Business

Five Ways Timekeeping Software Can Save Contractors Money

With so many other tasks to manage, timekeeping may not seem like a priority. In reality, staffing costs are directly tied to profitability. This makes it worthwhile to look for ways to streamline the process and make it as efficient and accurate as possible.
By Randy Leiker
April 7, 2020
Topics
Business

Timekeeping often takes a backseat to bidding on new jobs, managing current projects and staying ahead of compliance issues. This is why so many companies are still using the same timekeeping methods and processes today that they did when they first launched their business. Another reason is the cost and inconvenience of onboarding new software and training everyone on how to use it.

Since time is money, it makes sense to review time tracking methods and look for ways to make it more efficient and accurate. And although it does require a bit of an investment in time and money to get started, the long-term benefits can be significant. In fact, using software to streamline and improve timekeeping processes can actually help companies save money.

1. Creates a system of accountability

Accountability in time tracking is a problem most companies struggle with, especially if manual tracking methods are still being used. Practices such as buddy-punches and off-site punches not only cost money, but they also prevent companies from having a realistic idea of the time it takes to complete projects. In turn, this can negatively impact the bidding process.

Timekeeping software can help eliminate this by creating accountability, allowing companies to pay only for hours actually worked. This includes recording the time and location of each clock in and clock out as well as setting perimeters for when and where employees can clock in. Software can also make it easier for employees to record their changing roles throughout the day. This is particularly helpful for companies working on prevailing wage projects.

2. More efficient workforce management

Days can go by before problems are noticed on manual timecards. This delay can be especially problematic for companies that do prevailing wage work and have to submit weekly certified payroll reports. Manual timekeeping also makes it more difficult to monitor staffing levels, track of the number of apprentices on the job and keep an eye on overtime.

The result of this lack of oversight may mean high labor costs due to overtime hours or even facing compliance penalties. Timekeeping software, however, often provides alerts and notifications so that potential problems can be resolved right away. This can reduce a company’s risk and allow for more proactive workforce management.

3. Reduces costly errors and risk

Non-digital time tracking typically means workers keep track of the hours they work by hand, often on timecards. This information has to be read and copied into a payroll program. Sometimes, this requires entering the information into multiple formats, such as spreadsheets and a payroll system. Companies that work on government funded projects additionally have to submit a variety of reports. This leaves a lot of room for costly errors and makes it difficult to correct mistakes. For companies working on prevailing wage jobs, mistakes can mean penalties and even legal actions. Timekeeping software solves these issues by reducing the need for manual entries and making it easy to resolve mistakes and make restitution.

4. Improved productivity and accurate bids

Timekeeping software allows companies to more accurately measure how much time employees are spending on each task. This helps management identify and correct inefficiencies in the office and in the field, potentially reducing operational costs. This data also provides a more precise picture of what resources are needed to complete projects, allowing companies to create more accurate and competitive bids. So, not only can switching to timekeeping software help companies save money and be more efficient, it can also make them more competitive.

5. Reduces Administrative burden

Tracking hours for every employee on the job can be time consuming and difficult. Companies that work on government-funded projects have an added layer of complexity due to certified payroll reporting requirements. For these jobs, all hours must be tracked along with work classifications. The correct prevailing wage must be paid for each work classification, and a report must be submitted each week. If mistakes are made, they must be corrected, restitution made and amended report submitted. This is difficult to do manually and can monopolize days of each work week. By using software to handle time tracking, role assigning and wage determination, companies can greatly reduce the time and operational cost involved in processing payroll.

With so many other tasks to manage, timekeeping may not seem like a priority. In reality, staffing costs are directly tied to profitability. This makes it worthwhile to look for ways to streamline the process and make it as efficient and accurate as possible. Fortunately, timekeeping software has evolved to meet the needs of the modern workforce, allowing companies to have great insight and control over the entire process. And with advanced timekeeping platforms available, it can be easier than ever to integrate into an existing workflow.

by Randy Leiker
Randy Leiker, a veteran of the insurance and financial industry, has been serving the contractor market for over 7 years. Currently, Randy serves as the Senior Business Development Manager at eBacon, a prevailing wage software company that helps construction companies with fringe trust management, payroll, and reporting to save administration, wages, and taxes. Learn more about our powerful software solutions at eBacon.com.

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