Summary
This blog highlights why the start of a new year is the ideal time to fix common time-tracking issues. It walks through key areas to review—such as inaccurate entries, inconsistent processes, and outdated tools—and explains how making improvements in January can lead to better productivity, cleaner data, and smoother operations all year long.
New Year, Better Time Tracking: What to Fix This January
Although they are historically difficult to keep, roughly half of all Americans make New Year’s Resolutions each year. In January, many of us begin to reflect on what we accomplished in the previous year and what we would like to do in the year ahead. One thing for company owners and/or leaders to focus on during this season of contemplation is their time tracking processes.
Mismanaging small amounts of time here and there might not seem like that big of a deal, but those small errors make a major difference when they are all totaled up.
According to recent data, inaccurate time tracking costs professional service firms more than $60K per employee per year, yet it’s not easy to detect. Missed projects, delayed projects, poor task outcomes, attrition, issues with efficiency and productivity, or quality issues the problem manifests in various ways, yet organizations find it challenging to see time tracking data discrepancies as the reason behind these issues.
With hard figures like that in mind, there is no denying that slacking off on proper time tracking must be eliminated in the new year. Let’s now take a closer look at some of the problems that poor time tracking causes so that you have every reason in the world to make a change in the new year.
Problem #1: Inconsistent or Incomplete Time Entries
You stop and think to yourself: “Oh, I’ll just log that time in a few minutes”. However, all too often, a few minutes never arrive, and you are left with a gap in your time records that doesn’t make a lot of sense to you. Incomplete, inconsistent, or inaccurate time logs don’t do you any good because they are merely a reflection of bad data.
When you operate with bad and inaccurate data, you can experience some of the following issues:
- Skewed Productivity Data – The productivity of your employees can look better (or worse!) than it truly is based on inaccurate data. This gives you an inaccurate picture of what is really happening and could lead to poor decisions about how to assign tasks to employees.
- Disrupts Payroll – Bad time data can also cause disruptions to payroll processing, and that is the last thing that you want to have to deal with.
- Causes Billing Mistakes – It is impossible to bill a client properly when there are time errors. Therefore, inaccurate time records are about far more than just bad data; they can have a direct impact on your revenue and profitability, too.
What to Fix Before January
- Standardize Your Time Entries – Create a standardized list of ways to enter time so that they are all entered in the same fashion.
- Create a Daily and Weekly Schedule for Time Entries – Establish a schedule you do not deviate from when doing time entry tasks. Remain on schedule with it so that entries are done properly and consistently.
Problem #2: Tracking Time Without Purpose
Step back, take a deep breath, and ask yourself why you are logging all these hours in the first place. Is it because you were told somewhere along the line that this was the proper thing to do? That may be correct on paper, but that alone should not be your reason for keeping accurate time logs. Instead, you need to utilize the data generated by all these entries to make it worth your while.
Understand the difference between logging time and understanding time. Anyone can log their time with enough discipline but truly understanding what it all means is the key to increased productivity.
What to Fix Before January
- Identify What You Truly Need to Measure – Establish a list of metrics you need to measure and keep it handy. Make sure you are only measuring metrics that make sense for your business.
- Align This Data with Your Overall Business Goals – Use the data you produce while measuring your time to support concrete business goals and purposes. When you can take chunks of data and directly apply it to your overarching business goals, that is when you are making true progress.
Problem #3: Too Many Manual Processes
If you learn nothing else, at least learn this: You must get away from manual data entry as much as possible!
Entering data manually is not only time-consuming and potentially frustrating for many employees, but it also produces a whole host of additional issues.
Manual time tracking creates a cascade of problems that impact every part of your business: from frontline employees frustrated by paycheck errors to managers drowning in administrative tasks, to finance teams scrambling during audits.
You see, while you might default to manual data entry at first, that will only cause you (and your employees) frustration and stress in the end.
