Time tracking for small businesses: the ultimate guide

Struggling to make time doctor keep track of hours in your small business?

Without a solid time-tracking system as a desktop app, wasted hours add up fast.

This guide is your go-to for mastering the time tracking for small businesses.

We’ll cover the best employee scheduling tools, how to track employee hours, strategies for time management, and more.

You’ll get actionable tips to boost productivity and streamline operations.

Let’s dive in.

27% higher customer satisfaction

"Fewer customer complaints about deliveries since using Metrobi"

— Rachel Parkhurst, Boloco

Professional delivery features:

• Real-time GPS tracking
• Automated ETA updates
• Delivery confirmation photos
• 27% higher delivery satisfaction

Request a Callback See Features

Time Tracking for Small Businesses: Best Time Tracking Tools

TimeCamp

TimeCamp is a solid choice for small businesses needing to integrate with project management tools. Its automatic and time-tracking solution for various tasks simplifies ongoing operations. Considering automating your financial tasks? Learn how retail payroll outsourcing can streamline your processes, saving time and enhancing accuracy.

Key Features:

• Integrates easily with tools like Asana, Trello, and Slack.

• Automatic and comprehensive time-tracking software improves accuracy.

Toggl

Toggl is known for its straightforward interface and detailed reporting features. Small businesses will appreciate how simple it is to track time and generate insightful reports.

Key Features:

• User-friendly interface for easy navigation.

• Detailed reporting to analyze time use effectively.

Clockify

Clockify stands out as the best free time tracking tool with an unlimited per-user plan. It supports web, desktop, and mobile apps, making it versatile for different workplaces.

Key Features:

• Completely free with unlimited users.

• Available on web, desktop, and mobile platforms.

Declaring the Winner

After examining TimeCamp, Toggl, and Clockify, it’s clear that Clockify emerges as the winner. Its free plan with unlimited users and broad platform support make it ideal software for small businesses, aiming to manage time effectively without added costs. The overwhelming user adoption and positive reviews further solidify its top spot.

How to Effectively Track Employee Hours

Set clear guidelines on time tracking

1. Define Objectives: Make it clear why tracking hours is necessary. This could be for productivity, billing clients, or compliance.

2. Choose a Method: Select between manual tracking (e.g., spreadsheets) or automated systems (e.g., time tracking apps).

3. Communicate Expectations: Inform employees about the process. Explain what should be recorded (e.g., break times, project work, idle time).

Regular meetings to review timesheets

1. Weekly Reviews: Hold meetings every week to go over timesheets. This keeps everyone on the same page.

2. Feedback Loop: Use this opportunity to address any issues or discrepancies. Allow employees to voice concerns.

3. Adjust Policies as Needed: Use insights from reviews to refine your tracking policies.

Tips for ensuring compliance

1. Training: Train your team on how to track their hours correctly. Use tutorials or hands-on sessions.

2. Monitoring: Regularly monitor timesheets to ensure accuracy. Tools like automated timesheets can reduce errors by 85%.

3. Transparency: Keep the process transparent. Tools like self-service time tracking let employees view their hours, preferred by 70% of employees.

Using GPS and mobile tracking

Helps track on-the-go employees

1. Select Suitable Tools: Choose tracking tools that support GPS and mobile functionality. This is essential as 75% of employees use mobile devices for work.

2. Setup Geofencing: Implement geofencing to ensure employees are at the correct job sites. This prevents buddy punching.

3. Monitor in Real-Time: Use real-time GPS tracking to monitor where your field employees are. Helps optimize routes and efficiency.

Integration with field service management tools

1. Choose Compatible Tools: Ensure your time-tracking software can integrate with your existing field service management tools.

2. Streamline Operations: Integration allows for seamless data flow, reducing manual entry and errors.

3. Unified Dashboard: Use a unified dashboard to view both time tracking and field service data in one place. Enhances overall productivity.

