5 Pitfalls of Accounting Software

When I say accounting software, I'm referring to software designed for small business, not the expense, more complicated accounting systems.

The classic examples are QuickBooks and Xero, but I'm sure there are many more.

To be straight up, we are not CPAs at Webtimeclock, we are developers who happen to build software to accommodate accounting principles.

By default we had to learn double-entry accounting and three-way accounting models to build our backend services. We know how it works and we know why it works.

In this article, I hope to point out some things we have noticed. So if you are a small business owner, these tips might be helpful.

The real problem

The problem isn't necessarily the software, the problem is users not understanding what they are doing. Think in terms of "garbage in, garbage out".

Without guardrails, your company's books can quickly become a complete mess without understanding how to fix it, unless you hire a professional.

Think of it this way, accounting is the language of business that...

• Records your performance
• Reports you your business health
• Prepares you for taxes
• Helps you sell your business
• Helps you to apply for business loans
• Helps you make better business decisions

The real problem then, and this is not a criticism, is that many business owners don't have the faintest idea how to do accurate bookkeeping. Many make the assumption that accounting software will do it for them.

Why use accounting software for small business?

For many small businesses (not all), a top priority is to lower costs by avoiding hiring a bookkeeper, and instead, hiring software to do the job.

No need to pay wages to an in-house bookkeeper, no need to pay an expense such as an outsourced bookkeeper, just connect your bank account, and call it a day.

It's not hard to assume spending between $20 and $120 per month might be a better deal than spending hundreds per month.

• Lower cost
• No need to hire in-house bookkeeping
• No need to outsource bookkeeping
• Simple and easy
• Access anywhere, any time

Pitfall 1: Not understanding double-entry accounting

For centuries, business books have been a combination of journals and ledgers... Accurate books start with accurate entries. Double-entry accounting was created a long time ago and has proven to be the most efficient way to account for business finances. The trouble is many business owners don't understand it.

• It doesn't come naturally, you have to learn it
• It takes practice to fully understand it
• Perceived as difficult, when in reality it is not
• Assumed that software does this for you, so why bother learning it

Although accounting software will allow you to enter cash sales and expenses without understanding double-entry, trouble can happen when dealing with receivables, payables, and equity.

Piffall 2: Not understanding three-way financial statements

Three-way financial statements include Income Statements, Balance Sheets, and Cash Flow Statements. All three reports link together to display your business health.

They connect every dollar a business receives, owes, and requires to operate. Think of them like a highly detailed credit report that constantly evolves every day.

However, like double-entry accounting, many business owners don't have a clue.

• They don't come naturally, you have to learn them
• It takes practice to fully understand them
• Perceived as difficult, when in reality they are not
• Assumed that software does this for you, so why bother learning it
• Assumed your tax accountant can handle it at the end of the year

Although you can run a business without understanding financial statements, don't expect your software to do them correctly.

Pitfall 3: Relying on bank feeds

Although they can free your time, bank feeds in accounting software are a double-edged sword to your books. They can work great until they don't.

To do it right, you still have to monitor them closely and make sure they are categorized correctly. Otherwise they can mess you up big time.

• Feeds do not automatically categorize entries
• Entering category rules, may not work for every circumstance
• All bank, credit card, and merchant accounts may not have available feeds
• Feeds may not show transaction relationships such as invoices, cogs, and sales taxes

A bank feed feature is not necessarily a bad idea, the trouble is relying on them to maintain accurate books. That should never be assumed.

Pitfall 4: Not categorizing transactions correctly

In accounting things like Assets, Expenses, Revenue, Liabilities, and Equity have real meaning.

Sure, accounting software can help you list a canned COA (Chart of Accounts) to go by, but it may not explain what to do with them.

Categorize them right and all is good, get them wrong, and your books get messed up.

• Categorizing is a fundamental task in accounting
• Categorizing correctly keeps your books balanced
• Categorizing incorrectly messes you up
• Categorizing isn't necessarily something software does automatically

Software cannot assume what is a sale, expense, asset, liability, or equity. It's up to you what goes where, so it is good to know how it works.

Pitfall 5: Not updating books regularly

Bookkeeping is a never ending process to your business, it should happen every day with every transaction.

Not keeping your books up to date won't necessarily hurt you, but it can lead to some potential problems down the line.

• Updating regularly helps keep accurate financial statements
• Updating regularly helps to not miss tax deductions and deadlines
• Updating regularly helps control cash flow issues
• Updating regularly helps prevent mistakes that require a professional to correct

Software might update your bank feed regularly, but that won't include all the entries that don't use a bank feed.

Conclusion

Accounting software can certainly help with your bookkeeping, as many companies use them every day.

If you use a professional bookkeeper, great, hopefully they are qualified in the language of accounting, keep your records current, and help manage your business finances.

If you do them yourself, that is also great, but make sure you learn double-entry accounting, understand three-way statements, and update your records regularly.

Either way, it's always a good idea to hire a CPA to check your work.

The Top 8 Employee Time Clock Apps

As we dive into the new year, it's essential to reflect on how our workplace habits can impact productivity.

One area that often flies under the radar is time management – a crucial aspect of any successful organization. These days, automating tasks and streamlining processes is key to maximizing efficiency.

So if you have employees, it makes sense to automate how you track employee hours. In this article I'll explore the most recognized brands of time clock apps available today along with their pricing and basic features.

What are employee time clock apps?

An employee time clock app is a software application designed to track and manage employee hours, typically using mobile devices or web-based interfaces.

These apps allow employers to create a digital timesheet, set up work schedules, and automatically calculate hours worked for payroll purposes.

