Bad Asset Tracking Creates Ghost Assets

Bad Asset Tracking Creates Ghost Assets
6 Reasons Ghost Assets SHOULD Scare You to Death

By: Shannon Corgan, Director of Marketing

Asset tracking can present many challenges when you have a large asset inventory that's being used by a large mobile workforce across multiple job sites. When you're tracking your assets, it's inevitable that you'll end up with ghost assets. Ghost assets are fixed assets that you have on your general ledger, but you can’t physically locate the assets. This may have happened because the fixed asset was lost, stolen, broken, damaged, replaced, or sold without informing your accounting department. A study by Gartner showed approximately 30 percent of organizations don’t know what fixed assets they own, where the fixed assets are, and who is using these assets. It may seem like a tedious unnecessary task to keep your accounting department informed about the status of your fixed assets, but here are six reasons ghost assets should scare you to death: 

WorkMax ASSET Tracking Increase Insurance Prem

Increased Insurance Premiums - Your insurance premiums are based on the value of your fixed asset inventory. Have you thought about how your ghost assets are making your insurance premiums creep up? If you have ghost assets that are still appearing on your balance sheet, but you can no longer locate them for a variety of reasons, you are paying insurance premiums for assets that are not available to be used. This has a serious impact on your company's productivity and drives up your business expenses for insurance premiums unnecessarily. 


WorkMax ASSET Tracking Tax LiabilityIncreased Taxes - Accurate asset tracking of your fixed assets is critical if you want to pay the proper taxes for fixed assets you own. If you have more fixed assets on your balance sheet than you can actually physically locate, you are increasing the asset inventory that you own. When fixed assets aren’t properly accounted for on the balance sheet, your company could overpay on income and property taxes for assets that have vanished and are no longer owned by the company. Overstating the value of the assets you own could have a big tax impact on industries that operate in the construction, utility, oil, and gas, and transportation based on the expensive equipment needed.  


ASSET Tracking WorkMax productivityDecreased Productivity - If you have a ghost asset, you are decreasing your productivity. Your assets are tools and equipment that are supposed to help your employees get more work done easier and faster. If you don't have a good asset tracking system in place, your employees are spending time looking for ghost asset and they’re also not getting the work done that is needed on your projects. They’re spending time making phone calls, sending texts, and emails to find out where a piece of equipment or where a tool is. These unproductive labor hours aren’t helping you finish your projects on time and are driving up your labor costs without any productive output. 

ASSET Tracking WorkMax Replace CostIncreased Asset Replacement Costs - If you have a ghost asset that has mysteriously disappeared, it’s pretty obvious that if you can’t find the piece of equipment, then you can’t perform routine maintenance on the tool or piece of equipment. As a result, instead of getting full use of the asset during its entire asset life by repairing the expensive tool or piece of equipment, you will have to replace the entire piece of equipment or tool for the full replacement cost sooner than you had planned. This increases your fixed asset costs and increases expenses sooner for your business. In addition, if you have two generators in your asset inventory and one is a ghost asset, you are over-utilizing the one generator available and drastically reducing the asset life and increasing your asset expenses.


ASSET Tracking WorkMax MaintenanceIncreased Maintenance Costs - When you don't have an asset tracking system to show any maintenance contracts associated with a piece of equipment in the same place that you track your asset inventory, you could be paying for maintenance fees on a piece of equipment or a tool that can't be located. Ghost assets drive up your maintenance costs for any fixed assets on a maintenance contract. Also, if you don’t keep your asset warranty information easily accessible to everyone in your organization that can be accessed from any mobile device, you could be overpaying for maintenance or repairs on assets that should have been covered under the warranty. 


WorkMax ASSET Tracking Theft of EquipmentTheft of Fixed Assets - Without an asset tracking solution in place that keeps your asset inventory and asset assignments up-to-date, unfortunately, dishonest employees can take advantage of this and steal company tools and equipment. If you don’t have a centralized location for your fixed asset inventory and the ability to easily see who is assigned to a piece of equipment or tools, your company could be at risk. According to The National Insurance Crime Bureau, the cost of heavy equipment theft varies from around $300 million to $1 billion. When company tools or equipment are stolen it’s not always taken by employees. Depending on how well your tools and equipment are secured on your job sites, there are plenty of criminals lurking around your job sites to take advantage of this too. When equipment is stolen and not reported to your insurance company, you’re still paying insurance premiums on the equipment you no longer own. That’s costing you money.

If you are looking for an asset tracking solution to centralize all of your inventory in one location with accurate asset assignments, click here to learn more.

