5 Critical Reasons Your Business Needs a Time Tracking Software
Undoubtedly, time is the lifeblood of businesses.
When you deliver your products/services on time, you earn the trust of your clients, spread the positive word about your business, attract prospects, and finally experience a higher revenue inflow.
Why Is Time Tracking Important After All?
Besides the abovementioned significance of timesheet software for small businesses , it impacts a few of the cardinal areas of your business. For example, if you are paid on an hourly basis for your products/services, time tracking can give you a holistic view of time spent on specific tasks. It helps you keep track of deadlines and budgets while ensuring that your employees work at a healthy rate.
How Does a Time Tracking Software Come into the Picture?
It can be impossible to manually track the amount of time spent by individual employees on specific tasks. It can also be challenging to have a hold on employee breaks and accurate clock in time.
These tedious yet significant tasks are taken complete charge of by your time tracking software. Adopting competent time tracking software boosts employee accountability and productivity. This drives growth and increases profit, the bottom line of every business.
Are you still wondering why time tracking systems are critical for businesses? Check out a few reasons right away!
1. Make Accurate Estimates
Accurate estimates are important to secure the best interests of both your employees and customers.
Consider the scenario wherein you pay your employees on an hourly basis. They definitely will not like to be sold short. Similarly, overcharging may hit hard their relationship with you. Therefore, it is important to track the exact number of hours dedicated to tasks. With the implementation of state-of-the-art timekeeping software for small businesses, you can effortlessly view the tasks performed by individual employees, the number of hours they have spent on each task, based on priority.
Further, you may integrate the time tracking software with your internally used payroll software. This makes invoicing and payment less painful. For example, Archarina’s ArcTime Tracker can be easily integrated with Denali payroll, a product of Cougar Mountain Software. This helps to pull out billable hours easily, taking care of all the math for you!
That was about the benefits of a time tracker for employees. To add on, this software helps provide precise time estimates to your clients. Your client may not like missed deadlines or projects that are being prolonged.
When you have time tracking software by your side, you can evaluate the time consumed by specific modules of the projects. You can deploy your employees based on this estimation that nears accuracy. With valuable data in hand, you are less likely to overbook your resources. Moreover, with an accurate schedule, you can rest assured that you take up work that you can handle effectively.
2. Maintain Project Profitability
The hard truth is that without time tracking, several businesses may not realize that they aren’t reaping the best benefits from their organization.
Irrespective of your pricing model, you are allocating blocks of time to your clients. For your business to stay afloat, it is pivotal that the total amount you bill your client be more than the cost you incur to deliver those services. This is possible only if you have an effective tracking system in place.
For example, say you run a mobile application development company. You sell sprints of work at a standard price of $25000. Here, you don't need to track time because you already know how much you are going to charge your client. If you pay an employee $30 per hour, your team works for 400 hours, you make money. But what if there is a snag and it takes your team 750 hours? This will burn your pocket.
A time tracking system helps you to monitor work progress and track the exact amount of time taken to complete tasks. This helps you to check if the project is on track and budget. If you find the number of hours being consumed faster than anticipated, you should consider talking to your team and course-correct before things go off track.
3. Manage Your Team Efficiently
Employee time tracking software for small businesses gives you the window into how much work is being handled by your team. You can view the amount of time spent on specific tasks. Prioritize them and ensure that they are being delivered on time.
Supervisors can make bulk approvals on timesheets and PTOs. They can also edit and comment on these. All these features will not just help in tracking time but also identify instances that may burn out your team. Timely identification and intervention help handle work overload by dedicating additional resources or hiring employees.
Moreover, with this kind of objective timesheet data in hand, you can initiate contextual discussions with your team, resulting in a productive workplace.
4. Have a Record of Your Work
A survey suggests that employees who frequently complete their timesheets are more accurate at keeping track of their work.
At times, it is important to have a holistic view of tasks that have been accomplished. Your clients may demand a comprehensive report of hours spent on tasks. They may need this to ensure that their payment is being put to good use.
Furthermore, if you are having a hybrid working environment, with a good number of remote employees, your time tracking system allows you to sneak peek into the productive hours of these remote employees.
Also, cloud-based time-tracking systems are accessible from anywhere across the globe. They allow simultaneous review, edits, and sharing of reports. This helps you obtain a holistic and transparent view of tasks that are being performed.
5. Constantly Improve on Quality of Work
Are you spending too much of your time in meetings? Are you dedicating more time to replying emails than focusing on priority tasks?
You will need solid data to understand and get over these work habits. Timesheet software for small businesses can offer you this kind of data. It helps you steer away from redundant tasks, streamline processes, and uncover process inefficiencies.
Your employees get more time to revisit their core tasks and perform a thorough job. This improvement in the quality of work delivered can be systematically monitored on a time tracking system. These intuitive insights help you overcome operational bottlenecks and perform better over time.
Most business owners do not think of the abovementioned aspects when choosing a time-tracking solution. They stick to finding the solution for an individual problem and land up building a window for their entire business ecosystem.
A time tracking system can help you make intelligent decisions. It helps you price and run projects, schedule your team, and support you to schedule your day productively.
If you are looking for one such time tracking system that can transform the way you work, reach out to us without second thoughts!