Benefits of Time Tracking

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Benefits of Time Tracking – Guide

Time tracking refers to how organizations record hours worked by hourly employees and ensure that those employees are accurately compensated for their time. It is a subcategory of time and attendance, a broad term that typically includes time tracking as well as other elements such as attendance, time off, billable hours, and scheduling. Originally, these functions were all performed entirely by hand. Now they are often handled by computer software specially designed for that purpose; However, there are still organizations that do some or all of time tracking manually.

Timing is the daily process by which an employer records start, end times, and any breaks that are not included in the employee’s contractual agreement. These times are called timestamps and can be recorded on a physical document called a time card or through an electronic method such as a spreadsheet or time tracking software. Timing is often referred to as “in and out” or “in and out”, the latter referring to “crushing” the button on a physical time clock that keeps time on a paper time card.

Benefits of time tracking

Gives you better focus

When your employees can track how they spend their time, you can see if they are on track to achieve their goals. You’ll know how much time they’re spending on each task and if they’re late.

This helps your company uncover inefficiencies so you can make changes to better allocate your and employees’ time. this way naturally guides you to prioritize tasks and increases your ability to focus on the task at hand.

Helps to reduce costs

Companies are always looking for ways to reduce their costs as a way to help them improve their bottom line and reduce their budget needs. Time tracking makes problems visible and reveals inefficiencies and hidden costs of unprofitable projects.

This way it increases transparency because you get a report outside of the time tracking software. You’ll soon realize how easy it is to keep money under control.

Optimize customer billing

Another important benefit of time tracking is customer billing. If you don’t record the time you actually spend on a job, you can’t charge the client for it – you’re losing money.

It is important that customers are billed correctly and on time. With the help of time tracking software, you can charge clients for exactly the work that was done.

Ensures overtime compliance

How many hours did the employee work? Is the person entitled to overtime pay? It is crucial that organizations with non-exempt employees keep track of time. This is to ensure that all overtime is recorded and payroll is properly distributed.

If employees do not accurately track overtime, it can lead to fines, lawsuits, and office problems.

Ensures compliance and streamlines audits

Time tracking data helps you stay compliant with government and industry regulations. It reduces the costs of third-party audits, and you can easily export and share reports and other financial data with funders, board members, and all external stakeholders.

Enables accurate forecasting and benchmarking

Comprehensive historical data on the actual time spent on each task will allow you to greatly improve your ability to estimate tasks and projects and adjust work rates. This allows you to quickly create accurate forecasts and internal benchmarks, which ensures maximum profitability for any job.

Helps you compare performance across business units

Which departments are the most profitable? The answer to this question is important if you are a manager of a larger organization. With the help of Timesheet, you can compare performance across business units, which helps you see billing cost data that provides immediate insights that increase productivity.

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