The benefits and advantages of using employee time clock apps over traditional methods are numerous:

• Moble: Clocking in and out with a phone or tablet (desktops/laptops too)
• Local/Remote: Tracking any type of employee whether at a work location or remote
• GPS: Capturing GPS coordinates to identify an employee's location
• Options: Options such as job tracking, PTO tracking, and tip tracking
• Calculations: Automated calculation of hours, overtime, PTO, and holidays
• Real-time: Real-time data, hours are calculated instantly
• Centralized: Cloud-based centralization, access timesheets from your dashboard
• Integrations: Option to be fully integrated with running payroll

The importance of time management

Manual methods of tracking hours, such as paper-based timesheets or spreadsheets, are not only cumbersome but also prone to errors.

Automation, on the other hand, can significantly boost productivity by freeing up staff from mundane tasks and allowing them to focus on high-priority work.

In recent years, employee time clock apps have gained immense popularity as a reliable alternative to traditional methods of time tracking.

These innovative solutions enable employers to track employee hours in real-time, automate payroll calculations, and provide employees with ease of use and convenience.

Here is the list...

1. Webtimeclock.com

Webtimeclock.com is an employee time clock app that helps businesses track employee hours for payroll and job tracking. It provides features like time tracking, time-off requests, and payroll integration, simplifying time management for both employees and administrators. Webtimeclock also offers features like GPS tracking, activity dashboards, and reporting, making it suitable for small to medium-sized businesses.

2. Quickbooks.com

Formerly known as TSheets, QuickBooks Time is a time tracking software that helps businesses manage employee hours, schedules, and payroll by integrating with other QuickBooks products. It allows employees to clock in and out from desktops, mobile devices, or a physical time clock kiosk. Key features include GPS tracking for mobile employees, geofencing to ensure clock-ins at the right locations, scheduling tools, and detailed reports for job costing and payroll planning.

3. Clockify.me

Clockify is a free time tracking software for teams that allows users to track their work hours on projects and tasks, manage time off, and generate reports to monitor productivity and expenses. It features a timer, timesheet, calendar view, and kiosk mode for shared devices, with a web browser interface and mobile apps available. Clockify helps streamline timekeeping for businesses by providing tools for time, attendance, and expense management.

4. Buddypunch.com

Buddy Punch is a time clock app and employee scheduling software designed to help businesses manage employee time, attendance, and payroll. It offers features like a time clock app, time-off tracking, payroll-ready reporting, and employee scheduling. It's used by various industries, including construction, healthcare, and retail.

5. Joinhomebase.com

Homebase is a time clock and scheduling app for small businesses with hourly teams, providing tools for employee scheduling, time tracking, payroll, communication, and HR, available to use for free for a basic version and with various paid plans for more features. It helps businesses manage staff, track hours and wages, and communicate with their employees, all from a cloud-based platform accessible via web or mobile app.

6. Connecteam.com

Connecteam is a cloud-based time clock app designed to help businesses manage and engage non-desk employees by streamlining daily operations, communication, and HR processes. It offers a mobile-first platform for tasks like employee scheduling, time tracking, digital forms, training, and communication, aiming to boost productivity and cut costs for small and medium-sized businesses. The app provides a free plan for businesses with up to 10 employees, with paid subscription options available for larger companies.

7. Wheniwork.com

When I Work is an employee time clock app designed for shift-based businesses, offering integrated scheduling, time tracking, and team messaging features. It helps managers build work schedules, fill shifts, track attendance with features like time clocks and geo-fencing, and communicate with their teams. Employees benefit from the ability to set availability, request time off, swap shifts, and access the schedule from their devices.

8. Hubstaff.com

Hubstaff is a time clock app primarily for remote and hybrid teams, offering time tracking, productivity monitoring, task management (through Hubstaff Tasks), and payroll features. It provides tools to manage projects, track hours worked, and gather data for custom reports to improve transparency and efficiency. The platform emphasizes user control and offers integrations with other project management, accounting, and help desk tools to streamline operations.

Conclusion

Employee time clock apps have revolutionized the way we track and manage employee hours. By automating tasks, providing real-time data, and streamlining payroll calculations, these solutions can significantly boost productivity and efficiency in the workplace.

It's essential to consider implementing an employee time clock app to maximize efficiency in your workforce. With numerous benefits for both employers and employees, these innovative solutions are set to continue growing in popularity.

Take the first step towards transforming your workplace today!

25 Best Online Time Clocks for Small Business

In today's fast-paced world, efficient time management is essential for the success of any business. With the advancement of technology, traditional methods of time tracking are gradually being replaced by online time clocks.

These innovative tools not only help in accurate time tracking but also streamline the entire process, making it easier for employers and employees alike.

In this blog post, I'll take a closer look at the top 25 best-selling online time clocks, how they can benefit your business, and how much they cost. Here is what I'll cover.

• The top 25 online time clocks
• Benefits of using an online time clock
• How to choose the right online time clock
• Conclusion

1. Webtimeclock.com

Webtimeclock.com is an online employee time clock system that helps businesses track employee hours for payroll and job tracking. It provides features like time tracking, time-off requests, and payroll integration, simplifying time management for both employees and administrators. Webtimeclock also offers features like GPS tracking, activity dashboards, and reporting, making it suitable for small to medium-sized businesses.

2. uAttend.com

uAttend.com is a online time clock system designed to help businesses track employee hours and manage workforce management tasks. It offers features such as employee time tracking, payroll processing, and scheduling. The system can be accessed through various devices, including time clocks, web browsers, and mobile apps.

3. Ontheclock.com

OnTheClock.com is online time clock software designed primarily for small to medium-sized businesses. It helps businesses track employee hours, manage schedules, and simplify payroll processes. It offers features like time tracking, scheduling, payroll integration, and tools to prevent time theft.

