Accounting For Time Raises Productivity and Ensures Business Growth

Clock, files and pen on a market report

Introduction

Time is a precious resource, and utilizing time in right direction helps in business growth. That is why employers need to know when their employees are reporting to work and see whether they are able to fulfill their tasks at prescribed timeframe. You can also see many lawyers and project managers maintain time sheet, which helps them to allocate time efficiently for completing projects. By implementing an appropriate system of recording time in place, you can easily raise bills for the hours worked for and improve the accuracy of fixed price quotation.

This article will guide you to learn various approaches for recording time and you can know about its benefits, which will be reflected in your business performance.

Why You Should Record Time?

It serves the following purposes.

# Payroll Management

Generally, workers track time that they spend at work by using time card for clocking in on a machine. This time recording machine records the hours spent during the work. This information is used by the HR department to process payrolls.

# Identifying Productivity

Professional services companies want their staffs for maximizing the amount of time for generating revenue, while minimizing the amount of time spent for performing administrative duties. These kinds of firms track time and record the level of productivity of each staff by measuring proportion of each day spent on chargeable work.

Recording the time that is spent on fixed price work helps a firm to analyze how accurate is its estimation process. If it happens that a particular is taking too much time for completion despite of deployment of efficient people, then it eats away the desired business profit. On the other hand, if the reverse becomes true, then a company may lose work, as its bids remain uncompetitive.

# Raising Invoice

Accountants, consultancies, law firms and other professional service providers need their employees for tracking and accounting for time correctly, so that they can raise invoice for their clients accurately.

# Analyzing Internal Costs

Companies need to know what various activities cost even when work is not being charged out to customers. This applies to business as usual activities such as accounts preparation and project based assignments.

Time recording in these types of cases assists firms for segregating operational and overhead expenses. This also gives idea how these expenses change over time. By recording time, companies can easily calculate the cost of conducting a marketing campaign. They can also determine whether a non strategic function like payroll becomes cost effective if it is outsourced to a third party.

Other Benefits of Time Recording

By collecting information regarding time, you will be in better position for planning future businesses and projects. By seeing such data, it will give you an idea how effectively your workforce will perform the assigned set of tasks.

# Time Recording Helps in Identifying Trends

Time tracking helps you in noting tends. You can see the categories of work, which are being performed less or more. So, more information you are able to gather about your company, you can understand and manage your business resources in better way.

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Know About Various Kinds of Time Recording Systems

  • Card clocking
  • Time sheets
  • Computer aided time recording

Card Clocking

This is a popular time tracking system. Conventional time clocks use punch cards, which are stamped with date and time during the beginning of a shift and then stamped again after the end of the shift. Time cards are sent to payroll processing department for every pay period. Nowadays, advanced companies deploy electronic card punching systems for recording time. This gives accurate results.

Time Sheets

These are time recording tools that keeping track of

  • Break time
  • Attendance
  • Billable hours
  • Project time

Time sheets may include expense information and hourly rates. They help you in evaluating time by task, project, worker and customer. These tools are customizable and can be used for meeting specific requirements of an organization.

Computer Aided Time Recording Systems

These are computer based applications, which track time of someone who works with particular customer or working on specific projects.

The software is of two kinds. The first kind of software helps you in switching back and forth between assigned tasks. With this, you can easily record hours spent on each project, calculate overtime, distinguish between non- billable and billable tasks and get automated, printed reports.

The second type of software runs in background of a computer and tracks every second you work for a day. This tool runs continuously by taking screen shots and helps you in recalling in short time regarding the type of work you performed and the time spent on it.

Many organizations use time recording systems. If you charge time to different projects or clients, you should keep track of hours spent. Most of the time, customers wish to know if you have reliable system in place, so that you can raise bills for them accurately.

For companies, which have choice, it is crucial for benefits of time keeping for outweighing the costs. Keeping track of your workforce and verifying what they are doing most of the day are not sufficient reasons for implementing a time recording system. If you are recording time due to lack of trust, then there are other issues that need to be addressed.

Conclusion

There are many time recording systems available in market. These range from manual operated time sheets to computer based solutions. Every time tracking system serves specific purpose. Before choosing a system, analyze your requirements, so that you can land up with the best choice.

Time spent by employees is a costly resource for many organizations. It often becomes essential for monitoring the usage of time within your company. By doing so, you can notice where and how the time is being spent. You can also observe various trends in its usage. By deploying right time tracking system, you can raise profitability, productivity and quality of customer service.

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