GPS Time Tracking vs. Paper Timesheets: The Real Cost Comparison

"Why should I pay for time tracking software when paper timesheets are free?"

It's the question we hear most often from contractors thinking about making the switch. And it makes sense—paper is cheap, and if it's worked for decades, why change?

But here's the thing: paper timesheets aren't free. They're just hiding their costs.

Let's break down what each option really costs your business.

The Hidden Costs of Paper Timesheets

1. Time Theft: $200-400/week

Studies from the American Payroll Association show that the average employee steals 4.5 hours per week through time theft. For construction workers earning $25/hour, that's $112.50 per worker per week.

Even if we're generous and cut that in half, a 5-person crew is costing you $281/week in unverified time.

2. Payroll Processing Time: $150-300/week

How long do you spend on payroll? Most contractors tell us 2-4 hours per week:

Collecting timesheets from job sites
Deciphering handwriting
Calculating hours and overtime
Double-checking for errors
Entering data into payroll software

If you value your time at $50-75/hour (what you could be earning selling jobs or managing projects), that's $100-300 per week in opportunity cost.

3. Errors and Corrections: $50-100/week

Manual data entry has an error rate of 1-8%. When you're processing 200+ hours per week, even a 2% error rate means mistakes that need to be fixed.

Some errors favor you, some favor your workers—but they all cost time to identify and correct.

4. Disputes and Legal Risk: $???

When a worker files a wage complaint, "I don't have records" is not a defense. Paper timesheets can be lost, damaged, or challenged as inaccurate.

One successful wage claim can cost $5,000-50,000 in back pay, penalties, and legal fees.

Adding It Up

| Cost Category | Weekly Cost | Annual Cost | |---------------|-------------|-------------| | Time Theft | $200-400 | $10,400-20,800 | | Payroll Processing | $150-300 | $7,800-15,600 | | Errors & Corrections | $50-100 | $2,600-5,200 | | Total | $400-800 | $20,800-41,600 |

And that's not counting the risk of legal action.

What GPS Time Tracking Costs

Modern GPS time tracking apps typically cost $5-15 per worker per month. For a 5-person crew, that's $25-75/month, or roughly $300-900/year.

Compare that to $20,000-40,000 in hidden paper costs.

What You Get for That Investment

Verified Hours

Workers can only clock in when they're physically at the job site. No more early punch-ins from the parking lot.

Automatic Calculations

No more math errors. Overtime, breaks, and total hours are calculated automatically.

Real-Time Visibility

Know who's on site right now, not three days later when timesheets come in.

Digital Records

Searchable, exportable records that hold up in any dispute or audit.

Time Saved

Payroll goes from 2-4 hours to 20 minutes. Get your Sundays back.

The ROI Math

Let's be conservative:

GPS time tracking cost: $50/month ($600/year)
Recovered time theft: $150/week ($7,800/year)
Payroll time savings: $100/week ($5,200/year)

Net savings: $12,400/year

That's a 20x return on investment.

Making the Switch

The transition is easier than you think:

Day 1: Workers download the app
Day 2: They clock in at the job site
Week 1: You run your first automated payroll

No hardware to install. No training seminars. Just accurate time tracking from day one.

Ready to see the difference? Book a free demo and we'll show you exactly how much you could save.