Automated time and attendance systems have been available to and cost effective for larger businesses for several years. However, high acquisition and installation costs have historically made such systems impractical for small to medium sized companies to implement. That has recently changed, and there are now several time and attendance systems available to smaller businesses – and they do increase payroll accuracy and company profitability.

Since the beginning of history, technology has been used to increase accuracy and productivity. It started with the invention of the wheel and has snowballed into automobiles, computers, satellites, and so much more. These technologies have allowed users to accomplish more work in less time with a higher level of accuracy. Automated time and attendance systems are no exception.

Automated time and attendance systems track hours worked, overtime, as well as missed or late punches.. Not only does this eliminate the number of personnel hours needed to process payroll, but it also eliminates losses from inaccurate data entry, buddy punching, and inaccurate time car completion.. Automated time and attendance systems provide instant, accurate, tamper-proof information.

There are several different types of time and attendance systems available for small and medium sized businesses: Barcode time clocks, magnetic stripe time clocks, RFID (proximity) time clocks, and biometric time clocks.

Barcode time clocks – Each employee is issued a unique barcode on a badge. The employee must pass his or her badge through the machine for scanning.

Magnetic Stripe time clocks – Similar to the barcode system, each badge is equipped with a magnetic stripe, much like that on a credit card. When the badge is swiped through the time clock, the information is read from the card and entered into the system.

RFID (Proximity) time clocks – With this type of time and attendance system, the employee needs only to wave his or her badge near (not necessarily through) the time clock in order for the information to be captured and logged.

Biometric – With a biometric time and attendance system, employees clock in and out using their fingerprint. While this has historically been the most expensive type of system, the technology advances in biometrics have now made this surprisingly affordable and popular.. This is most effective in preventing inaccurate time cards and buddy punching. It also reduces losses associated with damaged, misplaced, or stolen badges.

Because smaller businesses are very ready and willing to adopt technology and are doing so at a very rapid pace, vendors are catering to this niche market. The entry-level pricing on a time and attendance system starts at around $500 with complete biometric time and attendance solutions starting under $1,000. Most systems are ready to use right out of the box but are scalable to fit any sized business. Time and attendance systems are easily connected to a PC or a network and are easy to install.

These systems protect companies from losses associated with employee dishonesty and human error andreduce the personnel hours required to process payroll. With a minimum investment, it is very simple for small and medium sized businesses to ensure accuracy of payroll and increase profitability through the use of a time and attendance system. A study by APA shows that by adapting an automated time and attendance system, companies can realize up to a 4% savings of their annual payroll.