Whether you’re an independent consultant, contractor, a consulting company or small business that bills its clients based on time and expenses, having an effective process in place to track all your billable hours and customer’s expenses is a necessary requirement.
However, manual tracking has proven to be terribly inefficient: it’s time-consuming, tedious and error prone – all of this is often only contributing to, instead of minimizing, the unforeseeable delays and additional costs.
Automatic tracking is the only solution to prevent leaking revenue. By having an efficient time and billing system, you will do less work managing time and expenses and consequently, free up your valuable resources for more productive work that will actually increase your bottom line.
The benefits of automated online time tracking over using Excel or Word based timesheets are obvious; simply put, using web-based time tracking software means: no more wastage of time and no more unnecessary drain on your business resources in timesheet and expense record maintenance and invoice generation.
Online time tracking software saves you time. It can also clearly show where you or your employees are spending time. When you know how the time is being spent, you can allocate the time more efficiently. Each employee’s output is now measurable in no uncertain terms – this can help in determining an employee’s productivity.
Knowing how long a certain task takes can make your future project estimates more accurate. With the help of an online timesheet, you can see what is done, how long it took, and what yet needs to be done – all at a glance. You will always know which employee is working on which project – that’s indispensable, especially when employing remote workers.
Using web-based software eliminates errors from re-entering data. You can use it to evaluate client commitments and thus calculate project profitability. Also, diligent time tracking can help you to recognize seasonality and predict trends in certain types of businesses.
When you use the user-friendly system, recording your employee’s or contractor’s hours is as straightforward as logging in and entering the required data in an online timesheet. Since the software is web-based, you can access it from any place at any time. All you need is an Internet connection and a browser.
Just like the online time tracking clearly shows where your time is spent, online expense tracking will show you exactly where your money is being spent. Again, it offers many advantages over the Word/Excel based documentation, where expenses get missed while billing or improperly or erroneously recorded.
With online expense tracking software all business expenses are recorded, tracked and stored in one place. It allows you to accurately capture all types of expenses – receipts can be scanned and uploaded, credit card charges imported, and all kinds of cash payments added. You can then sort these by an employee, by a project, category or by a time period.
That allows you to, for instance, find out how much money is spent in specific categories, and it can help you catch a potential abuser by determining outliers. Expense tracking software can be set-up so to block items that are not valid business expenses, or to set limits for some types of expenses.
Online expense tracking can potentially track expenses for every project, client, or a company’s division separately. These allow you to easily bill clients and reimburse employees, to monitor costs, generate reports and plan budgets and consequently, to always make informed spending decisions.
Using the software, you will know where the money is coming and where it is going. You’ll be able to gauge on the spot if you are still within the budget for any given project, or for the fiscal year.
It also offers audit protection since the software assists in maintaining tax-compliant records. All those records are securely stored online and available at any time you need them.
An online time and expense tracking system is an investment that is guaranteed to keep your project’s scope and budget under control while enabling you to bill the clients in a timely and accurate manner. Simply put, automatic tracking system enhances productivity and increases both savings and cash flow. If you are still using manual timesheet and expense tracker, you should seriously start evaluating online time and expense tracking software.
Free Printable Excel Time Tracking Template – Download