Should You Invest In Time Tracking And Billing Software?
Many companies invest in time tracking and billing software to streamline business operations, but it's also a great way to improve customer relations and reduce payroll costs. So, how do you make a strong business case and get employee buy-in? In this article, I highlight 7 notable reasons to consider time tracking and invoicing software for your team, regardless of your industry, staff size, or spending limits. These platforms can help you improve ROI and boost employee accountability, and that's just for starters.
7 Reasons To Invest In Time Billing Software
1. Reduce Payroll Expenses
Doing payroll the "traditional" way involves a lot of manual data entry and analysis. Employees need to clock in and out every day, provided that they don't forget. Then your payroll processing team must tally all the billable work hours and calculate paychecks based on the employee's salary. Investing in time tracking and billing software helps to cut payroll costs because the tool does most of the background tasks for you. For example, tracking how many hours a staffer has worked this week and then displaying their total pay after deductions. Thus, your HR or Accounts Payable department has a lighter workload, at least in terms of weekly paychecks and billing.
2. Streamline Client Billing
Another prime reason to implement time tracking systems in your organization is to streamline client billing and invoicing. The platform can automatically generate invoices based on the number of hours employees worked, but you also have the option to add expenses manually. For example, one phase of the project required more resources or curated content. Or maybe one of your staffers worked on a task that wasn't tracked, such as revision meetings with the client, then you can email them the bill with all the supporting documents.
3. Avoid Human Error
Everyone makes mistakes. After all, we're only human. However, data entry or calculation mistakes dig into your bottom line. For instance, one of your Accounts Payable employees accidentally adds an extra 0 or inputs the wrong hourly wage for an entire department. These errors involve a lot of data clean-up after the fact to make things right, such as reprocessing paychecks or deducting the surplus amount from their next payment. Not to mention correcting the payroll records and re-establishing trust with your staffers. Time tracking software monitors employee tasks and work hours so that there's no human error involved.
4. Boost Customer Satisfaction
Customers are less likely to stick with your business if you continually make payment processing or invoicing mistakes. Time billing software helps you maintain full transparency regarding billable hours, project tracking, and additional expenses. They get their invoices rapidly instead of waiting to see how much they'll have to pay. In addition, they can see all the individual tasks and resources included in the price tag. If there's an issue, you have solid documentation to show them. A bonus tip is to look for tools with payment integrations. For instance, you can integrate PayPal to simplify payments and keep customers happy.
5. Improve Employee Retention
Some organizations assume that implementing time tracking apps will drive some of their staffers away because they feel micromanaged. The truth is that your top performers appreciate software that boosts on-the-job productivity. Time tracking apps allow them to analyze their projects, keep a personal or group calendar, and identify areas for improvement. For instance, they took longer than expected to complete a task. Why is that and are there any skills they can develop to speed up the process? As a result, you retain top performers and reduce turnover rates since employees are more satisfied on the job and have better oversight of their work duties.
6. Provide Accurate Estimates
Virtually every business has given a cost estimate only to realize that they've overcharged when all is said and done. On the other hand, you may have overestimated the costs and lost valuable business because a competitor underbid you. Time tracking apps can help in both regards. It allows you to provide more accurate price quotes so that clients know what to expect and how to budget, not to mention find a company that offers the best value for money. You can even look back at similar projects and use those numbers to create personalized estimates.
7. Track Staffer Performance
Time tracking and billing software gives you a high-level overview of team performance. But you can also break it down by individual tasks or job roles. For example, one of your L&D staffers worked on the project for five hours this week, which is far below the time estimate. Which other tasks are preventing them from wrapping things up? Do they need additional resources, or is it simply a matter of time management? How can you help them stick to the schedule and avoid missed deadlines? Another perk is identifying team members that might belong in other departments. For instance, they spend half their workweek completing tasks for another team. Should you make the move permanent to maximize their talents?
Conclusion
While some organizations invest in time tracking and billing software to boost workplace productivity, there are many benefits it brings to your bottom line, such as cutting payroll costs and making it easier for clients to make payments on time. The key is to look for tools with all the features you need to improve ROI. Our exclusive online directory has the leading time tracking and invoicing software for every industry and customer type. There are even ratings and reviews to help you make the best buying decision for your business.
