Why Time Tracking Is Essential For A Company’s Success
What is time tracking?
Time tracking refers to the process of recording and tracking the time effort invested in each task, project, or client. Over a period of time, organisations can use data-driven decisions as a tool to increase productivity through increasing the efficiency of delivery by better utilising resources and aligning workflows.
Why time tracking is important for an organisation
For any organisation, understanding your available resources, including people, technology, financial, etc. is essential for organisational success. The operational metrics used to measure the success and impact of these resources on your organisational performance allows a clear path to be outlined towards achieving business objectives, through not only creating transparency and accountability, but also the ability to inspect and adapt in a more agile way.
There is the frequent question of why do companies need time tracking when clients and projects are billed by project rather than by time. The answer to this goes much deeper than just time worked and what that equates to in terms of billing.
Time tracking as a productivity measure produces insights to determine the cost of delivering a piece of work and the impact this has on future projects. The data may uncover indicators such as potential areas of learning and development for staff, inefficiencies in workflows and even distraction of teams in their day-to-day work, which may lead to wasted time – which is arguably the most valuable resource in a services organisation.
Why is time keeping important for staff?
It’s important to recognise that capturing timesheets is quite a hassle at times. It is therefore vital that the objectives and benefits of the exercise are shared with staff. Time tracking should not be used as a micromanagement tool, but rather to provide guidance to make more informed decisions, based on the data.
The value this adds and the impact it has on the business needs to be made clear to staff. The optimisation of any process which results in time wastage directly affects the organisation’s financial and non-financial performance, as well as how this potentially translates to the financial gains of employees. Thus, if the company is doing well, employee incentives are directly affected.
What are the benefits of employee time tracking for business?
Time tracking supports company success through:
- Collection of data to enable more informed decision making, directly impacting all areas of an organisation including areas of development for staff, planning and financial tracking of engagements.
- Visibility and accountability of objectives and deliverables and the impediments to achieving these. These insights also assist employees in evaluating their priorities of where time is spent and potential reevaluation of priorities.
- Identifying operational inefficiencies resulting in time wastage.
Time tracking software like our Caseware Cloud Time enables simplified, automated billing through accounting software integration with Xero and Quickbooks. There are many benefits to be yielded from using software applications like Caseware Cloud Time, including the ability to identify, address and reduce wastage and inefficiencies, improve productivity, glean valuable insights, allocate resources more accurately and streamline workflows. With effective time management you create visibility and accountability to keep your team on track and ensure that resources are aligned towards increasing organisational productivity.
Ultimately, efficiencies within an organisation are passed on to the clients whom you service, whether internal or external. To support the success of both the business and the clients serviced, internal processes need to be optimised for efficiency and productivity.