Best Time Tracking Software

Time Tracking Software Guide

Time tracking software is an invaluable tool that allows businesses to measure, manage and maximize the productivity of their employees. It helps employers understand how long tasks take, how workers are spending their time throughout the day and which projects they are working on. This data can be used to boost employee performance and productivity, reduce costs, improve customer service and develop better workflows.

Time tracking software typically records when an employee starts a task or project and when they finish it. It will also track the amount of time spent on each task or project so that managers can more easily determine which areas need improvement. This data can help identify processes that may be inefficient or areas where additional resources might be necessary. Time tracking software may also offer reporting features so that businesses can analyze their overall productivity over a period of time.

Time tracking software is also useful for billing clients by recording the time spent on projects from start to finish and providing detailed reports which make it easier for companies to accurately bill their customers. Many programs come with built-in billing functionality as well as built-in invoicing options making it even easier to keep track of bills owed and payments received without having to manually enter all the details into accounting software or paper documents.

Lastly, some types of time tracking tools are mobile friendly, allowing employees to log in remotely using a smartphone or tablet. They may also include GPS location tracking which makes sure employees cannot login while not at work unless given permission by their manager or supervisor. On top of this many modern time tracking solutions include integrated team collaboration tools like chat rooms that enable workers to communicate quickly with other members of staff in real-time, further improving overall efficiency in the workplace!

How Does Time Tracking Software Work?

Users of time tracking software get a useful tool to manage their time in an efficient way. Online time tracking software is designed to be accessed through a web browser or a mobile app. Users thus have access to the software and its data, no matter what kind of device they're using to do their work or where they're currently located.

This type of software is often referred to as cloud-based, online, browser-based, web-based or Software-as-a-Service (SaaS). It differs from traditional software solutions that are installed locally on a workstation or on a local server.

Task management tools allow teams to plan their activities and organize the tasks they'll carry out. Time tracking tools provide additional functionality by giving every team member more insight on which tasks they spend time on during the workday.

Advantages of Time Tracking Software

Better Scheduling

By having an understanding of how each employee spends their time, managers can get the data that they need to make better scheduling decisions. Furthermore, online time tracking tools allow both individual and team calendars to be centralized. This gives managers the ability to see the workload of all team members, in addition to their future availability.

Improved Productivity

As time tracking software gives managers and other stakeholders real-time information about the statuses of each ongoing project, this can greatly boost efficiency. Users can be given accurate information as to the tasks they're expected to carry out and when they're due. Time tracking software also lets team members see how they're performing against objectives and timelines.

Some online time tracking solutions provide a public team dashboard that displays everyone's progress. This can be a great incentive for everyone to complete their assigned tasks on time.

More Accurate Project Cost Management

Time tracking software provides managers with valuable insights, such as the estimated versus actual time it takes to complete various tasks, projects and milestones. Project accounting and project tracking can be used to get a much clearer picture when it comes to project profitability. Businesses can use data collected from work on past projects to more effectively plan future ones.

Additional advantages of time tracking software include:

1. Accurate Billing: Time tracking software provides an accurate record of employee hours, enabling organizations to accurately track time spent on specific tasks and bill clients accordingly. This ensures that employees are paid fairly for the work they do, while also preventing organizations from overbilling their clients.
2. Easy Reporting: With a digital time tracking system in place, it’s easy to generate reports showing which employees have worked when and on what tasks. A detailed record of this kind makes it simple to do payroll calculations and prove compliance with labor laws or other regulations.
3. Reduced Errors: A good time-tracking solution will automatically calculate totals for each day or week, meaning all files need not be manually checked for errors such as incorrectly entered data or typos.  Additionally, if the system has an integrated attendance management module, it can help reduce manual errors associated with calculating overtime pay.
4. Improved Accountability: Digital time tracking systems make it easy for managers to monitor exactly when each employee arrived at work, left for lunch breaks, logged out after finishing assignments – providing them with a clear view of individual performance; and by extension incentivizing employees to stay productive throughout the day.
5. Enhanced Collaboration: As a time tracking system stores all data in one central repository, it provides an efficient way for teams to collaborate. Team members have easy access to the same project files and can instantly see who has worked on what tasks, enabling them to make informed decisions quickly.
6. Reduced Paperwork: Keeping physical documents for each employee’s hours and payroll records can be a laborious process, especially if multiple employees work on the same project. Everything can be managed digitally with a time tracking system, eliminating paperwork and freeing up resources for other tasks.

Features of Time Tracking Software

The difference between web-based and on-premise time tracking software is that it's based entirely in the cloud. This means that users don't need to install any software on local servers or workstations. This kind of software deployment has many benefits, but it also comes with a few drawbacks.

