Learn how time tracking helps your business’ time management—and how you can get your team on board.
Business time management is a challenge for both businesses and individuals. If time isn’t managed well, it leads to:
Projects getting delayed and going over budget Invoices that don’t match time spent Projects that are budgeted and scoped incorrectly Ultimately, unhappy clients
But with time tracking, you can avoid avoid the traps of poor business time management. Time tracking offers benefits to organizations of any size, including ensuring that:
The right tasks get prioritized Work and projects are completed on time Budgeting and billing are always accurate Why Time Tracking is Crucial to Your Business’ Time Management
Time tracking allows you to record how much time is spent by a person, team or business, on a specific item. The “item” can be as high-level as a large client project (e.g. website build) or as granular as specific project tasks (e.g. coding a button).
Through time tracking, businesses can iterate and improve on their time management processes, asking questions like:
Is time being spent on the right things? Do certain tasks take more or less time than expected? Can processes or approaches be adjusted to ensure time is being used efficiently? Do you need to bill differently to better manage costs?
Once you have a good sense of how your time is being spent, your hours can be measured against your revenue.
For example, making $10,000 on a project sounds like a nice chunk of change. But if 100 hours were spent on the project and it delivered $10,000 in revenue, did you *really* make money on it? In other words, was the project worth the time you spent on it? Or did you undercharge based on how long the project took?
When time is managed effectively, profitability improves. Time tracking helps you get there.
How to Track Time Effectively
In a pinch, your business can track time using spreadsheets or even pen and paper. But time tracking software is a more efficient alternative that offers greater visibility into how time is being spent across teams. But there are better approaches…
Time tracking software (like FreshBooks) can be integrated into other business solutions such as accounting and invoicing, human resources, project management and payroll. This way, you also save time on connecting your data around tracked time with the bottom line realities of billing and payments. And time tracking comes with a number of important features that spreadsheets will never provide, like:
Storing your information in a central location, meaning you’re never flipping between tabs or files You’re saved from manual data entry tasks, since your team will enter their own time from their own account You’ll have easy access to your project and team data Leveraging that data, you can run reports to derive business intelligence How Time Tracking Improves Business Time Management
As a service-based business, you bill by time or by project. Managing your time and accurately measuring the time you spend, is directly tied to your bottom line. As you learn exactly how much time your tasks and projects take to complete, you can use this information to improve your business. Here are five ways time tracking drives value for your business.
1. Estimate and Bill MoreContinue reading