How Time Tracking Software Can Benefit Business Finances With a Remote Team
Even with the eventual end of lockdown restrictions, remote working is here to stay. This new age calls for new tools that can help business owners and CFOs ensure their finances remain stable even while physically separated from their teams.
Around a third of Americans are currently working from home in order to help prevent and limit the spread of the novel coronavirus. However, while not physically in the office, keeping track of things such as employee time can prove to be quite a challenge. From payroll to efficiency, modern business technology might be able to help. With that said, here’s how the utilisation of time tracking software can be useful, especially when it comes to a business’s financial aspects.
What is time tracking software?
Time tracking software is a computer software that allows businesses to accurately keep track of an employee’s time that’s spent on projects. Many industries utilise this type of software, as it proves to be especially useful for those who work in the freelancing industry and for those who bill their clients by the hour. Not only can this eliminate paperwork and physical means of timekeeping, such as spreadsheets or paper, but some time tracking software allows you to enter both time on and time off of work, along with expenses on one interface. This not only reduces stress for business owners and employees alike, but it is extremely convenient to use as well.
In the new age of the COVID-19 pandemic where working from home has become the norm, time tracking software can become even more valuable. For example, it can become difficult to track employee time when the employees are working from remote locations, though time tracking software can become a solution to that issue as it allows for full transparency. Not only that, but it can help greatly when it comes to keeping track of worker productivity, motivation, and increasing efficiency within the business as a whole – though there’s more to it than that, and especially so though a financial standpoint.
In the new age of the COVID-19 pandemic where working from home has become the norm, time tracking software can become even more valuable.
Saving money and cutting costs
One of the greatest benefits of utilising time tracking software is the fact that it can save businesses money in a number of different ways. By seeing where employees specifically spend their time, companies can save when it comes to payroll, by accurately paying employees for the work they do — thus working to effectively cut out any guesswork on the employee or employer by creating far less work in the payroll department.
This also allows for clients to be billed for the exact amount of time spent on a project, which can benefit the client and create clarity when it comes to billing, and can also act as proof that they didn’t get overcharged. Unsurprisingly, this can help result in a more satisfied customer, improving relationships between the business and consumer. Time tracking software can cut costs in other ways as well. For instance, many kinds of software can be integrated with a businesses existing payroll or accounting system. By doing so, implementing the software can not only be convenient, but time and costs can both be reduced in the process.
Gaining valuable insight
Time tracking software also brings the benefit of bringing valuable insight to businesses, by allowing them to view the software analytics. Since time tracking software allows businesses to see exactly how workers spend their time, adjusting their pricing models accordingly can become much easier and even save time. Time tracking software can also be beneficial in planning and budgeting, too – for instance, consulting with the analytics from the time tracking software can give business owners a general overview that can help decide how they should go about certain affairs, as they can see how much time it takes to complete certain tasks.
For many businesses, the coronavirus pandemic has brought uncertainty, especially when it comes to finances. While working from home is becoming the new norm for now, 74% of CFOs and business finance leaders expect that at least 5% of their workforce will actually continue to work from home permanently — even after the pandemic is over. With that in mind, time tracking software can help to seamlessly maximise efficiency and help to create a sort of certainty in the process, whether it be short or long term.
For example, by reporting exactly how an employee’s time is spent, you can see which employees are truly contributing to the team, of which can save money in the long run should you determine an employee to be extremely unproductive by letting them go. While the efficiency gained from time tracking software can seem quite beneficial for managers and business owners alike, employees can also take advantage of this feature by viewing their progress and learning from it on how they can be more productive in the future.
For many businesses that have chosen to operate online by having their employees work from home during the coronavirus pandemic, time tracking software can prove to be a real asset, especially with the benefits that it can bring financially. From saving money to providing valuable insights that can help with pricing and budgeting, time tracking software can bring a myriad of benefits to those who choose to implement it, and can introduce businesses to a helpful tool that may be able to help them even after the pandemic ends.