As a small startup business, we realized early on the importance of time and project management. This is how we got inspired to add our new Time Tracking feature to our platform for you to enjoy! Time tracking definition, purpose, and advantages coming right up!
So, we have realized that small business owners are struggling to manage their time effectively. This means that cloud-based time tracking is essential. Our team has written this article to help you understand exactly what Time Tracking is. We will also explain the purpose of time tracking and all the ways you can benefit from this new feature. Along with what a typical time tracking app does.
We will attempt to answer all your questions and don’t hesitate to post a comment below, in case we missed something!
The first question that might pop into your mind is, “What is Time Tracking?”
Time tracking definition
Time tracking is a term used to describe all the processes a person or business implements to log the time each activity takes up on a daily basis. It can be applied both on a personal and professional level to monitor and evaluate performance.
So what is the purpose of time tracking? Essentially, time tracking enables you to spot your most productive hours. As well as whether your time is well spent or not on certain tasks.
Adopting a productivity tracker can prove beneficial in many aspects of your everyday life. Especially the way you work and carry out tasks.
Why is time tracking important? Does your company need a time tracking tool?
Absolutely! Especially if you want to harvest its amazing benefits and increase your productivity.
Do you want to know which projects are worth your time and effort? Time tracking is ideal for you!
Fully exploiting the features of a time tracking app can change the way you and your teamwork. It can even bring an increase in revenue.
If your company undertakes projects, and bills by the hour or needs to adjust its pricing to the actual costs, then an online employee time tracking tool will help you accomplish all that and so much more!
10 ways a Time Tracking application boosts your productivity!
Let’s break down the 10 most important ways Time tracking can help boost your business’ performance!
#1 First and foremost – productivity
If you want to transform the way you and your team work, you first need to be aware of qualitative data. Such as your current productivity and performance efficiency. Even though these are somewhat abstract terms, you can easily put them in numbers using an employee time log.
Productivity time trackers allow you to register time entries per project or task. They also enable you to compare your time cost with what your clients actually pay you.
This metric helps you understand if a project is profitable or not even worth taking up in the first place. Moreover, tracking your time will give you insight into how efficient your current pricing policy is. Or maybe you need to adjust it according to your financial needs.
#2 Save time
Monitoring the time you spend on certain tasks helps you better allocate time for important projects. Rather than micromanaging minor ones. From another viewpoint, if you constantly feel you are running out of time and miss deadlines, your business will greatly benefit from an automated time tracker.
It will help you clear everyone’s schedule of unnecessary tasks and better prioritize your work on a daily basis.
Therefore, you are able to better delegate tasks and create more time for yourself and your employees also. Remember that overworking your employees (especially due to poor time management) is bad for your business!
A bonus point is that most time tracking applications support automated conversion of time entries into invoices. This way you can save even more time.
#3 Improved project management
The way you manage your projects is crucial to many other aspects of your business. Having your business and action plan laid out in a time-tracking application will make it easier for you and your team to hit goals and meet deadlines.
Milestones will no longer seem so tedious, as you will be able to break them into smaller, hence more manageable, tasks!
Create the projects and tasks in your cloud-based time tracking app, have your business plan “on the go” and follow up on your performance “live”.
#4 Enhanced collaboration
Among the time tracking advantages is improved collaboration. Assigning projects to the right team members is important. The time tracker tool helps you decide who has been working overtime and who has some time spare.
Moreover, timer tools can be used to view who is fast in doing certain tasks, and delegate the workload according to talents and abilities.
Your team will appreciate you delegating in a more efficient way that matches the personality and skill set of each employee too! This way, you are able to create the perfect workflow and be prepared for unexpected projects.
#5 Take invoicing & billing to the next level
In applications such as Elorus, you can choose from a variety of billing preferences to charge your projects and tasks. When it’s time to bill your clients you can convert your tracked time into invoices with just a few clicks!
You can then send the invoiced project to the client via email. If you have integrated online payment providers, your client can easily pay off the invoice with their credit card.
Your invoicing and billing processes get streamlined to the last detail. So, you are able to focus your valuable time on more important matters, instead of the tedious paperwork. Besides, this is the purpose of time tracking: to make your life easier!
#6 Create accurate estimates
During the process of readjusting your price rates to a more profitable level, the time tracking application will concentrate meaningful data about the time spent on each task that comprises a project.
Consequently, you will be able to base your new rates on solid data and, in turn, create accurate quotes for your upcoming projects.
Your costs will become clearer and, at the same time, your deadlines will become more realistic and attainable.
#7 Employee management
Another business aspect that is directly affected by poor time allocation is team management. Your HR department would greatly benefit from time tracking and the data about employee performance they can extract from it.
Get information about whether it is time to hire new employees and reward your most productive ones with a bonus or some time off.
However, we advise you not to fall into the trap of “whoever logs less time, is less productive”. Most of the time, this is not the case at all! So take into account a combination of metrics to make a decision.
#8 Finally get paid for your time
Your actual time. Even if you don’t charge per hour, you can charge per project. Specifically, Elorus gives you the ability to share the progress of your projects with your clients through our Client Portal feature!
Your client can log in to a safe environment where they can overview the time you spend on their projects, live!
Say “Goodbye” to the bad old days when you had to debate with your customers about your rates. You now have tangible evidence of your work and the effort you put in.
#9 Monitor everything through reports
Time tracking tools rarely offer just a timer. They usually provide some kind of reporting feature as well, which gives you aggregated information about your tracked hours, per project and client.
Elorus, as a primarily invoicing software, displays reports separating billed hours from non-billed, along with the associated invoices for more targeted insights.
Also, you can view the results for every employee’s logged time spent on each task so you can manage your team effectively.
Either for personal or professional use, you can view informative graphs and tables that will help your business grow and improve your everyday life.
#10 Organize your entire business
It becomes obvious that you are able to manage your organization’s most vital activities through one application. This is one of the major Time Tracking advantages. It not only promotes seamless collaboration and workflow but also reduces cost, as you no longer need different apps for handling each activity.
Just give it some time so that everyone can get the hang of it, and let time tracking change the way you work forever!