If you’re in charge of project management, you know full well how frustrating it can be to track and manage the hours that employees and contractors spend working. Nonetheless, accurate time tracking is an essential part of determining ROI, budgeting, and similar business processes.
That said, many employees find documenting their hours worked an annoyance and enter their hours as quickly as possible, often without worrying about their accuracy. To complicate matters further, many companies still rely on outdated time tracking software which can add additional problems to an already complicated situation.
In this article, we’ll take a closer look at the consequences of poor time tracking and ways to improve it.
Why tracking non-billable time is important
Those tasked with project management tend to focus almost exclusively on the time employees and contractors spend on productive work. While that’s not necessarily a bad thing, it doesn’t say it all when it comes to an organization’s bottom line.
Rather, production time should be measured as the total number of hours available versus the hours needed to complete a given task. This type of calculation, commonly offered by companies such as hubstaff.comallows organizations to better assess “downtime”, which includes break times, paid vacations, etc.
In addition to having systems in place to track “production time,” organizations must also have a system in place to track non-production time.
Allocate time to correct projects and tasks
Regardless of the size or scope of a project, organizations can benefit from time tracking systems that can streamline the process of associating billable hours with assigned tasks. What does this mean, exactly? Well, that means having the ability to accurately report and approve time, which can be accomplished by assigning billing rates for each task, generating timesheets, and finally distributing them to the appropriate department. within your organization.
An organization can lose valuable production time when an employee or contractor associates an incorrect work code with their billable time. This is especially true for large organizations, which have hundreds of tasks that need to be distributed among multiple groups, employees, and contractors.
The importance of up-to-date time tracking
Whether it’s the result of outdated time tracking software or employee error, inaccurate timekeeping can be the bane of any organization’s existence. However, there are things you can do to improve time tracking.
For example, you can use employee computer monitoring software that simplifies the process of including employee/contractor hours and usage in status reports. This process allows organizations and project managers to view work details and make corrections if necessary before hours are finalized and sent to payroll.
In contrast, older and outdated software may not provide the most recent time entries before your organization’s payroll deadline.
It’s a good idea to use time tracking systems that provide a simple user interface (UI), real-time reporting capabilities, and automatic time tracking.
While these systems can be expensive, they can help eliminate the frustration that often accompanies accurate time tracking, freeing you and your organization to focus on other tasks such as branding, acquisition customers, marketing and revenue generation, for example.