Taking the pain out of payroll: How to increase payroll efficiency

For many fleet owners, operators and human resources administrators, the manual task of processing payroll and invoicing can be time consuming. The day-to-day costs of running a fleet can add up quickly, and fleet-related costs can go unnoticed because you can’t monitor what you can’t see.

Lack of visibility into fleet management costs can put a dent in your bottom line, which isn’t something you’ve budgeted for. There are several areas where fleet costs may be adding up unknowingly. If your timesheets aren’t accurate, even by small increments, you are simply giving away money that could be invested back into your business. Drivers rounding up their hours on a regular basis can be an extra cost for you. Here are some ways to make the payroll process less painful and more efficient while keeping a close eye on extra costs.

Saving valuable time

As a business owner, knowing the ins and outs of every facet of your operation is how you make your hours more productive and make your dollars work harder. With only so many hours in each day, improving the way incremental, tedious tasks are completed without sacrificing valuable time is essential.

When it comes to client service, especially in the age of same-day shipping, customers expect white-glove treatment at a moment’s notice. Automating payroll and invoicing frees up valuable time that can be spent seeking out new business, nurturing current relationships with customers and engaging with your workforce to stay ahead of issues that could negatively impact your business.

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Reducing errors

Not only does the payroll and invoicing process take up large amounts of valuable time to complete before starting the entire cycle over again next month, sending out invoices to customers manually opens up the opportunity for human error, which can have a negative impact on your reputation and your business. Miscalculating payroll data such as pay periods, or overpaying on overtime removes valuable dollars from your bottom line.

Paper timesheets leave your business exposed to imprecise or inaccurate data that can also be easily falsified by employees. Automated tracking and logging of vehicle time on the clock, from startup to shutdown, provides a precise account of employee hours and reduces the opportunity for error. Additionally, owners can monitor shut-off and restart times during the day, which can be tracked and used to record time spent on breaks and meals.

Counteracting payroll fraud

It's important to consider whether you have an effective time-tracking system to manage overtime and verify that employees' timesheets are accurate. Incorrect timesheets and overpayments can put a serious strain on the bottom line of any business looking to improve profit margins. 

An automated payroll system has the capability to reduce timesheet fraud. Because all employees and vehicles are tracked, fleet managers and operators can run reports on actual hours a vehicle is in operation, actual daily start and finish times, hours and days worked, and average daily hours and weekly totals. These reports are generated with a few clicks of the mouse, and because it can be used as an electronic timesheet, it removes the risk of inaccuracies, whether intentional or not. Relying on accurate, near real-time data helps eliminate the risk of inflated overtime hours, leading to reduced operating costs.

Increasing business productivity

As your business grows, the number of assets you have to manage increases in tandem. Removing manual tasks from payroll management will free up wasted time that would otherwise slow production and decrease overall workforce productivity. 

A streamlined payroll software with reporting capabilities allows you to dive into your workforce data, connect the dots and see the patterns that can inform strategies for making your business work better. Opening up more time in your regular work schedule to analyze data helps you understand where costs can be cut or reinvested.

Automating payroll functions and invoicing also takes stress off of your workforce by enabling them to focus on their daily work instead of manually reporting time off and on the job. Integrating this information into back-office applications helps reduce business inefficiencies through reduced administrative costs to your business.

Monitoring fuel consumption and driver behavior

While you may trust your drivers, in reality you may have very little knowledge about their fuel-purchase habits. A fleet management system helps you track fuel usage and coach efficient, safe behaviors.

• Speeding: Maintaining proper speeds can help to reduce fuel usage. Managers can view speed events by each driver and set up alerts to be triggered when a driver breaches a specific speed threshold. 
• Idling: Monitor unnecessary, wasteful idling and receive alerts any time idling has gone past a specific threshold you define.
• Fuel cards: Integrate fuel cards with software and run reports that show total fuel spend per vehicle and the location of each fill-up. Track miles per gallon, pinpoint causes of high fuel consumption, reduce fuel slippage (e.g., stolen fuel or non-fuel items purchased on a company card) and enforce fuel-saving habits.

Control costs, reduce fuel and save time and money

How much time do you or your team spend running the same reports, building the same graphs or creating the same charts on a regular basis? It’s important to look for ways to streamline and simplify everyday activities that cost more time than they’re worth.

To learn more, visit verizonconnect.com or call 866.844.2235 to schedule a free online demo.