Time Tracking Advantages for Employers

For many businesses, large and small, one of the most difficult things to do is to keep track of employee time. However, this is actually one of the most important elements of your business, as without proper time tracking, it is impossible to know just how the employees are spending their time and what tasks they are covering. There is a fine line between time tracking and micromanagement, and it is important to toe that line carefully. Using time tracking software, which still gives the employees freedom to do their jobs without managers hovering over them, makes tracking time, projects, and much more far easier.

In fact, making use of the right software can help with quite a few different areas of a business.

Better Task Management

Your business likely has quite a few moving parts and several different tasks that you and your employees have to complete daily, weekly, monthly, quarterly, and more. Time tracking software can help to make task and project management simpler endeavors. This is especially true when you have a limited number of employees who are working on several different projects. Tracking the time that they spend on each of the projects, and determining which of the tasks is the most important, will make it easier for them to handle all of their separate duties.

Help for Payroll

Some of the systems on the market today will allow the employees to do more than just track their time. They also create timesheets, which the employers can then use to help with payroll. This can be very helpful in making sure that the employees all receive proper pay for the time they worked on their tasks and projects. Since some companies have employees who work variable hours, the time tracking software can take the worry and, quite often some of the guesswork, out of payroll. For small businesses, this is extremely helpful.


When your employees can track their time, and they understand just how important it is to do so, it can help them to focus on their work. They will know exactly what they have to do, how much time they have to do it, and how much time they are spending. They will have a better idea of how they are doing in terms of time as well. If they are running behind on their tasks, they can reevaluate how and where they are spending their time. They can also let their managers know that certain projects might be late, which will allow the management team to add more help to the project or extend the deadline.

Better Workflow

Time management software can also help you to have a better understanding of exactly what is happening in your business. It can provide the business owner with an overview of the business as well as where the team is spending their time and efforts. From a logistical point of view, this is extremely helpful. Owners and managers can rearrange projects and tasks, and provide help to those teams that need it, all while staying on track to meet their goals.

Trim Costs

Business owners are always looking for ways they can cut their costs as a means to help them improve their bottom line and reduce their budgetary needs. By understanding the workflow of the company better thanks to time tracking software, it makes it far easier to see where there may be problems or inefficiencies. When you know where those problems lie, it is easier to correct them and improve efficiency while cutting back on wasted costs.

Accurate Client Billing

Another one of the important benefits of time tracking is client billing. If you have a business that bills clients based on time rather than per project, this sort of software can ensure that you do not charge the clients the wrong amount. Charging too much for a job that was estimated incorrectly will not endear your business to the client. On the other hand, if you are not billing enough for your services, you will be losing money.

Both of these are terrible for any business, and you can correct all of that with time tracking. Your clients will appreciate this as well, as they will know you are honest about how much you are charging and the amount of work your employees are providing. Whether working solo as a freelancer or with other workers you employ, this is a great benefit.

Make Sure They Understand Why You Are Tracking Them

When you first introduce the idea of time tracking software to your company, there is a good chance that some of your employees will resist this change. They may feel that you do not trust them or that you are trying to catch them doing something wrong. It is important that you explain to them the real reasons you are adding the software to your business. You want to streamline your business and make all of the processes more efficient and easier for everyone. You want to make sure the clients receive the proper bills, and you want to keep your expenses down, which is ultimately better for everyone, including the employees.

Some may still be skeptical about time tracking, but they will come around once they see that you are not using it as a “gotcha” tactic to catch them wasting time. Of course, that would depend on whether they are actual chronic time wasters for the company.

The Right Software

As you can see, time tracking software really does have quite a few benefits for businesses of all sizes, and even freelancers will find plenty of use for it. Take the time to look at the various options on the market and choose the one that’s right for your business. Often, you can find companies that have different tiers of services and software based on the size of a company and what they need. Once you find and implement the software, make sure you and everyone in the company knows how to use it properly.


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  • Jacob Wilson says: 

    Interesting article, I agree with your points. I had a tough time introducing time tracking into our company, and finally got succesful when I found a software that could integrate with our already estabilished workflow (by providing multi-device apps and integrating with Basecamp, our project management software). We use Timeneye (, a good suggestion for who, like me, has struggled to introduce a time tracking software in their company.

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