Time and attendance software is elegant in its simplicity. It collects employee time data and enters the information into a database. The collected data is then reviewed and approved by a manager so it can be used for payroll processing and custom reports.

Entering employee arrival and departure times into the time and attendance software system is remarkably easy. Employees use unique identifiers to log in and out, typically a card with a magnetic stripe or barcode, or a proximity card. Proximity cards allow employees to wave the card by the time entry device instead of actually swiping the card through a reader. PC- and Web-based time and attendance software solutions are gaining in popularity, and phone-based solutions are also available.

For security purposes and to avoid "buddy punching," where employees log in for each other, some companies offer a biometric input device that checks fingerprints or handprints to ensure that the correct person is logging in and out. Iris scanners are also available but not widely deployed due to privacy concerns.

Most companies rely on administrative staff to enter attendance information for salaried workers. However a growing number of companies let employees enter their own information directly into the time and attendance software system, including flex-time hours, vacation time and sick day information.

For companies with remote offices, data entry systems that use touch-tone telephone service or the Internet complement the traditional methods of collecting time data.

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