4 Important Benefits of Using Time Tracking Software for Small Businesses

The common problem that small businesses face is a limited budget, which sometimes is not enough to fully cover the expenses.

In such circumstances time tracking software, is the last thing that business owners think about. What they see is another expense. However, time tracking tools help to significantly improve the performance of the company and reveal hidden expenses.  

What are the Benefits of Time Tracking for Small Businesses?

1. Getting Ready for Payroll Faster and More Accurately

Regardless the size of the company, getting ready for payroll might be a hassle. Mostly because there’s a lot of papers and timesheets that need revision, someone has to enter all the information about worked days and time into the computer and get it approved.

Just imagining all the process gives a clear understanding that it could not be done in one day.

But, with time tracking software, things get much easier.

The software automatically collects the data about employees’ working time and days, and then generates it into reports. Nobody can edit the data, which means that you get accurate numbers, excluding the possibility of adding up extra hours.

Furthermore, you save the time of employees who prepare the payroll by eliminating the need to enter manually the data and enable them to approve faster and easier.

2. Improved HRM

Small businesses might have only one HR-manager, or not have this position at all. In both cases, human resource management is a challenge if it’s done the old-school way.

Pen and paper methods are inefficient nowadays and create a lot of room for mistakes. Time tracking software will help to streamline basic HRM processes like:

• vacation management;
• scheduling employees who work flexible hours, work in remote offices or were hired as part-time employees;
• managing overtime;
• payroll.

You have all the information about employee performance, hours worked, no matter what the schedule is, projects and tasks progress statuses right in front of you.

3. Detect Unutilized Software

Every business has a set of applications that they use for data management and analytics. Because free plans usually have limited functions, businesses have to purchase the software.

However, how often is this software used?

It’s quite difficult to determine the frequency of use, but with time tracking software you can know exactly how often and which app is used.

If one, is rarely used, maybe it’s better to find a cheaper version that would have similar features. If one is not used at all, just stop using it.

4. Increased Productivity 

Only some of the time tracking vendors offer automatic productivity evaluation, for example, Yaware.TimeTracker.

The assessment of employee performance consists of dividing all used resources during the day into productive, unproductive and neutral. The software also captures the time spent on each app/website and then generates a visual report.

Using such productivity reports you can precisely detect what interferes the performance of employees and study the productivity patterns of your teams.

Conclusion
Time tracking software gives a better understanding of how much time it takes to finish typical activities and how employees spend their time. So, take that into account when building plans for future.