Time Tracking Benefits and Employees on Salary
Time is money. This mantra of the business world is a truism beyond any others, and making sure time isn’t wasted is critical to ensuring money isn’t wasted. For companies that bill hourly, having their employees track their time is critical to fair and responsible charging practices. Salaried employees of all businesses should be tracking their time, even if those hours aren’t then used to bill clients. While it may not be directly obvious why, time tracking benefits are critical and achievable for all businesses.
Assessing Costs vs. Profits
When a business is smaller, the rush of getting everything done combined with the tighter dynamics of teams, makes it easier to just assume that everything that is being done is critical to the end mission of the business and ultimately bringing in revenue. As you add employees, new functions, and total revenues, it’s easy to lose track of what everyone is doing and how that factors into the bottom line. By having your salaried employees track the hours they spend daily on different tasks, you’ll be able to periodically check in on how much it’s costing you to get each facet of your business completed. It may surprise you how much you’re spending on a particular field—perhaps accounting or customer service—and encourage you to look at ways to streamline those processes and achieve cost savings.
Keeping Employees Honest
Another adjustment when the list of employees grows is staying on top of whether each employee is pulling his or her weight and contributing in the way they should. As a business owner, you have more important things to do than check in every hour on each employee’s task list. By having salaried employees track their hours on different tasks or projects, you can effectively stay on top of overall trends. Further, employees who are required to track their hours will be kept honest and motivated to continue to use their time effectively.
Grow the Business
When reviewing the hours spent on each project by your salaried employees, it’s likely you’ll find opportunities where there are extra hours available in the day that could be put towards growing the business. Without tracking the hours though, it’ll be harder to see these opportunities for growth. A responsible business owner must always be looking at how to optimize, increase efficiency and develop new business opportunities. Tracking time makes that possible in a more thorough manner.
If you want to discuss how time tracking can help you and what tools are available to your business, then the experts at Tobin & Collins are ready and able to discuss your needs. Contact Tobin & Collins to help get your company’s financial picture as perfect as can be.