Best practices for privacy concerns

1. Inform Employees: Be upfront about using GPS tracking. Explain the benefits and address concerns.

2. Set Boundaries: Define the scope of tracking. Ensure tracking only during work hours and within work zones.

3. Data Security: Ensure that the data collected is secure. Use encryption and limit access to sensitive information.

Incorporating these steps can significantly enhance how small business owners track employee working hours. Remember, it’s not just about recording hours but also increasing productivity, saving costs, and maintaining compliance with labor laws. Tracking hours efficiently prevents issues like payroll errors and buddy punching. Implementing policies and tools for tracking time carefully will help you manage your workforce better.

Time Management Strategies for Entrepreneurs

Prioritizing tasks

Use the Eisenhower Matrix for task prioritization

The Eisenhower Matrix helps you decide which tasks to prioritize based on urgency, time spent, and importance. Here’s how to use it effectively:

1. Create a 2×2 grid: Draw a big box divided into four smaller squares.

2. Label the boxes:

   • Top left: Urgent and Important

   • Top right: Not Urgent but Important

   • Bottom left: Urgent but Not Important

   • Bottom right: Neither Urgent nor Important

3. Categorize tasks: List all your tasks. Place each in the appropriate box. For example, paying bills on time goes in “Urgent and Important.” Planning for future projects might fall under “Not Urgent but Important.”

4. Act accordingly:

   • Urgent and Important: Do these tasks immediately.

   • Not Urgent but Important: Schedule these to do later.

   • Urgent but Not Important: Delegate these tasks if possible.

   • Neither Urgent nor Important: Drop or do these when you have free time.

Benefits of focusing on high-impact activities

High-impact activities drive your business forward. By identifying and prioritizing these activities, you can:

1. Increase efficiency: Spend your time on what truly matters.

2. Reduce stress: Knowing you’re tackling the most important tasks first helps you feel in control.

3. Improve decision-making: With a clear view of priorities, making choices becomes easier.

Eisenhower Matrix usage reduces wasted employee time. Using it consistently can help entrepreneurs who work overtime (81%) and on weekends (89%) to manage their workload better.

Setting Daily Goals

Break down larger goals into daily tasks

Setting daily goals can transform big projects into manageable pieces. Here’s how:

1. Identify the end goal: Define what the final outcome should be. For example, finishing a marketing plan.

2. Divide into smaller tasks: Break down the big goal. For example, research competitors, draft the plan, revise, and finalize.

3. Create a timeline: Assign each smaller task to a specific day.

Monitor progress and adjust as necessary

Daily monitoring helps in staying on track:

1. End-of-day review: Assess what was completed. What went well? What needs improvement?

2. Adjust the next day’s plan: If you didn’t finish a task, move it to the next day’s list. Adjust priorities as needed.

3. Use a planner or digital tool: An excellent iPad planner app can streamline workflows by offering planning templates, setting reminders, and helping users stay organized and focused on their goals, while tools like Trello or Asana assist in tracking daily tasks and adjustments.

Regularly updating your task management goals can prevent burnout. Half of self-employed workers report zero burnout, indicating effective time management can significantly reduce stress.

Blocking time for specific tasks

Allocate blocks of time for specific activities

Time blocking is planning your day into chunks. Each chunk is for a specific task or type of work. Here’s how to start:

1. List all daily activities: Include work tasks, meetings, breaks, and personal time.

2. Assign time slots: Divide your day into blocks. For example:

   • 9:00 AM – 10:30 AM: Project A tasks

   • 10:30 AM – 11:00 AM: Check emails

   • 11:00 AM – 12:30 PM: Team meeting

   • 12:30 PM – 1:30 PM: Lunch break

3. Stick to the schedule: Start and end each task as planned. If you finish early, use any leftover time for preparing the next task or take a breather.

