How a Timesheet Can Help Your Business Grow?
If you are the owner of a small-scale business, then there is no doubt that there are a number of responsibilities you must take on staffing being one of them.
As a new business, the number of employees you have under your employ in your restaurant will surely change as your business begins to grow. In time, as your business grows, the number of employees will grow with it.
There is no single formula for business growth, however, many contributing factors can certainly attribute to the success or downfall of your brand. If you want to dodge the latter, then it is best to ensure that you have an adequate time tracking system set in place.
Time tracking is most beneficial for hourly employees, meaning an employee is paid by the hour, as opposed to being on salary.
The conventional method of employees clocking in to begin a shift and clocking out to end a shift is an industry norm. However, what can vary from business to business is how those worked hours are recorded.
With digitized time cards, you can accurately track employee punches, along with the hours an employee has spent on a specific task. If you maintain timesheets for such employees, it can be easier for you to calculate payroll.
Payroll systems are paramount when running any size business, so you want to make sure that your operations processes are accurate and efficient. With the use of a complete timekeeping system, you can achieve this. Here's a look at how a timesheet can help your business reach its fullest potential.
Importance of Timesheets
Tracking the hours an employee has actually spent on the job is mainly used to make sure that you are paying the employee exactly what is deserved for the hours that were worked. Here are the areas that will be improved when utilizing accurate timekeeping practices.
Productivity
When you maintain a timesheet, you are essentially gathering data, and employee performance data is something of high value. If the data in your timesheet is accurate, it can help you understand your business model and even employee productivity, thus allowing you to optimize your team's work output in a simple and effective manner.
If you notice that an employee has spent more hours on a project as compared to others this will indicate that the resources are not being used properly. By tracking specific activities on a timesheet you can gain a lot of valuable insight regarding how your employees are spending their time at work and how you can better allocate business resources in the future.
Project Management
Time tracking is mainly used to see how much time an employee has spent on the job, however, it can also tell you which tasks employees are spending the most time on completing. With this information, you can see how employees are using their resources.
For example, you may notice that your employees are spending more time on tasks that aren't as rewarding as indirectly helping the business grow. This may be because you don't have the technology to make these operations more efficient, or maybe because these tasks are simply brought into focus more than needed.
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What Makes a Complete Employee Timesheet?
When it comes to timesheets, you can find a lot of available options. You can choose to go the software route or take on the manual method, utilizing spreadsheets, like the ones found in Excel.
No matter which method you use to manage your timesheets, there are some things that are considered a great staple.
Time Tracking
The first component of a timesheet is none other than time tracking. This is very simple to do as the employee only needs to record how much time they have worked and then need to enter those numbers in the timesheet.
It can highlight the problem areas and whether you need to bring in more resources, like hiring a larger team to make operations more streamlined.
Mobile capabilities to monitor time should also be a featured accessory with the best time tracking software.
Hourly Rate
The next component is the hourly rate in which an employee is paid. The timesheet needs to have separate areas for overtime hours and regular hours worked.
You should also divide the hours worked by the project. In this way you can pay your employees depending on the hours worked on each project. Keep in mind that not all projects will have the same hourly rate. This is why dividing the hours worked by projects can be so helpful.
Timesheet Calculator
Lastly, there is the timesheet calculator. This is where you bring both time tracking and the hourly rate together to calculate the payout amount. You can use a time card app to make sure that your calculations are correct.
A good application is able to automatically consider overtime and regular hours and then multiply both by the designated pay rate. This determines the correct payable amount.
Conclusion
With the help of the time card calculator app, you can make sure that you are collecting the right employee data when it comes to time tracking. Time tracking should be an essential part of your business because it has a lot of benefits.
If you don't use time tracking in your business, it is time that you start doing it. There are times when employees think that time tracking is used to monitor them, that may be true at some level but the monitoring is not done in a negative way. The best way to save yourself from such a situation is by being open to your employees and making them understand the benefits of time tracking.
