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5 Ways Companies Lose Money Due to Timekeeping and Payroll Errors

In May 19, 2020
On News
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Nip the problem in the bud with the help of Precise Payroll.

There are many ways that companies lose money. Among the biggest culprits are timekeeping and payroll errors. Both can sink a business fast. 

Understanding why both are such an issue is a critical part of managing your company. Learning ways to avoid the problems that come up decrease your overhead costs, reduce the number of fines you receive from improper taxation, and help you maintain profitability and credibility. It’s a way of strengthening your business and preparing it for the future.

Here are five ways companies lose money due to timekeeping and payroll errors:

  1. By paying employees for work that they haven’t done. When an employee gets a paycheck that is higher than they’re used to receiving without working extra hours or receiving a bonus, it hurts your business. You only have so many hours allotted in your budget. Anything over puts you in the red.
  2. By not being in compliance with tax laws and being fined. Every fine amounts to considerable loss of profits. Payroll processing solutions tackle this problem quickly and effectively.
  3. By not having a reliable solution for time theft. When some employees discover a loophole, they take advantage of it to your detriment.
  4. By using timekeeping methods that are so antiquated that they cause discrepancies. Investing in new solutions helps your business adapt to changing work environments and keep employees honest
  5. By not checking the hours submitted with the work done from home. If an employee bills for work that they’ve not done, it creates an HR problem of epic proportions.

Timekeeping and payroll errors are avoidable. When you invest in Precise Payroll’s services, you eliminate many of the situations that cause you problems with your business. To learn more about the different solutions that we have available for businesses of all sizes, reach us by phone or email to discuss what is right for you.

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