Why Your Small Business Needs Time Tracking Software
Okay, so at some point, every young entrepreneur or small business owner wants to know which Time Tracking Software is best for their business.
But, there’s one more question to ask yourself.
When does your small business actually needs a Time Tracking Software?
Ever gave a thought on it? Not actually, right!
Well, that’s okay, in this post I’m going to show you WHEN to actually go for a Time Tracking Software and for which type, depending on your business.
Setting up a small business is great, but running it is the real battle. Business owners go to great lengths to ensure smooth operations and optimal workforce management. Thanks to advancing technology, achieving these objectives has become a lot easier.
Time tracking has a huge role to play in streamlining work processes. Yet several businesses continue to underestimate it and use manual process and spreadsheets to this end. This can result in human error, duplication, and wastage of time, which in turn, can be disastrous for your business.
This is where a robust time-tracking software comes into the picture. It not only gets you real-time information, but also makes business processes transparent, error-free, and quick.
Here are a few other benefits of using time tracking software in your business.
A comprehensive time tracking software enables you to be in the know of all the goings-on within your business. You will always know exactly how your business is running, what your employees are doing, which projects are taking the most/least resources, and more. This knowledge will help you streamline processes, organize projects, delegate responsibilities, track cash flow with ease.
Every business workflow is designed with one goal, i.e. profit. Another closely associated objective relates to cutting overheads. When you have an efficient time tracking system at your disposal, you are always equipped with the right numbers. Moreover, you are able to address the minutest issue in a timely manner.
Resource management becomes easier, which results in timely and quality output. A time tracking program can also help business owners allocate the right levels of resources among different projects, depending on the workflow. This helps in personnel management as business owners can gauge if they need to create certain permanent positions or simply outsource certain tasks to contractors.
The process of performance review and reporting can be simplified and expedited by having proper time tracking software in place. Further, it also becomes easy to minimize waste and increase operational efficiency. Reviewing workflow over a period of time becomes convenient as does identifying scope for error and improvement.
Improved Employee Productivity
Did you know, a whopping 70% of US employees are not engaged at work?
An online time tracking system is great for boosting employee productivity. It enables them to track the exact amount of time they’re spending on their projects and assess how productive they actually are.
Employees can easily monitor their tasks and calculate how much time they’re spending on each one. This helps improve their focus. If they find that their productivity is low, they can quickly take steps to improve their performance through better time allocation.
If they estimate a delay in the project’s delivery, they can inform their manager and clients along with a reasonable deadline, thereby feeling more accountable and in control of their work.
Further, employees can manage their vacations and sick days better. They will not need to wonder about their leave balance as the system will provide them with all the necessary information. This way, they feel more in control of their time off as well.
This provides another indirect benefit: when employees know about their holidays, they can schedule their work better. Employers need not to be surprised if they notice a reduction in the number of unplanned employee absences (sick days notwithstanding since these cannot be planned). Having a time tracking system will enable better time-scheduling and flag employees who are taking undue advantage of the system.
Superior Payroll Management
A well-equipped time tracking system will enable you to create error-free timesheets that can be used for payroll purposes. Almost all companies encounter pay-related issues where employees receive an amount that’s either lower or higher than their monthly remuneration. These kinds of problems can be eliminated with time tracking tool.
Sometimes, employees may be required to work in shifts or at odd hours. In such cases, it can be challenging for the payroll department to compute work hours and ensure accurate payments and/or deductions. Using time tracking software makes this easier and virtually error-free. All calculations are entered into the software, and employees can track their own time while receiving the right pay.
Eliminate Time Fraud
According to a recent study, the average employee steals approximately 4.5 hours every week from their employer, totaling nearly six full work weeks per year while costing businesses hundreds of billions of dollars every year worldwide.
Also, up to 10 minutes per day, per employee, is lost due to tardiness, long lunches and early departure, as per the American Payroll Association.
Simply put, time fraud refers to the practice of inflating the number of work hours. Sometimes, employees receive pay for the hours they haven’t worked. This means they accept money from their employer without giving anything back to the organization. Time theft is more common than we think and can affect a company’s budget, resulting in losses amounting to millions of dollars annually.
