Top 5 Reasons to Use Time Tracking in Project Management

The Top 5 Reasons to Use Time Tracking in Project Management

Efficient planning is what helps teams complete a project. The question is: how do you ensure the plan sticks to the deadline? How would project managers ensure the timely execution of every task? The answer is project management.

However, project management is not sufficient on its own. There are various components that drive it; one of these is time tracking.

Monitoring time spent on a task helps project managers plan future projects with ease. Time tracking provides an in-depth look at how a team member handles a task and how good they are at it.

That said, the information below will give you some reasons why it is important to include time tracking in project management.

First, let us find the answer to the basic question – What is time tracking in project management?

What is Time Tracking in Project Management?

Time tracking in project management requires calculating and monitoring the time a team spends on completing a task. It also gives the project manager a good idea of how efficient the team is and how effectively they handle a project.

Using time tracking in project management also helps forecast a project’s current situation and make necessary adjustments to the plan. Moreover, team members can use it to ensure that all tasks are on schedule.

There are some time-tracking tools that help project managers track time manually and with timers. Apart from this, these also help them:

  • Track time spent on a task.
  • Check team progress
  • Generate reports for accurate project analysis.

Now, let us check out the reasons why using time tracking in project management is a good deal for you.

5 Reasons You Should Use Time Tracking in Project Management

As is clear from above, time tracking does offer some major benefits when it comes to project management. Let us take a look at the reasons why you should use time tracking in project management.

It helps managers track the team’s time spent on a task.

Business managers can determine how much time a team spends on a specific task by using time tracking in project management. This comes in handy when a team is handling multiple projects simultaneously.

In addition, time tracking helps make estimations and projections for future projects. With a record of the time spent on a specific project, managers can predict the completion date of similar projects in the future.

  • It helps monitor employees’ productivity.

    There are some time management tools that offer a timesheet feature. Timesheets help organizations check how many hours a team puts in at work and how effective the employees are at their jobs.

These also help employees record their working hours and the tasks completed during that period. In other words, time tracking in project management helps companies monitor an employee’s productivity.

  • Helps with Billing Clients and Calculating Payroll

Including time tracking for managing projects helps generate accurate invoices for billing clients. This is a major benefit for organizations that bill clients on a per-hour basis, which ensures correct billing for a service or product. In the long run, this helps improve the organization’s and client’s relationship.

Apart from this, time tracking makes the job of the company’s HR easy through accurate payroll computation. Many time-tracking tools offer this functionality.

  •  It helps make every project profitable.

Time tracking is the most valuable asset for organizations offering client services. For a project to be profitable for the company, one has to submit a breakdown of all the resources spent to complete it. Doing this helps in asking for the right price from the clients and minimizes losses.

To make a profit, businesses have to keep the price charged to the customer higher than the expenses incurred in completing the project. It is time tracking in project management that helps you determine the exact value of the work required to get the job done.

  • It helps maintain a record of work.

A major benefit of including time tracking in project management is time tracking reports. These come in handy when the customer demands more details about a product or service they want to purchase, making them a valuable resource to consider when evaluating a Qualtrics competitor.

 At the same time, stakeholders and investors can also ask for a project report. With time tracking in project management, managers can generate time-tracking reports to share the project details. It comes in handy while auditing or handling a larger project.

How does time tracking help in delivering successful projects?

Below are 3 ways using time tracking in project management ensures maximum ROI for an organization.

  • Improves Work Transparency 

Incorporating time tracking into daily project management helps increase your organization’s transparency.

Time tracking tools give you deep insights into completed tasks and the actual time it took to complete them in comparison to the estimated time. It helps project managers recognize what tasks consume more time, schedule them, and prioritize them accordingly.

Time tracking offers all team members and managers a realistic view of the overall workflow. It helps everyone understand their roles, which improves workplace productivity. Using time tracking for project management helps managers design better work schedules depending on the tasks and who is available to do them.

  • Helps monitor project progress.

 “Only 16% of people say they ‘always’ hit their deadlines”. Project Management Stats (2021)

The statistics above clearly show that only a small percentage of employees can meet the task deadlines. So, missing out on deadlines will always lead to a waste of resources, and you will always run late to complete the pending tasks.

Employees underestimating the role that time plays in finishing a project will always cause organizations to suffer financial losses. Add to that, there will always be an employee who spends time on projects of lesser value. Eventually, clients will start losing trust in your brand.

However, time tracking in project management always helps you keep track of more than just the number of tasks. It also tells you what stage a task has reached in the workflow.

  • Automates timesheets and facilitates invoicing.
    A time-tracking tool can make it easier for organizations to handle timesheets and invoicing. Some might ask, Why are timesheets and invoices so important?

Well, timesheets help you generate accurate invoicing for the client. Doing this helps improve client relationships. Moreover, timesheets offer more accurate data on how frequently they complete a given weekly or monthly task.

Let’s take a look at some of the best time-tracking tools for project management.

Top Time Tracking Tools for Project Management

Given below are the best time-tracking tools for efficient project management.

ProofHub offers you the right tools to manage daily tasks as well as time. From assigning and managing tasks to keeping track of time spent on the project, ProofHub has your back. It lets project managers and team members keep track of time manually and with timers.

Other features of ProofHub include:

  • Add timesheets to record time data.
  • Set time estimates to see how much time it should take to get work done.
  • See time data for billable or non-billable projects and project progress.
  • Limit the visibility of timesheets only to the people you want to share them with.

ProProfs Project is among the best time management software to keep track of the time it takes to complete a project. It helps you meet deadlines by assigning due dates to each project and dividing complex jobs into subtasks to make execution easier and error-free. With its simple project management software, which is accessible for both Android and iOS, you can easily drag and drop projects for the best prioritization and follow their progress. Additionally, you can get prompt email alerts that inform you in real-time.

Other features of the ProProfs Project include:

  • Schedule tasks with clear deadlines.
  • Real-time alerts and notifications for task updates
  • Improved team accountability with timesheets
  • Set time estimates for improved estimates on project completion.
  • Track time spent on each task effortlessly with a timer.

Monitask is a time-tracking, task-management, and productivity-monitoring tool for businesses with a remote work model. It captures computer screenshots randomly and at intervals.

Other features of ProofHub include:

  • Captures computer screenshots randomly or at assigned intervals.
  • Less overstaffing and lower costs
  • Accurate time tracking for employees and their tasks
  • Easily generate online timesheets for employees.

RescueTime is a feature-rich time-tracking project management tool that offers insights into websites and applications employees use during working hours. It also blocks distracting websites to help you focus on important tasks.

RescueTime also offers:

  • Detailed reports, trends, and insights
  • Automatic tracking of the time users spend on apps, websites, and even specific documents
  • Set smart goals and real-time alerts.
  • One-click offline time tracking

Conclusion

Time tracking plays a vital role in helping project managers keep track of a task with ease. Using time tracking in project management not only ensures good project management, it also helps project managers detect potential bottlenecks and design a workflow that everyone can work with ease.

Nandini Sharma is a seasoned Marketing Manager at ProofHub, a leading project management and team collaboration software company. With 13+ years of B2B SaaS experience, she specializes in project management tools, marketing, and teamwork. Nandini excels in identifying impactful digital productivity and collaboration tools, and regularly testing and analyzing project management services. She communicates complex tech concepts in accessible guides, listicles, and comparison blogs, helping readers choose the best fit for their requirements. She has also been featured in CEOWORLD magazine and has contributed to Business2Community, HackerEarth, Connecteam, Quora, and more. Beyond her professional role, she often indulges her creative side in art and craft projects.

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