Why time tracking could improve your firm's efficiency
April 09, 2014
For many accounting firm owners, it often seems that there are not nearly enough hours in the day to manage their various responsibilities. Some company leaders might scoff at the idea of adding time tracking to their long list of activities, but analyzing one's use of time could reveal some invaluable insights. By doing so, entrepreneurs can pinpoint activities that are eating up too much time and devote more energy to the tasks that matter most.
The benefits of time tracking
"Whether or not a team member is billing by the hour, it is important to understand that time is one of the most valuable (and scarce) resources at any organization," Brad Hoover, CEO of Grammarly, explained to Inc. "Operating under the assumption that your time is worth money - whether to you or to your client - helps you to prioritize the finite number of hours in your day."
Hoover brought up the idea that 80 percent of an individual's most productive work is accomplished in 20 percent of that person's office time. He asserted that time tracking will help company leaders - as well as their entire staff - improve output and use their limited time more effectively. In addition, this process can lead to better focus. Nikolas Baron, Grammarly's SEO manager, told Inc. that thanks to time tracking, he is able to target one goal at a time and resist the urge to cursorily shift between different tasks.
Tips for saving time
Once entrepreneurs have identified activities that take up a significant portion of their time, they can begin to develop ideas for streamlining those processes. Incorporating technology can be one of the most effective means of expediting time-consuming procedures. Using accounting software, for instance, entrepreneurs can complete bookkeeping tasks more efficiently and accurately.
Company owners should also consider creating a plan for how they intend to spend the day's time. Entrepreneur recommended setting aside 30 minutes at the start of every day to outline a work schedule. The source noted that business leaders should expect that there will be interruptions to their planned routine. Therefore, schedules should account for time that will inevitably be lost due to distractions.
Small business owners need to design their schedules for maximum productivity, and time tracking can help them achieve this. By recording their uses of time, entrepreneurs gain insights that will allow them to develop a strategy for optimized efficiency.