Time Tracking Software

Guide to Selecting the Right Time Tracking Software

Online time tracking software is a type of cloud-based solution that allows teams to keep track of how much time they've spent on a specific task or project. Keeping a record of time is often needed for project tracking, which lets management teams plan future projects in a more effective manner.

This guide will give you more information about the many types of online time tracking tools you can find today and how they can help you manage your projects overall.

How Does Online Time Tracking Software Work and What Does It Do?

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. This information 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.

Features Commonly Included in Cloud-Based 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 (PM) 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.

Important Market 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.

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.