Time tracking is a vital aspect of accounting for small businesses. It’s the only way to identify how efficient your accountants are, how expensive your projects are, and the amount of profit and loss you are earning. Plus, it’s also good for making payroll efficient. However, you must be wondering why only work-hour tracking. Isn’t there another method?
To make a long answer short, no. Keeping track of the work hours is the only way for you to figure out work-time utilization efficiency, employee accountability, and productivity. With its plethora of amazing features, software for tracking time is one of the most handy small business accounting solutions.
So, in this blog, we will explore all about how and where time tracking and the software for it support small accounting businesses in accruing processes and look at its various other benefits. With that out of our way, let’s get right into it.
Why Time Tracking Software is Needed for Accounting for Small Businesses
Time tracking software acts as an accounting solution for small businesses in the sense that it precisely tracks and reports every hour, minute, and second your accountants spend working. This helps you address any obstacles in project delays and whatnot. The benefits are not only for your business, but they also skyrocket the positive growth of your staff members by providing:
- The capability to spot areas to capitalize on productivity
- Opportunities to improve the business workflows
- Recognition for top performance and promotion opportunities
- The capability to see in-depth where, how, and why work-time utilization efficiency and performance are lagging.
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7 Key Features of Time Tracking Software for Small Businesses Accounting
When it comes to accounting for small businesses, choosing the right software and features for tracking work hours is essential. These 7 key features are a must-have for you and your accountants.
1. Integration with Accounting Software
This is purely for automation and coordination purposes. Instead of keeping two separate tools open for accounting and tracking the hours spent, doing both from the same interface is more efficient. Additionally, it doesn’t interfere with the workflow, allowing you and your employees to focus completely on the work.
2. Remote Employee Clocking
If you have field accountants, then this feature is a time saver. Why, because your field employees don’t need to return to the main office to clock out or clock in, they can do so from the job site. This is GPS-based. Plus, it also tracks the time spent on job sites and the hours spent on different routes for reimbursement purposes.
3. Real-Time Time Tracking
When you are making time entries or with an automated timer, you might miss some crucial hours. However, if your time tracker provides this feature, there is a surety that no second of work will go untracked.
4. Flexible Time Tracking Options
This ensures that your accounting teams are comfortable monitoring their work hours. For instance, some employees only like to focus on work, others find it suitable to identify their efficiency via automated time entries, while a few have no problem filling in their time blocks at the end of the day. So to summarize, the software must provide:
- The facility to automatically track time
- An Automated task timer tool
- Facilitate manual time entries
5. User-Friendly Interface
Accountants are not familiar with advanced technology. Since they are not IT people, handling complex user interfaces is not their cup of tea. So the work-hour monitoring software you are using here as a small business accounting solution must be:
- Easy to learn and use
- Easy to navigate
- Feature-rich but not feature-intensive
- Provide 24/7 support in case it’s needed
6. Attendance Tracking
Make your workday more productive
Time tracking and work management can help you reach your goals
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This is an integrated feature, which also ensures that you also get real-time employee attendance reports along with work hours data. This saves you time, money, and confusion. Plus, adjusting shifts becomes simple by having the data of present and absent employees on the spot.
7. Timesheets
Automated generation of timesheets based on time entries is another feature. This is a good feature because you don’t know how much time has been spent on tasks and projects, and asking will only waste more of it and disrupt focus. Instead, it’s better to analyze the timesheets and figure out the productivity and efficiency.
4 Advantages of Time Tracking Software for Small Businesses Accounting
Implementing the right work-hour monitoring tool for your team of accountants provides you with many benefits. Here are 4 of them.
1. Profitability Analysis & Project Management
The reason we are running our businesses is to earn profits. So, to be able to estimate them before even receiving the amount is even better. By identifying how much time your employees spend on each particular client or project, it becomes simple for you to know which product lines, projects, and clients are the most profitable and which ones are too expensive for your organization:
- Analyze real-time work-hour updates to scale where your employees are progressing and where they are faltering.
- If there is an integrated or built-in notes feature, your employees can also update the reason why a task took longer than expected, or if there was an unexpected issue or problem.
- Identifying the projects and clients, making issues, and adjusting strategies faster becomes possible with the right software to track time.
2. Payroll Automation
This is due to the integration of your small business accounting timer software with your payroll tool. This enables you to send time entries for processing either with a click of a button or it will happen automatically. Some advanced software solutions even provide the facility to access time and payroll options from the same interface.
3. Streamlined Workflows
Knowing how much time is being spent on each task and project in real-time lets you figure out and redistribute the workloads to increase the work-time utilization efficiency. You can identify any processes that are consuming too much time and get rid of unnecessary steps to optimize the workflows.
4. Reduced Expenses
Accounting shouldn’t be an expensive affair. You need to save as much time and money as possible to expand, pay your employees better, and improve work-life balance because there is no need for unnecessary or unwanted overtime. All this is possible by tracking time accurately using the right small business accounting time tracking solution.
Read Also: How to Monitor Employees Working from Home in 2025?
Why is DeskTrack the Best Time Tracking Software for Small Business Accounting?
DeskTrack is the ultimate software for tracking time for multiple sectors. Accounting businesses included. With its user-friendly interface and robust time tracking and timesheeting features, businesses streamline workflows, skyrocket work-time utilization efficiency, and maximize employee productivity. However, DeskTrack also provides more with a combination of screenshot monitoring, work-hour monitoring with data analytics, project management, and employee monitoring software. Plus, it’s cost-effective for small, medium, and large organizations. Try free for 15 days and discover why 8000+ organizations worldwide use it.
Conclusion
Now, we hope that you are familiar with how time tracking supports accounting for small businesses, skyrocketing efficiency, accountability, and productivity. As a final word, we would like to say that to improve the work-time utilization efficiency of your employees, you need to implement software to track work hours. However, why go for the rest when you can pick the top option? DeskTrack is the ultimate staff monitoring and management software solution.
Frequently Asked Questions (FAQ)
Q. Why Do Accountants Need Time Tracking Software?
Ans. They need it for:
- The capability to spot areas to capitalize on productivity
- Opportunities to improve the business workflows
- Recognition for top performance and promotion opportunities
- The capability to see in-depth where, how, and why work-time utilization efficiency and performance are lagging.
Q. Can Accountants Trust Time Tracking Software Solutions?
Ans. Yes, of course. Accountants and accounting businesses rely on software solutions to track work hours to get precise data on work-time utilization. As long as you are getting the expected features and output in time and money saved, the solution is cost-effective.
Q. What are the Key Features of Accounting Work-Hour Monitoring Software?
Ans. Here’s what makes the said software solution work.
- Integration with Accounting Software
- Remote Employee Clocking
- Real-Time Time Tracking
- Flexible Time Tracking Options
- User-Friendly Interface
- Attendance Tracking
- Timesheets
Q. What are the Benefits of Work-Hour Monitoring for Accountants?
Ans. Accountants get 4 benefits from precisely tracking their work hours.
- Profitability Analysis & Project Management
- Payroll Automation
- Streamlined Workflows
- Reduced Expenses
Q. Which is the Best Time Tracker Tool for Small Accounting Businesses?
Ans. Here are the top 10 options for you.
- DeskTrack
- Paymo
- Toggl Track
- Clockify
- Time Doctor
- Timely
- Harvest
- RescueTime
- Everhour
- TimeCamp