4. Compumatictime.com

Compumatic Time Recorders, Inc. is a company that specializes in time and attendance solutions for businesses, particularly small businesses. They provide a variety of time clocks, including electronic, calculating, biometric (fingerprint, face recognition), and web-based options including Compumatic Online.

5. Quickbooks.com

QuickBooks Time is a cloud-based time tracking software that helps businesses manage employee hours, schedules, and payroll by integrating with other QuickBooks products. It allows employees to clock in and out from desktops, mobile devices, or a physical time clock kiosk. Key features include GPS tracking for mobile employees, geofencing to ensure clock-ins at the right locations, scheduling tools, and detailed reports for job costing and payroll planning.

6. Clockify.me

Clockify is a free time tracking software for teams that allows users to track their work hours on projects and tasks, manage time off, and generate reports to monitor productivity and expenses. It features a timer, timesheet, calendar view, and kiosk mode for shared devices, with a web browser interface and mobile apps available. Clockify helps streamline timekeeping for businesses by providing tools for time, attendance, and expense management.

7. Joinhomebase.com

Homebase is an all-in-one workforce management app for small businesses and hourly teams, providing tools for employee scheduling, time tracking, payroll, communication, and HR, available to use for free for a basic version and with various paid plans for more features. It helps businesses manage staff, track hours and wages, and communicate with their employees, all from a cloud-based platform accessible via web or mobile app.

8. Connecteam.com

Connecteam is a cloud-based, all-in-one workforce management app designed to help businesses manage and engage non-desk employees by streamlining daily operations, communication, and HR processes. It offers a mobile-first platform for tasks like employee scheduling, time tracking, digital forms, training, and communication, aiming to boost productivity and cut costs for small and medium-sized businesses. The app provides a free plan for businesses with up to 10 employees, with paid subscription options available for larger companies.

9. Tcpsoftware.com

TCP Software provides workforce management solutions, including software for employee time and attendance, scheduling, leave management, and labor cost control. Their cloud-based, mobile-friendly platform helps organizations manage their workforce by tracking time, ensuring compliance with labor laws, and improving overall operational efficiency across various industries like healthcare, government, and hospitality.

10. Deputy.com

Deputy is a workforce management software that provides AI-powered staff scheduling, time tracking, and payroll integration to help businesses, especially those in retail, hospitality, and healthcare, efficiently manage hourly employees. It offers features like automated schedule creation based on demand, digital time clocks with GPS or facial recognition, seamless shift swapping between employees, and direct syncing with payroll systems to simplify administrative tasks and ensure compliance.

11. Wheniwork.com

When I Work is a cloud-based employee management platform designed for shift-based businesses, offering integrated scheduling, time tracking, and team messaging features. It helps managers build work schedules, fill shifts, track attendance with features like time clocks and geo-fencing, and communicate with their teams. Employees benefit from the ability to set availability, request time off, swap shifts, and access the schedule from their devices.

12. Hubstaff.com

Hubstaff is a workforce management software primarily for remote and hybrid teams, offering time tracking, productivity monitoring, task management (through Hubstaff Tasks), and payroll features. It provides tools to manage projects, track hours worked, and gather data for custom reports to improve transparency and efficiency. The platform emphasizes user control and offers integrations with other project management, accounting, and help desk tools to streamline operations.

13. Payclock.com

Payclock.com is an online time clock system, developed by Lathem, that helps businesses track employee hours and manage time data for payroll and other purposes. It offers features like employee time tracking, mobile access, integration with payroll systems, and reporting.

14. Timeclockwizard.com

TimeClockWizard.com is a free, online time clock software. It offers features like employee scheduling, time tracking (including breaks and overtime), payroll reporting, and expense tracking. It also provides mobile applications for both Android and iOS devices, enabling remote time tracking and receipt uploads for reimbursements.

15. Amano.com

Time Guardian Hosted is a cloud-based time and attendance software solution hosted by Amano, allowing businesses to manage employee time tracking from any internet-connected device. It offers various clocking options, including time clocks, web browsers, and mobile phones, with real-time data synchronization and automated payroll integration.

16. Opentimeclock.com

OpenTimeClock.com is a free, online time clock software designed for businesses to manage employee time tracking, attendance, and payroll. It offers features like employee time tracking, shift scheduling, PTO management, and an employee bulletin board. The software is cloud-based, accessible from various devices, and aims to streamline time management and improve accuracy in record-keeping.

17. Buddypunch.com

Buddy Punch is an online time clock and employee scheduling software designed to help businesses manage employee time, attendance, and payroll. It offers features like online time clock, time-off tracking, payroll-ready reporting, and employee scheduling. It's used by various industries, including construction, healthcare, and retail.

18. Clockineasy.com

ClockInEasy.com is an online time clock software designed to help businesses manage employee time and attendance. It offers features like mobile and web-based time tracking, GPS location, face recognition, and automated timesheets, making it easier to track employee hours, manage payroll, and ensure labor law compliance.

19. Timetrak.com

TimeTrak.com is a website for TimeTrak Systems, a company that provides workforce management solutions, including time and attendance tracking software and hardware. They offer a range of solutions for businesses of all sizes, including time clocks, mobile apps, and web-based systems for tracking employee time and managing labor costs.

20. Webclock.biz

WebClock.biz is an online time clock for any location with no per computer or location fees. Powerful time and attendance software integrates with biometric time clocks and other time collection devices or the standard web based time clock. ITCS-WebClock collects data real time and easily integrates with your payroll and accounting systems. ITCS-WebClock will reduce errors and will measure, monitor and track your workforce efficiently.

21. Clockspot.com

Clockspot.com is an online time clock service that helps businesses track employee time and attendance, manage timesheets, and facilitate payroll. It offers features like online time tracking, GPS and caller ID tracking, timesheet approvals, and detailed reporting. It's designed to be user-friendly and accessible from any device, making it suitable for businesses with mobile teams, remote workers, or multiple locations.

