For many businesses, large and small, the most difficult thing to do is keep track of employee time. When every minute has real value, tracking employee hours can have a major impact on your business. Time tracking softwares are well worth the money because they can track all team activity. Business owners who use this technology find increased productivity and increased profits.
So, take a closer look at 7 key benefits of time tracking:
1. Time tracking gives you a Better Focus
When your employees can track how they spend their time, you’ll be able to see if they are on the right track to accomplishing their goals. You will know how much time they are spending on each task and if they are running behind. This helps your company to discover inefficiencies, so you can make changes to better allocate your and employees time. This way it naturally guides you to prioritize tasks and it increases their ability to focus on task at hand.
2. Time tracking helps Trim Costs
Companies are always looking for ways they can cut their costs as a means to help them improve their bottom line and reduce their budgetary needs. Time tracking makes problems visible and reveals inefficiencies and hidden costs of unprofitable projects. That way, it raises transparency, because you get a report out of time tracking software. You’ll soon realize how easy it is to keep the money under control.
3. Time tracking Optimizes Client Billing
Another one of the important benefits of time tracking is client billing. If you don’t register the time you actually spend on a job, you can’t bill the client for it – you’ll be losing money. It is important that clients are properly billed and in the proper amount of time. With the help of time tracking software you can bill clients for exactly what work has been done.
4. Time tracking Ensures Overtime Compliance
How many hours has the employee worked? Is the person entitled to overtime pay? It’s crucial that organizations with non-exempt employees track time. This is to make sure that all overtime hours are recorded and payroll is properly distributed. If employees don’t accurately track overtime, it can lead to fines, lawsuits, and major disruptions in the office.
5. Time tracking Ensures Compliance and Expedites Audits
Time tracking data helps you to stay in compliance with government and industry regulations. It reduces costs of third-party audits and you can easily export and share reports and other financial data with funders, board members, and all external stakeholders.
6. Timesheet helps enable accurate Predictions and Benchmarking
Good historical data on actual time spent on each task will allow you to greatly improve your ability to estimate tasks and projects and adjust work rates. With this information in mind you can quickly create accurate predictions and internal benchmarks, which ensures maximum profitability for any job.
7. Timesheet help you compare Performance Across Business Units
Which departments are the most profitable? Answer to this question is important, if you are a manager in a larger organization. With help of Timesheet, you’re able to compare performance across business units, which helps you to see billing cost data that offers immediate insights that drive increased productivity.
The conclusion? Time tracking can be a way to boost your productivity and to increase efficiencies. It offers accurate insight into business, surfaces true costs of any project, and reveals key operational metrics that otherwise would remain hidden.
Any time tracking is better than none, but system of time tracking you choose is vital. We recommend a cloud-based time-tracking system, such as PlanMill Time Calendar. As it enables your team easily and quickly enter time wherever they are, on any device.
This article may be of interest to you: 4 ways to save time and money with PlanMill
PlanMill Ltd. is a leading provider of user-friendly web-based CRM, PROJECT and ERP Cloud solutions designed for the service business. We enable organizations to streamline business processes, improve control of their customers, personnel, projects and finance – while enhancing productivity and profitability.
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