ClockShark Blog

Time Cards for Contractors: Five Reasons You Should Tear Up Time Cards

March 25, 2014

You may have all the equipment needed in your F150 truck, but the question is do your workers have the equipment to automatically and accurately record their working hours, store that information and make it accessible to the necessary people or to you so that the person who pays them can give them what they deserve? As technology advances, you must keep up with advances in business by having all the necessary tools and equipment. As contractors, the majority of us know how to act when it comes to tools and equipment that deal with field work. Then again, most of us struggle with computerizing the back office functions in our construction workflows that will save us lots of money and time. Contractors that have already torn up time cards in favor of an electronic time tracking system save a lot of money and time. There are several software systems available to automate time cards for contractors. The software uses employees’ smart phones to gather time data. Below are five reasons why you need to tear up time cards.

Time Cards for Contractors: Why you should tear them up!time cards for contractors photo

1. It is affordable. It is not that costly to invest in an electronic time tracking solution. As a matter of fact, by not using time cards in your business, you will save a lot of money. Why? The act of filling out the paper time cards is not that accurate. In fact, the American Payroll Association discovered that paper time cards cost employers an average of about 2% per payroll period. Why? The workers usually fill out the paper time cards on weekly or daily basis using their memories and this is done after the work is completed. This means that in case of any error the employees are the ones who will benefit since it is human nature to ensure they receive as much wages as possible.

2. Helps to Reduce Costs of Labor: The APA states that 2% on payroll can be saved by elimination of time cards. Employees tend to round up when using paper time cards. However, the rounding errors caused by this method usually add up over time. An automated system will ensure that rounding errors are minimized, money is saved and the employees’ work time is efficiently monitored.

3. It Controls Overtime: With an automated system, you’ll be alerted via email every time an employee goes into overtime. Overtime is an additional cost a lot of employers grapple with in construction. More often than not, overtime is essential when you need to complete the job at hand so the next one can be started, or to meet deadlines. Nevertheless, overtime can be difficult to monitor sometimes because most workers and supervisors have a tendency of losing track of their hours. Most automated time tracking systems for contactors will alert you via email in the event a worker enters overtime, so you may opt to stop it.

4. Better and More Accurate Job Costing: Time cards for contractors do not capture job costs well. Electronic time tracking can capture job names and times in actual time from employees by means of their smartphones. Thus, the job cost data are easily transmitted from payroll to your accounting system. This way you can easily tell how your jobs are doing on labor budgets thanks to the accurate job costs that will be recorded for you by the electronic time tracking system.

5. GPS Tracking: Paper time cards for contractors do not offer GPS!  GPS is to help track down your employees when they are clocked in. Now you will know if employees clock in or out from places that aren’t their actual places of work. Some electronic tracking systems allow you to use “geofences”. Therefore, you can easily structure a boundary around your job site or construction site. So you will always be notified of any movement that occurs outside the geofences.

You have spent a lot of cash in purchasing advanced tools & equipment to do the task, so it’s also critical to spend some small amount of money on replacing your time cards with an automated system. Your business will not only save money and time, but you will also be equipped with essential information that allows your business to run efficiently.

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Author: ClockShark | Mobile Time Tracking and Scheduling

ClockShark is the #1 time tracking and scheduling app for construction and field service companies.

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