There is one principle: time translates into money and time saved is money saved. Companies pay attention into this and focus on tracking time and attendance of employees by electronic means. However, time and attendance software can save a large company millions of dollars a year just by reducing the instances of buddy punching, the deceitful practice where one person punches the time clock for another individual who is not present. Moreover, they can also diminish other forms of timesheet or payroll abuse.

Modern technology offers four primary ways of tracking time with an automated system. They are: through magnetic badges and budges readers, through bar code badges and readers, through proximity badges, through biometric devices.

Magnetic badges and badge readers. They were first on the market and are less expensive than the other types. These are largely ineffectual at averting either buddy punching or security violations. Having other obstacles as well, they wear out rather quickly. Moreover, these systems and cards can also be damaged by a magnetic field.

Bar code badges and readers. They last longer than magnetic strips, but present even more security problems. That fact that it can be photocopied, and the paper version works just as well as the badge itself in many cases, makes the practice of buddy punching even easier.

Proximity badges. They contain a radio frequency identification chip. They are user convenient because you don’t have to insert them in the reader for detecting. But they only have to come within six inches of the reader mechanism to be recognized. Wear and tear is a negligible factor with these types of badges. The other characteristic is they don't get dirty and aren't easily damaged. Nevertheless, their downside is that they cost considerably more than the other two types of badges, and don't eliminate most types of fraud.

Biometric devices. They virtually eliminate buddy punching and are often used in tandem with a badge type of solution. However they 'read' the geometry of the hand or fingers, or of the iris of the eye. Increasing employee discomfort among those who are concerned about their personal information being violated is what biometric solutions offer. They are also costly to fulfillment, although the up front expenses are generally nearly negated by the amount of money saved.

The use of personal digital assistants (PDAs) is another solution. It has emerged in industries where workers are not physically present at a service center or are mobile throughout the day. The worker logs into the company's computer via a wireless PDA and proceeds to record destinations and times throughout the day.

So, there are a number of solutions out there that are designed to eliminate punch card time clocks and paper and pen record keeping. However, they all have particular strengths and weaknesses that can be matched to the business that is considering buying them. They are more or less effectual at averting buddy punching and at providing different levels of security. As the cost ranges vary enough, a business needs to seriously think over what system it really needs before making the buying.