22. Ezclocker.com

ezClocker.com is a website and mobile app that provides an online time clock and scheduling software for small businesses. It's designed to be user-friendly, especially for those who may not be very tech-savvy. Key features include mobile clock-in/out with GPS verification, online scheduling, timesheet management, and reporting.

23. Clockit.io

ClockIt.io is online time clock software designed to streamline workforce management for businesses. It offers features like employee time tracking, scheduling, payroll automation, and project/task management. It caters to various industries, including law firms, retail, healthcare, and construction, and provides integrations with tools like Slack, Microsoft Teams, and payroll systems.

24. Timeclockhub.com

TimeClockHub.com is an online time clock platform that offers employee time tracking and management software. It provides features for businesses to track employee hours, manage schedules, handle payroll, and generate reports. The platform is designed to be user-friendly and accessible on various devices.

25. Easytimeclock.com

EasyTimeClock.com is an online time clock system designed to help businesses manage employee time tracking and payroll. It offers a user-friendly platform for tracking employee hours, managing payroll, and ensuring compliance with labor laws. The system supports various clocking options, including web-based clocks, biometric scanners, and mobile access.

Benefits of using an online time clock

• Accurate time tracking: Online time clocks eliminate any scope for human error in manual time tracking, ensuring accurate records of employees' working hours.
• Streamlined process: With online time clocks, the entire time management process becomes more streamlined and efficient, saving time for both employers and employees.
• Improved productivity: By tracking time spent on specific tasks, employers can identify areas of improvement and increase overall productivity.
• Cost-effective: The use of online time clocks eliminates the need for manual timesheets and reduces the administrative burden, resulting in cost savings for businesses.
• Mobile accessibility: Most online time clocks offer mobile apps, allowing employees to clock in and out from anywhere, making it convenient for remote or mobile workers.
• Automation: Online time clocks automate the tedious tasks of time tracking, scheduling, and payroll, freeing up time for business owners to focus on more important tasks.
• Integration with other tools: Many online time clocks integrate with other business tools like payroll software, project management systems, and accounting software, making the entire process more seamless.

How to choose the right online time clock

• Identify your business needs and priorities.
• Consider the size of your workforce and the scalability of the time clock.
• Look for key features that align with your business requirements.
• Check for compatibility with other business tools.
• Take advantage of free trials or demos to test the product.
• Consider the pricing and affordability of the time clock.

Conclusion

Online time clocks have simplified the process of time management for businesses of all sizes. With a wide range of options available, it is crucial to choose the right one for your business. Consider your business needs, key features, and budget before making a decision. With the right online time clock, you can streamline your time management process and boost productivity, saving time and money in the long run.

How Much Do Time Clocks Cost?

As a business owner, managing employee hours and attendance is crucial for ensuring compliance with labor laws, reducing payroll errors, and improving overall productivity.

One often-overlooked yet essential tool in this process is the time clock. But have you ever wondered how much these devices and systems cost?

In this article, I'll delve into the world of time clocks, exploring their types, costs, benefits, and what to consider when investing in one.

Expect to pay between $50 and $1000 for a time clock with no monthly fees, or between $2 and $10 per employee per month for a time clock with monthly fees.

What is a time clock?

A time clock is an electronic device or software used to record an employee's work hours for payroll and labor compliance.

Its purpose is to provide accurate and reliable data on employee productivity, helping businesses make informed decisions about staffing, payroll, performance evaluations, and human resources.

There are several types of time clocks available, each with its pros and cons.

Types of time clocks

• Punch card machines: These classic devices use physical cards for employees to punch in and out. While simple, they can be prone to errors and require manual data entry.

• Biometric terminals: Using fingerprint or facial recognition technology, these terminals provide secure and accurate time-tracking. They are often more expensive than other options but offer enhanced security features.

• Windows PC time clock software: This software allows employees to clock in and out using a computer, providing flexibility and ease of use. However, it requires regular updates and maintenance to ensure accuracy.

• Online time clock software: Cloud-based solutions allow employees to clock in from anywhere, on any device with an internet connection. They often offer real-time data tracking, automatic backups, and free support.

Time clocks without monthly fees

While some time clocks come with monthly fees, others require manual operation, support fees, and supplies. Punch card machines, for example, may need to be replaced or updated regularly, while biometric terminals require periodic calibration. Windows PC time clock software often requires updates and maintenance, which can add to the overall cost.

Time clocks with monthly fees

Online time clock software, on the other hand, offers a convenient and affordable solution. With this type of solution, employees can clock in from anywhere, and data is automatically synced to the server. Benefits include real-time data tracking, automatic backups, and free support.

Factors affecting time clock cost

The cost of a time clock is influenced by several factors, including:

• Type: Different types of time clocks have varying prices.
• Features: Additional features such as automated time tracking and reporting can increase the cost.
• Brand: Reputable brands may charge more than generic options.
• Installation: Installation fees can add up, especially if you need technical support.

Average cost of time clocks

Here's a breakdown of the average cost of different types of time clocks:

• Punch card machines: $50-$400
• Biometric terminals: $100-$1,000
• Windows PC time clock software: $100-$500
• Online time clock software: $2-$10 per employee per month

Hidden costs to consider

While investing in a time clock system may seem like a straightforward process, there are several additional expenses to consider. These include:

• Recurring fees for software updates
• Maintenance costs for hardware and electronic components
• Training expenses for employees and IT staff

Tips for choosing a time clock

When selecting a time clock system, keep the following tips in mind:

• Consider your business size and complexity: Choose a solution that meets your specific needs.
• Evaluate the cost-benefit ratio of each option: Weigh the pros and cons of each type of time clock.
• Think about scalability and flexibility: Select a solution that can grow with your business.

