Record keeping is one of the most important parts of successfully running a business. It is how you keep track of sales, profits, expenses, and hours worked. Hours worked might mean different things for different businesses, and today we will be discussing a few different options for all types of business.
Hourly Employees
If you have hourly employees you know how important it is to make sure your staff is being paid for the hours they work. It is also important to make sure they aren’t getting paid for the hours they are not working. If you work in a fast paced environment, it is very easy to forget to clock in or out if things are busy.
While the classic time card is still a tried and true means of keeping time of your employees’ hours, it is a little outdated and can lead to headaches down the road. Many businesses have made the switch to a digital software that keep track of hours worked, scheduling, and time off requests. A digital software is more forgiving. If you forget to clock in or out you can ask your manager to change it with a few clicks.
Some businesses even use software that they can use right from their own cell phones. There are tons of these softwares available for use, if you would like to discuss what the best option for your business is, hit us up and we can help!
Freelance Employees
If you work for yourself as a freelancer, you know that the old saying “Time is Money” is very true. If you are not keeping track of your hours, you could be missing out on a lot of money. It is also important to keep track of your time so that you are not improperly billing your clients.
Most freelance workers that work in the digital space use some sort of time tracking system that keeps track of how much time they are spending on the work they are doing. These programs allow you to create various projects under different clients to keep track of hours spent on each individual billable item that you offer. You can also vary the rate at which you bill these projects and export them directly to your billing system.
These programs will allow you to provide a full breakdown of the time you spent on each project for each client. This is important because it can show you raw data on how to properly bill your clients in the future based on the work you have done in the past.
Salary Employees
While salary employees don’t really need to keep track of their hours to get paid, they do at times need to keep track of how their time is spent. Many companies require their employees to keep track of their daily tasks. Especially in agency based models that the company bills their clients based on how much time their employees are spending working on their accounts. This is most common in marketing agencies, engineering firms, and law firms. Salary employees also use time management software to keep track of their vacation and if they accrue any overtime that they are able to get compensated for.
Employer Responsibilities
According to the Fair Labor Standards Act, employers are required to keep a certain amount of data for their employees. This includes Name, SSN, Address, their hourly rate, and a few other things. For a full list, visit the website here: FLSA Data.
At the end of the day, it is up to the employer to ensure that their records are kept up to date and that there are no issues with payroll. Keeping track of hours worked is a crucial function of your business.
We are experts in Payroll and would love to discuss what we can do to ensure your business is getting the best in the business!