Advanced Timekeeping Systems

The following is a summarization of the various timekeeping systems now on the market:

Computerized time clocks. These time clocks can be interfaced directly to the payroll system, and report missed punches, overtime, late entries, and so on. They typically use bar coded or magnetic stripe cards.
Biometric time clocks. These clocks positively identify the user through either fingerprints or hand geometry. Though transactions are slow, they positively identify the user, which eliminates the risk of buddy punching.
Mobile phone timekeeping. For employees who travel, a remote timekeeping option is to either enter their time through a template on a cell phone screen, or swipe a badge through a reader that is attached to a cell phone.
IP Phone timekeeping. A recent innovation is to use Voice Over Internet Protocol (VoIP) phones to transmit timekeeping information through the company’s computer network, which essentially converts VoIP phones into computer terminals.
Radio Frequency Identification (RFID) timekeeping. Proximity badges contain RFID tags that can be waved in front of a computerized timeclock, rather than dragged through a slot reader, as is the case for magnetic or bar coded badges.

Podcast

Discussions of biometric time clocks and telephone timekeeping are available on Episodes 40 and 39 of the Accounting Best Practices podcast.