September 1, 2020 | Time and Attendance | Posted by Ascentis
Why CFOs Should Care about Time and Attendance Automation
As the old saying goes, time is money. That’s close to the literal truth when it comes to tracking time and attendance in the workplace. Automating your time and attendance functions has an obvious impact on your employees and your payroll operations, but the benefits don’t stop there. Higher up the ladder, your CFO also has a vested interest in improving the functionality of time and attendance processes.
Being able to access data and generate reports quickly and accurately is a big deal for a busy CFO. A time and attendance system that relies on outdated spreadsheets or paper records often means spending undue amounts of time searching through files or tracking down data from different departments. An automated system with a centralized dashboard brings all of your vital data together in one place, ensuring that you can easily find the info you need for relevant reporting. Increasing the efficiency of day-to-day tasks like retrieving records and filing time sheets may seem like a small consideration, but those minutes add up quickly.
Time and attendance errors cost money. Miscalculating hours can lead to overpayments that eat into your organization’s budget and underpayments that leave you open for expensive lawsuits. A confusing or disorganized attendance system can leave you understaffed during critical moments, staffing too many workers with not enough to do, or paying out unnecessary overtime wages. Studies show that companies that integrate automated timekeeping and payroll functions can reduce errors by more than 40%, a strong financial argument for investing in time and attendance software.
The time and attendance field is full of potential legal issues at local, state, and federal levels. Time-related violations of federal workforce regulations like the Family Medical and Leave Act (FMLA) and Fair Labor Standards Act (FLSA) can saddle employers with significant fines and even more harmful loss of reputation. And with courts certifying class-action lawsuits at a record level, any measure that can help pre-empt civil actions is worth the effort. Streamlining timekeeping processes and enabling a more uniform approach to handling records can go a long way toward heading off potential compliance issues before they get out of hand.
Not only can automation help reduce the risks posed by accidental errors, new time and attendance software can also play a key role in eliminating more intentional forms of fraud. Time theft in its various forms costs employers around $11 billion annually, with buddy-punching alone accounting for $373 million. On the other side, one out of every 10 employers acknowledges underpaying employees at some point. Those underpayments cost American workers about $22 billion per year and can in turn cost employers a substantial amount in fines and lawsuits.
Automated time and attendance hardware and software helps take those concerns off of a CFO’s plate. Timekeeping tools like biometric time clocks, automatic data collection, and employee self-service options like mobile apps for iOS and Android all help create a uniform, user-friendly time and attendance experience that eliminates much of the opportunity for time-related fraud.
To the uninitiated observer, time and attendance might not seem like a key focal area for a CFO. Look a little closer, though, and it becomes evident that your business’s time and attendance functions are closely tied to finance at every turn. Investing in a reliable set of timekeeping software and hardware solutions is an easy way to alleviate some recurring challenges and allow your CFO to focus on more pressing matters.
Learn more how Ascentis Time and Attendance can help your business save time, reduce errors and eliminate fraud today.