The majority of cloud-based software solutions are offered on a subscription basis. This means that instead of paying an up-front fee to buy a software license, users pay a recurring fee every month or year. This results in lower upfront costs. However, over time, the costs of web-based and on-premise systems begin to converge.

Another big benefit of web-based time tracking solutions is that a tool that runs in the cloud can be accessed remotely. All that you need to use it is a standard web browser. All updates are handled on the vendor's end, so users don't have anything to install on their device. However, some organizations that have significant IT resources might prefer to use on-premise software, as having the software running on their own servers gives them more control over the program and the data that it generates.

Both on-premise and web-based time tracking solutions have similar functionality. Here are some of the most common functions that you'll find in this type of software, no matter whether it runs in the cloud, on a local server or is installed on the user's computer:

Time Clock

Every time tracking software has a form of time clock included. This can be either an automatic one, which starts when certain programs are opened, or a manual one that is controlled by the user. The time clock allows users to record start and end times for tasks they work on. This function is very useful, as it lets managers see exactly how much time each user spent on a task.

Timesheets

Timesheets are a log of each team member's time clock start and end times, though information can also be added manually if necessary. They show a summary of how many hours each individual spent on a project or task.

Time Categories and Classification

Time tracking apps often include a function that allows the creation of different time categories and classification. Time can be tracked separately for each user, task or project. Administrators can assign pay rates or a fixed price to certain categories. Having different time categories also makes it a lot easier to keep track of both billable and non-billable hours.

Dashboard and Reports

This feature provides you with a central overview of team schedules and the time logged so far on each task and running project. Time tracking software also lets you instantly generate reports that can be customized to show total or billable hours, as well as hours worked by a specific person or group of people.

Invoicing

Some businesses may bill clients based on the number of hours they've spent working on a project. Time tracking software often comes with an invoicing function that can create invoices based on hourly rates that are set by user, task or project.

Free Versus Paid Solutions

If you're a small business with a limited IT budget, you'll find that there are several online time tracking applications that are either completely free to use or have a free subscription tier. Free systems can be a great solution for startups and small teams that are just getting off the ground.

However, you should know that free tools often come with many limitations. They may have less features compared to paid software and often come with limited support. Many businesses that get started with a free tool eventually move onto a paid solution once they grow and their needs change.

Types of Time Tracking Software

Stand-Alone Platforms

A stand-alone solution is a program that works independently from other software. Many developers specialize in creating time tracking software and make it available to users as their sole product. Users of stand-alone time tracking solutions should ensure that the timesheets generated by the software can be easily used with their accounting system and other applications, such as payroll software. Fortunately, many time tracking tools now have seamless integrations with other business software programs.

A Component in a Suite of Applications

Time tracking software can come as part of a larger suite of business software, such as a professional services automation (PSA) or project management suite. Using an online project management solution that includes a time tracking component is a very good way of ensuring that your data will flow seamlessly between various components of the PM application.

Trends Related to Time Tracking Software

Flexible Work Arrangements

Many employers are now offering flexible work arrangements, including flextime, job sharing and telecommuting, as a way to attract new talent and retain good employees. Online time tracking solutions are often used by these employers to ensure that remote workers are still putting in eight hours of work each day.

The majority of time tracking solutions have an "idle detection" function that records time spent away from the keyboard. Some are able to track employee activity by taking screenshots and recording keyboard and mouse activity throughout the work day.

Growth in Popularity of Agile Methodologies

Kanban and scrum are two of the most popular agile methodologies in the business world and are intricately linked to time. Both kanban and scrum tools can be used to monitor the amount of time team members spend on project parts and tasks.

Teams following kanban take advantage of cumulative flow diagrams which show status updates of various work items over time, in addition to lead and cycle time diagrams that show how much time is remaining to the completion of a task or project.

On the other hand, teams that follow scrum use timeboxes, which are referred to as sprints. These timeboxes allow them to structure their time allotted to finish a selected number of tasks in a project. In most cases, a sprint is two weeks long. Progress is then tracked by using burndown charts, which show how many time it took to complete tasks versus the total time in the sprint.

