August 13, 2020 is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

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Time & Attendance


Time & Attendance System Basics

Employee time management is a necessary, but cumbersome part of small business ownership. Time & attendance system software automates the process with features that are designed to reduce unnecessary labor costs and create a more efficient work environment.

In a typical small business, the system for tracking employee time and attendance usually consists of an avalanche of log sheets and time cards that have a mind-numbing effect on owners and managers.

Although they've automated other parts of their companies, they can't seem to break free of the administrative load associated with employee time management.

Time and attendance software systems have made significant inroads in the small business community. Instead of transferring handwritten employee data into an accounting system, these solutions automate the process and give business owners a whole new way of approaching mundane HR tasks.

Advance planning is a key ingredient in a successful time & attendance system purchase. By gaining insight into the industry and the products it offers, you can equip yourself with the tools you need for an informed buying decision.

System Overview

Time and attendance software systems completely automate attendance tracking and the accrual of hours worked. Instead of filling out time logs or punching into a mechanical device, the system collects data with unique identifiers that come in the form of magnetic stripes, barcodes or proximity cards. The collected data is then transmitted to software applications that allow managers to review and approve employee hours for payroll processing. Most systems also give owners and supervisors the ability to generate custom reports that can be used for labor forecasting and other critical management activities.

Small Business Buying Tips

  • Integration with existing software applications is important. Make sure to verify that the solution you choose can be easily integrated with your technology, but also with your existing employee practices and HR workflows.
  • It's not uncommon for vendors to offer industry-specific modules. These modules are designed to sync with your industry's work routines and reporting requirements, making HR compliance a relative no-brainer.
  • Advanced, biometric (handprint or even iris scanners) are available. But for most small businesses, these features do little except increase the cost of your package.

Related Articles

Want to learn more about this topic? If so, you will enjoy these articles:

Time & Attendance System Benefits
Time & Attendance System Features
Time & Attendance System Vendors
Time & Attendance System Costs

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