Whether the economy is up or down, few businesses can afford to throw away money. Yet, all too many organizations waste hard-earned cash every day pursuing unprofitable projects or tasks.
When people think about the ways time and attendance tracking can save a company money, often times they focus on things like more accurate time tracking and more efficient payroll processing. But did you realize your time and attendance system can also help you identify which projects are most profitable? It’s true!
Good Decisions Depend on Good Data
Company executives need data to help them make good decisions. To evaluate profitability, they need data about revenue and expenses. And what’s usually the largest expense at most companies? Labor costs.
The problem at many companies is that their valuable employee time data is locked up in paper timesheets. It’s tedious and time-consuming to transcribe and calculate the actual time applicable to projects, processes or work groups. Which, of course, makes it less likely it will be done regularly.
An automated time and attendance system can enable your company’s decision makers to easily review labor costs in near real-time with little more than the click of a button. Time-tracking systems such as timeQplus or AcroTime offer job costing capabilities that allow you to assign the work each employee does to the appropriate project, work group or task. This means you can more accurately track direct labor costs and allocate overhead — making it possible to calculate profitability at a more granular level.
These timely reviews can also help decision makers identify projects that are at risk for running over budget, or clients, work groups or processes that are absorbing more than their share of resources, before things get out of hand. This early warning could buy you enough time to reallocate resources, re-prioritize tasks and adjust project scope before it’s too late.
And if your business model involves preparing estimates or bids, having the historical time information for previously completed projects can help make future estimates and bids more accurate… which cuts the risk of going into the red on an underbid project.
With a little planning and a regular review of the available reports, your time and attendance system can not only save you time and money on payroll processing, it can also help increase your business profits. That’s the kind of “double whammy” we could all be happy with!