Maintaining an accurate timesheet is one of the most crucial tasks when undertaking a project. Not only does it help managers keep track of the consumption of resources, but also allows them to identify the effectiveness of a project for long term growth and success of the company.
However, regardless of the size and type of the business, every organization must ensure proper time tracking to know how its employees are spending their time in order to manage its operations more effectively.
If you are a project manager, here are a few good reasons why you should consider time tracking and how it can affect your business in various ways.
1. Better Task Management
Time tracking can help you monitor each task on several different projects effectively. This is especially helpful when you have a limited number of employees who are working on multiple projects. Tracking employees’ time can help you prioritize your projects effectively, which may consequently allow your team members to handle their duties more efficiently.
2. Better Workflow
With time tracking, employees can determine where they are spending their time and how well they are utilizing it. If they are running behind on their projects, they can reevaluate how they can manage their tasks to make the most of the available time and add greater value to the project. Also, this may help managers rearrange the projects and tasks to meet their goals effectively.
3. Efficient Payroll Management
Many time tracking programs integrate with the payroll software which helps companies streamline their compensation system. Integration can make sure that employees receive fair compensation for the time and effort they are putting in at work.
4. Cost Management
Businesses are constantly looking for ways to reduce their additional costs to limit their budgetary needs and improve their bottom line. By helping managers understand the workflow of the company, time tracking programs allow managers to correct cost inefficiencies and inaccuracies and make the project profitable and more successful.
5. Accurate Billing
Time tracking can help companies create quick and accurate bills to be sent over to the clients. The system is particularly helpful when you are billing your clients on time rather than per project basis. With precise pricing of services, not only can you help your customers prevent unnecessary costs, but also ensure a long term working relationship with them.