The Technique to Track Time Spent on Client Work
Published: 27/09/2022
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We will educate senior operations executives and managing directors about creating an effective technique for tracking time spent on client work. Many underestimate the importance of this process and its impact on overall business success. We will underscore its significance for you.
If you’re charging clients for your services based on the hours your team puts in, this blog article is for you. Presumably, you already have some procedure in place to ensure your time is being compensated accordingly; and if you don’t, now is the time to establish one. But have you ever paused to consider that you should record your company’s time for purposes other than raising client invoices? Don’t feel bad if you haven’t; it’s a common oversight and consequently the topic of today’s article. By the time you read it, we hope to have broadened your horizons and inspired you to assess time tracking from a completely different perspective.
The reason we wish to change your mind is that an incorrect approach to time tracking may be what hinders your company from growing at the desired pace. It could also be the solution you’re struggling to find to enhance your project and team management. Do we have your attention yet? If so, let’s start discussing business.
The straightforward answer is that you need to track the time spent on client work in order to bill them accordingly, but you are likely already aware of that. However, time tracking offers additional benefits for your business. Small teams and startups often share a common mistake in this area. They either completely dismiss timekeeping or postpone it until they are larger, frequently convinced that it is something they do not need or that it is a secondary process. Those who successfully scale, upon reflection, acknowledge that their growth would have been quicker had they not overlooked time tracking.
The truth is that it can drive better utilisation of your team’s efforts, improve individual performances, build client relationships, and much more. The perfect technique for a time tracking strategy begins with understanding the numerous areas it can enhance. It’s not solely a tool aimed at improving client-facing tasks, but also a powerful aid for smoothing internal communications and workflows. The second step is the realisation that client billing isn’t the priority. Without further ado, let us tell you what is…
Did you know that it’s no longer the quality of the product or the service you offer, nor its price, that dictates your success against competitors? Affordability and quality still play an important role, but their value diminishes if the customer’s journey and post-purchase experiences aren’t seamless. Your business will only thrive if you prioritise the client experience.
No one likes surprises when it comes to finances. Therefore, if you’re inconsistent with your invoicing—be it the timing or details within—your client experience will suffer. If you’re utilising an external workforce, you are more likely to encounter this issue, as your independent contractors probably use different invoicing processes than you do. While this may seem understandable from your standpoint, you must recognise that this is not a concern of the client. They will therefore be confused as to why the invoice looks different, isn’t as detailed as before, or even has a different rate listed.
All of this can be avoided by adopting a centralised time tracking platform. Once you begin working with a contractor, you will onboard them through the system, establishing their rates and deliverables. From that point onward, they will simply need to log their hours, and the tool will automatically convert them into invoices. If you utilise this system across your company and when outsourcing, clients won’t be able to identify any potential internal misalignments. This is simply because there won’t be any, which will result in a smooth, consistent client experience.
Consistency and transparency are not the only advantages of timesheet-based invoice automation. Another key reason to rely on time-tracking solutions to enhance the overall experience for your clients is the accuracy they provide. When using spreadsheets or paper timesheets to calculate what you’re owed, there is a high risk of issuing an invoice with mistakes due to human error. Invoices are automatically generated based on the data entered into the software, meaning that errors only occur if the data is incorrect.
Accuracy is supported by the ability to deliver invoices on time. Everyone is busy, we understand that - and that’s why you might occasionally miss the deadline for raising an invoice, which ultimately leads to decreased consistency and delayed payments. Here’s the kicker: the right piece of software won’t just generate invoices for you - it can also be set to automate their distribution. Whether it’s done upon the creation of the invoice or on the specified date within the chosen period is entirely up to you.
While every company should focus on serving the customer, it’s important to remember the significance of internal processes. Monitoring the time your teams spend on different tasks can help improve multiple aspects of the business. Ultimately, enhanced performance will lead to an improved client experience—identified as the key to success. Next, let’s explore how to implement time tracking internally to delight your customers.
Younger companies tend to be hesitant to track time as they see it as ‘micromanaging’ and are committed to their values of not engaging in such practices. This is a crucial mistake that some only come to realise as they scale. Without time tracking in place, you’re likely to deplete budgets, as you will not have the accurate data needed for forecasting projects; therefore, your work allocation will primarily rely on estimation. Although this may not seem like a significant issue in the early stages of a company, it becomes a considerable problem as the volume of clients and their demands increases.
When you track both team and individual time spent on various tasks across the project, you equip yourself with quantitative data on how much time your workers dedicate to specific assignments. This can help you devise better plans moving forward, as you will possess definitive knowledge backed by numbers. It may also reveal that you aren’t generating as much revenue as expected, prompting a reconsideration of your entire business model. In other words, you should monitor the time spent on client work to enhance efficiency in its use.
Utilising a centralised time tracking solution not only provides a better overview of team performance but also keeps team members aware of each other’s progress and contributions. This level of transparency facilitates more effective planning of workloads, smoother workflows, efficient management of handovers, and the ability to provide assistance when necessary. In other words, it becomes an invaluable tool for communication within the team.
Naturally, when your employees are equipped with tools to be aware of each other’s performance, they can not only collaborate better but also hold each other accountable. This makes it easier to identify who is underperforming in certain areas, creating opportunities for additional training. Recognising the strengths and weaknesses of employees can be key to enhancing individual performance, which will ultimately drive team results. It will also provide valuable insights for future project planning, bringing us back to the previously discussed improvements in workforce allocation.
There are numerous ways to track the time spent on client work. From traditional methods like spreadsheets to a plethora of digital tools, it largely comes down to personal preference. However, the preferred approach may not always be the most efficient, so it is essential to find a solution that meets the specific needs of your business. With so many options available, the selection process can indeed feel overwhelming. But fear not, we have a foolproof suggestion for you.
Granted, it’s not impossible to find a way to track time spent on client work that meets all your criteria—however, it is quite challenging. Often, out of fear of missing features they may not realise they need, companies end up overpaying for solutions that provide the broadest array of functions. Such tools, as one would expect, tend to be on the more expensive side as well. Here’s a hard truth to accept: unless the additional functionality is being actively utilised, the business is losing money. In fact, you might find yourself overpaying for specific features when you invest in a pre-built software package that you don’t fully use.
At Timesheet Portal, we prioritise the needs of our clients and aim to add a layer of convenience to their operations. This is why we allow our users to customise their platform for their business. Depending on the size and requirements, every company can select the modules and number of users they need, and then pay exclusively for that. They can easily upgrade or downgrade as needed; circumstances change, and we are here to accommodate them.
It’s true that you need to track the time spent on client work, but there are many ways to do so. Unfortunately, not all of them are equally effective. Some, in fact, can hinder the rest of your business operations. Others, on the other hand, will do exactly what you want them to and nothing more. The best choice would be to stick with the options that not only do the job but also go beyond its primary functionality, enhancing multiple areas of the business. Such an option is more accessible than you think.
The most effective technique for tracking the time you charge clients involves a digital timesheet solution. Top-tier tools such as Timesheet Portal not only provide easier client billing service; they also enhance the overall client experience and the fluidity of your internal operations. Combine that with the flexibility of the pricing module, and you’ll be pleasantly surprised by the ROI in no time.
It’s time to rethink your time-tracking strategy. Let us assist you.