The question of manual or digital time recording arises above all for small businesses. There are special rules for time recording in small businesses. This results in more options, but also difficulties in making decisions.
In this article, we show you the advantages and disadvantages of the different methods.
Rules for time recording in small businesses
In Germany, a small business is a company that:
- employ fewer than 10 employees
- were founded before 2004 and have fewer than 5 employees
- generate an annual balance sheet total of less than 2 million euros
It is sufficient if one of these criteria is met to be classified as a small business or microenterprise.
In this case, there is freedom of choice when it comes to time recording: you do not necessarily have to record time digitally, manual methods are also permitted.
We will show you which method is better suited to your business.
Advantages and disadvantages of time recording with Excel
A classic method is the use of timesheets, which are filled in by hand and then transferred to an Excel spreadsheet.
Advantages of manual time recording:
- No need to purchase additional devices – costs are saved
- System is easy to understand, requires no training
- You enter all the data yourself and keep an eye on the figures
- Manual transfer gives you a clear insight into employee performance
Disadvantages of manual time recording:
- Mistakes can happen and may be noticed late
- Documentation with slips of paper and Excel requires good organization
- Notes or files can be lost
- High time expenditure, resources are tied up
- Data is only available after a delay
- Working time fraud is easier to commit
The last point should not be underestimated: If each employee enters just a few extra minutes a day, this adds up to many unpaid hours over a month or a year – a noticeable financial burden for a small business.
Advantages and disadvantages of digital time recording
Digital time recording is modern and mandatory outside of small businesses. The switch can also be worthwhile for small businesses, especially if the legal limits are soon to be exceeded.
With a time recording system such as timeCard, the changeover is straightforward.
Advantages of digital time recording:
- Working time is recorded efficiently and in a time-saving manner
- No slips of paper or tables – everything is documented in one place
- Data is immediately available and can be called up at any time
- No more errors due to manual transmission
- Transparent, clear documentation makes fraud more difficult
- Direct overview of vacation times and absences
Disadvantages of digital time recording:
- Initial investment required for the system
- Employees must be instructed
- For some, a digital system can trigger a feeling of surveillance
This feeling can be reduced through training. Of course, data protection must also be observed with digital methods.
Conclusion
The advantages of digital time recording clearly outweigh the disadvantages: less effort, fewer errors, a better overview and greater transparency.
Decide which method is right for your small business and get started with effective time recording – for greater efficiency and less administrative work.