Reduces task switching and increases focus

Shifting between tasks wastes time and energy. Time blocking reduces this by:

1. Minimizing distractions: When you know what’s next, you focus better on the task at hand.

2. Enhancing productivity: Concentrated work periods allow for deeper focus and completion.

Best Time-tracking Software Comparisons

TimeCamp vs. Toggl

TimeCamp and Toggl are both robust in their offerings but cater to slightly different needs. In our testing, we found that:

• TimeCamp excels with features like attendance management, email integration, and automatic time tracking with keyword-based detection. It also offers productivity tracking with app and website usage monitoring and optional screenshots.

• Toggl focuses more on insightful reports and seamless integration with various work tools. It provides both manual and automatic time tracking but lacks employee monitoring functionalities such as screenshots.

Both tools offer different pricing models:

• TimeCamp: Available in BASIC and PRO packages, with a free trial.

• Toggl: Offers PRO, PRO PLUS, and BUSINESS packages, but no free trial.

Looking at user reviews:

• TimeCamp: 597 reviews with a rating of 4.67/5 stars.

• Toggl Plan: 115 reviews with a rating of 4.57/5 stars.

Clockify vs. Harvest

Clockify and Harvest have their unique strengths:

• Clockify: Known for being the best free tool with unlimited users, it supports web, desktop, and mobile platforms.

• Harvest: Offers invoicing and expense tracking, integrated project budgeting, and supports popular project management tools.

Their pricing structures differ significantly:

• Clockify: Free plan available; paid plans start at $3.99/user/month.

• Harvest: No free plan; paid plans start at $12/user/month.

User feedback:

• Clockify: Highly rated for its comprehensive free plan.

• Harvest: Appreciated for its detailed reporting and invoicing capabilities.

Hubstaff vs. RescueTime

• Hubstaff: Offers extensive monitoring features, including optional screenshot capture, app usage tracking, and employee GPS location.

• RescueTime: Focuses on distraction management with features like goal setup and detailed productivity reports without monitoring screenshots.

• Hubstaff: Different pricing plans based on features and number of users.

• RescueTime: Personal and business pricing tiers focused on productivity improvement.

• Hubstaff: Often highlighted in case studies for its comprehensive monitoring capabilities.

• RescueTime: Praised testimonials for helping users stay focused and improve their efficiency.

Quote from user: “RescueTime has helped me to track employee time and identify and eliminate distractions, boosting my productivity significantly.”

Declaring the Winner

After a thorough comparison, TimeCamp edges out Toggl in terms of overall feature set and value for money. With its robust time tracking and productivity features, along with a comparable pricing model that includes free trials, TimeCamp stands out as a comprehensive choice of tracking software for small business owners.

Additional Considerations for Small Business Owners

Understanding legal requirements

Labor laws related to time tracking

Every small business owner must know the labor laws about comprehensive time-tracking software. These laws make sure you’re treating your employees fairly. For example, the Fair Labor Standards Act (FLSA) in the U.S. sets rules on how to track employees on hours and overtime. To safeguard your business, steer clear of common small business payroll errors by understanding and abiding by these labor laws, thereby averting costly mistakes.

Steps to ensure compliance:

1. Know Federal & State Laws: Federal laws apply to many businesses, but state laws can add more rules. Check both to be sure.

2. Document Work Hours: Keep a detailed record of all work hours, including start, end, breaks, and overtime.

3. Overtime Pay: If employees work over 40 hours a week, ensure you pay them overtime.

4. Rest and Meal Breaks: Some states require breaks during shifts. Follow these rules closely.

Ensuring documents and records are accurate can protect you in case of disputes.

Compliance and best practices

Staying compliant involves more than just knowing the law. Here are a few best practices:

1. Regular Audits: Check your records often to ensure they comply with the law.

2. Employee Training: Make sure your employees know the time-tracking process and their rights.

3. Update Policies: Laws change. Update your tracking policies when needed.

4. Accessible Records: Keep your records well-organized and accessible for inspection if needed.

Importance of Data Security

Ensuring employee data is protected

Protecting employee data is vital. Data breaches can harm your business and employees. Steps to secure data:

1. Encryption: Use encryption for all digital time tracking records.

2. Strong Passwords: Require strong passwords for software access.

3. Limited Access: Only allow necessary personnel to access sensitive data.

4. Regular Updates: Update your software regularly to patch security vulnerabilities.

Addressing data security is crucial because 28% of data breaches involve small businesses.

