Starting a brand new business is difficult, no matter what type of company you have or the industry you’re in. There are a lot of moving parts that go into starting up a new business. You have to get all the proper documentation to legitimize your business. You have to bring on staff, and you have to pay those staff members. You may even have to purchase new equipment.
No matter what the situation is, you’re going to be spending money, and there needs to be a way to ensure those costs don’t get out of control. In this article, we’ll be going over some of the ways that a clock in and out app can help you ensure that your business gets up and running as quickly and efficiently as possible.
It Can Help You Stay Within Your Budget
When you start a new business, you’re probably going to have many restrictive budgets to work around. One of those budgets will relate to your labor costs. Labor costs account for nearly 75% of a business’s budget, so you need to have a way to track employees’ work hours and attendance accurately.
Accurate Time Tracking
One of the best tools for accurate time tracking is a clock in and out app. With this tool, you can monitor employee work hours, day in and day out, and the data captured is accurate down to the second. If an employee is nearing overtime, you can ask them to leave early or have another employee step in who hasn’t quite reached the overtime threshold.
Job Costing Capabilities
Accurately job costing is another essential part of starting a new business. When you first start, you may not know or entirely understand where all your money will be going. Your budgetary needs may change from one day to the next. You may find that your business grows quickly and you need to expand your customer support team or that you’re spending more on supplies than initially anticipated.
With a clock in and out app, you can determine precisely what employees are working on throughout the day, week or month and adjust your staffing model or reorganize your department structure as needed to accommodate your shifting work environment.
Labor Law Compliance
The last thing you want to deal with when starting a new business is a labor law violation. Not only can labor law violations quickly demoralize your employees, but they can also reduce customer satisfaction and lead to hefty fines. The money you waste on penalties would have to be taken from other parts of your growing business, which doesn’t help anyone.
With a clock in and out app, you can rest assured knowing that employee work hours are accurate and that employees are paid in the correct amount each pay period. If ever a discrepancy arises, you can reference your team time tracking records and provide detailed reports in the event of an audit.
Historical Data Can Be Used To Stay Lean
New businesses need to find ways to stay flexible and lean to ensure that every cent of their budget is going towards something beneficial. Here are just a few ways that a timekeeper app can help your business stay financially lean.
The scheduling process is complex. It’s not as easy as randomly plugging hours into a system and hoping the employee has the availability and skillset to work that shift. To make the most out of your work schedule, you need to use a clock in and out app that allows you to consider employee preferences, budgetary needs, and skillset.
An online timecard system also gives you a bird’s eye view of your daily, weekly, or even monthly schedules so you can quickly determine if too many or not enough workers are scheduled.
Reduced Labor Costs
With improved scheduling and accurate time tracking comes the ability to reduce your labor costs. You’re only paying employees for the time spent on the clock, nothing more and nothing less. You can find patterns when business demand was higher and required more workers because you have access to detailed job clock histories. You can use this historical data to better craft schedules moving forward to ensure that you’re not understaffed or overstaffed.
Bringing on a new employee is costly, so the employees you do bring on, you want to ensure they stay on your team for as long as possible. One way to do this is by giving employees more accountability and autonomy when it comes to tracking. Put the process in their hands, so they feel responsible for their time spent on the clock.
Not only will they have a greater sense of accomplishment knowing that they are contributing to your business as a whole, but they will understand how their actions impact business operations. When an employee feels like they are more than just an employee or cog in a wheel, they’re likely to remain loyal to the business for a long time, thereby reducing your turnover.
No matter how you look at it, starting a business is complex and often costly. You must try to reduce any unnecessary costs through modern tools like a time and attendance app. A clock in and out app can help you ensure that you remain lean during your startup process and stay that way for years to come.