Game-Changing Benefits of Employee Time Tracking for Small Businesses

Game-Changing Benefits of Employee Time Tracking for Small Businesses

Employees often worry that employee time-tracking software will feel like micromanaging. However, in the modern business landscape, it has become a necessary tool for small businesses to maximize efficiency and increase profitability. 

The right time tracking software can automate tedious tasks, remove manual errors, and provide valuable data on how employees spend their time. 

Today, we’ll explore the invaluable benefits of employee time tracking for small businesses and how it can help cultivate an environment of accountability and responsibility. Let’s embrace this powerful solution – it could be just what your business needs!

Throughout this article, we’ll discuss: 

Top 11 Benefits of Employee Time Tracking for Small Businesses

Employee time tracking software offers a variety of benefits to small businesses. Here are some of the top advantages: 

1. Higher ROI

Employee time tracking software can help you maximize the return on your small business investments. With detailed information about how employees spend their time, you can better understand which tasks are worth the most to your organization and allocate resources accordingly. This helps ensure that employees focus on activities that generate maximum value for the company. 

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2. Improved Productivity

Employee time tracking software can help you identify patterns in how your team works and find areas where improvements can be made. Automating tedious processes, such as invoicing and billing, can free up valuable employee time previously spent on manual tasks. This increases efficiency and allows employees to focus their energy on more meaningful activities. 

3. Accurate Billing

Accurate billing is essential for any business. The right time-tracking software can help you bill your clients accurately by tracking the hours worked and completed tasks. This helps ensure your customers are billed correctly, so you don’t have to worry about discrepancies or inaccurate invoices. 

4. More Accountability

One of the significant benefits you’ll notice after implementing employee time tracking software is that employees are more accountable for their work. With detailed records of how they spend their time, you can track their progress and hold them responsible for any delays or subpar results. 

Accountability also translates into motivation and a sense of ownership. Employees will be more likely to invest in projects, take the initiative, and strive for excellence when they know their performance is being monitored. 

5. Correct Estimations

When you know how long a task takes on average, it’s easier to provide accurate estimates for future projects. This allows you to set realistic expectations with clients and avoid potential delays due to a lack of resources or other unforeseen circumstances. 

Also, time tracking is tremendously helpful for project forecasting. You can quickly review past project data and make more informed decisions about future projects. 

6. Task Prioritization

Timekeeping software for small business provides insight into how employees prioritize tasks, which can help you optimize workflows and ensure that the most important tasks are completed first. By understanding how much time is spent on each task, you can identify areas for improvement and allocate resources more efficiently. 

7. Better Strategy Development

Small business time tracking software can provide a wealth of data about how your team works. With this information, you can develop better strategies for optimizing workflows and tasks to make employees more productive and efficient. This allows you to create an environment where employees can reach their full potential. 

8. Training Need Analysis

Regularly tracking and monitoring employees’ time can help you identify areas where additional training may be necessary. You can use this data to gauge employees’ knowledge and skill sets and provide them with the necessary resources to excel in their roles. 

9. Project Profitability Comparison

As a small business, you may have multiple projects at once. Employee time tracking software can help you compare the profitability of each project to determine where resources should be allocated for maximum returns. You’ll get a more accurate picture of how long each project takes and how much money it brings in. 

10. Charging Appropriate Rates

With employee time tracking software, you can easily track the time spent on each project. You can use the information and insights gained to charge clients more accurately and fairly, ensuring you’re not undercharging or overcharging them. 

11. Data-driven Performance Review

Data helps you make more informed decisions when evaluating employee performance. By tracking employee time spent on tasks, you can measure the effectiveness of their work and identify areas where they may need additional improvement. This helps ensure that employees are held to a high standard and encourages them to stay engaged with their work. 

