The True Cost of Paper Timesheets

Paper timesheets might seem like a simple solution. They're cheap, familiar, and easy to hand out. But if you're still relying on them to track time in your business, you're likely spending more than you think—in time, money, and missed opportunities.

Manual systems are notorious for errors, inefficiencies, and delays. And while the cost of switching to a digital solution may seem like an added expense, the real financial risk comes from staying where you are.

Here’s what paper timesheets are actually costing your business—and what you gain by making the move to a smarter system.

1. Manual Errors That Cost You Money

Paper time tracking relies on human memory and handwritten entries. And that means mistakes happen—often.

Common issues include:

• Illegible handwriting
  
  
• Miscalculated hours
  
  
• Missed clock-ins and clock-outs
  
  
• Rounded time entries that add up over the week
  
  
• Forgotten breaks or missed overtime
  
  

Even small errors—an extra 10 or 15 minutes per employee, per shift—can lead to hundreds of dollars in overpaid wages each month. On the flip side, underpaid employees may feel shortchanged, leading to low morale or even legal disputes.

And when you’re processing payroll off of those flawed timesheets? You’re locking those errors into paychecks and tax records.

2. Lost Time for Admins and Managers

Collecting, organizing, verifying, and inputting paper timesheets into payroll software takes time. And not just a few minutes.

Whether it’s an office manager chasing down late submissions, a business owner cross-referencing PTO requests, or someone typing hours into a spreadsheet before payroll runs—manual processes eat up valuable time every week.

Worse, last-minute adjustments and corrections create unnecessary stress and increase the risk of rushed, inaccurate payroll.

You’re not just spending labor hours on a tedious task—you’re pulling attention away from work that could actually move your business forward.

3. Payroll Delays and Inaccuracies

Paper timesheets often lead to delays in payroll processing because the data isn’t ready when it needs to be.

You’re stuck waiting on:

• Employees to turn in their timecards
  
  
• Managers to approve them
  
  
• Someone to enter the hours manually
  
  

All before you can even start payroll.

This delays direct deposits, creates uncertainty around paycheck accuracy, and forces your team to operate on a reactive schedule instead of a predictable one.

When paychecks are late or wrong, employees lose trust—and retention takes a hit.

4. Compliance and Recordkeeping Risks

Under the Fair Labor Standards Act (FLSA), employers are required to maintain accurate records of hours worked, overtime, and break compliance for non-exempt employees.

Paper records are:

• Easy to lose or damage
  
  
• Hard to organize
  
  
• Difficult to audit if a dispute arises
  
  

If you’re ever questioned during an audit or wage dispute and can’t produce accurate, time-stamped records, your business could be on the hook for back wages, fines, and legal fees—even if the mistake was unintentional.

5. Missed Opportunities for Labor Optimization

Paper timesheets can’t give you real-time insight into:

• Who’s working right now
  
  
• Which departments are consistently hitting overtime
  
  
• Patterns in attendance or missed punches
  
  
• Labor costs as they’re happening
  
  

Without visibility, you can’t make proactive staffing decisions. You’re left guessing, reacting, and potentially overspending on labor because you’re not seeing the full picture.

Final Thoughts: The Cost of Staying Manual Is Higher Than You Think

It’s tempting to stick with paper timesheets because they feel easy and inexpensive. But when you add up the time lost, errors made, payroll stress, and compliance risk—they’re costing far more than you realize.

Digital time tracking gives you:

• Accurate, real-time data
  
  
• Automatic error reduction
  
  
• Easy reporting for payroll and compliance
  
  
• Visibility into labor trends
  
  
• A streamlined experience for both employees and admins
  
  

At CadenceHCM, we help businesses leave paper behind for a smarter, more reliable time and attendance system—so you can focus less on tracking time and more on building your team.