The Various Methods of Time Tracking
TL;DR:
- Breaking down the various time tracking methods (paper, spreadsheet, bundled and time tracking software)
- Pros and cons for each method to help you decide which one you should use for time tracking
To Begin…
It is hard to choose the best time tracking method. Often, it depends on what you need it for and why. Not only that but each method offers advantages and disadvantages — begging the question of which one should I choose and why? So here are the four major ways to track your time (plus some pros and cons).
The Paper Method
As the name suggests this is simply noting your hours down on paper. It can be done during or after a project. In which, you can note down on paper simple or really detailed notes of what you completed for a project and when.
Pros
- It’s got a quick turnaround time and it’s pretty easy. You simply jot down a few notes on paper.
- There is no software to install, no subscriptions, no extra passwords to remember or something new to learn.
Cons
- It creates additional work if you need to enter the info into a PC anyway to add up the total time spent or if you need to send it to a client.
- What if you lose this important piece of paper? How will you remember what you completed and when?
- You don’t get real time reporting, which means you might not notice if you go over a budget set by a client.
- It’s painful and slow to search through old records.
- This form of time tracking isn’t super professional to clients.
- It can be inaccurate, and you can’t really give the client a breakdown of billable hours including exactly what was done and when (unless you’ve been keeping track of all of this).
The Spreadsheet Method
This is basically the same as the paper method but instead utilising a digital spreadsheet to log your hours through MS Excel or Google Sheets, etc. In this spreadsheet you probably have some columns e.g., Date, Client Name, Project, Hourly Rate, Task Description, Activity, Start Time, End Time or Hours worked.
When you work, you log your time in the spreadsheet simply by filling out the columns. It’s true that you can get by with just a spreadsheet for time tracking. And yes, you’re right — the use of a spreadsheet over software does keep your costs low. But… there are some downsides to using spreadsheets to track your time (and some pros).
Pros
- It’s safer, and more secure than paper
- It can be easier, faster and more accurate (e.g., auto-complete for common tasks/projects, functions to sum times etc)
- Spreadsheets can often be customised to your needs. Either a simple look or have lots of styling, formulas, worksheets, validations etc
- Depending on what app you’re using multiple people may be able to use it at the same time. Which means you will have up to date information from each person.
Cons
- You’ll probably need a separate spreadsheet for each client — this can create a lot of overhead.
- Versioning… files and files and files. Which one is the right one?
- You need to build everything in the spreadsheet… this can be time consuming (and if you had spent that time billing…)
- Often they start off simple but you keep adding and adding!
- It’s hard to manage permissions and data access in spreadsheets (e.g., hidden sheets or linked files, passwords etc).
- Spreadsheets just don’t have some of the features that apps today have like reminders when you forget to add time — which decrease time errors.
- Accidents can happen. Which means you might overwrite a file, that can’t be recovered or blow away someone else’s changes.
- The user experience is not exactly inspiring or motivating in a spreadsheet.
- It’s not as professional to clients. If you’re using a well-built time tracking app, you’re going to get features such as embedded branding in invoices which builds transparency with clients.
Bundled Time Tracking Software
Time tracking sometimes comes included as a feature of software that’s primary job is more than, or different to, time tracking — think of small business accounting software, practice management systems (like those used by accountants and lawyers) and — gasp — enterprise software (ERP and HR etc etc).
These types of software products often become a bit like Swiss army knives — they do a lot of things but some things better than others.
If you’ve ever used the tiny scissors on a pocket knife you’ll know that they’re great if you’re in a bind but you wouldn’t want to use them every day.
The struggle for companies who make this sort of software is that it’s difficult for them to give everything the attention it deserves. And when push comes to shove they have to prioritise core functionality — like the accounting part of the system instead of the time tracking.
Pros
- It’s all integrated. You don’t need to use yet another system to get things done.
- This means no swapping between tabs constantly or losing focus due to having to log your hours in a different system.
Cons
- The main downfall behind this method is that often the time tracking aspect, as said, is an afterthought in which whatever software the original app was built for is getting the most attention.
Time Tracking Software
There’s a bunch of different time tracking software packages available, but at its core what these platforms offer you is the ability to track time spent on tasks and projects. These tools can be used standalone or integrated with other applications (e.g., project management software, accounting software, etc).
Basically, the software is purpose built for time tracking, offering a more efficient time tracking method than other solutions. Improving an organisation’s productivity and profitability.
Here’s what a good time tracking software should offer you (in other words pros):
- Good design (how it works not just what it looks like) and a great user experience that encourages frequent use and habit-forming adoption.
- An intuitive user interface that doesn’t require expensive training or constant checking of the help docs.
- Great support to help users when they get stuck.
- Flexible time entry to cater for differing styles or specific company policies.
- Key information (e.g., billable hours) front and centre so people can see how they’re tracking.
- Visual, at-a-glance data is great. This is great for motivation.
- Helpful reminders to minimise inaccurate, incomplete or forgotten time entries that impact a company’s bottom line.
- Integration that lets people manage time from where they’re working (tools like Slack, Skype, Trello, Jira etc) so that they can stay focused and minimise interruptions.
- Access across desktop, laptop, tablet and mobile so time tracking can happen anywhere.
Cons
- You do still need to remember to track your time.
- It can be hard for some people to learn a completely new process. Especially if they have been using another method for an extended period of time.
- There can be a little pressure to always be productive.
- It’s usually not free (well, the good stuff isn’t).
There are other speciality based features software time tracking can offer:
Location Based — this feature is when the system determines the working status of the employee based on their location. Tracking time, whenever they are at the required location.
Automatic Time Tracking — this feature is where the system records active and idle working time of employees (via desktop or mobile). Some systems even collect screen captures.
- Pros: this offers the ability to always know what you were doing at a certain time for a client
- Cons: going through and separating out productive (billable) time and format it in a way that can be reported on or sent out to a client can be painful. Often, this method isn’t a complete solution as even though you’ve worked 14 hours on something for a client, doesn’t mean you can bill them at 14 hours. You still need to review the project, see where things are at and gauge the quality of the work. Which means in the breakdown of hours your boss or client may see some #catmemes at 1pm — which they might question as to why they are being billed time or paying you for looking at cats.
In the end…
There are so many different ways to track your time. And, the awesome thing is that choosing which method to track your time, is your choice (unless your boss chooses — in that case use the cons from this post as a case for using another method!).
Hopefully, this post has outlined the different pros and cons for each method to make it that much easier to choose. But it’s always good to keep in mine that:
- Paper often gets lost
- Spreadsheets whilst fine, you will eventually grow out of them — as you grow
- Bundled time tracking — like we said, when push comes to shove whatever the companies original purpose was is going to win here. Not, time tracking.
- And with software, you still need to track your time.
I guess the real question is
Is it going to be hard to track my time?
Fortunately, it’s easy nowadays to track time. It’s just a simple click of a timer, and you’re on your way to making smarter, better decisions. If you think it’s for you, why not check out Hourly? It’s free for 30 days!
