If you’re running your own small business, you know that the old adage, ‘time is money’, rings true. Monitoring how much time you and your employees are spending on work can pay important dividends to your business and can ultimately save you money. Here are four great reasons to start tracking billable hours with time-tracking software now.
To Gain Better Insight and Streamline Your Processes
Just where does the time go? Twenty minutes here, an hour there – and what have you got to show for it? Without proper monitoring – sometimes spreadsheets just don’t cut it – it can be challenging to get a handle on where you and your employees are really spending your valuable time. Time-tracking software lets you easily record the billable hours you and anybody working for you are devoting to a given project or client.
Having this greater visibility into your workday and that of your employees allows you to:
- Identify tasks or clients that are taking the lion’s share of your time
- Keep project or client hours under control
- More efficiently allocate and shift resources to different tasks and projects as needed
- Quickly and easily calculate employee or contractor pay
- Generate client invoices.
To Hold Employees Accountable
Wasted time equals wasted money so you want to make sure your workers are making the most of the minutes and hours that they’re in your employ. Time-tracking software, such as time clocks and time sheets, can help them detail and understand the time they actively dedicate to various jobs and clients. It can draw attention to when they’re lagging behind or where they might have gained some time to work on something else.
Also, when they know that every second impacts the bottom line (not to mention their pay checks), a time-tracking program is more likely to keep them diligently on track, with them taking fewer breaks and being less susceptible to distractions. Ultimately, tracking billable times helps keep employees accountable and can help increase productivity in your business.
This in turn helps you, the business owner, to know how projects – and employees – are travelling and when to make necessary adjustments to deadlines, resources and performance management.
To Promote Transparency to Your Clients
When you’re charging clients based on the amount of time you spend on their work, it’s understandable that they’d want some transparency into your timekeeping practices. Managing clients’ billable hours with time-tracking software provides this visibility and accountability on demand. It not only gives your clients peace of mind and builds their trust in you and your business, it also helps them better manage their own businesses by indicating how much time, work and money are involved in their projects.
To Set Benchmarks for Future Work
Over time, when you use a time-tracking program, you’ll be able to glean solid information on how long certain tasks or projects take. Having this data at hand also makes it easier – and much faster – for you to quote clients for similar jobs in the future. For example, based on past history, you may determine that a job took way too much time for way too little money and adjust your next quote accordingly, both in terms of timeframes and costs.
Recording your billable hours may seem daunting at first but it can be key to streamlining your processes and your business, ensuring appropriate billing and keeping costs down. Fortunately, with the advent of accurate, easy-to-use time-tracking software, this critical bit of bookkeeping has never been simpler.