As a small business owner, you know exactly how much money your business made (or didn’t make) each day because you track your finances closely. Some might say obsessively. We get it! Small businesses operate on tight margins, and every penny counts. But if you’re not tracking time with that same intensity, you’re not getting the full financial picture. After all, time is money—are you making every second count?
Time tracking has come a long way from paper punch cards and messy spreadsheets. Modern time tracking solutions make it effortless for you and your employees to keep track of where time is spent. That time tracking data helps you make smarter decisions for your team and your business—increasing productivity, balancing work with life, and boosting profitability. That’s right, time tracking can actually help your business grow.
How time tracking benefits business owners
Tracking employee time is beneficial for your business for a number of reasons. First and foremost, it ensures you’re not overpaying or underpaying your team based on loose estimations. Employees get paid for every second worked, keeping your payroll on point.
Accurate payroll doesn’t just save you money, it could save you from a FLSA lawsuit. The Fair Labor Standards Act (FLSA) regulates everything from employee pay to hours worked to payroll recordkeeping. Accurate employee time tracking keeps your business compliant and helps you avoid wage and hour missteps. The FLSA requires employers to track time for all nonexempt (or non-salaried) workers, and they expect you to keep those time tracking records on hand for at least two years.
Beyond that, tracking employee time helps you better assess your team needs. Are certain teams working longer than others? Are employees consistently hitting overtime by the end of the week? Is the workload spread evenly across employees? Time tracking data holds the answers.
Finally, modern time tracking apps help you keep your employees safe and accounted for no matter where they work. Business owners with workers across multiple locations or managers of remote teams can benefit from employee time tracking that allows them to easily see who’s on the clock and what they’re working on.
How time tracking benefits employees
Business owners aren’t the only ones to benefit from time tracking. For employees, time tracking ensures they’re paid for every second worked, earning overtime when applicable, and accruing the correct amount of paid time off or sick leave.
Time tracking gives employees more control over their work and their schedule. It allows them to hold their employers or managers accountable for unrealistic work expectations, including unreasonable schedules and workloads. Plus, they’re less likely to underestimate the amount of time spent on a job or project when the proof is in the pudding, helping them balance work with life and avoid burnout.
Finally, employees who track time are better able to manage how they spend it. When they can see exactly where their time is going, they can be more intentional about the work they do. But there’s one more slightly unexpected benefit of tracking time, both for employers and employees: It can help your business grow.