The Importance of Timesheet System in Project Management
Published: 02/04/2023
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It is obvious that monitoring how much time is spent on different tasks is fundamental to project management. However, if you still depend on traditional methods like Excel spreadsheets, we encourage you to adopt a timesheet system. In this article, we will explain to project managers why this is a more effective approach and how to present it to stakeholders.
There is nothing wrong with using Excel spreadsheets for time tracking. They, along with kanban boards and other project management tools, have long established themselves as the traditional way to oversee projects. However, while still useful for many tasks, Excel was not designed for this purpose. Therefore, it has not evolved to meet the increasing demands of specific industries. Instead, although it is constantly updated and refined, it remains a very general solution. Unfortunately, this won’t be enough.
The world is more fast-paced than ever. We have high expectations for both quality and delivery times, and Excel simply cannot keep up with the volumes project management of today requires. Sticking with it might seem more comforting than changing your fundamental processes by adopting new solutions. The problem is, by not innovating, you are jeopardising your success going forward.
The main advantage of monitoring your team’s time is understanding where it is being used. Once you have visibility into that, more detailed and meaningful insights become available: individual performances, expenditure, flaws in the strategy, and much more.
Although there are many ways to track time, including traditional paper timesheets, they often no longer meet the demands of today’s market. Project managers are handling larger workloads and facing tighter deadlines than ever before. Naturally, they don’t have time to review every timesheet. That’s why dedicated solutions are the only way forward.
If your company aims to scale and grow, it won’t be long before you are hindered by inefficient methods. Naturally, larger projects will require more resources, time, planning, and so on. However, they are also more rewarding. The good news is that if you are wise in selecting your tools, even the biggest projects can proceed smoothly without unnecessary complications.
While the key feature of the timesheet system is, of course, time tracking, it is not the only one. From a project management perspective, designated software offers many more advantages. For example, it acts as a centralised view not only of your team’s performance but also of individual workers’ achievements. Depending on the settings, you can see the exact contribution level of each team member, how long specific tasks take them, and the areas in which your team faces challenges.
Such visibility makes it easier for you to relocate your workforce and resources to where they will be most effective. And these decisions won’t be based on a hunch but rather on a pattern you would otherwise detect much later, if at all. Being quick to shuffle your assets is likely to boost your productivity, accelerate delivery, and foster better team rapport. However, remember that for this to work, you must also be flexible. Don’t be afraid to make decisions on the spot - especially if they are supported by data.
Most projects involve additional expenses on behalf of the workers. Whether it's covering extra materials or simple costs like travel and on-site coffee, the process of approval and reimbursement can often be quite daunting. While expense claims are not theoretically difficult, many companies find them challenging. A robust timesheet system can assist, especially those equipped with tools designed to streamline the expense claim process. For example, our own expense management module.
It is also quite common that projects are not limited to the workers of the company for which you run the project or your own team. Frequently, additional help in the form of freelancers may be required. This introduces another issue - invoicing. Mainly because independent contractors will likely have different rates than other workers. This necessitates going the extra mile to invoice them correctly - something you probably don't have time for. That’s where a timesheet system can be invaluable. At Timesheet Portal, for example, you can generate and distribute invoices with just a click. Our software extracts information from the timesheets, creates an invoice, and sends it out. All with minimal effort on your part.
Probably the most appealing feature of time-tracking software is that it not only meets your immediate needs but also acts as an investment in your future. Naturally, it will continue supporting your efforts through automation as you work on upcoming projects. Additionally, it will provide you with insights to enhance your overall processes.
Forecasting is a fundamental part of project management and, without a doubt, one of the most challenging. The success of a project heavily relies on the accuracy of the forecast. It covers nearly everything: timelines, costs, deliverables, and more. The issue is that achieving 100% precision is nearly impossible since no one can predict the future. However, striving to get as close as possible is definitely in your best interest. The key to improving accuracy is straightforward: base your forecasts on data, not assumptions.
Timesheet software is a valuable source of data. When used consistently across various projects, it quickly reveals trends and patterns. This provides insights into your team, including their working style, strengths, and weaknesses—important factors when adjusting future forecasts. Timesheets show the approximate time your teams take to complete specific tasks. As a result, the next time you encounter these in a project, you'll have an experience-based estimate. The more you do this, the easier it becomes to determine the average and achieve greater accuracy in your forecasts.
Closely related to forecasts is reporting because reports essentially summarise the data used for forecasting. However, they are much more than just that. There is virtually no limit to what you can report on - time, expenses, individual performance, annual results, and many more. Still, the more detailed and in-depth the report, the more time it takes to produce — but not with the right software.
Most cloud-based solutions, including time-tracking tools, offer reporting features. Essentially, they process the data they gather and present it in the format of your chosen template. Some solutions provide a standard report that you can slightly modify, while others offer full customisation. At Timesheet Portal, we have options for everyone. Our solution includes over 40 pre-built reports that you can use as they are or tailor to your needs. Additionally, you can always create your own from scratch using our intuitive drag-and-drop interface. There is no limit to the number of templates you can have.
If you aren’t a decision-maker and are trying to pitch a timesheet system to your stakeholders, you’re fortunate. Understandably, most companies want to invest in solutions that provide the most value for the cost. When it comes to timesheets, project management isn’t the only area that will benefit from them. And that’s the key message to emphasise.
Most time-tracking solutions offer much more than just recording time. We have mentioned expense management and the overall pay-and-bill processes, but there is more to consider. It is common for features like document management, onboarding, holiday booking, and many others to be included. The features included can vary from one software to another, so it is important to familiarise yourself with all its capabilities before pitching it to stakeholders. Additionally, it would be wise to highlight which other processes the solution could support in the future.
The truth is that timesheet software is a tool that can genuinely transform a business. Its range of features offers significant flexibility and adaptability. For example, a system can be used to develop onboarding processes, identify absenteeism patterns, or facilitate the introduction of flexible hours. From project managers and HR to finance teams and even legal departments, it can reduce the amount of daily administrative work. Moreover, as a tool used by everyone, it helps connect teams that might not communicate otherwise and encourages sharing of findings. In other words, a good timesheet system not only becomes an essential part of your strategy but also aligns your teams.
It goes without saying that project managers need to be aware of how long different tasks take to complete. However, large volumes and high demands turn traditional time tracking methods into a significant obstacle for companies trying to grow. Larger projects naturally demand more time and effort, reducing the amount your team can handle.
To meet today’s standards without compromising the overall success of your business, you need to adopt more innovative and up-to-date solutions. Specifically, software designed to assist with time tracking. Such solutions provide you with a central overview of the process, making it easy to shift your workers and resources as needed. Not only will it support key project management functions like forecasting or reporting, but it will also become an invaluable tool for other parts of the business, connecting them all together.
Why not have a look and see what’s out there for yourself? Start with Timesheet Portal.