Payroll Association, companies can save 2% of gross payroll costs each year if they automate their time and attendance.  Additionally, the increase in payroll accuracy saves an estimated 10% in tax obligations (social security, medicare, workers comp) paid on top of the hourly rate per employee.

Let’s put a number on those savings: a small business with eight employees paid $15/hour will save close to $5,000 a year. That’s money in their (and could be your) pocket.

So how does a business start saving on payroll? It’s classified. I could tell you, but then I’d have to kill you.

Just kidding! Really, start with automating employee time cards.

There are inexpensive and simple mobile time cards that will save you money on payroll, eradicate errors caused by shoddy handwriting and manual time entry, integrate with payroll software (resulting in bookkeeper happy dances, everywhere) and stand the test of time against audits and employee labor disputes.

You up for this one, Maverick? Just a walk in the park, Kazansky.

Just follow Maverick’s lead, because automating time tracking is a walk in the park, providing:

  • Mobile time cards available on devices your employees are already using and familiar with (cell phones, smartphones, tablets, laptops, and more)
  • Accurate employee times (no more rounding or employee guesses)
  • Who’s-working feature, where and on what project, at any given time
  • Detailed employee time logs protecting against audits and disputes
  • Real-time digital tracking preventing the dog-ate-my-time-card excuses
  • The cherry-on-top: Crew App, where a supervisor can clock employees or entire crews in or out with a few taps on their smartphone

Back at the office, employee and project hours are visible in real-time, overtime alerts have been set (saving more money) invoicing is immediate and job costing, even more accurate. And that’s just the beginning.

According to certified payroll expert Nancy Smyth of Sunburst Software Solutions and accounting and tax guru Bruce McFarland of L&R Tax Preparation, there are up to 35 actions necessary on a weekly, monthly and quarterly basis in order to run payroll manually.

Yep, it’s goodness, gracious, great balls of fire for your bookkeeper.

Yet using automated time cards, choosing a time tracker like TSheets that integrates with your payroll software like QuickBooks, your payroll tale can take an average of three steps, not 35.

Gutsiest move I ever saw, Mav.

“TSheets has really helped save my company money. Billing time and materials work is a breeze and there is no more hunting down timesheets…The system easily pays for itself; it is highly recommended.” One Call Construction, Inc.

Building efficiency and profitability in business can be a struggle. Automating time tracking and payroll can be an easy way to increase efficiency and save some money. Your employees, your supervisors and your bookkeepers will thank you.

So calculate your savings or just start saving today by adding efficient business tools like TSheets to your toolbelt.

And you can be wingman any time.

  • KMed

    Thanks for posting Shoeboxed – good stuff! The results of doing the payback calculator are astounding…

  • Emily at Shoeboxed

    You’re welcome! I’m glad you found the post helpful. If there’s any other subject you’d like us to cover, let me know!

  • http://growthforce.com/ GrowthForce

    While saving 2% on your overall payroll costs may seem like a trivial amount, in business every penny counts! Depending on the size of your employee base you could be saving thousands of dollars a year in payroll. That’s money that can be used in other areas of the business.