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Difficulties With Manual Timesheet Management Systems

The manual timesheet management system is the most common method of tracking time and expenses in any office. However, there are many issues associated with its implementation. This includes errors, labor law violations, paper timesheets, and morale.

Labor Law Violations

There is no denying that there are many labor laws that an employer needs to be aware of. From minimum wage compliance to workers’ compensation, there are a lot of regulations to keep track of. Thankfully, there are time clock software options that can help you remain compliant.

Modern online time clock software can eliminate many expected time-tracking mistakes. It can also provide the most accurate results for each employee, resulting in better business performance.

Time and attendance software is a must-have for any small or large-scale business. It is essential to have an accurate time card on hand for payroll processing. Using the most up-to-date time card software is the most reliable way to get the job done.

No escaping the fact that most companies are required by law to track their employees’ time. You may be sacrificing quality employee data for expediency if you have a manual system. This can result in inaccurate payments or, even worse, inaccurately reported hours worked. Using a time clock solution allows you to be compliant with the law while improving productivity and morale at the same time.

In the right hands, the best way to track your employee’s hours is with a web-based time clock solution from experts like ADP. You can quickly see who missed their shift and ensure they are fairly compensated for their work with a few mouse clicks.

Paper Timesheets

Many companies use paper timesheets to track their employees’ hours. These sheets have many disadvantages. They are prone to errors and can be easily stolen.

In addition, they can be expensive to maintain. This includes printing, distributing, and processing. If one employee is late, submitting and receiving the payment can take a long time.

Timesheets can also cause confusion. Because they are a manual process, mistakes are almost inevitable. However, with the right software, they can be easily tracked and corrected.

Manual timesheets can cause problems for businesses, including overpaying staff and overtime. Furthermore, they can lead to inaccurate payroll taxes. The IRS charges penalties for incorrectly submitting or paying payroll.

As a result, they can cost businesses thousands of dollars every year. For example, a company with eight employees pays $1850 each year.

In addition, paper timesheets can be lost or damaged. They can also be used by time thieves. There are also problems with data accuracy.

A recent study by AffinityLive showed that human error costs employers over 50 million hours of productivity each year. These costs include misreported hours, overtime, and errors in payroll calculations.

In addition, there is the expense of ink and paper. If your business has remote workers, time tracking can be difficult. Additionally, your employees’ lives are affected by your company’s policies.

Lastly, a paper-based process makes it easy for fraudulent employees to skirt rules and regulations. That is why it’s essential to invest in a robust time-tracking solution.

Accounting Errors

When it comes to manual timesheet management systems, errors are not uncommon. They can cause severe damage to a business’s finances. 

A simple human error can occur when entering or recording an item. This can include leaving out a digit, forgetting to add a zero, or failing to record an expense. It can also result from faulty hardware or an inefficient software solution.

Another simple human error is transposing numbers. For example, if you enter $450 in your books instead of $850, the difference can cause you to overspend. In addition, you may miss a deductible.

Misclassification is another error that can cause significant problems. It can result in inaccurate reporting for companies that use accrual accounting. If your company uses this accounting method, you’ll need to classify your expenses in the correct year and month.

These are a few of the numerous varieties of accounting mistakes. Fortunately, most of these errors are simple to avoid. The first step is to educate your employees on the importance of recording their hours. Getting the most out of your time tracking system means that you will have fewer mistakes to catch.

Consider implementing automation if you’re looking for ways to prevent accounting errors. This can help you eliminate double payments.


A manual timesheet management system has many inherent problems. Inefficiencies in the workplace can negatively impact morale and productivity. The right technology can help to eliminate these problems.

The use of punch cards and paper timesheets needs to be updated. Time tracking can be challenging to manage in a fast-paced workplace. Employees may need to correct mistakes, which can lead to inaccurate payments. You can lose thousands of dollars each month because of payroll errors if you have a large workforce. This can hurt the company’s bottom line.

Timesheets are essential for managing employee work, but they should be used throughout the organization. Implementing a manual system in just a few departments can lead to inefficiencies, micromanagement, and decreased employee morale.

One of the leading causes of poor morale is poor leadership. Leaders who fail to engage their team members hurt their employees. Getting people excited about their work and making them feel appreciated is critical to keeping their morale high.

Another problem with a manual timesheet management system is that it can lead to unhealthy work patterns. Employees who are unable to clock in sufficient time can panic and underperform. They might also question why they are required to report time.

These problems are quickly addressed with a timesheet software solution. These systems offer a single system of record for all business processes. With the right software, governance is more accessible, compliance is more straightforward, and administrative overhead is reduced.