Time Tracking: How To Track & Improve Your Company’s Output

In today’s time-strapped world, time tracking has become a necessity for many business owners. Around 90% of employees admit to wasting time each day, a common habit that sends output and productivity down the drain.

The time tracking process can be a little daunting for business owners, especially if they are only familiar with the time clock systems of old companies. However, it is an important process. When you know where time is going, it will be easier to measure productivity and improve output.

But what exactly is time tracking software, and how can it help your business? If your company struggles with time wastage, keep reading to find out how time recording can be used as a tool to record and improve the efficiency of your company’s output.

What Is Time Tracking?

Time tracking, also referred to as time recording, is a technique used to record time spent on particular tasks. It helps people and organizations to understand where their time goes so they can spend it more productively. A typical time tracker software will record the start and end times of each task for each day.

It’s important to note that time tracking is not the same thing as time management. Time management involves scheduling tasks to ensure they are completed on time, whereas time tracking records how long each task takes.

Benefits of Tracking Time

The benefits of tracking time are numerous, and time tracking software can help you reap them all. The main benefits of time recording are:

Improved Time Management

A time recording system will allow employees to plan their time better and avoid unnecessary distractions. It also can help you distribute workload evenly as the system can track how much time is spent working on each project or task. This leads to less stress for individuals and allows more time for core tasks.

Time Tracking: How To Track & Improve Your Company’s Output

Improved Productivity

Time tracking software encourages employees to focus only on the task at hand and avoid distractions, which leads to better concentration levels throughout the day. This can increase the motivation and productivity within an organization, as individuals know they are free from time constraints.

Tracking time also allows employees to identify where they need to change their work habits in order to become more productive and make themselves invaluable members of your company team.

Better Project Management

Time recording software can be used to measure time spent on projects or tasks, so you know how long it takes for employees to complete a particular task. This enables you to plan future activities more accurately and see where time could be better allocated elsewhere.

Improved Cash Flow

Time tracking software is a cost-effective way to monitor time spent on specific tasks or projects. The recorded time worked on individual projects or tasks can be used when invoicing your clients. This ensures that you always bill for time spent and that you avoid time-based billing errors.

Improved Profitability

Tracking time can help you better understand your time-related costs and the time spent on specific tasks. This can be used when planning budgets for future activities.

It can also help ensure that time is spent on profitable activities so that you aren’t wasting money or resources on tasks that do not serve your company in the long run.

Factors to Consider When Choosing the Right Time Tracking Tool

No time tracking software is perfect for every company, so it is important to select the time management tool that best suits your business needs.

There are several time recording tools available on the market. When choosing the right one for your business, you should consider:

The Number of Employees That Will Be Using the Software

The number of employees in your business will determine the time-tracking software you will need. If your company is small, a time tracking app might be enough for you to monitor time spent on tasks and projects.

However, suppose there are several employees in your organization with different roles that use time management techniques. In that case, it may be more effective to opt for an advanced time-tracking platform with time management tools and time tracking software.

The Time-Tracking Software Features Available

When choosing time-tracking software for your business, you should always ensure that it has the features available to suit all of your requirements.

It is crucial to choose time-tracking software with time logging tools and project management capabilities. That way, you can both record time accurately and plan your projects for optimal profit and productivity.


Although it’s important to purchase a tool with the best time-tracking software features, you should consider time management tools that are priced within your budget. There are a variety of time tracking platforms and time management apps on the market, so by considering all your options, you are sure to find one that suits you.

Ensure that you carefully look at the conditions of each tool. Some have a cap on how many employees can use the tool before additional fees apply, while others set their prices with a different structure.

How to Use the Data From Your Time Tracker

The data obtained from your time tracker can help you create reports and time logs that show you exactly how time is being spent on tasks throughout your organization.

You can use this data to see which employees are spending time on the wrong activities and who may need more training in their roles.

For example, suppose you notice that an employee is spending too much time on a project or task, and it is no longer profitable for the business. In that case, you might choose to train them in better project management, or they can be moved to another department where their time will be more effective.

On the other hand, maybe some employees are underutilized in your organization. You could then use their time and skills on more important or time-precious projects so that you are making the most of their abilities.

How Does Time Recording Improve Company Output?

Tracking time can improve your company’s output by efficiently distributing time among tasks and projects throughout your organization. It can help you to identify which employees spend time on the right activities and which employees are wasting time.

Knowing which employees are using time efficiently can help you give them more opportunities to work on high-quality projects or tasks. This will help you to build a successful company as more time is spent on activities that contribute to the bottom line of your business.

Best Practices for Using the Time Tracking Software in the Workplace

The best time tracking software is useless if it is not used correctly. You should ensure that time management techniques are implemented across your entire company and that all employees have an understanding of how to use time recording effectively.

Employees Should Be Trained on Time Management Tools

To ensure that you benefit from your investment in time tracking software, employees should be given time management training. They should be knowledgeable on the features of the software to ensure they use it correctly.

Once employees are familiar with the time-tracking tool, you can set up rules around its usage so that no one can manipulate time logs or input false information.

Regular Audits of Time Recorded in Your Organization

It is important to ensure time is being recorded accurately. You should aim to have regular audits of time logs within your company to monitor time spent on tasks and projects throughout the organization.

How to Track Your Employee’s Time

Tracking time can be done in several ways with many time recording applications available online or for download. Some of these are free, while others require subscription fees depending on what you need them for.

One of the best time tracking applications available is Day. The Day software has time management tools that allow you to create schedules for your employees, sync their time across devices, and keep track of all time spent on tasks throughout an organization.

The app also offers facial recognition, a touchless clock in, and vacation management features. It is the best time-tracking app out there, and it offers great features at a reasonable price point. But don’t just take our word for it — try it out yourself and see how its time-tracking features can benefit your business.

The Bottom Line

As a manager, there are many ways you can use time tracking throughout your company. The different time-tracking tools and time logging software can help improve the overall efficiency of employees, ensuring that no time is wasted on tasks that are not profitable for the business.

Time tracking also allows management to see which employees are being underutilized, and which may need a department transfer or additional training within their role. You can use it to make your company more productive while saving time, energy, and money in the process.

Are you ready to make up for wasted time? Use an app like Day and reap all the benefits time tracking has to offer your business.