Timesheet tools: How they improve productivity and reduce costs

Timesheet tools raise mixed emotions amongst users. Some recognise the need to complete a timesheet as part of their job, e.g. lawyers, consultants, etc. Other users do not like the thought of someone else reviewing where they are spending their time.

However, timesheet tools like pm3time can, if used properly, improve productivity and reduce costs.

Here we list the key ways this can happen:

A timesheet tool can significantly in various ways:

1. Accurate Time Tracking

Timesheet tools allow employees to track their working hours accurately. With real-time tracking, businesses can ensure that billable hours are accounted for, reducing revenue leakage and increasing billing accuracy.

2. Identifying Time Wasters

Timesheets help identify time-consuming tasks or projects that might not contribute much to the overall goals. By identifying these time-wasters, individuals and organizations can prioritize more valuable activities.

3. Improved Resource Allocation

Timesheet data provides insights into how employees spend their time on different tasks and projects. This information helps managers allocate resources more efficiently and redistribute workloads based on individual strengths and availability.

4. Project Monitoring

Timesheets enable better monitoring of project progress. By tracking hours spent on each task, managers can identify potential bottlenecks and address them promptly to keep projects on track.

5. Invoicing and Payroll

Timesheet tools streamline the invoicing and payroll processes. Accurate time tracking ensures that clients are billed correctly for services rendered, while employees receive fair compensation for their work.

6. Improved Project Estimations

Historical timesheet data can be valuable for future project planning. Organizations can analyse past projects to make more accurate estimations for similar projects in the future, reducing the risk of underestimating or overestimating costs and timelines.

7. Enhanced Accountability

Timesheets promote accountability among team members. When employees know that their work hours are being recorded, they are more likely to stay focused and productive.

8. Better Decision-Making

With detailed time data, managers can make data-driven decisions regarding resource allocation, task priorities, and project management.

9. Remote Work Monitoring

Timesheet tools are particularly useful for remote teams. They provide transparency and visibility into remote employees’ activities, fostering trust and ensuring productivity.

8. Compliance and Regulations

Timesheets can help organizations comply with labour laws and industry regulations related to working hours, breaks, and overtime.

9. Reduced Administrative Burden

Automating time tracking with a timesheet tool reduces manual administrative work, allowing employees and managers to focus on more critical tasks.

10. Insights into Billable vs. Non-Billable Hours

For service-based businesses, timesheets provide insights into billable and non-billable hours. This helps optimize revenue generation by focusing on billable activities.

11. Productivity Analysis

Timesheets enable businesses to analyze employee productivity over time. Identifying trends and patterns allows organizations to implement targeted training and improvement plans.

12. Client and Project Profitability

By tracking time spent on specific clients and projects, businesses can determine which ones are the most profitable and which might not be worth pursuing in the future.

Timesheet Tools: Summary

Overall, a timesheet tool promotes transparency, accountability, and efficiency within an organization.

It empowers both employees and managers with valuable data to make informed decisions, optimize resources, and streamline operations, leading to improved productivity and cost reduction.

More About Timesheet Tools

Timesheet tools should never be culturally unacceptable

Ever wonder how timesheets could improve your organisation’s productivity but worry that introducing them could lead to mutiny? Our PMO expert, David Walton, gives his take on 20 years of experience to list the 4 main reasons why your team should embrace the positive benefits of timesheets.

Why you should make timesheets an essential part of your organisation

Timesheets are not a glamorous subject to talk about, but they do play an important role in many organisations. As a PMO manager, it pays to understand how you can use timesheets to benefit your business will help you make decisions that can affect the profitability and productivity of your company.

How do timesheets improve profitability?

They may appear quite dull but an easy-to-use timesheet system can not only save administration costs but can help drive increase margin and profits. It does, however, need to be simple to use and administer. Here’s how timesheets can improve profitability.