Bottom-Line Benefits Of Employee Time Keeping Software
Every software purchase, including time keeping software, must make financial sense. If punching time clocks and manually calculating payroll still work for your SMB, more power to you. However, the best time tracker offers plenty of perks for your profit margin. Some you may not have even considered…until now. For example, did you know that these systems can produce client invoices based on staffers’ billable hours? And this is just the tip of the time tracking app iceberg. Here are 8 of the most convincing reasons to invest in a new time tracking tool from a fiscal point of view.
8 Ways An Hour Keeper Benefits Your Bottom Line
1. Reduce Payroll Expenses
Employees don’t have to manually enter and calculate payroll. So, you don’t have to pay them for all the labor that’s usually involved, such as gathering all the info from employees and figuring out their earnings based on individual pay rates. Plus, you can highlight areas of inefficiency to streamline work processes. In short, time tracking apps help cut human resources expenses because the software handles all the behind-the-scenes work.
2. Create Client Invoices Rapidly
Creating a client invoice is usually time-consuming since you have to go back and review all the time it took for their project and determine what’s billable. For example, staffers have to estimate how long it took to create the prototype. Or how many times they met with the client for consultations. Even if you document every step of the process, you might still be underpaid. Time tracking tools allow you to monitor every minute spent on client activities. Then you can generate invoices with verifiable records. If the client wants to see documentation, you can share time tracking reports.
3. Identify Task Sticking Points
Overviews let you see the total picture in terms of work hours or deadline adherence. However, you should still be able to break tasks down into steps and look for areas for improvement. For example, the process involves multiple activities ranging from data research to revisions. Employees can start the timer when the begin each phase and add a detailed description. Therefore, you can review the process and identify steps that take longer than expected. Then follow up to determine why and if additional training or team members are required.
4. Improve Team Productivity
The best time tracking tool features team overviews where you can see activities and projects that are assigned to each group. You’re also able to evaluate their collective payroll, billable hours, and client invoices. As a result, time tracking apps help improve team productivity and efficiency. For example, they’ve already spent 35 hours on Project A and completed 25% of the work. Thus, they may need to devote more time to the project moving forward if they want to hit their deadline. They can even take a closer look at which tasks are most time-consuming. Then get more employees involved to speed up the process.
5. Reevaluate Your Price Point
You can analyze the value of your products and services for clients. Then adjust your pricing. Let’s say that you’re currently charging XX amount for consultation services. However, time tracking data reveals that your profit margin is much lower than you thought. Given that employees spend more time analyzing client’s needs and meeting their expectations. Thus, you may have to raise your rates to cover all the expenses and benefit your bottom line.
6. Provide Accurate Estimates
Another client-related perk of investing in time tracking apps is providing accurate cost estimates. For instance, they send RFPs for your services and you send them a quote. Then, when the project finally kicks off, you discover that you barely break even. Time tracking software gives you a historical look at projects so that you can provide detailed estimates. You spent 100 hours working on a similar contract last month. So, that gives you a base for this pricing quote. Of course, you always have to account for additional fees, like advanced support.
7. Monitor External Partner Projects
Time tracking software isn’t just for in-house staffers. You can also use it to track external partner activities and keep everyone on the same page. For example, who needs to complete what by when? How many hours can they bill to clients? What percentage of their day is spent on client meetings versus prep work? They can even use break reminders to ease tension and give their eyes a break from the screen.
8. Prevent Missed Deadlines
Above all, hour keeping software serves as a collaboration and productivity tool for your team. They can see where they’re at, how far they need to go and reevaluate work habits. This helps them stay on top of deadlines and project milestones. For instance, an employee sits down at the beginning of each workweek to map out their schedule. In the end, they can look back and see if they’re on target or need to ask for additional resources to meet the due date.
There are many ways that time keeping software contributes to your profit margin. However, one of the most significant—and indirect—benefits is employee satisfaction. Staffers are able to take control of their timesheet. Some hour keeper solutions even remind them when to take breaks to avoid burnout or help them monitor project milestones and delegate tasks. As such, they’re more content on the job and stay with your organization. This reduces new hire training fees and allows you to retain top talent.