Time-tracking reports are an essential tool for analyzing and quantifying the accumulated data. Without them, it would be impossible to make improvements, increase efficiency, or even bill clients correctly.
The good news is that time-tracking reports don’t have to be complicated. Here’s everything you need to know about creating them.
In the simplest of terms, a time-tracking report is a detailed itemization of all time-related activities within a company. It’s a document that holds all the relevant information about how work hours are spent, but it’s also so much more than that.
A time report is the most critical link between the time-tracking data and stakeholders who need to be informed about it or persuaded to take specific action based on the data – such as paying employees or estimating budgets. Depending on who the stakeholders are, your time report will take on a different shape (i.e., it will have different types of information and serve a different purpose).
A time report can be created using a variety of different tools, however, some have significant drawbacks that must be considered before using them.
The exact data included in your time-tracking report will vary depending on the reason why it needs to be generated.
However, Here are some key datasets that will ensure the report provides actionable and comprehensive insights:
And what about the functionality of the report? It’s no good having the data there if it can’t be used effectively. Some key features a time-tracking report should have are:
We’ll cut right to the chase, here. Generating time-tracking reports needn’t be challenging if you use a dedicated app for the purpose.
Time-tracking apps like MyHours collect and store all your inputted data and enable you to create a customized report with one or two mouse clicks.
The advantage here is that you don’t need to spend hours completing and manually editing spreadsheets, especially if spreadsheet formulas are not in your skill set. In contrast, time-tracking software is easy to use and does all the calculations for you.
Time-tracking apps usually give you a choice of reports, including:
You will also get a choice of how you want the data displayed. Time-tracking software cleverly arranges all the information into easy-to-read formats such as charts and graphs (they look nice, too!), or all the raw data can simply be pulled into an Excel spreadsheet, ready to send to whoever needs it.
At its core, a time report is simply a way to prove that work has been completed and that the allocated resources have been used appropriately.
Consultants, contractors, freelancers, agencies, and professional service providers – or really, anyone who bills by the hour – can use time reports as a way to justify their invoices.
This not only provides documentation and proof of the hours worked on a client's project, but it also maintains transparency and builds trust and accountability in client relationships.
All organizations face legal obligations and time-tracking reports serve to fulfill them. Some common instances of where they are required for compliance include:
Time tracking reports provide payroll with a detailed overview of all employees' regular work hours, overtime, and absences. This enables payroll to compensate workers accurately – and fairly – which lessens the likelihood of errors being made or disputes being raised.
The data also gives payroll the right information to bill clients accordingly. By presenting the invoice along with the time report, it shows clients where their money is being spent and ensures transparency is maintained.
Timesheet reports provide valuable metrics to evaluate the performance of an organization. The data can be broken down to show the productivity of each employee or by department, as well as give a detailed overview of the organization as a whole.
This information allows managers and stakeholders to better evaluate whether or not teams and team members are meeting their performance goals and identify where improvements can be made.
The timesheet reports also offer clear insight into where time is being wasted. Managers can then eliminate these activities and make informed decisions on how to optimize workflows.
Historical time-tracking data from previous projects contains a treasure trove of information where effective budgeting is concerned.
The data reports can be used to provide accurate project budget estimates which, in turn, helps organizations allocate the appropriate number of resources to each task. Moreover, when a project budget estimate is on point, realistic pricing can be quoted to clients.
Historical time reports are also essential when determining the number of resources to dedicate to each project. As you read above, this is intertwined with budget planning but can also be applied across all areas of an organization, including internal processes and tasks.
The reports will show where too many or too few resources were assigned to an area of business allowing organizations to make better decisions on future resource allocations.
Utilizing time reports also helps avoid what’s known as the “planning fallacy” where the number of resources is underestimated and the financial benefit is overestimated.
The time-tracking process is the entire procedure a company undertakes to accurately track and document all employees’ work hours. The main goal of the time-tracking process is to help businesses evaluate how and with what degree of efficacy employees spend their time at work.
Time-tracking tools are all types of solutions used to help individuals or companies keep track of work hours spent on various tasks, projects, or other work-related activities. Apart from tracking time, a lot of tools of this type come with advanced features that enable users to create time reports, perform various types of business analyses, track and estimate costs, generate invoices, and manage payroll.
