As a business owner, you're always looking for ways to streamline operations and save a few bucks where you can. It might be tempting to use your cash register (or point of sale system) to keep track of when your employees are clocking in and out.
After all, it's right there, and it seems easy enough. But this shortcut could end up costing you more in the long run.
Here's why sticking to your cash register for timekeeping isn't the best move.
How Long Do You Need to Keep Track of Your Records?
When it comes to keeping track of employee hours, the law has some strict rules. For example, you're supposed to keep these records for up to seven years, especially for things like sick leave.
Cash registers are great for sales, but they aren’t built to store detailed employee time records for years. If you ever get audited or face a dispute, not having these records could land you in hot water.
How Do You Track Your Employee's Sick Time and Leave?
Your employees are going to take sick days and vacations and a cash register system isn't cut out for managing different types of leave.
It's not just about knowing who took a day off; it's about accurately tracking how much leave each employee has left, which can get complicated fast.
Mess this up, and you could have unhappy employees and even legal problems on your hands.
Is Saving Money Worth It?
Trying to save money by using a cash register for timekeeping might look good on paper today, but it can lead to bigger expenses down the line.
If you're not following labor laws to the letter because your system can't handle it, you could end up paying fines, legal fees, and back wages.
Plus, think about the message it sends to your employees.
Using the right tools for the job shows that you value their time and well-being.
What Should You Use Instead?
Investing in a proper timekeeping system is the way to go. These systems are designed to handle everything from tracking hours to managing sick leave, and they keep records as long as the law requires.
Here's what you get with a dedicated system:
- Automatic Leave Management: It calculates sick and vacation time for you, following your rules and the law.
- Safe Record Keeping: It stores all the timekeeping info you need for years, safe and sound, so you can pull it up whenever you need it.
- Stay on the Right Side of the Law: These systems help you keep up with labor laws, so you're less likely to face fines or legal issues.
- Reports at Your Fingertips: Need to figure out payroll or check on labor costs? A good timekeeping system can give you all the details you need with just a few clicks.
The Bottom Line
Using your cash register as a time clock might seem like a clever hack, but it's a risky one that could cost you more than you'd save. Investing in the right tools not only keeps you compliant with labor laws but also shows your team that you're serious about running a professional operation. In the world of business, some shortcuts just aren't worth taking. Make sure you're setting your business up for success with the right tools for the job.
Use our instant pricing calculator to see how much our timekeeping services cost without talking to a salesperson.
If you found this article helpful, here are some others you might like:
- How Much Do Payroll Services Cost?
- 1099 vs W2 Employee - An Honest Cost Comparison for Business Owners
- Why are my W2 Wages Lower Than my Salary?
- How to Choose the Best Payroll Company for Your Small Business
- The Pros and Cons of Paying Employees with Payroll Paycards
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