6 ways to save money with a Time Clock App for Contractors
Does your company hire contractors? Hold your breath for this one: a time clock app for contractors is one of the easiest ways for you to save money. It has been estimated that businesses are capable of saving about 2% of gross payroll costs by using mobile time clocks.
If this sounds like an overstatement or even ridiculous to you, please bear with me. Sometimes it is hard to imagine exactly how one small detail could impact the whole system. Getting your contractors to record their work hours with a cloud-based app is one of the details that can make a significant difference.
Hiring contractors is great for business. Except when it is not. Let’s be honest, most contractors seriously lack transparency when it comes to billing. It’s really hard to say what you are paying for and, if they are charging per hour, how many hours were actually put in. Contractors often submit invoices without any transparency in their reported time. As a result, mobile time clock apps for contractors are rising in popularity.
Requiring contractors to record their work hours for their billing solves the problem of transparency and being over-charged. Cha-ching, we just started saving money. Let’s save some more.A simple time clock app for contractors will assist us with this in many ways, by providing:
- More reliable data in real-time,
- Greater payroll and billing accuracy,
- Convenience thus saving time,
- Better expense management and budget planning,
- Higher legal security,
- The immediate return on investment (ROI).
More Reliable Data in Real-Time
Mobile time clock apps provide cloud-based reliability. It is known that most employees fill their paper time cards retrospectively at the end of the day, or even at the end of the month. This creates plenty of space for errors, guesswork and over-paying. If you wish to gather reliable time and attendance information to use for preparing payroll, you will need to collect data in real-time.
This is especially true for companies who employ contractors who work on different locations throughout the day or the week. They need to be able to seamlessly register the start and end of their work at each location, rather than trying to keep everything in their head until finally writing it down. With a mobile time clock app for contractors, which marks each registration with it’s GPS coordinates, like All Hours, this is a piece of cake. All they need is a smartphone, which they most likely have already.
Smartphones are typically online, so the application sends data to the cloud right away. This means there’s no need to manually download clockings into the main system. Contractors can register from any location and the employer can view locations and edit data in real-time from anywhere. Checking who is present at a worksite just got much easier! This means cheating and rounding hours is harder and you will only be paying for hours that were actually worked and registered. Cha-ching again!
Greater Payroll and Billing Accuracy
Registering hours on smarthphones provides a higher degree of payroll and billing accuracy. What problems of the old-school paper-based records can a mobile time clock app solve?
1. With traditional paper time cards direct import of data is not possible.
This means whoever is preparing payroll needs to manually transcribe everything into the payroll solution. This way everything from poor handwriting, to transcription and mathematical errors can affect payroll data accuracy and result in accidental overpayments.
2. Paper time cards are usually filled out retrospectively, which means there’s a lot of guessing and rounding of hours going on. Of course not in the employers’ favour.
Contractors could even put a random number of hours on the invoice which will get them the desired pay, when they get paid by the hour. Once they are recording their hours in real-time, they can only bill the actual hours worked. This doesn’t neccessarly mean you will be charged less at the end, but it does mean they will need to put in all the hours which you will pay for.
3. Mobile time clock apps allow for much greater accountability than paper time cards.
Especially when they use geolocation services, which can tell you where and when the contractor clocked in and whether it was indeed at the job site. This eliminates time theft on your bill. When contractors are able to clock in and out with their smartphone from any location, there are no more excuses for missing time cards or missing clockings.
Convenience thus Saving Time
Most online time clock apps provide you with an automatically generated timesheet report which you can easily import in your billing and payroll software. Besides eliminating the chance of errors, direct import of hours is a huge time saver when it comes to preparing payroll and billing. There’s no need for your administrator to collect paper timesheets and manually transcribe them anymore, as they have all the data available in the app in real-time.
Using a mobile time clock app is also superconvenient for employees, as they can register their hours with their smartphone in a matter of seconds. They don’t need to waste any time filling out paper timesheets and calculating their hours. It is much easier to keep records accurate and up-to-date this way, as employees can also register their lunch breaks. With the employee presence overview you get information on their availability and status without looking for them or calling them – you are always able to tell who is present at work, who is missing, who just went on a break and who is absent and for what reason.
Besides clocking in and out, employees can also check their work records and remaining vacation days in the app and even send vacation and sick leave requests directly to their manager. Employees can be managed as a whole or formed into teams with team administrators granting and rejecting leaves. The online absence approval system will save all the time that otherwise gets wasted on a number of phone calls and e-mails.
By employing contractors you know more than anyone that time is money and you just saved lots of it. Cha-ching!
An online time clock app for contractors allows you to access and analyze data with ease. Not only can you generate reports with one click, you can also keep your eye on real-time information on the dashboard. This way you can avoid unplanned overtime and maintain control of expenses to avoid any costly time overruns. Real-time recording of time and attendance will help you stay on budget.
Data analysis will help you establish the true cost of a project. Not only that, accurately recorded hours allow you to plan better for future projects. Looking into historic reports can be a huge help in predicting expenses or bidding future projects. You could of course analyze data from paper timesheets just the same but just imagine how much extra time (and money) this would cost you.
Higher Legal Security
The reliability of your time and attendance records is in many ways critical for your business. Not only are you legally obliged to follow your states’ work time regulations. If you have any employees working in the EU you also need to comply with the GDPR. This means you need a chronological audit trail of who processed (viewed, created, exported, edited or deleted) any of employee data. It’s hard to demonstrate this compliance by using paper time cards.
In case of any dispute about payroll accuracy or workplace injuries, trustworthy records are the key to avoiding penalties and fines. Cha-ching! With a mobile time clock app employees are prompted to record their breaks, which provides a reliable history of work time to the minute. Also, when employees have the ability to check their personal record of hours at all times, disputes are often minimized. In fact the time clock app for contractors shows your employees exactly how much time they have left to work in a day thus keeping overtime in check.
Immediate Return On Investment (ROI)
Two of the greatest benefits of an online time clock app for contractors are low entry costs and low costs of ownership. Cloud apps are usually subscription based. This means no upfront investment is required – forget about buying the license, paying for upgrades or investing in company infrastructure. With cloud solutions maintanance and upgrades are already included in a monthly subscription fee.
A mobile time clock app for contractors can also spare you from buying (and repairing) costly hardware. There is no need to use time terminals to clock in the field anymore. It’s a good guess that all of your contractors own a smartphone these days. A mobile time clock runs on the employees’ smartphone as an app, which can be easily downloaded from the app store.
Registering work hours in this way is inexpensive from the start and does not require any initial investment. This means you will immediately reap a return on investment (ROI) by saving money through all the channels we have just discussed. Cha-ching!
Start saving your money now: