The Benefits of Incorporating Time Tracking Software for Your Business

29th August 2023

Developing time management skills is a discipline that harmonizes a reduction in stress and an increase in productivity. However, we still spend 80% of the workday on tasks of little value. During this article, we take a look at how to develop time management within your organisation so increased time is dedicated to tasks of value. The more we understand the value of time management; from tasks being prioritized, to less multitasking; the more equipt your team is for dealing with each days assignments.

Here’s what we’ve learned about how time management helps businesses every day:

1. Insights.

Time tracking can provide eye-opening insights. For instance, you might be surprised to see how much time was spent on tasks of little value. When you have real data, you can address how your team is using the time available to them, it becomes possible to establish goals that can be measured for better time management. Time tracking starts to paint a clear picture of areas that can be streamlined for maximum efficiency. If you notice that you consistently miss deadlines, this insight can lead you to set up the right support and resources to complete tasks more swiftly and effectively.

Tasks of greater complexity should ideally be addressed during the early morning hours, when energy levels are at their peak. Through a process of prioritising tasks to strategically designed time slots means tasks are achieved in a timely fashion. The Covey Matrix is one of the best tools freely available to help optimise time and tasks.
Related: Managing Time with the Covey Matrix

2. Project managers can understand  where resource demand is highest.

Tracking time as tasks happen in real-time enables you to handle your resources smarter. By keeping tabs on how much time you spend on each task, you can spot where you might need more or fewer people and gauge how productive things are overall. This info guides you in figuring out who’s a good fit for certain tasks and how many people are necessary to finish a project on schedule.

3. Accurately cost projects.

Real-time tracking brings a significant advantage by improving your ability to estimate costs. When you closely watch the time devoted to each task, you gain a clearer understanding of the genuine project expenses and can tweak things if necessary. This precision assists you in staying on budget, and working within the allocated billable time. To prevent working over the time that has been billed to the client, it is essential that time is tracked throughout the project workflow to prevent losing money. Accurately tracking time spent on projects is one of the key benefits of having a Time Management system.

4. Keep track of non-billable tasks too.

It’s a smart move to log the time you spend on activities like thinking, researching, and communicating, even if they’re not billable. While these might not go on your invoices, they play a crucial role in figuring out your true hourly rate. For instance, you might charge a client for 100 hours (the time directly spent on tasks), but when you factor in all the additional time (emails, discussions, admin work), you’ve actually invested 120 hours, which affects your real hourly rate. When you have a complete picture of the total time spent, you can evaluate if a project is worth taking on, how your estimates match up, and whether it’s time to consider adjusting your hourly rate.

5. Encouraging your team to adopt time tracking.

When inspiring your team to embrace time tracking, it’s crucial to highlight the reasons behind it. When a business relies on hourly payments or charges clients by the hour, the necessity of tracking time is evident. In such cases, getting people on board is generally straightforward.

However, when introducing time tracking in an environment where it’s not the norm, you need to clarify why this data holds significance for your specific business and how it will be used. Demonstrating the value derived from the data and showcasing its practical applications can motivate individuals to participate.

Once the rationale behind tracking time is clear and the data indeed contributes to the business’s improvement, resistance tends to fade. In fact, employees often become proactive in ensuring accurate tracking, as they recognize its positive impact.

To sum it all up, time management and time tracking go hand in hand. Tracking time can make tasks more efficient, while learning how to manage time is essential for making organisations ran smoothly. Learning to manage time isn’t just about making schedules, it’s about using time wisely to get tasks done . When we keep track of time, we identify useful insights, that drive better business decisions.

Written by the 1Time Team

Introducing 1time – the solution that effortlessly streamlines project time tracking. With a commitment to simplicity, 1time stands out by making time tracking a easier for both you and your team. Plus, the free plan offered by 1time gives you the flexibility of one user and three clients/projects, and the freedom to cancel whenever you need. 1time is the ultimate solution to your time tracking needs. With automated reminders, quick and easy timesheet approval, and customisable features, you can focus on what really matters – your clients and projects. Try 1time for yourself.

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