Every business is seeking for ways to boost its profits and increase its bottom line in a short period of time. Organizations invest large amounts of money to cover specific skill shortages in order to satisfy client requests and complete projects on schedule, from hiring the proper personnel to educating their existing employees. According to a recent study, untracked activities and time result in a productivity loss of countless hours and money. In other words, if you can’t keep track of your time and expenses, it’s like giving money away.
How To Measure Accurate Time Tracking That Improves Bottom Line?
Time tracking and time management is helpful in determining how much time employees devote to various tasks and to evaluate the business value these projects generate. It is critical in finding the productivity of resources, streamlining procedures and activities, and getting a complete 360-degree view about the organization.
Furthermore, disruption to global firms has prompted numerous organizations to redirect their focus to facilitating remote work without compromising employee work-life balance or efficiency over the past year. Time tracking helps in evaluating the value-driven by such investments.
This is how accurate time tracking and management increases bottom-line output:
Time Tracking Drives Success with Quick Timely Billing
The first thing that springs to mind when thinking about project time monitoring is precise costing and billing. Any billing inaccuracy immediately damages your client’s trust. You’ll also have to devote more time and resources to the project in order to rerun all computations, locate and verify errors, and communicate the problems to the client.
The Pareto Principle, often referred as the 80/20 rule, states that nearly 80% of consequences result from 20% of causes. Sending an invoice with half details only, isn’t 100 percent right, or is otherwise erroneous (cause), for example, will result in you not being paid on time or at all (consequence).
Time management software guarantees that you bill your clients precisely by the hour and allows you to track the exact time an employee spends on a project, avoiding the risk of underbilling or overbilling. You may not only estimate the projected time and budget for projects that are still in the pipeline, but you can also assess the completion time and amount spent on active initiatives. This leaves enough free time to focus on things that are critical for achieving organizational goals.
Time Tracking Increases Profitability By Achieving Estimated Time Schedules
The most important and obvious requirement of any project is to complete it within the anticipated budget and time frame. For the same reason, when planning a project, it is critical to accurately estimate time and expense.
Organizations typically assign a fixed budget based on the size and complexity of the project. The proper time recording by resources aids project managers in understanding resource performance and the average time it takes a resource to accomplish a specific type of job. This data will be useful when estimating time and resources for future projects, particularly if the activities are comparable.
Project tasks are first mapped on a timeline along with the roadblocks and risks that may prevent the project from being completed within the specified duration. You may calculate the efficiency of the workers involved in a project using automatic time-tracking. This will assist you in determining a more realistic time schedule for completing that project.
Time Tracking Increases Real-time Visibility Which Enhances Productivity
The productivity of your resources will grow naturally if you have a well-defined timetable for their responsibilities, priorities, and activities. Employees function better when they have a clear set of goals and a time duration to complete those activities with no ambiguity. However, project managers have total transparency about the resources and their duties. Project managers may quickly establish a timeline for each project using this data, plan out the next stages based on the project objectives, and allocate more resources to the project if necessary.
Time tracking can assist you in calculating and eliminating any unproductive working hours of the resources. Once you have all of the information on your resources, you can ensure that they accomplish their tasks within a set timeline and that it does not take more time than what’s assigned. Employees can also check work hours, vacation days, and other information to plan and take leaves. You can also have customized reports with real-time analytics so that you have access to up-to-date information.
Time tracking also helps in making decisions during the hiring process. An intelligent decision to hire more workers, including freelancers or contingent employees, for a project based on workload, time restrictions, return on investments, and future requirements can be made.
Optimize Your Activities to Make the Best Use of Your Time
Tracking time has become more important than ever before in analyzing employee work behavior and productivity as the community begins to embrace a flexible work culture. You can’t enhance employee performance until you know how your employees spend their time.
The most important takeaway here is that automated time tracking allows you to optimize your billing, hiring, and project management processes by allowing you to track employee work hours. When you have complete visibility into the activities of your resources, you can make better decisions for the benefit of the organization as well as its employees.
Automated time tracking provides clarity and predictability, allowing for the development of project-specific strategies and the streamlining of the whole process. It also helps employees in effective time management and creates a path for their personal career growth as well as benefits the organization.
Automated time monitoring, can be a driver of productivity, success and innovation for your company if used effectively. You will always receive superior results and remove underperformance with reduced errors and enhanced employee productivity.