Harvard Business Review reports that inaccurate timesheets are costing businesses billions of dollars every day, nationwide. Time tracking software or timers for client billing are designed to record every moment that you work for said client. It appears, however, that many professionals fail to log time spent corresponding with clients, the rate of which is rapidly increasing in the digital communication age.
A recent study surveyed 500 workers across the United States and found that each worker lost about $50,000 per year in revenue by failing to track time spent corresponding with clients and with others involved in work projects. Nearly 40 percent of those surveyed said that they never tracked time spent reading and answering emails related to work. The firm that conducted this study reports that, owing to the sheer size of its professional services sector, the American economy is losing 50 million hours in productivity per day – the equivalent of around $7.4 billion.
This study also demonstrates that many workers wait until Friday to log hours for the previous week, roughly guessing at their activities over the past five days. It’s no surprise that people who reported filling out their timesheets daily submitted more accurate records.
Cashflow is almost always an issue at professional service firms – how do you cut overhead and boost revenues? Did you ever think that two minutes per day (how long it takes to log time) might generate tens of thousands of dollars? A company with 15 employees that charges an hourly rate of $150 has an average revenue leak of $1.6 million per year. That amount should more than cover the cost of good time tracking software.