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11th January 2023

How much are timesheet errors costing your business?

If your business is still using spreadsheets it’s likely that you have fallen victim to mistakes, inaccuracies or timesheet fraud.

Whether you’re a small or large company, keeping on top of multiple employees working hours and calculating payroll can be extremely difficult and is likely to result in mistakes.

Below will explore the benefits of using timesheet software and the consequences of making time attendance errors.

Consequences of making timesheet errors

Inaccurate timesheets and timesheet errors impact productivity, profitability and can lead to time clock fraud. This is where an employee is being paid for work or hours they haven’t completed. For example, time clock fraud could be when someone clocks in at 9am but makes a coffee and puts their belongings in their locker before starting their shift, meaning that they don’t start working until much later on than they specified.

Types of time theft

●       Buddy punching - This is where co-workers clock in or out for each other, so that they can start late or leave earlier from work.

●       Starting late - Those who don’t have to clock into work may turn up to work late as it may go unnoticed.

●       Finishing early - Those who don’t have to clock out of work may leave early.

●       Taking a longer break - This is where people take longer breaks than they’re entitled to or authorised to.

●       Taking frequent breaks - This is where people take more breaks than they’re authorised or entitled to.

●       Completing unauthorised overtime - This is where people work extra hours without being asked to.

●       Completing personal tasks during work hours

●       People claiming they’re scheduled to work when they’re not - companies that use paper records may be taken advantage of as paper records may be lost or not easy to track.

How can timesheet errors affect your business?

Making timesheet mistakes can cause payroll errors, in turn leading to businesses receiving penalties and fines for not paying employees properly. Penalties and fines will obviously affect businesses financially, but will also have a huge impact on staff members personal and work lives.

Timesheet errors can lead to:

●       Financial hardship for staff members

●       Decrease in work productivity and motivation

●       A poor company culture

●       Increased stress and poor health

●       Employees may consider new roles

To learn more about the real cost of payroll mistakes.

How to avoid timesheet mistakes

Timesheet mistakes or inaccuracies can easily be made when the process is completed manually or by employees, as staff may think they can get away with changing their working hours.

Educate employees on time tracking

Ensuring your employees understand time tracking processes is extremely important. Explaining how time tracking mistakes affects the accounting team and the overall business will highlight the importance of tracking time correctly and how incorrect time tracking can negatively affect staff in the long term.

To help make the time tracking process easier for staff you could provide training, guides and make it clear that you can offer help or advice when staff have any questions.

Implement protocols to ensure employees are tracking time correctly

Creating protocols, such as having two people check over people's time sheets to see if there’s any mistakes, missed clock-outs, clock-ins, missed lunch breaks or unauthorised hours will help prevent incorrect time recordings.

If employees know that you’re checking that their timesheets are correct it’s likely to deter them from adjusting the hours they worked, helping you avoid timesheet fraud.

Implement time tracking software

Implementing time tracking software will help reduce mistakes, minimise overpayments and compliance risk. Here at Payescape our time tracking software, TimeEscape, is powered by UKG and fully automates routine tasks such as data capture, timecard management and cost tracking to help streamline and simplify employee time management.

Benefits of TimeEscape

●       Cloud Based software - There is no install required and it’s delivered fast and efficiently. This also allows you to access your data anytime, any place, on any device.

●       Data Security - TimeEscape uses Google Cloud to provide the highest level of security, system redundancy and uptime.

●       Superior User Experience - Software is fully responsive universal interface to improve ease of use and efficiency.

●       Expert support - You can access support from our team of UK professionals whenever you need them.

●       Migration guarantee - Fully managed migration process if you’re not happy we won’t charge.

What’s included in our TimeEscape software

●       Labour costs tracking and management

●       Leave eligibility, type, and duration tracking and management

●       Scheduling based on availability, skills, and business demand

●       Accrued time off tracking and calculations

●       Automated shift creation and assignment with manual scheduling options

●       Collect attestation data through existing data collection source

What industries should be using time tracking software?

Time tracking software is important for most industries, but here are 3 major industries that require time tracking software to help their business run efficiently and smoothly:


The manufacturing industry tends to have staff members in various locations, making it difficult for companies to keep on top of the hours their staff have worked.

Implementing time tracking software will allow staff members to fill in their timesheet from different locations on different devices, making the time tracking process simpler. This also makes it easier for HR and Payroll staff track whether staff members are tampering with their working hours, helping to minimise timesheet fraud.

Transport and logistics

The transportation and logistics industry are responsible for ensuring that deliveries and transport are on time. Due to this, time tracking software is important as it helps companies understand whether staff are completing tasks on time or whether schedules need to be adapted to ensure customers are retained.


It’s important for the healthcare industry to have time tracking software, as it’s critical for staff to be on time. It’s quite literally the difference between life and death!

Not only this but it’s common for hours to be stolen within the medical industry. For example ¼ of employees within the healthcare industry claim that they work more hours than they actually do. Using time tracking software will allow companies to track whether employees recorded hours match their authorised working hours, helping companies avoid timesheet fraud.

Book a demo with TimeEscape today to see how we can help you manage your timesheets properly.

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