A profitable business isn’t simply about that bottom line, despite this so often being the driving factor for decision makers. Companies need a holistic view of who is doing what and how long it’s taking them if they are to maintain and improve profitability, but unless operations are analysed effectively, through the deployment of time-tracking software, it may ultimately be a futile endeavour.
Legacy systems don’t allow quick reporting on work in progress for the whole business, which in turn means that the analysis of data is delayed, and accessing the full picture of the company in real-time is lost. State-of-the-art time tracking software, such as that offered by TallyPro, can answer the key questions. Who are the most profitable clients? Or, on the other hand, which employees are bringing in the highest billables?
The antiquated approach of manually tracking expenses, invoices and projects involves copious amounts of manpower and leg-work – which will also be costing time and money that doesn’t necessarily need to be spent if a modern time-tracking software service is used.
Real-time reports on all such activity can provide business owners with a 360-degree picture of those bringing in the big bucks, as well as weeding out the time thieves soaking up company resources to see where profit margins are made. It’s fair to say that the majority of company executives understand the need for time tracking, though most aren’t utilising its power to improve profitability.
How to improve profitability with time tracking
Here we look at how time tracking software can impact your profits.
Ensure employee output is maximised
Step one to banking continuous profits is hiring the best employees for the job, likely at a significant cost. The people are the business and the business is people – that’s worth the initial output. But what steps can be taken to prevent those talents from hitting a metaphorical output wall? The strength and returns of a company depends on these staff members repeatedly pumping out results.
One of the many major bonuses that time tracking software brings is the proof that it drives productivity. A well-oiled, motivated staff can drive profits through the roof.
What’s more is that using the time recording system to get instant, up-to-date metrics can highlight how well your business is performing and who, amongst the ranks, needs to raise their game.
Be sure to cash all billable hours
While all companies can benefit from time tracking software, it’s those project-based jobs that will see a major boost in profits after switching over. The amount of time spent is what determines either the salary for of the employee, or the sum that will be asked of the client.
Therefore, profitably lies heavily in time tracking. Instead of estimating the amount of time it took to realise a project, employees are able to record a specific amount of time without having to retrace every meeting, phone call or interaction days or weeks after. More often than not, people will round down in an effort to maintain strong client relationships – leaving their own firm high and dry. A 2013 report by the American Payroll Association (APA) found that some $148bn was lost annually due to timekeeping errors. With resources like TallyPro, it not only speeds up the process, it also empowers staff to invoice clients with exactly what they are owed.
It also benefits a business by providing a blueprint for the future and letting bosses examine if they are spending the right sum of money on an individual project, as well as pointing them towards which customers need to be prioritised. As each project comes to a close, there is already an insight about the estimated expense for similar projects in the future.
Knowledge is power
Bosses at large companies are faced with the dilemma of trying to know all the ins-and-outs of what’s making money and what’s hindering progress. In reality, the luxury of complete visibility is lost, while finding ways to assess it is a Mobius strip that will be continuously chased, with little impact on productivity.
Gathering data in the past has been an arduous task, while evaluating and making decisions based on the numbers was even more onerous, time-consuming and costly in terms of manpower. The beauty of time-tracking software is that it completely streamlines that process and takes out the middle step of input and reporting, which is so often forgotten or inaccurately logged, often costing companies their margins.
Let’s do it ourselves
Businesses do not have the same time recording needs, which is why a one size fits all approach could be more of a hinderence than a help. We’ve covered the nightmares that arise with the wrong time tracking platform in a previous article.
TallyPro is unique in that it offers customisations at no extra cost. What this means is that businesses can get tailored reports on specific things that they need. These personalised reports also help businesses see whether they are actually profitable or not, as well as highlighting who their profitable clients and employees are.
Let’s be honest – nobody actually works eight-hour days. Deal with it. Social media, coffee breaks, and ‘that bird that keeps appearing out the window’ all distract attention from work.
Time tracking allows bosses to see hours spent on tasks or with clients to make informed decisions to drive profit.
All-in-all, it’s a fine line between success and major losses in the cut-throat world of business – take out the strain of uncertainty with time tracking software that can be quickly tailored to your business needs to improve profitability.