How to reduce timesheet fraud in your cleaning business

Most cleaning contractors will be involved with all stages of the employee lifecycle: recruitment, onboarding, development, payroll, retention, and exit. Multiply this by the number of employees you have, and the day-to-day people management process becomes complex. Integrating automated time and attendance systems, analysing data, and adopting cloud-based information intelligence can enhance the accuracy of the entire process. Moving away from paper timesheets and overflowing inboxes eliminates the possibility of timesheet errors or fraud.

What is timesheet fraud?

• Incorrectly logging hours worked. This is when an employee can artificially increase the number of hours worked on their timesheet or by clocking in early or out late.
• Editing timesheets retrospectively. This is also considered timesheet fraud and can only happen if the employer uses manual time and attendance methods.
• Buddy punching. In locations where traditional clocking-in and out systems are used, it is possible for employees to ‘punch in’ for their colleagues when they’re running late.
• Logging standard hourly rate as a higher overtime rate. When overtime is included in the payroll calculation and the hourly rate is higher than regular working hours. It can be possible for employees to declare hours against the wrong hourly rate.

How can cleaning companies reduce timesheet inaccuracies and fraud?

It is easy for employees with paper-based timesheets to enter incorrect times of arrival and leave the site or to round up their hours. Overpayment will often occur as the employee is paid based on these wrong hours or rates. When coupled with vast volumes of attendance data that need to be retyped from timesheets or cards into the payroll system by back-office administration staff, it is easy for mistakes to go unnoticed and inaccuracies to slip through.

What are the consequences of timesheet fraud?

Timesheet fraud can have serious consequences for both businesses and employees. In this digital age, time and attendance software has become vital for managing employee hours accurately and efficiently. However, some individuals may still use paper-based timesheets to falsify their working hours. Such fraudulent activities not only lead to financial losses for the company but also undermine the trust and integrity of the business. For employees, the consequences could be even more severe, ranging from job loss to legal action. In short, the impact of timesheet fraud cannot be undermined, and businesses must take necessary measures to prevent such unethical practices.

How can you prevent timesheet fraud?

Timesheet fraud is a serious issue that impacts businesses of all sizes. Many companies still use outdated paper-based timesheets, which leaves room for errors and fraudulent activities. To prevent timesheet fraud, companies should consider using time and attendance software. This software can automatically track employee hours and avoid falsification of records. It also offers benefits like accurate wage calculations, reduced administrative workload, and improved efficiency. With the rise of remote work and flexible schedules, companies must implement measures that ensure transparency and integrity in their timekeeping processes. Investing in time and attendance software is essential to preventing timesheet fraud and protecting your business.

What are some red flags that indicate timesheet fraud?

As an employer, it's crucial to pay close attention to your employee's timesheets and keep an eye out for any red flags that could indicate timesheet fraud. With the popularity of time and attendance software, it's easier than ever to track and monitor your employees' hours worked accurately. However, it's imperative to be vigilant regarding paper-based timesheets. Some common red flags to look out for include discrepancies in clock-in and clock-out times, sudden changes in hours worked, and unauthorised overtime. Any fraudulent activity can lead to significant financial losses for your business and undermine the trust between you and your employees.

What should you do if timesheet fraud does occur?

In today's digital age, organisations rely heavily on time and attendance software to accurately record employee hours and prevent timesheet fraud. However, despite advanced technology, timesheet fraud can still occur through unfamiliarity with the software or intentional manipulation. When suspicions of timesheet fraud arise, it's crucial to take immediate action. This includes conducting a thorough investigation, gathering evidence, and addressing the issue with the employee in question. Organisations relying on paper-based timesheets should consider switching to digital solutions as soon as possible to minimise the risk of fraud and ensure accurate payroll.

Richard Onions, Ezitracker Customer Success Manager, comments:

“If managers have real-time access to information that reduces uncertainty, they can make better decisions, improve processes, increase productivity, and enhance long-term profitability.

Time and attendance software solutions allow operations managers to monitor attendance in real-time and avoid relying on paper timesheets. This simplifies payroll reporting and can lead to significant savings by reducing the administrative workload associated with paper timesheets. Additionally, it can prevent timesheet fraud, overpayments, discrepancies, disputes, and reduce the need for supervision.”

When choosing a time and attendance software system for your cleaning business, selecting one with the flexibility to record absences and overtime, with all data stored in real-time, is essential. This will ensure that timesheets are accurate and up-to-date throughout the payroll process. By implementing these measures, cleaning businesses can reduce inaccuracies in their timesheets and prevent costly cases of timesheet fraud. This will not only improve efficiency but also help protect your business.

The technology significantly reduces the potential for fraud and time-keeping disputes by enabling payroll managers to compare actual hours worked against planned hours, reducing the chance of over-payments.

Cleaning businesses are only as successful as their ability to track and pay employees accurately. Timesheet fraud is a major issue that can have severe implications for your business.

Summary points to consider in reducing timesheet fraud in your cleaning business

1. Develop clear policies and procedures regarding time tracking, including expectations for accuracy and keeping records.
2. Set up a secure system for logging each employee’s hours worked, such as time and attendance software, integrated with payroll.
3. Review timesheets regularly to verify accuracy and have employees sign off on their weekly timesheets.
4. Run payroll frequently enough—as opposed to one lump sum at the end of the month—so employees know they will be getting paid soon.
5. Keep detailed records of your employees’ time worked and pay periods as part of your bookkeeping system in case any disputes arise regarding timesheet fraud.