Tools and protocols for securing time-tracking data

Use tools and protocols to enhance data security:

1. Secure Software: Choose time-tracking software with strong security features, like encryption.

2. Two-Factor Authentication (2FA): Enable 2FA for accessing time tracking systems.

3. Firewall and Antivirus: Use these tools to protect your network from attacks.

4. Employee Training: Train employees about phishing attacks and safe data practices.

Training employees on new systems

Steps to effectively onboard employees onto new systems

Getting employees up to speed on new time-tracking systems can be challenging. To make it easier:

1. Create a Training Plan: Outline steps and goals for the training.

2. Use Tutorials: Provide video tutorials or step-by-step guides.

3. Hands-on Practice: Allow employees to practice using the system in a test environment.

4. Feedback Loop: Gather feedback from employees to identify and address issues.

Resources for training and support

Several tools can support training:

1. Training Software: Platforms like Lessonly or Trainual can help.

2. User Manuals: Most time tracking tools offer user manuals or guides.

3. Customer Support: Leverage the customer support of your time-tracking software for help.

4. Onboarding Sessions: Conduct group training sessions for a hands-on experience.

Integrating time tracking with payroll

Streamlining payroll processes through integration

Integrating time-tracking solutions with payroll can save time and reduce errors. Here’s how:

1. Choose Compatible Systems: Ensure your time-tracking software integrates with your payroll system.

2. Automate Data Transfer: Set up automatic data transfer between systems.

3. Check Compatibility: Double-check that pay codes and policies match in both systems.

4. Run Parallel Tests: Before fully integrating, run tests with parallel data to ensure accuracy.

Tools that support integration with payroll software

Several tools support smooth integration:

1. Gusto: Integrates with many time-tracking tools.

2. QuickBooks: Offers seamless payroll and time tracking integration.

3. ADP: Widely compatible with various tracking software.

Benefits of accurate time tracking

Increased transparency and trust

Accurate time tracking builds trust between employers and employees:

1. Transparency: Clear records help settle pay disputes.

2. Fairness: Employees feel fairly treated when their work hours are correctly logged.

3. Accountability: Everyone knows where their time goes, reducing misunderstandings.

Enhanced productivity and efficiency

Accurate time tracking boosts productivity:

1. Identify Time Wasters: Spot areas where time gets wasted.

2. Optimize Schedules: Plan shifts better to match peak productivity times.

3. Data-Driven Decisions: Use tracked data to make informed decisions about workloads and staffing.

By following these steps and best practices, small business owners can not only ensure legal compliance but also foster a more efficient, secure, and trusting work environment.

Wrap Up Your Time Tracking Efforts

We’ve gone through some of the very best time-tracking software tools like TimeCamp, Toggl, and Clockify. We’ve discussed how to set up effective policies, use GPS tracking, and improve time management. Considering streamlining your retail business’s financial operations? Learn the benefits and drawbacks of payroll outsourcing in the retail industry to enhance efficiency and accuracy.

Accurate time tracking helps boost productivity and ensure compliance with labor laws. Think about the tools and strategies that fit your business best. Grasp the nuances of small business payroll expenses to fully appreciate their significance and budget accordingly.

Ready to get started with a new time-tracking tool? Begin with a free trial to see which one fits. Check the reviews and choose the best tool for your needs. Train your team and keep the data secure. Looking to enhance your HR functions further? Explore the top payroll services for small businesses to simplify your payroll processes.

How will you refine your time-tracking approach this year?

Get your team on board and take control of your time management.