Conclusion

Investing in a reliable time clock system is essential for businesses seeking to improve efficiency, productivity, and compliance.

By understanding the different types of time clocks, their costs, benefits, and hidden expenses, you can make an informed decision when choosing the right time clock system for your organization.

Remember to consider your business size, complexity, and scalability when selecting a solution, and don't be afraid to explore different options until you find the perfect fit.

10 Things People Hate about Employee Time Clocks

As an employer, there's nothing quite as frustrating as dealing with outdated and clunky employee time clocks. We've all been there - stuck in a cycle of tedious clock-in and out procedures that seem to be more hassle than help.

In this post, I'll explore the top complaints about employee time clocks, and what they can teach us about innovation and employee satisfaction.

1. Difficult operation: The usual suspects

Let's face it - some time clocks are a nightmare to operate. Clunky interfaces, confusing instructions, and complicated set-up processes all contribute to an overall user experience that's more likely to send you running for cover than making you feel like a valued employee.

• Clunky interface: Who wants to spend their precious break time staring at a tiny screen trying to figure out how to clock in or out?

• Confusing instructions: A good time clock should be easy peasy, but when the manual is more confusing than a tax return, it's time for a change.

• Complicated set-up process: Setting up a new time clock should be a breeze, not a 30-minute marathon of frustration and confusion.

2. Lack of flexibility: When you're stuck in the stone age

Time clocks that can't keep up with your changing work schedule are a recipe for disaster. Who needs rigid break options or inflexible scheduling when you could have a clock that adapts to your every need?

• Limited break options: Why should you be limited to just two breaks per day? What about when you really need a three-hour lunch?

• Inability to track multiple shifts: Can't we just have one clock that keeps track of all our shifts, no matter where they are in the world?

• No option for remote clocking: In today's digital age, why can't we simply log in from our laptops or phones like a normal person?

3. Privacy concerns: When biometrics go wrong

Fingerprint scanners and biometric data collection might seem convenient, but what about when those pesky fingers get tired or the scanner just decides to stop working? What about when you're using your personal device to clock in - do they really need to know all your sensitive info?

• Fingerprint scanners and biometric data collection: Is this really necessary? Can't we just stick with good old-fashioned clocks?

• Personal information on shared devices: When everyone uses the same device, how do you keep track of who's logging what time?

• Lack of control over clock-in data: Who gets access to your precious work hours - you or your manager?

4. Time theft: The sneaky thief

Who hasn't been guilty of sneaking in an extra few minutes when no one's looking? But when it comes to the office, time theft is a serious issue that can cost employers big bucks. How do we prevent those pesky employees from taking advantage of us?

• Buddy punching: When your buddy decides to take an extra 15 minutes for themselves... yeah, this happens.

• Manual time adjustments by managers: Why not just trust the clock to get it right?

• Inadequate clock-in location verification: How do we know you're really here when you claim to be?

5. Extra costs: The hidden fees

Time clocks might seem free or low-cost, but what about all those hidden fees? Who gets charged for these extra expenses - the employee, the employer, or someone else entirely?

• Unnecessary monthly fees: Why do we need to pay extra just to clock in and out?

• Additional costs for upgrades and maintenance: When's the last time you upgraded your clock? Never, probably.

• Need for special equipment or software: Can't we just use our smartphones like everyone else?

6. Lack of integration: The missing link

Time clocks that can't integrate with other HR or payroll software are like a puzzle piece that just doesn't fit. It's time to bring all those systems together in one neat and tidy package.

• Incompatibility with other HR or payroll software: Can we please just get our clocks to talk to the rest of the office?

• Inability to sync with scheduling tools: Who has time for manual scheduling when we could have a clock that does it all?

7. Limited reporting: The data dilemma

What happens when you need to generate some fancy reports, but your time clock can't deliver? It's like having a car without the keys - how are we supposed to drive with no data to back us up?

• Insufficient data for labor law compliance: Who knew that keeping track of every single minute could be so hard?

• Difficulty in tracking employee attendance and attendance-related issues: When did clocking in become such a mystery?

• Inability to generate custom reports: Can't we just have some flexibility with our reporting needs?

8. Employee dissatisfaction: The clock's worst enemy

Who doesn't hate waiting in line for their turn at the clock? It's like being stuck in some sort of temporal purgatory.

• Inconvenient location of the time clock: Where is it, anyway?

• Constantly having to remember to clock-in and out: Can we just have a reminder app or something?

• Wasting time waiting in line to clock-in: Why do I need to waste my precious break time on this?

9. Negative company culture: The not-so-good reputation

Time clocks can become an object of resentment when not used correctly. Who has time for micromanaging or trust issues when there's a clock to keep track of?

• Perception of micromanagement: Is the clock really monitoring my every move?

• Breach of trust between employees and employers: Can we please just have some faith in each other?

• Negative impact on employee morale: Who needs a happy clock, anyway?

10. Limited features: The missing pieces

Last but not least, what about all those features that time clocks are supposed to have but never seem to deliver? We're like the Swiss Army knife of frustration.

• Inadequate number of clock-in locations: Can't we just have more than two options?

• Lack of support for shift differentials: Who has a simple day when there's no extra pay to look forward to?

• No option for tracking PTO or sick days: How do I even begin to keep track of all my precious vacation time?

Conclusion

There you have it - the top complaints about employee time clocks that are sure to resonate with anyone who's ever had to deal with one. If this is you, isn't it time to consider a change?

Online Time Clocks and Why Use One

An online time clock is a web-based employee time clock that tracks hours for payroll.

They are a combination of an employee time clock, time and attendance software, and other features such as payroll and HR, all in one single application.

They are also becoming very popular due to demand for workforce management, automation, and cloud-based access. As an example, The global time clock software market was estimated to be worth USD 3.7 billion in 2024 and is projected to grow to USD 4.7 billion by 2029, at a CAGR of 5.2%. (Source: Insight Explorer).

