The Importance of Accurate Timekeeping for Your Business

When you think of time, what comes to mind? Most likely, it’s either your alarm clock or an appointment that you can’t miss. But do you realize how vital the accurate recording of time is to the success of a business? Your business needs correct records to bill clients, pay employees, and even make payroll tax forms and checks.

If you own a business that pays employees, one of your most essential tasks is likely managing payroll. Payroll management includes paying all employees on time and making sure they are being paid appropriately and accurately. Maintaining an effective timekeeping system is essential for running a successful business in St. Augustine; read on to learn more!

Pay Wages and Overtime

Your employees provide you with their time to keep your business up and to run. Therefore, it’s essential to pay them correctly for this service exchange. Failure to do so can cost you some of the best employees in your workforce and affect the success of your business. By implementing a timekeeping system, whether that be mechanical or automatic, will save both time and stress for you and your employees

Avoid IRS Trouble and Violations

Every business owners’ nightmares involve getting in trouble with the IRS or FLSA. If the IRS audits you, you must supply them with accurate documents to resolve discrepancies. Without an effective timekeeping system, this could leave you in a messy situation and make the process more difficult.

Failure to pay employees overtime or underpay could land you in trouble with FLSA, also known as the Fair Labor Standards Act. This protects all employees from wrongful pay and other employment issues; if you are deemed non-compliant with the rules and regulations, you could be presented with a hefty fine.

Make Payroll Easier

In today’s day and age, where more and more businesses adapt to a remote workforce, accurate timekeeping is essential. Many business owners look to software that is easily accessible for them and their employees. This makes timekeeping a breeze for everyone involved and maintains accurate records that can be accessed by both employees and employers.

Record Keeping

Record keeping is a critical part of any business. Long gone are the days of paper files and chunky filing cabinets. With evolving technology, many records are kept online in secure and encrypted files to help business owners stay more organized and efficient. Having timekeeping software can make this process easier. This software keeps accurate records of your employees’ hours, wages, pay, and much more. In turn, making payroll and potential run-ins with the IRS much smoother.

Accurate timekeeping is vital to employee productivity and, thus, the financial success of your business. You may not control how many hours your business’ employees work in a week, but you can ensure that you have accurate hours recorded and reported accurately. Without this information at your fingertips, you’ll be forced to waste time—and manpower costs—tracking down records in support of monthly payroll. It pays to be prepared, so contact our team of payroll experts here at Vision HR to help you with all of your payroll and timekeeping needs.