Why Time Tracking is Critical to Business Success
Why Time Tracking is Critical to Business Success
Find out more about the expenditure of time, as well as money and other resources, with effective time tracking and management.
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Whether you’re working as a freelancer or heading a Fortune 500 company, effective time tracking is essential to determine your success. Time tracking isn’t just about time; it also helps you track team activities, handle expenses, and much more.
Some of the benefits of time tracking include:
- A streamlined workflow
- Quality improvement
- Higher effectiveness and efficiency
- More transparency
- Cost efficient
- Increase in productivity
- Performance insights
Business owners who track time while working on important tasks find increased productivity. The boost in productivity and efficiency often contributes to increased profits, something all businesses aims to achieve.
If you need more reasoning on why time tracking is essential for business success, below down are some valid reasons. Let’s check them out:
1. Keep Track of How Employees Spend Time
A lot of planning and discussions happen before kickstarting a project. However, real work begins just after that. Time tracking helps you discover whether employees are doing their work effectively or not.
No one’s accusing anyone of slacking off, but things stop progressing at a speed they should after the initial hullabaloo starts fading away. Thus, constant time tracking helps you see the full picture of where, how, and when employees are spending their time.
2. Improves Planning and Budgeting
Time tracking takes a lot of time and effort. Time tracking software makes things easier by providing relevant information and data to help you plan things better.
It is also quite helpful in budgeting as well. Using a time tracking tool that provides work estimates, project timelines, quotes, and other information can help you big time to adjust plans better and make smart budgets.
3. Analyze How Much Time Is Being Taken by Tasks
The most common problem that project managers face is when tasks take more time than anticipated. Thus, it becomes the need of the hour to accurately analyze how much time is being spent on each and every task.
Whether manually or with the aid of a time tracking tool, learn to carry out the average time needed to complete important tasks. If you think more analytically, more accurate the estimate, more the number of orders. Either way, it’s a win-win from the business point of view.
4. Tracks Deliverable Costs to Business
One needs to be smart with dollars to run a business wisely. There’s a lot of money involved — salaries, taxes, rent, hardware, maintenance charges, bills, staff meals, additional training opportunities, and more. Thus, it’s important to know what it costs your business to afford all these costs.
There are many tracking and expense management tools that help you track individual hourly costs. Hence time tracking helps employees to understand what it costs the company to complete work for escape.
5. Bill Clients for The Exact Amount of Work Done
Client billing is often too cumbersome. That’s why many people dread doing it. Oftentimes, some tasks take more time than expected and clients would like to have some justification and reasoning for it. That’s when time tracking tools can save your day.
When you’re using online time tracking tools like ProofHub, you get to know how teams are using their time, by keeping a record of every minute being spent at work so that they can manage time efficiently and you can bill the clients accurately using the time data.
Improves Overall Performance
When time tracking is an important part of your work, it becomes important to discover ways to get things done faster. You can use the time tracking data to determine the efficiency (or inefficiency) of your workflows which is further quite helpful in increasing the productivity of your team members.
If a certain team member is taking longer than his peers, you can use the data to coach him so that you both can figure out what’s not working and convert it to an opportunity to improve the overall productivity and efficiency of an individual.
7. Tells When To Reprioritize Tasks
Employee satisfaction plays a big role in determining the success of an organization. When the workload gets too overwhelming, it’s natural for employee productivity to take a dip. It is going to affect the business in the long run. So, time tracking helps to provide visibility to seniors and management to know whether they can take on additional work or not.
If your team is struggling to keep up with grueling work items, time tracking can simplify a lot of things. It tells management whether or not, they need to hire additional staff so that no one ends up overworking themselves, thus making the workplace a happier place for everyone.
8. Reduced Unplanned Absences
Unplanned employee absences can affect the overall progress in a big way, often resulting in missed deadlines and increased workload on team members. With a time tracking tool, one gets to know about the crunch in resources helping them to be prepared in advance and handle the situation better. Obviously, there’s still going to be sick employees, no one can stop that. But one can definitely plan unplanned absences better with an online time tracking tool.
9. Better Payroll Management
There are so many time tracking systems that also let you create timesheets which can be easily used for payroll purposes. You can also integrate the time tracking data with your payroll system. It is a sure way to cut some costs and save some time. Getting a time tracking software helps you with better payroll management and get the full picture of what’s happening in the salary and HR department.
10. Provides a Great Overview of The Entire Workflow
While working on complex projects, different people are working on different parts of a project, it can be difficult to know who is exactly doing what. When there’s already a time tracking tool employed at a workplace, you can glance over the entire workflow just with a click.
A time tracking tool enables you to know the status of every task as you require it. All you need to do is to log in and you can access information from anywhere in the world.
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