Not all online time clock providers are created equal, as each has their own way of doing things, so I'll discus each topic in general terms.

In this guide I'll go over:

• The benefits of using an online time clock
• Features of online time clocks
• How to set up an online time clock
• Managing employee time and attendance
• Using online time clocks for payroll
• Using online time clocks with office employees
• Using online time clocks with remote employees
• Choosing the right online time clock provider

The benefits of using an online time clock

Using an online time clock offers several benefits. One of the biggest is increased accuracy and efficiency over manual methods. Employees easily clock in and out, and administrators easily manage payroll hours simply by using web browsers.

No more worrying about paper time cards, manually entering times, calculating overtime, or hours reporting, it is all done for you with a click of a button.

Another benefit is convenience. With an online time clock employees clock from any device you wish including desktop computers, tablets, phones, and wall-mounted time clocks. Since the software is online, time data can be accessed from anywhere, not just the office.

Features of online time clocks

Outside the convenience of web access, online time clocks help to streamline workforce management. Overall features can include time tracking, employee management, HR management, and payroll.

More specific features can include time off accruals, time off requests, job tracking, scheduling, GPS tracking, shift management rules such as lunch deductions and rounding, time exceptions, payroll integrations, integration of biometric time clocks, and more.

In general it depends on the provider, but most providers at least offer time tracking with overtime calculations and reporting.

How to set up an online time clock

Setting up a new online time clock is simple and only takes a few minutes. First, you'll typically need to sign up for an account on the vendor's website or app. This usually involves providing basic information such as business name, and contact details.

Don't worry if you are not tech-savvy, most online time clocks are designed to be user-friendly for anyone not familiar with digital systems.

Once signed up, you'll typically need to set up your account by entering all your employee names, assigning departments, set overtime rules, set a pay period, payroll integrations, and sending invitations for everyone to start clocking in.

Depending on your organization, you may also want to set up other administrator or supervisor accounts to help manage your team.

Last, don't hesitate to reach out to your provider's support staff with any questions you may have. They are usually very helpful and happy to guide you through the process.

Managing employee time and attendance

Managing time and attendance is simple using a web browser. To get started, employees typically log in to the system using their credentials to clock in and out during each shift. Make sure to set up your business rules such as shifts, schedules, and time off policies. Some providers provide a way for employees to request time off in their account.

Overtime is typically handled automatically by the rules you set such as weekly overtime or daily overtime.

During the pay period, be sure to monitor your employee time cards at least once a week. Give yourself enough time before the pay period ends to resolve any discrepancies such as missed punches, employee requests, or time errors.

Once each timecard is completed for a pay period, don't forget to review and approve them, as this helps ensure payroll is accurate, and helps maintain permanent records. When ready, pass your timecard records to your payroll provider.

To get the most of your online time clock, be sure to check with your team regularly to ensure the system is working correctly, and take advantage of all the available features your provider offers. The idea is to keep the process easy and efficient.

Using online time clocks for payroll

Using an online time clock makes payroll more accurate and efficient. First make sure to enter the pay rates for each employee and assign them as either hourly, salary, or contractor. Although most payroll systems use hours to calculate hour compensation, several vendors calculate gross pay too.

Depending on your payroll provider and online time clock provider, data can often be transferred without rekeying the hours. For example, it is possible to export hours from your online time clock in a format that your payroll provider understands. Some providers offer integration with your payroll provider by sending all hours by clicking a button.

The most convenient and efficient way is to use an online time clock provider that offers payroll too. This way, hours are not transferred at all, but used internally to run payroll as an all-in-one solution. All timesheets, pay stubs, and tax documents are available with one login.

Remember to regularly review your settings and calculations to ensure everything is accurate, up-to-date, and stays in compliance.

Using online time clocks with office employees

Since most offices have desktop, laptop, or tablet computers, online time clocks are a perfect fit. Employees log in using either a username and password, or by entering their PIN. Typically, employees clock in and out by clicking or tapping a button.

Depending on the provider, employees might also see their timesheets, shift schedules, available PTO hours, and may have a way to request time off. If using payroll, employees will be able to see their pay stubs, and W-2s.

When using web browsers on computers, security is handled by limiting employees to an IP address

Since most systems are user friendly, employees will find them easy to use.

Using online time clocks with remote employees

Online time clocks can be accessed from anywhere, making them a convenient choice for remote employees. It does not matter if they work from home, a different workplace location, or on the road.

Remote employees log in from their phones or laptops as long as they have Internet access. Once logged in, they have access to all the same features described above.

Using phones, security is handled using GPS tracking which can record the geolocation of the employee as the clock in and out. This provides the employer proof that the employee was at the workplace location.

Some providers offer simple browser access that does not require a download, while others offer time clock apps employees need to install and maintain.

Choosing the right online time clock provider

Choosing the right solution can seem overwhelming, but don't worry, consider the following ideas.

If you have a small team under 10 employees, a basic online time clock might be perfect. On the other hand, if you have a larger team, you may want to opt for a more advanced online time clock with employee self-service, automatic pay calculations, and integrations with payroll and HR.

Key factors include security and compliance. Consider using an experienced online time clock provider who understands the laws, and keeps your time records safe and secure.

Don't be afraid to ask questions, try a free trial, or ask for a free demo, as most providers are happy to help. That way you can make sure it fits your business needs and workflows like a charm.

Conclusion

To sum it up, online time clocks offer increased accuracy, efficiency, and convenience over all other types of employee time clocks. Open a browser, go to your provider's website, and log in from anywhere.

We encourage any small business to consider the option over alternatives. It's not a question of monthly fees versus no monthly fees, it's a question whether your business could benefit from the advantages of being online or not.

