A famous Aesop fable describes a milkmaid who balances a milk pail on her head, while dreaming of all the wonderful things she will buy with her profits after selling the milk.
New chickens. A boat. A Samsung Galaxy tablet.
And then suddenly—SPLASH!
Her milk pail tumbles off her head and onto the dusty road. Now her imaginary milk profits are the world’s most expensive puddle of waste.
The fact is: spilling the profits doesn’t just happen with fictional milkmaids. This happens at your business too!
Every company faces 3 major challenges that can trip up their business, spill their profits, and jeopardise their cash flow.
In this post, we’ll show you the 3 top money leaks to watch for in your company, and highlight some software that help you avoid them.
1) Time Tracking – Paper Timesheets Are Expensive
Paper doesn’t cost much. Maybe a penny a sheet.
But paper timesheets cost companies thousands of dollars!
Surveys show that employees “game the clock” by writing wrong times on their paper timesheets, having a friend fill out their time card for them, or padding their shift with extra minutes they didn’t work.
A few minutes today, a few minutes tomorrow—eventually payroll is through the ceiling and the profit is through the floor.
Companies that use paper timesheets are setting themselves up to overpay employees on payroll. This is a major liability. Business owners should carefully monitor employee payroll costs, and address timesheet dishonesty immediately.
One easy solution to this problem is to switch to electronic time tracking software, like ClockShark.
Companies who switch to electronic timesheets from paper time tracking save on average 2 – 8% on payroll costs.
2) Invoicing – Don’t Lose Track of Expenses & Receipts
Everyone forgets things. People, companies, even elephants: we can’t help it.
Unfortunately, when it comes to invoicing, if a business forgets to create an organized process for tracking money leaving the company and revenue coming into the company, awful things happen.
The financial health of a company cannot be accurately determined, and it makes the business blind to certain crimes, like embezzlement or inventory theft.
It’s important that a business have a strict process for charging for work that it performs, and for tracking its expenses and overhead.
This problem can be solved by hiring a professional bookkeeper or accountant to manage the business’ ledger. A helpful tool for this is automated invoice processing software that eliminates manual data entry by directly extracting data from invoices and receipts, and exporting it to your accounting software.
3) Productivity – When the Cat’s Away…
It’s easy to assume that everyone with a job is actually working. But employee productivity is never a guarantee.
People get sleepy after lunch. Employees get less productive the more days they work without a vacation.
Productivity is actually very variable.
The cure for decreased productivity is staying in tune with your employees, and their morale. Communicating with your employees allows you to understand their needs. Things that make your employees happier will generally make them more productive.
You can even use technology to boost productivity. Using a video-conference software like Zoom is a great way to regularly meet with employees who might work in different offices, but who need guidance to stay on task.
Protecting your business from paper timesheets, poor expense tracking, and diminished employee productivity keeps more profits in your company.
It also means you’ll never be the milkmaid from Aesop’s fables, because…
You won’t cry over spilt milk if you never spill it.
Author: Morgan Cassady
Blog Description: For construction and field service companies who want to get rid of paper time sheets, ClockShark is the GPS time tracking app that’s both powerful and easy to use.