Constructech Vision Award Archer Gunthers

Constructech Magazine Honors AboutTime Technologies with Two Silver Vision Awards

Company Praised for Automating Employee Time Tracking, Reducing Labor Costs, and Improving Job Cost Accuracy to Achieve Positive ROI

AboutTime Technologies, a 16-year veteran of on-premise and cloud-based mobile resource management, today announces two significant awards it earned for its software’s impact on the construction industry. Constructech Magazine recently honored tech-savvy construction companies, along with their technology providers, at the 2019 Constructech Vision Awards in Arlington Heights, IL. AboutTime Technologies earned a silver award together with their customer Gunthers in the “Specialty Contractor: Plumbing, HVAC” and earned another silver award in the “Specialty Contractor: Mechanical” alongside their customer Archer Mechanical. The company was only one of the few technology enablers to be acknowledged with multiple Vision Awards by Constructech Magazine.


Both contractors utilized WorkMax TIME to innovate their business to achieve significant cost savings and resulted in improved efficiency across their businesses. Archer Mechanical reduced their labor costs by $153,296 with $141,440 in direct labor cost savings for their forty field employees by using WorkMax TIME’s facial recognition and collecting labor hours in real time. They also reduced their payroll processing time by 75%. When Gunthers transitioned from paper to WorkMax TIME and integrated with Spectrum by Viewpoint, they reduced their payroll processing time by 50% by eliminating manual data entry. They also drastically increased the accuracy of their job costs because the job and task numbers correlated to the right task names and projects.


“We were thrilled to be honored with two silver Vision Awards alongside one of our first customers, Gunthers, and also Archer Mechanical,” said Ryan Remkes, CEO of AboutTime Technologies. “Our customers’ successes are our successes. We love hearing how we’ve helped construction and project-based businesses automate manual processes, get more accurate labor costs, and make it easier to track accurately track job costs. WorkMax TIME is doing what we set out for it to do which is helping our customers become more profitable in today’s competitive market.” 

 

To learn how these Vision Award winners automated their employee time tracking with WorkMax TIME and integrated with Spectrum by Viewpoint and A-Systems JobView to achieve these dramatic results, please read the full Gunthers Case Study and the complete Archer Mechanical Case Study.

 

 

Read Gunthers Case Study        Read Archer Mechanical Case Study

 

 

FLSA Overtime Recommendations Sent to White House

FLSA Overtime Proposal sent to the White House by the Department of Labor

By Shannon Corgan, Director of Marketing

You may be wondering what’s happening with the federal overtime rules. In 2017, the Department of Labor was ready to drastically increase the salary threshold, but everything was brought to a screeching halt in 2017 by a Texas Federal judge concerned that the salary threshold was too high and would include management workers exempt from overtime pay. After the ruling was struck down by the federal judge, the Department of Labor (DOL) in 2017 put out a Request for Information (RFI) to gather comments from workers and businesses regarding needed changes to the overtime rules in the Fair Labor Standards Act (FLSA). In 2018, the Department of Labor also continued to gather additional feedback with in-person listening sessions to work on revisions to the overtime salary threshold. According to the FLSA, employers are required to pay employees overtime if they work more than 40 hours in a week.


In late July, the new acting Labor Secretary Patrick Pizzella stated the Labor Department staff should “focus like a laser beam on completing items on the Department’s Regulatory Agenda,” Pizzella told employees in a July 22 email obtained by Bloomberg Law. One of their top agenda items is to clarify the overtime pay qualification. As a result on August 12th, the DOL sent over their proposed recommendations to the White House Office of Management and Budget to change the current salary threshold for overtime in the FLSA. These recommendations were based on the over 200,000 comments from the DOL’s Request for Information in 2017 and additional feedback from their 2018 in-person listening sessions. The proposed changes to the overtime rule in the FLSA sent to the White House were solely related to the salary test and did not include any recommendations to the job duties test. According to the DOL, 1.1 million employees that are currently exempt from receiving overtime pay and earn at least $455 per week, but less than the newly proposed salary threshold of $679 per week would become eligible for overtime.

The proposal increases the minimum salary required for an employee to qualify for exemption from the currently-enforced level of $455 per week to $679 per week (equivalent to $35,308 per year). The proposed changes would increase the salary threshold for the FLSA to $35,308, up from the current salary threshold of $23,660. Under currently enforced law for the FLSA, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Workers making at least this salary level may be eligible for overtime based on their job duties. This proposal doesn’t include any changes in overtime protection for police officers, paramedics, fire fighters, nurses, laborers including non-management production-line employees, non-management employees in maintenance, construction and similar occupations such as carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen, and other construction workers.

According to the FLSA, the employees that are generally exempted from overtime pay must fit three criteria. First, they have to be salaried employees paid a predetermined and fixed salary not subject to reduction because of variations in the quality or quantity of work performed. Secondly, they have to be paid at least a specified weekly salary threshold of $679 per week under this new proposal. Thirdly, they must perform executive, administrative, or professional duties as defined by the Department of Labor. Based on the swift action by acting Labor Secretary Patrick Pizzella in his first month, it’s looking promising that the new overtime rule for salary thresholds could be effective sometime in 2020.

