{"id":29923,"date":"2020-09-23T11:37:25","date_gmt":"2020-09-23T09:37:25","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=29923"},"modified":"2022-06-02T15:56:51","modified_gmt":"2022-06-02T13:56:51","slug":"time-and-expense-tracking","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/time-and-expense-tracking\/","title":{"rendered":"Time and Expense Tracking Software: In-Depth Guide"},"content":{"rendered":"<p>Time and expense tracking may not be the most exciting part of management, but having an efficient system in place makes a huge difference to your bottom line. Using paper forms or time and expense tracking spreadsheets in excel doesn\u2019t cut it anymore. The <strong>hidden costs of manual time and expense tracking<\/strong> eat away at your business\u2019s profitability.<\/p>\n<p>Here, we\u2019ll break down the real costs of manual management. How do <a href=\"https:\/\/factorialhr.com\/templates\/download-time-attendance-excel\" target=\"_blank\" rel=\"noopener noreferrer\">timesheets and expense trackers<\/a> contribute to (or detract from!) your business? And how can automating timesheet and expense management processes make your business more sustainable?<\/p>\n<ul>\n<li><a href=\"#management\">Management Costs<\/a><\/li>\n<li><a href=\"#accuracy\">Accuracy Costs<\/a><\/li>\n<li><a href=\"#efficiency\">Efficiency Costs<\/a><\/li>\n<li><a href=\"#recoup\">Recouping Costs with Time and Expense Tracking Software<\/a><\/li>\n<li><a style=\"font-size: 14pt;\" href=\"https:\/\/factorialhr.com\/features\" target=\"_blank\" rel=\"noopener noreferrer\">Boost Your <span style=\"font-size: 12pt;\">ROI<\/span> with Time &amp; Expense Tracking Software<\/a><\/li>\n<\/ul>\n<p><!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-4ce54316-e314-42ac-b1f5-24957010fe6c\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-4ce54316-e314-42ac-b1f5-24957010fe6c\" class=\"hs-cta-node hs-cta-4ce54316-e314-42ac-b1f5-24957010fe6c\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/4ce54316-e314-42ac-b1f5-24957010fe6c\"><img decoding=\"async\" id=\"hs-cta-img-4ce54316-e314-42ac-b1f5-24957010fe6c\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/4ce54316-e314-42ac-b1f5-24957010fe6c.png\" alt=\"time attendance template\" width=\"900\" height=\"308\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, '4ce54316-e314-42ac-b1f5-24957010fe6c', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2>What is Time and Expense Software?<\/h2>\n<p>Time &amp; expense tracking software is used to budget labor costs and time.\u00a0 Essentially,<strong> it helps managers keep tabs on how much time and money they are spending per project<\/strong>.\u00a0 Rather than utilizing a time tracking program to manage employee hours and an expense management platform to take care of expenses, time and expense software allows you to visualize and draw conclusions from both sets of data.\u00a0 That way, you can make sure you are spending time and money in the most effective, efficient way possible.<\/p>\n<h2><strong>Time &amp; Expense: Software or Excel?<\/strong><\/h2>\n<p>Manual time and expense tracking may seem straightforward, but according to HBR, avoidable mistakes are <a href=\"https:\/\/hbr.org\/2015\/01\/workers-are-bad-at-filling-out-timesheets-and-it-costs-billions-a-day\" target=\"_blank\" rel=\"noopener noreferrer\">costing businesses billions of dollars<\/a> in lost hours and revenue.<strong> Valuable time that could be used for developing projects<\/strong> and strategies is instead spent on managing workflows, correcting mistakes, and processing information. These costs can add up quickly.<\/p>\n<p>The good news is that automation can do much of this for you. When <a href=\"https:\/\/factorialhr.com\/blog\/excel-timesheet\/\" target=\"_blank\" rel=\"noopener\">excel timesheet<\/a> expense tracking just isn\u2019t cutting it anymore, it\u2019s time to look for software that can track hours, <a href=\"https:\/\/factorialhr.com\/blog\/shift-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">simplify shift management<\/a>, and streamline expense reporting. These effective solutions will give employees and employers more time to focus on work that really matters.