PrintEmail

Whether you are just getting started in your business, or whether you are looking to grow, you will need to have a solid time tracking system in place.

Effectively and accurately tracking your time is something that seems easy to do, but can just as easily get out of control if you let it.

'Losing time' can not only set your schedule behind, lead to disorganization and late night catch-up, but it can also impact your revenue if you forget to bill for work done.

Here are a few answers to those questions you have about time tracking:

Why should I track my time?

First of all, because you need to know how you are spending your day. How much of your time is being spent on billable work? Non billable work? Wasted time? Things you dislike doing? If you write it all down, it will be easier to assess where you can make adjustments to make your business more profitable.. and more fun too! Also, as you start to get busier, the day can disappear right before your eyes. You want to be sure you are not losing out on billable time simply because you didn't write it down.

When should I track my time?

Every day, every minute. There are resources (see a few below) that can help you do this by using stopwatch to stop and start a timeclock, or you can do it the old fashioned way by writing it down. I use a spiral notebook and record every task I do every day (even breaks, lunch, and my own business stuff). By using a spiral notebook, I don't tear the pages out and I have a record for every day. I record my notebook info into my time tracking program at the end of each day or every couple of days (actually my Virtual Assistant does that part for me now, but you get the idea!)

How should I record tasks?

In whatever way makes the most sense to you... whatever is easiest for you. If you choose a complicated system or one that confuses you, you will surely run into trouble more than once. My system is super simple... I write my clients' initials at the beginning of each line, and I record the task item I took care of for them beside it. I indicate the time I worked during the day. I record one task per line in my book for easy reference, and for easy transition to my time tracking program. In my time tracking program, I have each client set up with their rate and I also have individual tasks set up for all of the things I do. I enter each client's name and their task and the length of time I worked on it. At the end of the month, I run my reports and provide the detail with each client's invoice (which they love!).

I charge my clients on retainer (or by project rate) - I don't need to track my time, do I?

Of course you do! What if you client goes over your budgeted time... or is way under? Even if you are working with someone on a project rate, it's important to keep track of the hours you are putting in. When you decide to revisit your rate package (which you should do often!) you will have an exact measure of how long projects are taking you to do. If you are working with someone on retainer, it's good to be able to give them a detailed list of what you worked on for them at the end of their retainer term. Recording your time is helpful in both of these situations.