If you are looking for an employee time tracking solution to help you to accurately pay your hourly and exempt employees with unlimited pay groups and job classes, click here to learn more.

WorkMax TIME 5 Critical Job Cost Features for your Time App

5 Critical Job Cost Features in an Employee Time Tracking App

By Shannon Corgan, Director of Marketing 

With so many employee time tracking solutions on the market, how can controllers and financial managers be certain that they select a time tracking solution that collects the job cost data the right way to achieve the accuracy you need in a timely manner without too much time and effort spent on reallocating job costs? Controllers, job cost accountants, and construction financial managers need to make sure they’re asking the right questions to select the right employee time tracking solution that is easy for the field employees to use but most importantly provides you better more accurate job cost data without considerable manual intervention and reallocations. When you do your homework upfront and have a team evaluating the employee time tracking solution to make sure it works for all the stakeholders in the organization from users, to supervisors, to project managers, and accountants, it’s easy to find the right solution that’s easy for field employees to enter time and achieve accurate job cost data in real time.

Here’s a list of the five must-have features for accurate job costs:

1

What’s the difference between face capture and facial recognition and how does it help me control my labor costs?


Face capture requires manual review by an employee to compare photos to see if the same person that clocked in is the same person that clocked out. It doesn’t automatically compare photos and alert you when photos don’t match. When you select an employee time tracking solution with facial recognition like WorkMax TIME, it will automatically compare a source image photo to the clock IN/OUT photo and provide a match percentage. If the match percentage is below the threshold you choose, you will be alerted. Facial recognition will help you control your labor costs because you know that the employee that’s doing the work is the one clocking IN/OUT. When you combine GPS with the WorkMax true facial recognition, you know it’s the right employee clocking IN/OUT and that they are in the right location when they are clocking IN/OUT. No more paying employees when they are not clocking IN/OUT from the job site they are assigned to. We’ve seen customers save two direct labor hours per employee when they enter their hours in real time and use facial recognition. It can total up to over $141,000 in direct labor cost savings in one year with WorkMax TIME. To read the case study, click here.


2

Can I set up the project cost structure in an employee time tracking solution the same as it is in my accounting system for more accurate job costs?


To save you time on your job cost and Work-In-Progress reporting, you want to select and employee time tracking solution that integrates with your business systems and allows you to mirror your accounting’s project cost structure. WorkMax TIME has robust integrations with the top accounting, ERP, payroll, and HR systems used by the construction industry. Every time you add a new employee, project, task, or cost code to your accounting systems, they will automatically be updated in WorkMax and employees will be able to select the new projects, tasks, or cost codes to provide you with the most accurate job costs. Click here to view videos to see how easy it is to integrate with WorkMax. 


3

Can I limit the jobs, cost codes, locations, tasks, or assets that employees see in the app so that they can provide me more accurate job cost data?


One of the most frequent challenges we hear from Controllers or Financial Managers is that they can’t get accurate job costs from the field because it takes too much time for their employees to enter it while they're in the field. This is primarily due to the vast number of projects and tasks/cost codes that are presented to their employees when they are entering time, tasks, and production units in the field. With WorkMax TIME’s automated permission profiles, you can set up WorkMax to display only the relevant projects, tasks/cost codes, and production units to your employees. Gone are the days when your employees will have to scroll through hundreds or thousands of picklist options for projects or tasks/cost codes to quickly and accurately assign their labor hours to the right project, tasks/cost code. This dramatically decreases the amount of time project managers, controllers, and financial managers have to spend reallocating job costs and completed work for accurate reporting. To learn more, watch this short 3-minute video on how easy it is to set up automated permission profiles


4

Can I have multiple ways to enter time and allocate it?

 

The answer is yes. Some companies have salaried employees and want them to only use a digital timesheet, while other companies with a mix of hourly and salaried employees want an option to track hourly employees in real time and use digital timesheets in an app for salaried employees. Some companies prefer to have supervisors allocate time, tasks, and track completed work at the end of the day, while other companies want the information in real time. If you choose an employee time tracking solution like WorkMax, you have all of these options available to you. WorkMax works the way you work and fits your business no matter how you want your employees to enter time, allocate job costs, or track completed work. Here's our 3 time entry and allocation workflows:

Click here to see videos of all 3 Time Entry and Allocation Workflows in WorkMax


5

Can my employees enter time, tasks, and completed work without an internet connection or cellular service?

 

When your employees enter time and tracking tasks as they happen, you will get more accurate actual labor costs and completed work. If your employees are depending on internet access or cellular service, you’ll get much less precise job cost data because they’ll just be entering estimates and relying on their memory. Your employees may or may not always have internet or cell service at your job sites, but that’s not an issue if you select an employee time tracking solution like WorkMax TIME. Not all mobile employee time tracking solutions allow you to collect data without access to the internet or cellular services and that can be a problem.

Click on the buttons below to see a demo of WorkMax TIME or get pricing to get started today

 

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