<\/p>\n<h2><a name=\"management\"><\/a><strong>Time and Expense Management Costs<\/strong><\/h2>\n<p>Time and expense tracking by hand requires a lot of oversight. Employees will need to fill in their information, but managers will be left to review it, tally up final numbers, and send the data to payroll or accounting. Here are some of the <strong>most common management costs associated with manual tracking:<\/strong><\/p>\n<h3><strong>Distribution &amp; Collection<\/strong><\/h3>\n<p>Doing things the old-fashioned way means managers must create forms for employees to fill out. They are also responsible for making sure that employees have access to the right documents as needed. As the end of the pay period nears, managers may find themselves chasing employees around to collect timesheets or expense reports. This is, in short, a waste of time for all involved.<\/p>\n<h3><strong>Filling Out Time Sheets or Expense Reports<\/strong><\/h3>\n<p>Maybe this seems straightforward, but filling out forms is not always as easy as you think. Employees are liable to make mistakes. For example, they may misreport hours worked or expenditures from a business trip. Data shows that employees are more likely to have highly accurate reports if they adjust their timesheets several times a day. However, such frequent modification detracts from the time they could be working!<\/p>\n<h3><strong>Processing Forms<\/strong><\/h3>\n<p>Once they receive the reports, managers will be responsible for deciphering employee handwriting, asking follow-up questions, and filing paperwork. If things don\u2019t quite line up, it will be managers pulling out their hair at the end of the pay period or (gulp!) before the start of tax season. This is not their favorite part of the job, but someone has to do it\u2014 unless they invest in automation.<\/p>\n<h2><a name=\"accuracy\"><\/a><strong>Time and Expense Compliance and Legal Concerns<\/strong><\/h2>\n<p>Manual reporting not only takes more time but is also more inaccurate. Mistakes can lead to big problems for businesses, such as labor disputes or even lawsuits! These costs need to be factored in when considering manual vs. automated tracking. Automation can help businesses to protect themselves and provides comprehensive records in case something goes wrong.<\/p>\n<h3><strong>Human Error<\/strong><\/h3>\n<p>Everyone is human! Employees filling out timesheets may accidentally enter the wrong hours for a certain day or misremember their shifts. They may end up working beyond their allotted hours without their supervisor\u2019s approval, qualifying for overtime. Managers need to keep a close eye on manual time tracking to make sure there aren\u2019t any mistakes.<\/p>\n<h3><strong>Legal Problems &amp; Disputes<\/strong><\/h3>\n<p>Businesses that have accuracy problems may end up with various legal problems. If they fail to track <a href=\"https:\/\/factorialhr.com\/blog\/paid-time-off-usa\/\" target=\"_blank\" rel=\"noopener noreferrer\">worker\u2019s paid time off accrual<\/a>, they may end up with fines from their state government. If they don\u2019t offer <a href=\"https:\/\/factorialhr.com\/blog\/intermittent-leave\/\" target=\"_blank\" rel=\"noopener noreferrer\">leave management in compliance with FMLA<\/a>, they may end up in trouble with federal regulators. To avoid unhappy workers, grumpy officials, and expensive lawyers, businesses must make sure to keep their records accurate!<\/p>\n<h3><strong>Inaccurate Budgeting<\/strong><\/h3>\n<p>When businesses have accurate information, they can better plan for the future. With more accurate expense reports, they can budget for future trips. More accurate timesheets will mean that businesses will be able to assess whether they have the resources to take on more projects. If reports aren\u2019t up to snuff, the business may end up spending money they don\u2019t have down the line.<\/p>\n<h2><a name=\"efficiency\"><\/a>Time and Expense Software Benefits<\/h2>\n<p>Manual time and expense tracking can cost your business money in terms of missed opportunities. Time and expense tracking software provides businesses with important data and information about their company. This can be used to make informed decisions! Why not take advantage of available information?