Using timesheets to track your employees’ time can help your small business with more than just payroll. By helping you know how much time your employees spend working on specific tasks, accounting software for small business gives you a bit more insight into your costs, your productivity levels, and whether you’re charging an optimal price for your products and/or services.
Basic timesheets typically track the number of hours each of your employees work. But by adding the option to track the time an employee works by the activity gives you more detailed information. Looking at each employees time more closely can alert you to productivity problems, but it might also indicate a need to shuffle some of your resources around. For example, if you notice that one employee is spending a lot more time on a specific task than your other employees, it might indicate that they aren’t doing the right type of job. While they are struggling in their current position, it doesn’t make them a bad employee. That same employee may thrive in a different position.
Timesheets that track time by activity also give you a closer look at the time spent on administrative tasks. Sometimes it’s difficult to include the cost of specific administrative tasks when calculating the real cost or your products or services. By breaking your employees’ time down per activity, the amount of money it’s costing you to produce products and provide services is more accurate. This also helps you when creating quotes for clients. You should include the cost of production in your quote, and that’s a lot easier when you use timesheets to track task activity.
While you can use a basic Excel sheet to track your employees’ time, you should consider using cloud-hosted software, such as QuickBooks Online, instead because it makes small business accounting much easier. This way your employees’ timesheets are stored in the same place as your clients’ invoices and quotes, which makes it easier to review when needed. Also, using cloud-hosted software streamlines your payroll process, which can help increase your company’s overall productivity levels.