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Advantages and Disadvantages of Time Tracking Software

Time-tracking software allows you to keep track of employee work hours. It helps you understand employee productivity and time-wasting activities. Besides, time-tracking software can help you eliminate employee timesheets and paperwork. We’ll discuss the advantages and costs of time-tracking software and the requirements for an adequate time-tracking system.

Benefits of a time tracking system

Using a time tracking system for your business can benefit your employees. A reliable system helps you understand how long each employee spends on a particular task. Whether an employee works on a project or the phone, you can track how long they spend on each task. You can monitor their productivity levels and determine where they need more training by keeping track of their working time.

The time tracking software feature helps you understand the work-money relationship, which is essential in any service business. If you provide client work, for instance, you can easily monitor when each employee spends more time on a project than on an individual client. This makes it easier to assess whether or not to increase your rates. Of course, if you do this, your profits will increase. First, however, it will be up to you to educate and get your employees to buy into tracking time.

Costs of implementing a time tracking system

Using an automated time tracking system can replace outdated manual time-tracking methods. These methods are costly to purchase, maintain, and service and do not provide the same accuracy. A time-tracking system can eliminate the need for yearly licensing fees and staffing costs. It can also improve employee morale.

One option for time tracking is a cloud-based system. These systems provide a web-based interface and are ideal for businesses with plenty of computers. For example, a medical facility could use an on-premise solution to log the hours of staff working in the clinic as they switch between patients. In contrast, contractors may opt for a Cloud-deployed time tracking system, as it allows them to clock in and out on mobile devices.


The integration of time tracking systems for business is a process that takes time, team effort, and technical expertise. But, if done right, it can help your company improve profitability and employee sanity. Listed below are some of the advantages and disadvantages of time tracking systems.

The time and expense tracking system can be integrated with various business systems. For example, they can flow directly into accounting, payroll, and billing systems. This integration allows you to minimize manual work and enhance your business’s other business systems. Additionally, time and expense trackers can be customized for a company’s specific needs. Some even help you meet federal time and payroll requirements. But time and cost tracking aren’t just for HR professionals. For businesses, the benefits go beyond keeping track of employee hours.

Requirements for implementing a time tracking system

One of the significant challenges in implementing a time tracking system is that changes can be made frequently, and they can vary wildly in nature. A well-planned strategy may not be flexible enough for all departments, and the design team, for example, will have little in common with the customer support team and accountants. Therefore, you must understand how to adapt your system to accommodate changes in both timesheets and departments.

Employees can be skeptical about time tracking, leading to negative feelings and hostility. Before implementing a time tracking system, be sure to communicate the purpose of the new system and reassure your employees that the goal is to guide your management, not to evaluate them individually. Remember that the time tracking system is not a single gauge of an employee’s talent but rather a guide for your management and gives them more autonomy.