Must-have Features of Small Business Time Tracking Software

When it comes to selecting the right time-tracking software for small businesses, there are certain features that you should look out for. Here are the most important ones:

  • The ability to track time for multiple employees and tasks. 
  • Detailed reports on employee productivity and time utilization
  • Integrations with other software such as payroll and accounting systems. 
  • Mobile access, so you can monitor your team’s activities remotely. 
  • Real-time notifications when an employee clocks in or out of their shifts. 
  • GPS and other authentication tools to ensure accurate time tracking.
  • Cloud-based storage, so you can access data from anywhere.
  • Compatibility with various operating systems, devices, and platforms.

How to Implement Timekeeping Software for Small Business

Implementing time-tracking software for small businesses isn’t as complicated as it may seem. Here are a few steps you should take:

  • Identify your needs: Before selecting the right software, you need to identify your specific needs and requirements. 
  • Research & compare: Research multiple solutions and compare them based on features, pricing, user reviews, etc. 
  • Train employees: Once you’ve decided on the best solution for your business, train employees to use it properly so they can get used to the new system quickly and efficiently. 
  • Monitor progress: Track employee performance and productivity over time to ensure that the software is working as expected.
  • Stay updated: Make sure to stay up-to-date with the latest updates and features so that you can take advantage of them.

3 Best Time Tracking Software for Small Business

We’ve comprehensively reviewed the best time-tracking software for small businesses. Here is a quick overview of our top picks:

1. – Overall the Best Small Business Time Tracking Software

Alt-text: being the best small business time tracking tool is an all-in-one time tracking and invoicing tool for small businesses. It helps you accurately track employee hours, manage projects, and generate invoices automatically. This feature makes it a great choice for streamlining payroll and managing finances quickly and easily. 

The intuitive dashboard lets you monitor employees’ work activity in real time with detailed reports on their daily progress. Employees can also use to submit timesheets, which supervisors approve before being sent to accounting or payroll teams for processing payments quickly and accurately. 



  • Project time tracking: $6 per user/month
  • Time and attendance tracking: $4 per user/month

2. Time Doctor – Time Tracking and Performance Management App

Time Doctor is an employee time tracking and productivity monitoring software for small businesses. It also provides detailed reports on how employees spend their time, so managers can pinpoint areas for improvement and identify any time-wasting activities. 

The software uses a powerful algorithm to measure employee productivity, allowing managers to compare employees’ performance side by side. 


  • Time monitoring and productivity analytics 
  • Real-time alerts for distractions such as social media, search engines, etc. 
  • Integration with project management tools like Trello and Jira 
  • Automatic invoicing based on employee hours worked
  • Activity logs with screenshots and keystrokes 
  • Employee scheduling and monitoring of breaks 


The Basic package starts from $4.99 per user/month. 

3. QuickBooks Time – Invoice Management and Timekeeping Software for Small Business 

QuickBooks Time is an intuitive time-tracking and invoicing solution for small businesses. It helps you keep tabs on employee time and manage finances more efficiently by automatically generating invoices from timesheets. 

The software also offers a powerful payroll feature that allows managers to pay employees accurately and quickly without manual calculations. Additionally, it integrates seamlessly with QuickBooks Online, so you can easily sync your accounts in one place and access customer details. 


  • Automated and configurable invoicing from timesheets
  • Real-time tracking and monitoring of employee time 
  • Accurate payroll calculations 
  • Integration with QuickBooks Online for easy account management 
  • Automatic notifications when employees submit timesheets or approve them 


The entry-level package starts from $17 per user/month. 

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Wrap-up: Boost Profitability and Accountability with the Right Small Business Time Tracking Software

Small business owners always look for ways to improve their efficiency and profitability. Employee time tracking software can provide an invaluable solution by helping to reduce manual errors, automate tedious tasks, and help small businesses gain valuable insight into how employees spend their time. 

By utilizing the right small business time-tracking software, you’ll be able to cultivate a culture of accountability and responsibility among your team members while boosting profitability at the same time.  Try to get the most out of your employee time tracking today!