Using time tracking software in your business has several benefits. Using any time tracking software in your business is better than using none. But the time tracking software you choose is essential as cumbersome software would result in employees neglecting to use it. With the cloud-based time tracking software, your team can quickly enter time wherever they are, on any device.
What Is Time Tracking Software?
Time tracking software is a computer tool used by managers and employers to record the work done by employees for:
- Billing
- Payroll
- Operations
In other words, it shows the time spent on specific tasks and is used to automate invoices or payrolls.
10 Benefits Of Using Time Tracking Software In Your Business
Here are the top 10 benefits of using time tracking software in your business:
1. Bill accurately
Using time tracking software in your business can help capture everything you do while working. You do not need to set timers or remember tasks. It keeps an accurate record of all your billable time so that every detail makes it to your timesheet.
2. Manage projects
Time tracking software in your business can digest all your project information to improve estimates and manage costs. It is becoming an essential tool for improving project management.
3. Improve profitability
By showing how you spend your time, it reveals where you are wasting money. See where project budgets are spent, review your billable to non-billable ratio, and make sure you are working on your priorities.
4. Improve productivity
Time tracking software reveals how you get distracted and what is slowing you down to address the operational and personal inefficiencies. Knowing that everything is being captured could work wonders to maintain productive focus.
5. Understand capacity
Without knowing your capacity, you cannot maintain a healthy workload or measure your business's sustainability. Using time tracking software in your business shows you this in seconds. It is helpful for managers who have to balance and coordinate team effort.
6. Track invisible tasks
Time tracking software often records unreported tasks such as:
- Travel
- Meetings
- Client calls
- Task management
- Project communication
Make sure they are integrating with all the digital tools that you use daily.
7. Calculate the work rates
It helps establish profitable and fair rates by aggregating your costs and time for similar tasks. It is helpful when setting:
- Rates for long-term projects
- Discounts for repeat business
8. Communicate the progress
Time tracking software not only collects all your time data but also presents it in helpful reports. It is ideal for:
- Sharing status updates with managers
- Giving clients an itemized breakdown of where their money went
9. Assess the client value
With time tracking software, you can quickly assess the profitability of all your clients and individual projects. It is ideal for understanding the additional extras that bust budgets.
10. Focus on productive work:
Using time tracking software in your business automates this important admin so that employees could put all their energy into productive work. It is a refreshing contrast to time clocks and timers that force employees to engage with time tracking mentally and interrupt workflows.
The Takeaway
Time tracking is used for recording data in your business. Using the time tracking software in your business can hold employees accountable, but they are still in control of their workday. Time tracking software helps your business gather all the data it needs to bill clients.
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