Webtimeclock has been online since 2003, one of the first online time clocks, maybe sign up for a free trial to see how modern we are.

The Expert's Guide to Facial Recognition Time Clocks

Facial recognition time clocks are wall-mounted devices or tablets that allow employees to clock in and out by facing a camera.

They have been popular for years internationally, but have gradually gained popularity in the US for time and attendance. For example, the facial recognition technology market is estimated at USD 8.58 billion in 2025, and is expected to reach USD 18.28 billion by 2030. (Source: Mordor Intelligence).

In our view, using facial recognition technology is the best way to capture payroll hours for teams, even better than phones or web browsers.

However, like anything biometric, they do come with privacy concerns, legal concerns, and other pros and cons which I'll discuss in a moment.

In this guide I'll go over:

• The benefits of facial recognition time clocks
• How facial recognition time clocks work
• Privacy concerns of facial recognition time clocks
• Legal concerns of facial recognition time clocks
• Best practices for using facial recognition time clocks
• How to choose a facial recognition time clock

Benefits of using a facial recognition time clock

Facial recognition can be a game-changer for businesses. One of the biggest benefits is increased accuracy when it comes to capturing employee work hours.

Since facial recognition technology uses biometric data, there is no need to rely on badges, passwords, or PINs that employees need to have or remember. Meaning there are fewer errors, offer less administrative hassle, and streamline the payroll process. And of course, they help eliminate buddy punching and time theft.

Another benefit is how easy it is for employees. To clock in, employees simply face the cameras on the clock, the device clocks them in without touching a thing. All together, it creates a more efficient, stress-free environment at work.

How facial recognition time clocks work

Each device uses two cameras (only one camera if using a tablet) to capture high-quality images of the employee's face as they look at the clock. These images are compared to an internal database that matches their profile. If a match is found, the employee is clocked in... All in less than a second.

Each device does not take photos of each face, instead uses computer algorithms that recognize each face based on mathematical templates. Having two cameras is preferred as they recognize a face using three-dimensions instead of two-dimensions.

Other features can include ambient light correction, anti-glare screens, and the ability to recognize faces with or without glasses or masks. It's all about providing an easy way for employees to clock in and out fast and secure.

Privacy concerns of facial recognition time clocks

The biggest concern with facial recognition time clocks is privacy. People don't always like the idea of sharing personal data such as fingerprints, or in this case, their facial template. People might be concerned that their personal data could be shared outside the company, a thought that might be unsettling.

According to a related survey, 46% of Americans are worried about the misuse of facial recognition technology by the government. (Source: Pew Research Center)

The good news is that most facial recognition time clocks come with robust security measures to protect employee data. Security can include encryption, secure servers, and strict access control to any payroll data. Using facial recognition should not be considered a "control" kind of thing.

But it all boils down where each template is stored, and how it can be deleted if necessary. For example, cloud-based tablet software might store templates in the cloud, but in comparison, a facial recognition time clock can be set to only store templates in the device itself.

Keep in mind too that templates only work when reading a face, they cannot be used as a human face to pass some kind of authorization.

Legal concerns of facial recognition time clocks

One of the legal hotspots on facial recognition time clocks is Illinois. They are one of a few states with strict biometric laws pertaining to employers, so as a legal guage it is good to know what they think.

As a rundown, using facial recognition is legal providing you follow Illinois guidelines:

• Obtaining written consent from the employee before collecting biometric data
• Notification that data is collected, how it is applied, and how it will be destroyed when no longer in use
• Employers cannot sell or lease their employees’ information
• Employers must abide by strict confidentiality rules, even if the data is no longer needed by the employer

(Source: USA Employment Lawyers)

Most states are not as strict, but it is still wise to research what your state's department of labor requirements are.

Best practices for using facial recognition time clocks

To get the most out of your facial recognition time clock, be sure to follow the manufacturer's advice of mounting the device to a wall, using it indoors, and making sure there is enough available light for the cameras to see.

Each employee will need to be registered by the clock. This means they will have to face the cameras at different angles for the clock to create reliable templates.

Using these clocks is easy and can be secure, however if an employee does not want to use it for any reason, provide an alternative way they can clock in. Typically facial recognition time clocks also provide the ability to clock in using a RFID badge, and sometimes a fingerprint sensor.

Overall make note if anything about the clock seems out of the ordinary or is not working properly. If so, report any issues to HR or management right away.

By following best practices, you can help ensure a hassle-free experience.

How to choose a facial recognition time clock

Finding the right facial recognition for a small business is not difficult, choose a time clock that works with your software and includes the features you need.

At minimum, basic clocks will allow employees to clock in using their face, however features such as RFID badges, and fingerprint sensors can be helpful if an employee does not wish to use facial recognition. Expect to pay from about $200 on up depending on features and what system it integrates with.

As mentioned earlier, it is preferred to use a facial recognition time clock with two cameras (dual cameras). Single camera systems can work, however dual cameras offer superior accuracy and anti-spoofing capabilities.

For larger teams a facial recognition time clock can also include a variety of employee self service features such as requesting time off, displaying timesheets, and alerting employees with messages.

In general, because most facial recognition time clocks don't need to be touched by employees, they tend to last a lot longer. Your clock can last for years.

Conclusion

As a recap, facial recognition time clocks offer the advantage of ease, efficiency, and security. They do come with privacy and legal concerns, however those can be addressed by explaining to employees how they work, and following your state's laws.

We encourage any small business to consider using facial recognition technology, it's not about control, but a way to quickly verify an employee is clocking in or out... Without using PINs, passwords, emails, or badges.

Every Webtimeclock account has the option of integrating a facial recognition time clock. Maybe shop for a clock to see what they look like.

What Happened to Time Clock Machines?

