7 Reasons Why Time Tracking is Important In Project Management

Timing is crucial for an effective project management process.

You'll have to manage your time effectively for your plan to succeed. Every team can enhance productivity by learning to track and utilize work time. Aside from monitoring job execution time, project managers need to track time for improvement purposes. 

Time tracking is an integral part of project management. To ensure your employees are on schedule, you'll need a detailed report of their activities. Many hours are spent every week on unproductive assignments. Time tracking provides detailed insight into individual job assignments and how competent employees are at their jobs. 

In this article, we'll explain why project managers use time tracking in the project organization process.

What is time tracking in project management?

Time tracking in project management involves calculating and monitoring the time team members spend completing a job. It aids the project leader in checking the team's efficiency and effectiveness in handling projects. 

Time tracking allows project executives to forecast their project duration and make essential modifications to their project management system. 

Plus, team members utilize time tracking solutions to assess their progress and confirm if they are on schedule or in line with project goals. 

Project managers can monitor their work time manually or adopt time tracking solutions. However, time tracking software is more accurate and helps you in various ways. 

• Track time expended on assignments
• Monitor team progress
• Produce reports for project analysis 

Businesses that use software for time tracking and payroll are 44% less prone to committing errors. Time tracking tools vary in their functionalities; generally, they enable project team partners to track the time they spend on tasks. 

7 Reasons Why Time Tracking is Important In Project Management

Time tracking is crucial for skilled related service providers. Most companies that work with employees hourly or freelancers use time tracking tools for different reasons.

1. It helps managers keep track and estimate the time teams spend on projects

Time tracking allows business leaders to calculate the time spent completing a particular job. If your team works on several projects simultaneously, time tracking eases the management process of each task.

Also, time tracking helps you make estimations and projections for future jobs. When you have records of the time spent on each job, you'll accurately measure the possible completion time of similar potential projects. 

However, other factors can affect project completion time, like the competence of employees and technological advancements. 

2. Telephone timesheets provide an easy method of monitoring employees.

Timesheets are essential to any growing business. It allows companies to see the number of hours their team puts in and how effective employees are at their roles. Time clock telephone timesheets provide employees with a simple way to record their working hours and completed tasks.. It also automates assignments that take more working hours to achieve.

Timesheets allow team members to monitor their improvement easily. It gives them a streamlined record of what they must concentrate on weekly.

3. Accurately bill clients and compute payroll

Time tracking helps in creating accurate invoices that are conveniently delivered to consumers. It's specifically useful for companies that bill their clients per hour. 

It ensures the correct billing of customers on services and products, thus enhancing your relationship with your clients. 

Aside from customer billing, time tracking also helps with accurate payroll computation. Almost 49% of American employees will quit working for a business after sustaining two problems with their salaries. Most time-tracking tools organize payroll efficiently.

4. It helps to manage the team better

Time tracking helps company leaders manage their teams effectively to increase productivity. It helps to evaluate overall teams' productivity and every individual's productivity. 

With the right time tracking tools, you'll gain detailed insight into the most qualified team member for promotion. It also helps in motivating team members. 

5. To create a record of work

Time tracking reports are beneficial when customers request more details. Some prospects inquire for extra information about the service they will be receiving. Similarly, investors and partners will also like to receive reports on projects. In a case like this, a timesheet report provides all the details the prospect demands.

These reports also help to explain how many resources a project takes. It's vital when auditing or when taking up massive projects. 

6. To improve how one works

Without measurement of actual data, it isn't easy to get accurate productivity results. Often, team members assume they put in so much work and are shocked by the data reports. The data reports are always correct and provide grounds for improvements.

Time tracking helps project managers tailor their workflow processes effectively. An estimated 69% of employees spend more than an hour of their work time on meetings. Managers gain insight into the areas to adjust activities that consume too much time. 

7. To keep projects profitable

Companies that offer client services value time tracking the most. For your project to be more profitable, you'll need to submit a breakdown of all you spent to complete the project. It enables you to accurately charge your clients and avoid the case of losses from undercharging. 

For profit's sake, the price you charge your customers must be considerably higher than the expenses spent on finalizing the project. Time tracking helps you determine the exact value of work put into a project.

Tips for using time tracking tools in project management

Here are a few tips to help you use time tracking tools for your project management effectively

• Study different applications

As you choose a time tracking solution, you must inquire about other various tools to ensure you're selecting the right tool that suits your project requirements. Evaluate past projects' requirements to help specify the elements you'll need to look out for in your time tracking solution. For instance, when you deal with many projects that bill consumers on a per-hour rate, you'll pick software that can gather weekly summaries that you'll send to your customer for updates on the progress of the work.

• Establish your priorities 

Employees will have several jobs to finish depending on the project's complexity. Ensure you state which task is to come first to guide team members. Stress tasks that need immediate completion. Usually, tracking tools allow functionalities that establish priorities for every job and state the deadline for completion. Defining these primary tasks with time tracking tools helps you convey information to workers on the job you'd prefer them to focus on or finish faster.

• Estimate tasks

With consistent usage, time tracking software estimates job completion times. You'll learn to give proper estimates on job completion to help you recognize jobs your team can complete in no time and those that will take more extended periods. 

When you analyze job report data for past projects, you'll learn to effectively estimate task requirements, create better-detailed forecasts, and increase your success possibilities.

• Analyze data

Different software provides comprehensive data to help you evaluate your work team's efficiency and effectiveness. 

You'll need the record to learn when your team finishes tasks earlier than your projections and spot areas that need improvement. 

When you discover that a job requires more support and needs an extended work period, you'll provide the extra resources and the time your team needs to meet the deadline for the task. In clearer terms, assessing the reports also helps you to regulate your employee's duties efficiently and distribute resources to keep the job on schedule.

• Ask for feedback

While you work on adopting a time tracking method for your projects, it's crucial to seek input from your workers so you'll confirm if it will help improve their jobs. Demonstrating how the time tracking solution enhances work processes ensures its proper utilization.

When team members use the system, request feedback on the newly adopted strategy—communicating with your team helps them engage with their job and motivates them to use the system to boost their effectiveness. 

Wrapping up the reasons why time tracking is important in project management

Project managers value time tracking for several apparent reasons. 

It helps you take intelligent steps to create, schedule your team, and run projects. Time tracking allows companies in many ways, from solving hourly billing to boosting the team's overall effectiveness. It's fundamental in making better-informed decisions for project estimating and improving individual productivity.

The right time tracking system is easy for team members and businesses. Once a team utilizes an efficient time tracking tool, the team and the corporation will profit from its usefulness.