Home Business The Benefits of Time Tracking Tools for Small Businesses

The Benefits of Time Tracking Tools for Small Businesses

by Olufisayo
Benefits of Time Tracking Tools

Before we get into why you should track time, let’s devote a row or two to why you shouldn’t: tracking someones work can cause sense of mistrust, it can give your employees the idea that the invested time is more valuable than the final result, and – sometimes – fulfilling a daily quota of invested hours becomes more important than actual work.

This, however, rarely happens. The vast majority of employees today are aware of the necessity of time tracking and will accept it gladly in their day-to-day work. All that is left for you is to implement it because time tracking:

Benefits of Time Tracking Tools

Gives precise quotes and estimates

Time tracking software provides you with instant reports of types of tasks you are working on, as well as the time you spend on them. Keeping tabs on just how long did it take for you and your team to complete a project in the past can provide you with precise and precious data. Why precious? Because it will enable you to improve your quotes and estimates – a base for good client relations.

Improves task management

By tracking your time flow and comparing it to your results, you can determine the amount of time you’re spending on each aspect of your business. Time tracking software will allow you to streamline the task management process, thus making it easier to analyze and reevaluate, from time to time. If you determine that something is amiss, you can adjust your daily, weekly, and monthly plans accordingly and gain most out of your productivity.

Allows better project management

The Benefits of Time Tracking Tools for Small Businesses

When it comes to handling projects, there are two options: you can either use simple time to track tools that will provide with a simple insight into how many hours have been spent, or you can use project management software which will help you keep your work in check. Of course, best project management tools, (amongst many others) include time to track feature, so when you finally send an invoice to the client, there will be no doubt how many billable hours have been invested in the project. Also, project management software can help you reallocate hours and shift deadlines if your team reaches a bottle-neck. That way you can make some projects ‘high-priority’ while others can be put on hold.

Should be used as system-wide standard

Utilising the same time tracking software throughout the entire system will result in lower risk of human error and measurement that everyone is collaborating effectively. There will be less “payroll accidents,” as well as less miscommunication and misreporting issues. Implementing the same procedure throughout the company will increase productivity, as well as overall effectiveness.

Identifies non-essential activities

Time Tracking Tools for Small Businesses

Time is a finite resource. If you don’t track it, you won’t be able to know how much time you are wasting on non-essential activities. On the contrary, using a time tracking software during the working hours will help you determine which trivial actions are taking too long so that you can manage them better – or completely remove them from your daily schedule. Every minute wasted is a minute you are not improving your business.

Identifies areas that require improving

Now that you have identified non-essential activities, determine which areas of your business can be enhanced. Compare the time you planned to spend on each activity with the actual time spent – if there are discrepancies, that is the area that should be improved. Additionally, there is a matter of “idle time” that you should try to minimize whenever possible.

Creates daily routines and habits

Benefits of Time Tracking Tools for Small Businesses

Time tracking will give you with an insight into your ‘productive’ and ‘unproductive’ hours during the day. For example, time tracking has revealed that it takes you an hour to complete a certain task in the morning. On the other hand, if you take upon yourself to complete that same task in the afternoon, it takes you twice as long. By noting these patterns, you can make your schedule to ensure that you remain productive and to get the most out of your day.

Time tracking can and will increase your productivity and efficiency. Just as we mentioned above, you have two options: either choose a simple time to track tool that can provide you with a simple ‘used time’ input, or select comprehensive but rather useful project management software. Keep in mind, however, that no matter the choice, your solution should apply to your business model, and well adjusted to your team’s needs.

Related Articles