You know, those old machines that print on paper time cards.

They still make them, but mostly in China.

They still sell them, but not nearly as many as they used to.

My guess is there will always be some kind of demand for them, as they do serve a useful purpose... They do track employee hours.

Pull it out of a box, plug it in, and place a timecard in a slot. Magical in a sense.

They give you instant gratification with every print, all you need is an AC outlet. Maybe not as fancy as time clock software, but a cheap way to get the job done.

So what happened?

We changed. We became a connected world via computers and phones.

Non-connected things tend to be sent out to pasture.

Tools to Reduce Payroll Stress

Outside of cashflow, one of the biggest stresses of running payroll is making sure employee timesheets are submitted and everyone gets paid what they earned.

Since employees are paid for their time, it's mostly about handling their timesheets. You have to make sure all hours are entered, authorized, and calculated correctly... no matter who your payroll processor is.

If looking for better time tracking here are a few tools that will help.

Automatic time calculation
Every time an employee clocks in and out, their timesheet is fully calculated. This includes regular hours, overtime hours, and gross wages. If the employee clocks in as directed, no further adjustments should be necessary.

Timesheet approvals
Every person who has access to an employee's timesheet has the option to approve the timesheet. That could include the employee, admin, and supervisor. These approvals are date stamped and become a permanent record on the timesheet.

Easy timesheet editing
At some point a timesheet will need adjusting. Employees may forget to clock in/out (or for any number of other reasons). An admin or supervisor can easily enter any missing punches once the correct times are determined.

Timesheet comments by admins
Any time a timesheet is edited, the admin or supervisor can enter a comment on the timesheet explaining why. This become a permanent record visible on the bottom of the timesheet. No extra buttons need to be clicked to see the comment.

Timesheet comments by employees
Timesheet comments also allow each employee to explain what happened. For example, if they were late, they can explain why. Comments like these become permanent records managers can use to evaluate employee performance.

Overtime calculation
Federal law requires hourly employees receive overtime over 40 hours per workweek. Our system calculates weekly overtime based on the start day of your workweek. Typically it is Monday, but it can be any day of the week that follows your payroll schedule. Optionally, we calculate daily overtime too.

PTO requests and approvals
Employees have the option to request time off inside their account. When this happens, an email alert is sent to their direct manager. If the manager approves the time off, the hours are automatically entered on the employees timesheet.

PTO bank and accruals
Many companies offer their employees benefit hours such as PTO, vacation, and sick time. Some offer employees a bank of hours available to use during the year. Our system allows you to enter a flat amount, or accrue hours by time or by hours worked. To make it easier, available hours are displayed on each employee's timesheet, so they don't have to ask you what their balance is.

Multiple pay schedules
Most companies use a single pay period for payroll, but a few have two or more. For example, a company might pay hourly staff every week, but pay their salary staff twice a month. If your company has multiple pay periods, we have you covered.

Is There an Online Time Clock Without a Subscription?

Recently someone asked about this. They had a business with about 40 employees and needed a better way of tracking employee time.

All their employees worked at one location using a biometric time clock, while the payroll manager worked at a different location.

So, to make things easier, the manager wanted online access to the time clock reports. Otherwise, they would have to transfer hours manually from one location to the other using a USB drive.

They asked... "Is there a system we can buy without a subscription?"

Sorry no, it doesn't exist.

Not long ago, buying software without a subscription was your only option. Whatever you purchased, you owned. Sure, it cost more upfront, but you had no monthly fees or additional costs unless you needed support.

So what happened? Why can't you buy ONLINE time clock software without a subscription? In this article we'll cover the reasons.

• Traditional client-server without a subscription
• Free online time tracking software
• The last hybrid online time clock system
• Why online time clocks require a subscription
• Conclusion

Traditional client-server without a subscription

For time clock software to work, it needs to communicate with multiple devices such as other computers, or wall-mounted time clocks. This allows employees to clock from their own PC or from a time clock.

Without getting too technical, traditional client-server software is installed on one central PC that acts as a server, while client devices connect to that server within your local network.

If you only have one location, and don't need browser access (computers, phones, tablets), then this method works fine, a few systems are still offered.

But if you need access to different locations, or from a phone, this kind of system will NOT work. At least without substantial IT costs.

Free online time tracking software

There are companies that offer free versions, but none of them come close to providing you what you need for payroll, that is, until you upgrade to their paid versions... Thus defeating the whole purpose of avoiding monthly fees.

Keep in mind these companies don't offer free subscriptions to save you money, their goal is to get you to sign up, and get you to upgrade.

Further, there is no free version capable of handling employee hours for payroll with a biometric device. Including those who offer tablet software.

The last hybrid online time clock system

The discontinued TotalPass by Icon Time (owned by Paychex) was the last hybrid. These time clocks had internal software you accessed through a web browser, providing a balance of online software without a subscription.

However, Paychex pulled the plug. Here is what they said...

"As technology and industry standards have evolved, IconTime is changing our approach to time and attendance for businesses. Recent surveys and industry trends have made it clear that business clients want more than just time clocks when it comes to managing their employees."

"That’s why we’ve discontinued our line of TotalPass clocks...."

The bottom line is Paychex (like most other software companies) have moved to a subscription model.

Why online time clocks require a subscription

Online software is not installed on your computer, it lives on a server owned and maintained by a vendor. That is the core difference.

Instead of buying software to install on your computer, you rent space on the vendor's server. A space that includes automatic upgrades, backups, support and more. The biggest advantage is online access from a browser.

Conclusion

We understand the reasons why people don't want another subscription, it can seem like too much these days. It would be nice to just pay once for something you only use at a single location.

But if you need web access to the software, have multiple locations, want free support, automatic backups, and ongoing upgrades, then an online time clock subscription is and will remain the only way.