By The Numbers: When it comes to business, you’ve got to spare no expense in fund-consolidation. There are no shortage of expenses which crop-up unexpectedly, and this phenomenon can’t really be abridged. The best way around it is through close budgeting and effective planning. The most effective way to plan is to identify areas where resources can be conserved.
Time Is The Essence: One of the most wasted resources, and that which proactive businesses should be careful to conserve, is time. Time is often lost on processes that are unnecessary, and can be abridged with modern innovation. In one’s personal life, you can save time when planning a wedding by visiting Azazie.com. In business, a perfect example is payroll.
If you’ve got 100 employees in your operation who average 40 hours a week, you’re looking at 4,000 hours that need to be categorized. Your payroll officer likely has to double-check hours to ensure they’ve been properly tabulated. They’ve got to check for overtime. Of those 100 employees getting paid hourly, a certain percentage will log overtime hours.
Those overtime hours must be calculated in conjunction with regular time. Once that calculation is complete, the checks have to be made and delivered. Whether there’s a PayPal account, whether checks are mailed, whether checks are delivered by hand, or whether direct deposit is involved, your payroll employee is going to have to do the legwork.
Most businesses tabulate hours not on a monthly basis, but bi-monthly, or even weekly. Assuming it only requires twenty minutes per employee for someone in payroll to completely ensure proper hours and payment, you’re looking at 33.3 hours, minimum. That doesn’t include errors, payroll changes, hiring, firing, holiday pay, etc.
A Deeper Breakdown: Per month, on a weekly basis you’re looking at a total of 133.3 hours logged by your payroll employee. Cut that in half for a biweekly arrangement. The point is, it’s pretty much a full-time job. At minimum, sixty-six hours and forty minutes will be required per month for only one hundred employees. Over the course of a year, that becomes roughly 800 hours.
That cost works out to between $8,000 and $16,000 a year for a single employee—provided they’re paid between $10 and $20 an hour. Not included in that estimate are the costs of overtime, benefits, or leave. Additionally not included in his estimate are the costs lost when employees milk the clock through lax timekeeping parameters.
It’s safe to say that, in the payroll department alone, for a business employing 100 hourly workers, you’re looking at $20k a year, easy, just for accurate payroll calculation. You can cut that expense in a single move by applying modern innovations like internet-derived timesheets.
One of the biggest advantages of on line timesheets, according to ClockSpot.com, is “No more paper, messy spreadsheets, or manual calculations.” Basically, an online timesheet allows employees to clock in from wherever they’ve got an internet connection and the app to use the software.
Additionally, such software can immediately tabulate expenses with the click of a mouse, and allow the user to send out payments digitally with immediacy. You can cut out at least ninety percent of the time involved in calculating payroll with such software. That means with a one hundred person company, you can save at least $18k.
Considerable Possibilities: Imagine your savings should you apply such innovations to a company with more than 100 hourly employees. Additionally, look at other areas of your operations where time is wasted. It makes sense to sit down and go through your organization to see where this valuable resource can be saved. Time really is money in business, and conserving it makes a lot of sense.
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