Knowing how long a task or project takes helps your business when it comes to creating new projects. The analysis of your time and costs allows you to adjust both accordingly for maximum profitability once you know exactly how every moment is spent. It also gives you the knowledge that you need to boost your profits and improve efficiency within your company. Time tracking is key to insights about your time management, as well as for productivity and workflow.
When you and your employees track your time, you will have insights into which tasks take up too much time so that you can start to think about what you can adapt for maximum efficiency. You will know what is working and not working, and how to plan for future projects which take these factors into account so that you can streamline your time and money.
Time management is an area most of us struggle with. It must be accurate and reliable. How are you going to implement it in your business, and how will its use benefit your profitability? Here are some of the reasons that time tracking is essential for profitability.
More effective project management. Time tracking helps you to understand where all of your employees’ time is being spent. Which tasks are taking the longest, and which employees could perhaps improve their productivity? If you know exactly how much time is spent on worked hours you’ll be able to easily set estimates and budgets for future projects. If you’ve underestimated the time an employee needs to complete a project in the past, you can adapt when you understand that they may need fifteen more hours for that task. Lost time equals lost money, so understand exactly where your time is going.
Knowing where to cut expenses. Knowing where perhaps too much time might be spent on projects, you also have the ability to cut excess costs. If your time tracking shows that there is an issue with time that has until now gone unnoticed and is affecting your business’s workflow, you will be able to pinpoint exactly where to address any issues. Are some jobs taking longer than they should? Increase your profits by reconciling deficits.
Having more accuracy in billing. Knowing what to charge is such an important part of your business, and tracking your hours down to the minute will be reflected on your client invoices. They need to see a transparent record of all of the services provided to them, and this process will establish trust with customers who will want to retain your services. Time tracking will also allow you to quickly adjust your pricing based on the time it has taken to complete projects. Use your data to help you better clarify profitable and fair pricing for your services.
Expertly process your payroll. Tracking the time in your business makes payroll more efficient. If you know exactly how much time was spent on each task, as well as which employee(s) worked on the project, it will be a breeze to calculate salaries, wages, deductions, and bonuses. Automated timesheets make this process simple, and reduces time writing it all out by hand.
Transparency of profits. The data collected from time tracking will allow you to see costs and profits at all times. These reports will also help with understanding which of your hours went under their estimated time. This means that you can cut costs and make more profit. If your time is billed by the project, this is particularly helpful to your profitability!
Not understanding hidden costs or data which is inaccurate costs your business. Time tracking allows you to organize your business goals by analyzing the data and then reworking plans to enable for more successful and profitable projects in the future.
Take the guesswork out of the time tracking process, and use an automated time tracker which is easy to use, reliable, and accurate. Know precise billable hours, create automatic timesheets, and understand inefficiencies in your business with Time Tracker. Sign up today for our free, 14-day trial. No credit card required, and no hassle. Enjoy the flexibility of tracking time anywhere, from your mobile, tablet, or laptop, and watch your business grow.