Most agencies are aware of the benefits of time tracking (accurate billing and clearer insight into profitability are the top two that come to mind.) Even agencies that are reluctant to track time, or choose not to, are aware of these self-evident benefits. But, what other reasons are there to track time?
It turns out, there are a few lesser known benefits to tracking time — benefits that will give your agency a considerable boost in profitability, productivity, and employee well-being. They are available, in just a few clicks, to any agency employing online time tracking software.
Research and experimentation tax credit
If your agency is developing software to better manage client relationships, or developing a new SaaS or mobile product, you may qualify for a research and experimentation tax credit.
One crucial requirement, however, is that agencies applying for this credit must provide documentation of qualifying salaries and expenses. Time tracking software can generate reports that quantify the time spent on activities meeting the tax credit criteria, and make the documentation process relatively painless.
Waste removal
Our most precious resource is our time. We can’t create more of it, but we can free up more time by removing waste.
When you track time on internal, non-billable activities, such as meetings, errands, and accounting, you will identify areas using up too much of your time. Some of these responsibilities can be eschewed or scaled back, others can be delegated. The goal is to free up more of your time to focus on billable work.
Well-being
When your goal is to work smarter, not harder, time tracking software can help you avoid burnout. While it may be a source of pride for some to top the charts with most time tracked, it’s also a red flag that they are pushing too hard, and quite possibly, not being as effective with their time as other team members.
Use timers to track time spent on well-being exercises and use that data to realign your goals. Eating lunch at your desk? Take a walk afterward and add the time to your time sheet. When you start quantifying time spent on regenerative activities, you create a feedback loop that will help you work smarter and achieve better balance in the workplace.
