Many of us have experienced frustration with paper and spreadsheet payroll systems. Such systems are outdated and inefficient, and the work associated with maintaining them is tedious and time-consuming. As we look around us at all of the technological solutions available, it becomes clear that the task of collecting time data and managing payroll could be easier—much easier. An automated system to fulfill these functions and more may be just what your business needs to beat the payroll blues.

Tracking time for payroll purposes means keeping electronic records of time worked and paid time off (as well as meeting Family Medical Leave Act (FMLA) requirements when applicable). For many organizations, each pay period brings late, missing or unreadable timesheets, repetitive data entry, and complicated calculations for employee pay rates, overtime, or vacation rules. The right time tracking system, in addition to supporting project management and billing, automatically feeds data to the payroll process. It allows companies to both improve payroll systems and increase productivity in a variety of ways.

Think of the many ways in which your business would benefit from the ability to customize and automate processes so that they are in line with your specific needs. The possibilities are endless:

-       Customize specific pay periods and calculations

-       Assign multiple pay rates to different employees

-       Eliminate double entry by entering information once

-       Coordinate timekeeping through automatic reminders and notifications

-       Correct prior period totals for accounting and access audit information for meeting Defense Contract Audit Agency (DCAA) requirements

-       Define business rules for managing specific classifications of work, such as automatic recognition of overtime and vacation accruals.

-       Automate workflow and manager approval of timesheets on an individual or group basis

-       Integrate collected data with existing payroll programs or services like ADP and Paychex

Not only is it easier, but it has been proven to be more efficient as well. According to a study done by the University of California, Irvine, fully automating the timesheet process reduces errors by 75 percent. Think about what this, with its associated costs, is worth to your business. It also cuts down on staff time, so members of your staff can spend their time more productively, working towards the mission and goals of the company.

So what does it take to successfully integrate an automated system into your company? There is a simple, three step process that will ensure a smooth transition.

1.       Decision: What Do You Need in a System?

Unfortunately, payroll executives who implement systems to automate payroll often miss the chance to facilitate greater profitability throughout the entire company. This happens because these executives are payroll experts, not experts at project accounting or billing automation.

The good news is that the time data they collect can also be used to automate project management, project costing, project tracking and project estimation improvement, as well as for internal, external and reverse billing automation. Most payroll and HR executives know little about these subjects, but are increasingly being asked to rise to new challenges.

This is why listing your requirements at the beginning of the selection process is so important. Bring in R&D managers, marketing folks, and A/P people. Have a selection team in order to address all of the company’s needs, and it will unleash profitability that you didn’t know you had available. For example, do you need a system that prevents people from tracking time against projects they shouldn’t have access to? Do you need DCAA compliance or very accurate IT capitalization data for the Sarbanes-Oxley Act (SOX)? Do you need a low monthly fee rather than a large one time fee up front? Do you need the system to be rolled out now, as opposed to waiting for them to purchase a machine and transfer it to your IT shop? These are all very important questions that you must answer in order to select the right system.

2.       Selection: How to Choose

The number one mistake that people make when choosing a timesheet vendor is falling for a deceptive demo. You deserve a detailed demonstration that is customized with your employee list, customer list, project list, company logo and color scheme, as well as shows you reports on your data that will prove to you that your business problem is solved. If a vendor does not make you feel absolutely certain about your choice, then look elsewhere.
You also need to consider issues such as support and trial usage. Ask about the vendor’s automated helpdesk tool, as well as whether the support staff is part of the sales team or not. If they are, you are probably more of a priority as a potential buyer than as a customer. You should also seek a trial version of the software that allows you to use it for more than fifteen days. Wouldn’t you like the ability to run a few payroll cycles using the software before you make your decision?

Another thing that is important to know is whether the vendor sells both traditional software and software-as-a-service (SaaS) or only offers one or the other. Since most timesheet software is primarily web-based these days, the ideal provider should do both. SaaS means that you rent access to web-based software that runs on the vendor’s server instead of installing it on a server at your office. There are several benefits to this:

Easier IT

SaaS avoids burdening your IT department with yet another package to maintain. Let them focus on the core competency technologies that drive your company’s sustainable competitive advantage.

Lower Cost/Risk

A monthly fee may be more advantageous than upfront costs. Put the risk of rollout success on the vendor. Why take all that risk?

Even if you choose to install at your own location, SaaS can still provide benefits:

Early Rollouts

The vendor can let you pilot with the SaaS site until your IT department gets the machine ready for your local installation.

Server Protection

E-mailing a backup to the vendor in case of machine failure at your local installation should let him get your system up on his site instantly in the event of a failure at your site. This avoids the cost of buying spare machines yourself.

Easy Upgrades

The vendor should provide you with a test site during the upgrade process that requires no hardware purchase on your part.

Ask vendors about the specifics—how would you survive a power outage at your SaaS site and where is it hosted? How many connections to the Internet does your SaaS site have? How much does server protection cost? Can you rollout on the SaaS servers and later transfer the data to your own servers? Where are SaaS backup tapes stored? If a vendor promises to deliver certain tasks, get it all in writing.

3.       Implementation: Ensuring a Successful Rollout

Be sure to check references. Seek a reference that is a real company in your industry of your size. You will be putting your time and money into this vendor, so make sure you are completely confident that they are trustworthy before you begin this relationship. Prepare relevant questions in advance. For example, are they using the software in a way that is as complex as yours? Finding the answers to these questions and others is the important final step in choosing the correct system for your company.

Timesheet software can bring countless benefits to your company by automating the workflow of time & expense approvals. There’s no reason to continue to let the payroll blues get you down when there’s a better solution out there.