Additional time tracking software trends include:

1. Automation: Time tracking software has become increasingly automated, allowing organizations to save time and effort by automatically calculating employee hours, overtime pay, and other related data.
2. Mobile Accessibility: Many time tracking applications are now available on mobile devices, making it easier for organizations to track employee hours from anywhere.
3. Integration with Other Software: Nowadays, many time tracking platforms integrate with payroll and accounting software, allowing companies to streamline their processes and save time.
4. Flexible Scheduling: With the help of time tracking software, businesses can easily design flexible scheduling options that accommodate remote workers or employees who need irregular working hours.
5. Remote Work Capability: Thanks to cloud-based solutions, businesses are able to monitor remote employees' hours accurately while they work from home.
6. Reporting & Analysis Tools: The latest versions of time tracking software offer powerful reporting and analysis tools that allow organizations to gain insights into their processes and productivity levels.
7. Customizable Features: Businesses are now able to customize their time tracking applications according to their specific needs and requirements, allowing for greater flexibility and control over their operations.
8. Security: Modern time tracking software is designed with advanced security features to keep sensitive data safe and secure.

Who Benefits From Time Tracking Software?

Inaccuracies in time tracking can cause various problems for a company, such as incorrect payroll, inaccurate estimates and unneeded overtime. Time tracking software helps ensure that you have access to reliable and accurate data at all times, which enables you to better plan your projects and focus on your core tasks instead of tracking time manually.

Many individuals and departments within an organization can benefit from the use of time tracking software. These include:

Project Managers

Many project managements that work with several clients on different projects use a system with project portfolio managers that includes time tracking functionality. Project managers need to have a reliable solution to measure task time, as it lets them create estimates for future projects. Some project managers prefer using an all-in-one PM suite, while others are perfectly satisfied with a standalone time tracking application that integrates well with their other systems.

Marketing, Sales and Development Teams

Many businesses don't need a time tracking system that is deployed across the entire enterprise. Instead they may just need to track the time of employees that work directly on client projects, such as marketing, sales and development teams.

Freelancers

Professionals that bill for their services by the hour often use time tracking software, as it gives them a convenient way to keep track of how many hours they've spent working for each of their clients. If you're a freelancer or run a tiny startup, a simple time tracking solution can be very convenient, as it not only lets you see how much time you've spent working on different projects, but also lets you automatically generate invoices and reports for your clients.

How Much Does Time Tracking Software Cost?

The cost of time tracking software can vary widely depending on the features and services included. Generally, time tracking software costs range from free for basic versions to several thousand dollars for more sophisticated systems that include additional features like project management and payroll integration.

At its most basic level, many companies offer free or low-cost versions of their time tracking software that allow you to manually enter the hours worked each week and calculate totals for billing purposes. More advanced versions of these programs provide automated entry of timesheets, project management capabilities, payroll integration, overtime reporting, and other helpful features. These more advanced programs usually cost between $20-$50 per month per user (or a one-time fee if purchased outright).

For organisations looking for even more comprehensive features such as GPS location tracking, attendance tracking, HR compliance monitoring, employee scheduling or HR analytics, there are higher-end solutions available that may be well worth the extra cost. Prices for high-end time tracking software can range anywhere from $50-$200 per month per user (or a one-time fee if purchased outright).

For businesses that need an especially robust solution with enterprise-level security and access control options, there are dedicated enterprise packages available which typically cost between $100 - $500 per month per user (or a one-time fee if purchased outright).

Ultimately the best time tracking software for your organisation will depend on your budget and specific needs. If you’re unsure about investing in a paid version at first you can always try out some of the free or low-cost options to get an idea of how it works before making any final decisions.

What Integrates With Time Tracking Software?

Time tracking software is designed to integrate with a variety of types of software, such as project management tools, business applications, and office suites. Project management software can help teams track their progress on tasks and projects, while business applications can provide analytics and insights into spending and revenue. Office suites like Microsoft Office or Google Docs may be used to generate reports from the time tracking data. Additionally, some time tracking systems may also be able to integrate with payroll systems to ease the process of paying employees for their hours worked.

How To Select the Right Time Tracking Software

1. Identify your company’s needs: Before picking the right time tracking software for your business, it is important to determine what you need from the software and how it will benefit you. Ask yourself questions like; How many employees do you need to track? Do you need single or multiple job costing? What are your reporting requirements? Will this software integrate with other systems in place?
2. Research products: Once you have determined what features and capabilities are necessary, begin researching potential time tracking products that meet those criteria. Look at customer reviews and ratings, read up on product specifications, compare pricing models, and select a few options that suit your needs best. Compare time tracking software solutions using the tools on this page and sort by user reviews, features, cost, integrations, operating system, and more.
3. Demo the software: After narrowing down the choices, ask for product demonstrations from each of the vendors so that you can preview their features first-hand prior to purchasing. It is also important to pay attention to user experience (UX) during these demos.
4. Make an informed decision: Finally, based on all of your research and product demos, make an informed decision about which time tracking software suite works best for your business needs and budget.