ROI Analysis
7 min read
Dec 12, 2024

How Perth Construction Companies Save $26,000 Annually with Xero Time Tracking

Real case study showing how automated time tracking and Xero integration transformed payroll processing for local builders.

Construction workers using mobile time tracking system

Payroll processing shouldn't take 8 hours every week. Yet that's exactly what Perth Building Solutions was spending before they automated their time tracking and Xero integration. Here's how they cut payroll admin by 80% and saved over $26,000 annually.

The Construction Industry Time Tracking Challenge

Perth's construction industry faces unique time tracking challenges that most other industries don't deal with:

  • Workers spread across multiple job sites
  • Paper timesheets that get lost, damaged, or forgotten
  • Complex award rates and overtime calculations
  • Disputes over hours worked and break times
  • Manual data entry into accounting systems
The Hidden Cost of Manual Timesheets

A construction company with 20 employees typically spends:

  • • 8 hours/week on payroll processing = $20,800/year
  • • 2 hours/week resolving timesheet disputes = $5,200/year
  • • Lost productivity from inaccurate job costing = $15,000+/year
  • Total annual cost: $41,000+

Case Study: Perth Building Solutions

Mark Johnson, Operations Manager at Perth Building Solutions, was spending every Monday morning untangling timesheet chaos. "We had 25 workers across 8 job sites, and every week was the same story - missing timesheets, illegible handwriting, and hours of data entry."

The Breaking Point

The final straw came when a major client questioned their billing accuracy. "We couldn't provide detailed time breakdowns by project phase," Mark recalls. "It was embarrassing and cost us credibility."

The Solution: Integrated Time Tracking System

We designed a comprehensive time tracking solution that integrated directly with their existing Xero accounting system:

Mobile Time Tracking
  • GPS-verified clock in/out from job sites
  • Photo timestamps for work verification
  • Project and task code selection
  • Offline capability for remote sites
Automated Xero Integration
  • Direct timesheet export to Xero payroll
  • Automatic overtime and penalty rate calculations
  • Project cost allocation and job profitability
  • Real-time budget tracking and alerts

Implementation Process

The 15-day implementation was carefully planned to minimize disruption:

1-3

Discovery & Setup

Mapped existing workflows, configured Xero integration, set up project codes

4-10

Development & Testing

Built mobile app, tested GPS accuracy, validated Xero data sync

11-13

Pilot Testing

Ran parallel systems with 5 workers, refined based on feedback

14-15

Full Rollout & Training

Trained all workers, went live across all job sites

The Results After 6 Months

80%
Less payroll processing time
98%
Timesheet accuracy
Zero
Payroll disputes
$31,500
Annual savings
"The time tracking system eliminated all our payroll headaches. We now have accurate project costing in real-time, and our workers love the simple mobile app. It's saved us thousands in admin costs alone."
— Mark Johnson, Operations Manager, Perth Building Solutions

Detailed ROI Breakdown

Here's exactly how Perth Building Solutions achieved $31,500 in annual savings:

Annual Cost Savings Analysis
Payroll processing time reduction$16,640
6.4 hours/week × $50/hour × 52 weeks
Eliminated timesheet disputes$5,200
2 hours/week × $50/hour × 52 weeks
Improved project profitability$9,660
Better job costing led to 3% margin improvement
Total Annual Savings$31,500

Key Features That Drive ROI

Based on our experience with 12+ Perth construction companies, these features deliver the biggest impact:

GPS Verification

Eliminates "buddy punching" and ensures workers are actually on-site when clocking in.

ROI Impact: 15% reduction in time theft
Real-time Xero Sync

Timesheet data flows directly into Xero payroll, eliminating manual data entry.

ROI Impact: 80% faster payroll processing
Project Cost Tracking

Real-time visibility into project costs and profitability by job and phase.

ROI Impact: 3-5% margin improvement
Automated Compliance

Automatic calculation of overtime, penalty rates, and break compliance.

ROI Impact: Zero compliance violations

Implementation Checklist for Perth Builders

Planning to implement time tracking and Xero integration? Use this checklist:

Audit current time tracking process

Document how much time you currently spend on payroll admin

Review Xero payroll setup

Ensure your Xero account is configured for automated time imports

Define project codes

Set up clear project codes that match your quoting system

Choose mobile devices

Determine what devices workers will use for time tracking

Plan rollout timeline

Schedule implementation to minimize disruption to current projects

Ready to Transform Your Construction Business?

Don't let manual timesheets cost you thousands in admin time and lost profitability. Join Perth Building Solutions and 12+ other local builders who have streamlined their operations with automated time tracking and Xero integration.

Start Your Time Tracking Transformation
Book a free consultation to see how much your construction company could save.

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