<\/p>\n<h3><strong>Strategical Opportunities<\/strong><\/h3>\n<p>With a digital time &amp; expense tracking solution, managers will be able to run <a href=\"https:\/\/factorialhr.com\/hr-reports\" target=\"_blank\" rel=\"noopener noreferrer\">custom HR reports<\/a>. They can compare expenditures, sorting by expense type, or employee. Additionally, they can easily track employee hours and clocked overtime. This makes it easy to understand payroll costs as well as business expenditures and identify areas for improvement.<\/p>\n<h3><strong>Company Culture<\/strong><\/h3>\n<p>Tracking time and expenses with paper reports or Excel spreadsheets can feel a little dated. Employees will certainly prefer the opportunity to easily submit and <a href=\"https:\/\/factorialhr.com\/mobile-app-hr\" target=\"_blank\" rel=\"noopener noreferrer\">adjust their hours and expenses through a mobile app<\/a>. They can follow the process as managers approve expenses and hours. The increased transparency will make them feel more trustful and more engaged.<\/p>\n<h2><a name=\"recoup\"><\/a><strong>Best Time and Expense Tracking App<\/strong><\/h2>\n<p>Time &amp; expense tracking can be expensive for businesses. It often comes with heavy time, accuracy, and efficiency costs. However, the right software makes it easy for managers to track time and expenses without hassle. Why manage timesheets when you could be managing people?<\/p>\n<p>Factorial\u2019s time &amp; expense tracking software streamline payroll and expense reporting. With <a href=\"https:\/\/factorialhr.com\/time-attendance-signing\" target=\"_blank\" rel=\"noopener noreferrer\">time tracking software<\/a>:<\/p>\n<ul>\n<li>Employees can clock in and out from the office entrance, and employers will receive a notification if the clock in from another location.<\/li>\n<li>Both managers and employees can review and visualize hours worked and hours pending.<\/li>\n<li>Businesses benefit from automatic timesheet collection, calculation, and analysis.<\/li>\n<\/ul>\n<p>With <a href=\"https:\/\/factorialhr.com\/expense-management-software\" target=\"_blank\" rel=\"noopener noreferrer\">expensive management software<\/a>:<\/p>\n<ul>\n<li>Employees can automatically upload their expenses and receipts and classify expenses according to categories.<\/li>\n<li>Managers can review expense reports on their own time and accept or deny reimbursement requests.<\/li>\n<li>Expense reports can provide insight into where the money is being spent.<\/li>\n<\/ul>\n<p>At Factorial, we combine shift management, time tracking, and expense management into our all-in-one Time and Expense tracking software that also allows you to do everything else from managing vacations to monitoring performance to onboarding new employees. Isn\u2019t it time you streamlined your HR processes?<\/p>\n<h2><strong>Is it Time to Invest in Time &amp; Expense Software?<\/strong><\/h2>\n<p>Time &amp; expense tracking has never been easier. No more juggling timesheets and expense reports! Instead, make the most of your time with time &amp; expense tracking software that helps your business run more efficiently and profitably.<\/p>\n<h2 style=\"text-align: center;\"><span style=\"color: #695ee8;\"><strong><a style=\"color: #695ee8;\" href=\"https:\/\/factorialhr.com\/features\" target=\"_blank\" rel=\"noopener noreferrer\">Improve Your ROI with Time and Expense Tracking Software.<\/a><\/strong><\/span><\/h2>\n<p><strong><em>Written by:<\/em><\/strong> Valerie Slaughter<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Time and expense tracking may not be the most exciting part of management, but having an efficient system in place makes a huge difference to your bottom line. Using paper forms or time and expense tracking spreadsheets in excel doesn\u2019t cut it anymore. The hidden costs of manual time and expense tracking eat away at<a href=\"https:\/\/factorialhr.com\/blog\/time-and-expense-tracking\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":29928,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[349],"tags":[],"class_list":["post-29923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-tech"],"acf":{"topics":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Hidden Costs of Manual Time and Expense Tracking - Factorial<\/title>\n<meta name=\"description\" content=\"Manual Time and Expense Tracking tasks may be costing your company more than you\u2019ve budgeted for. Just how much? 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