A big reason for this is that too many manual processes often lead to duplicated work, leaving employees feeling their efforts are relatively meaningless as they redo work already done. Instead, time tracking software provides a much more straightforward way of tracking time that doesn’t put you in the position of duplicating work.
What to Fix Before January
- Automate Processes When Possible and Appropriate – Before the new year arrives, try to automate as many data entry processes as possible. The reality is that many things are best handled by software rather than a human.
- Reduce Obstacles to Submitting Time – One of the biggest reasons why many people are not on top of properly submitting their time is that there are too many obstacles in their way. This is to say, they get frustrated because they must jump through hoops to make it happen. Work on reducing those obstacles so that more time gets submitted accurately right from the start.
Problem #4: Poor Visibility for Managers
Anyone can look at the box score at the end of a sporting event and think that they understand what happened in the game. But, as any good sports fan will tell you, that’s not the half of it. You truly need to get into the finer details of most things before you can truly grasp their significance. This holds true for time tracking data as well.
When managers are presented only with the day, week, or month totals, they see only a fraction of the picture. Unfortunately, when that is the case, managers have no choice but to make decisions based on incomplete information. As you might have guessed, those decisions tend to be relatively poor in nature. Thus, this is yet another issue to look at before launching into the new year.
What to Fix Before January
- Establish Real-Time Dashboards – Information should be readily available to managers as it comes in. This will allow them to explore that data in as much detail as they can muster, and it will give them accurate information even as that information is actively flowing in.
- Track Trends – Don’t just focus on the totals you see; look for trends within the data. This is what people who are truly interested in learning more about what they are looking at do.
Problem #5: Time Tracking That Employees Hate
Have you heard employees complaining about time tracking and wondering how you can ever make it work within your organization? You are certainly not alone on that front. There are plenty of employers who harbor similar concerns. Here is what you should know about that: It is more likely a signal of a system problem rather than a people problem.
Employees don’t necessarily mind entering their time if they can do so within a system that they understand. If you provide them with user-friendly time tracking software and teach them how to use it, you should hear fewer complaints over time.
What to Fix Before January
- Simplifying Data Entry Systems for Employees – Make processes as smooth and seamless as possible for employees. This should help calm the nerves of employees who might not be thrilled about entering their time into a system they find overly complex.
- Communicate Why Time Tracking Matters – A great way to get employees on board with time tracking is to explain to them why it matters so much. If you fail to do so, then it often feels like just an extra bit of work that they must do. Instead, start open lines of communication now so your employees can better understand the specific reasons they are being asked to do this.
Getting Ready for the New Year: A Simple Time Tracking Reset
Now is the time to start training your team on the virtues of proper time tracking. It is also time to invest in the most straightforward, user-friendly time tracking software you can find. You should audit your current system and identify areas for improvement. Then, with that information in hand, begin making the changes you need before the calendars switch over.
You can fix issues now and enjoy the compounding benefits that good and accurate data provides. Get things kicked off right with a free trial of Time Tracker by eBillity and start to improve the quality of your time tracking data immediately. For more information on getting started with your free trial or to book a demo contact us, we are here to help every step of the way.
FAQs
Why should I review my time tracking before the new year starts?
Reviewing time tracking in January helps fix inaccuracies, streamline processes, and start the year with clean, reliable data instead of carrying over old issues.
What are the most common time tracking problems businesses face?
Common issues include missed time entries, inconsistent tracking habits, inaccurate reporting, and using tools that don’t fit current workflows.
How does better time tracking improve productivity?
Accurate time tracking provides clearer insights into how time is spent, helps identify inefficiencies, and supports better planning, budgeting, and accountability.
What should I look for when evaluating my current time tracking system?
Check for ease of use, accuracy, reporting capabilities, integration with payroll or billing, and whether employees consistently use it correctly.
Can fixing time tracking in January save time later in the year?
Yes. Addressing issues early reduces administrative work, prevents reporting errors, and minimizes disruptions, saving time and frustration throughout the year.