Businesses need to get a lot of things right to maintain their growth. An excellent example is payroll, which plays a major part in any company’s finances. In this guide, we’ll explore how you can calculate payroll accurately with time tracking software. But first, let’s explore why doing so is important for both you and your team.
Why accurate payroll is important
There are several reasons why you should ensure your payroll calculations are accurate. First, if you calculate it wrong, you might be overspending. It’s obvious why your business should avoid this, especially if it’s a smaller startup. Allocating resources efficiently is vital to ensure the growth of a company, particularly in its early stages.
Secondly, payroll accuracy is important to ensure fairness for your team. Paying them less than what they’re owed can cause issues with trust. This will then lead to a low professional engagement rate. If you’re unaware, job engagement measures how committed an employee is to their work. Dedicated professionals will not only perform better, but they’ll also stay with your business for longer. This will allow you to save money and time by not wasting them on recruitment processes.
How time trackers help ensure payroll accuracy
There are two main ways time tracking can assist in calculating payroll correctly: tracking billable hours and simplifying the invoicing process.
Calculate payroll with billable hours
Besides tracking work hours, time trackers can also help you monitor lots of other important things. They can even track billable hours accurately to streamline payroll. Simply set how much your team members earn per hour, and the software will do the rest for you. But, not all apps can do this, so its important to choose the right time tracker for your payroll calculations. For example, a high-quality app like WebWork has this functionality built-in, while simpler trackers do not.
Simplify invoicing with time tracking software
Invoicing is an important part of the payroll process. After all, this is the step where your team will get paid. But, invoices are also important for billing clients. If your team is paid by the hour and works on projects for clients, automating payments can be vital. Time trackers with comprehensive invoicing solutions will help with this immensely. You’ll be able to generate invoices automatically and send them to anyone you want.
Choosing the right time tracker for calculating payroll
Not all time trackers are the same. Some offer more features than others, and choosing the right one is important for ensuring payroll accuracy. Here’s what to look for when selecting a time tracker.
Features
When compared to simple apps, time trackers with more features are always better in lots of ways. This is especially the case for tracking payroll. Many high-quality solutions offer dedicated functionality for calculating payroll. Some trackers like WebWork even allow you to track how much payroll costs for each of your projects with Project Budgeting features.
Tracked data accuracy
The accuracy of tracked data is another important thing to look for in time trackers. Inaccurate data will translate to your payroll calculations, making it difficult to ensure their accuracy. Therefore, it’s important to find a high-quality and accurate tracker. Besides this, you should also look for one with many tracking options, as you can use some data to verify the accuracy of others. For example, you can check productivity with activity level tracking and periodic screenshots.
Final Thoughts
Accurate payroll is vital for any business. Using a time tracker can help you achieve this by ensuring that you know exactly how many hours your employees work. This leads to accurate pay and helps you avoid payroll errors. Time trackers also simplify invoicing and improve overall business efficiency. By choosing the right time tracker, you can save time and reduce stress.
