You have probably been told time and time again to remember your time tracking. For you to understand the way you use your time, time tracking is important on a business and also on a personal level.
It is key to having a healthy workflow, insight, and being productive. Tracking your time is equally important for everyone in a business establishment and/or society in general. Whether you’re a manager, team member, or an executive, keeping track of your time is critical.
But as far as business is concerned, many questions spring up, such as how do you do it? What’s the best time tracking software in the market? How do you adopt time tracking software for your projects? What are some of the best time-tracking best practices?
In this article, we offer you a useful guide to all these questions.
What is a time tracking?
Let’s begin with the very basics, project time tracking generally refers to the way businesses log the working hours of their staff. This measurement of hours worked on tasks or projects is then used to ensure employees are paid accordingly.
Time entries are not only used for payroll, but they are also a secure way for managers to assess where the employee’s time is going and also to know just how much time it takes to finish a specific task.
When you are aware of which tasks consume the most time, you can start on whether or not that time was spent well. The most time-consuming tasks are not always the tasks that bring in the most value or demand the most effort. Quite often, it’s the opposite.
These are just some of the reasons why businesses implement time tracking software, usually referred to as timesheets:
Time tracking benefits
For individual staff members, the insights they gain from time tracking can provide them with a new perspective and open their eyes. For business entities, here are several reasons they should invest in time tracking software:
You gain transparency into the work process
By making time logs a staple in your employee’s routine, you will automatically make your organization more transparent. It gives you the allowance to stay in tune with the working process, providing insight into the tasks being completed within the given time frame.
In addition to this, you’re able to understand and single out the activities that are put on the back burner all the time and you then start prioritizing those tasks which result in a better workflow.
Ultimately, time tracking instruments also paint the bigger picture for employees. This is because they can look back at the workload they have done and optimize productivity were required while keeping track of the job everyone else was doing.
Employees will be more accountable
The need to log time makes employees more organized and focused because they are aware that they need to give a report on the hours spent on each task. Being mindful of this, makes everyone realize that the clock is moving and makes employees want to be productive as much as they can.
By looking at the week ahead, employees will begin to notice patterns and trends in their work hours and make a greater effort to minimize non-billable work.
You’ll gain an understanding of your operational and billing efficiency
If you’re in a service business, time tracking is important for advancing operational excellence, because it goes into your billable utilization report and emphasizes the productivity level of individual performance as well as the whole organization’s contribution.
Using time tracking software will help you see how much time is taken to complete client work and bill accordingly.
Adding billable hours, in turn, is the best way to ensure a profitable business
Time spent is a prime way to measure resources that are needed. It can display whether a department requires more resources when it comes to the workforce or other inputs. It gives you an overview of who provides the most value in the team.
This is critical information for the team and the business to have at their disposal. As it could mean that one person does a large chunk of the work. In that case, something may need to be changed to bring all employees to the same level of productivity.
Tracking how the budget gets used
Time tracking is one of the best ways to keep your budget actuals in check. As employees gradually fill their timesheets in, registering the time they spent on tasks and projects will mean you won’t have to take any additional steps to count how much budget has been consumed already. All you have to do in this case is make sure the hourly costs and rate cards are appropriately set.