This can be prevented with the use of the right time tracking software as it registers every working hour of every employee. All they need to do click on the timer. A good time tracking tool can track billable hours for every project, bringing transparency in the process of calculating the time dedicated to them. This, in turn, empowers employers to make faultless payment for every minute.
Financial accuracy is crucial for running a lucrative business. However, client billing is a common problem that several companies grapple with. It is crucial that clients are accurately billed within the specified timeframe. Companies that don’t use a potent time tracking and invoicing software often experience difficulties in achieving this.
Some companies bill clients by the hour, while others may bill them by the project. This can be a perplexing task to perform manually. With time tracking software, you can remove the confusion from the process and charge every client the right amount.
Losing track of billable hours can lead to employees missing out on their wages. In fact, even businesses can miss out on bringing in revenue, resulting in losses of tens of thousands of dollars in every cycle. When billable hours are computed properly, it becomes easy for the payroll department to be timely and accurate. The entire process becomes simplified and efficient, and the cash flow becomes steadier.
Additionally, if you’re looking to reduce the length of the billing cycle, all you need is an efficient time tracking program. It can help you transform and modernize your billing cycle and improve cash flow. Currently, you may be taking a month or two to just bill clients and, in turn, receiving delayed payments. It’s time to bid adieu to these outdated practices.
Every business reaches a point when it has to consider increasing the prices of its offerings. To be certain of getting the pricing right, you’re going to need a time tracker that comes with the analytics feature.
Once you know the average time it takes for completing a task, you can deduct employees’ salary for that period and cut your costs to see if the current price is still feasible for your business. If you’re falling short, you need to raise the rates. This clarity can be derived only if you have access to accurate real-time data, which you can easily extract from time tracking software.
The buck doesn’t stop here. Your software should make it easy for you to view and comprehend the data. Managers will do well to have access to detailed business reports complete with a visual representation of data like charts and graphs.
Analytics features that can be customized according to your preferences can be like icing on the cake. Reliable data derived from analytics helps in arriving at the crucial daily and/or weekly numbers, and in generating visually-appealing reports.
Time-Tracking for Different Types of Businesses
No two businesses are the same and neither are their requirements. Business owners will do well to pick time tracking software armed with features that can meet their specific requirements.
Freelancers tend to work at their own time with clients from various industries coming from different time zones. A simple time tracker that allows multiple time tracking options along with the ease of editing time entries and continuing tracking time will be ideal for them.
Because freelancers perform every business task on their own, it will be convenient for them to have easy accessibility to all their data and time entries in one place. At the same time, features such as reporting and sending/exporting files to clients are also essential so clients can track work progress and be in the know of each minute of the billable time.
For Remote Workers
While freelancers work independently, remote workers often have to collaborate with different teams as well as with their employer. They’re also required to account for their work hours to their managers, which is why they need a time tracker that allows them to do so.
A time tracker that is equipped with team viewing capabilities is ideal for remote workers so employers can always know what the team members are up to. Such a time tracker overcomes the hurdle of the lack of physical monitoring due to distance and keeps employers on top the latest in every project.
For Small Businesses
Small businesses may have fewer employees compared to large enterprises, but both perform almost all the same tasks. Further, small businesses also have smaller budgets, which is why they’re always looking for reasonably-priced yet effective solutions that are compatible across devices, and provide quick access and support to important business data from anywhere.
Team collaboration and management is a huge challenge for business regardless of their size. This is why small businesses need time tracking software that enables people to work together. Such a system will make it easy for business owners to create and delegate business-critical tasks so all team members are on the same page.
With a plethora of different time tracking systems out there, it can be bewildering for small business owners to pick one. At the end of the day, it all boils down to considering your business’s unique needs and expectations. The type of business you do, the devices you use, and your typical workflow will also guide you in making a sound decision. Remember, good software offers not only critical features, but also ease of use. Make sure you ultimately pick one that is efficient, affordable, and feature-rich.