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Home » Business And Finance Articles » Two Reasons To Use Timesheet Software

Two Reasons to Use Timesheet Software

This short paper will expand on two key reasons to move to a computerized timesheet system at your company. There are more than two reasons of course, but these will be expanded on at a later date. The two key reasons to be discussed here are Timesheet Efficiency, and Timesheet Automation.

Timesheet Efficiency is the concept of a single data entry exercise done accurately and quickly. Timesheet Automation is the simple concept of managing timesheet information electronically rather than on paper. When taken individually both these concepts make a compelling argument to move to electronic timesheets, taken together you should be asking yourself why you aren't kicking off the process today.

Timesheet Efficiency

When I started out my working career in consulting we had paper timesheets. These were (supposedly) to be filled in daily, submitted weekly, and data from them entered into the accounting system monthly. However, people being people, the accountant only checked them once a month, so they were generally only submitted once a month, and thus usually only filled in once a month when prompted by project managers. This resulted in inaccurate and late timesheet information.

This affected billing, time and materials projects would take up to four weeks to be invoiced, and thus it could be up to 60 days before payment was received. Why then are some companies constantly challenged with getting employees to accurately complete their timesheets while other firms have no problems? The difference is usually leadership and data ease of data entry. Most consulting companies employ skilled intelligent people, and a manager who fills in his timesheet information promptly and accurately can legitimately expect his staff to do so. However if the system is cumbersome and difficult to use then there will be constant conflict.

Easy to use computerized timesheet systems mean more employees are successfully filling out timesheets as they work rather than writing the time into a diary or calendar and then transferring the information at the end of the week (or month). It has been well proven that debtors are easier to manager and projects more easily monitored the closer that timesheet information is processed and invoiced to the time the work is carried out. It is just much more simple to collect all your billable hours (more chargeable time!) if employees record their work as they do it.

Of course data entry is just one side of things. Processing the information is just as important. Internal discipline and company policies must be set to ensure that all information is collected by the time you have decided is the deadline. Whether this is Friday 5:00pm, or Monday 9:00am, deadlines must be followed and enforced. Timesheet software with built in workgroup functionality like messaging, timesheet approval, live monitoring, and so on can greatly enhance this process.

There is no point pretending that timesheet information and collection is glamorous. It isn't. It should just be part of the normal mundane fabric of business. It should be routine and boring. But most importantly it should be quick, easy, and provide no disincentive to doing it. Good computerized systems should offer all of this.

Timesheet Automation

The most basic benefit that a computerized timesheet system gives is one of automation, timesheet information is entered into a computer rather than onto paper. This eliminated the need for people to transcribe their timesheet information from a diary onto a paper form, and then for administration staff to re-enter this information into a job costing system. The computerization allows you to completely eliminate the middle steps. Staff enter information directly into the job costing system.

The next logical step of computerization is to leverage off of the computer to provide a host of other benefits. This includes interlocks like preventing people from booking time to projects that dont exist, or projects that are closed, or projects they should not be booking time to. It allows project managers to access live data showing actual time spent on their projects, this data can be manipulated and visualized in different ways using other computer software. It can even interface directly with dedicated project management software.

Other benefits can include automatic timing of work, popup information showing specific project information helping timesheet accuracy, daily timesheets, reminders telling people to fill in their timesheets, integration with messaging, email, and the web, and live integration with accounting packages.

Conclusions

By themselves each of these points makes a good argument for moving to a computerized timesheet system. Taken together they are truly compelling. Increased accuracy and reduction of the billing cycle means that a computerized system can usually measure its payoff in just a few months. For any company that does bill its time, it is should not be an option any longer, it is a simple next step. Interested in looking at some low cost alternatives? Why not take a look at Timesheets Lite or Timesheets MTS. These are low cost systems ideally suited to the small company.

And here is another random article you might be interested in...

CASH FLOW - The Life Blood of Every Business

Introduction

The purpose of this article is to familiarize business owners with a kind of financing that is unfamiliar to many people, Factoring. I will explain, in a simple yet comprehensive way, how to improve your company's cash flow. You may then decide if using the Factoring approach is a sound business decision for your particular situation and needs.

The Life Blood of Every Business

If we were in a room full of small business owners and asked them all, "What is the one thing your business needs the most in order to survive and grow?" we would probably get a variety of answers: "a needed product or service," "a solid base of loyal customers," "a well-prepared business plan to chart your course," "a good location," or "effective marketing." All true answers. But in addition to these, there is one need central to every business â€" that is the need for available CASH. This is where factoring or accounts receivable financing comes into play.

Cash to business is like fuel to a car. You need to have enough in the tank to start the engine and you need to maintain enough in the tank to keep it running. Now the car (your business) will take you where you want to go. If you run out of gas â€" cash on hand â€" at any point along the way, well...we all know what will happen.

Where can a business owner obtain the cash he or she needs? Banks, venture capital, private funds of the owner, friends, and relatives are the most common places in turn. However, banks usually want a minimum of two or three years' worth of business financials before they'll give a loan. Venture capitalists want part ownership of the business. Not being in business long enough or not being profitable enough to satisfy the banks; and not wanting to give up any ownership; and with private resources already tapped, the business owner may be stuck. "Where can I find that cash to grow my company? I have a good business with loyal customers, I'm profitable or would be with enough cash to fuel the engine; I just need to get over this hump of not enough cash flow. What can I do?"

The answer to this question may be right under your nose and you don't even know it. If you have accounts receivable with good, solid customers who are credit-worthy, you have something with intrinsic value that other business owners are interested in buying. The cash that can be obtained for your good receivables can be exactly what you need to get over a cash flow crisis.

By selling something you own â€" your receivables â€" you're not generating any debt that must be paid back; and you're improving your credit stature because you're converting assets (invoices) into immediate cash. That cash can enable you to save further by getting volume purchase discounts, discounts for cash, create market opportunities, or hire needed staff. And most of all, you can start new and expanded production without waiting for earlier invoices (sales) to be paid.

Setting accounts receivable at a discount is a means of financing called "factoring" or "accounts receivable financing." It's been around for centuries and is a billion-dollar industry for large businesses today. And it is growing rapidly in popularity with small and medium sized companies. Factoring not only has saved countless businesses from going under, it has provided many more businesses exactly what they need to grow: cash to fuel the engine.

Further Benefits of Factoring

Selling accounts receivable puts you in control of your business like no other form of financing. You control the discount by specifying when the advance is to be made. You can space the advances to create a steady flow of cash. If you don't need cash now, you can wait to receive the advance and save on the discount (waiting on an advance creates a line of credit).

What's more important to realize is no debt is created, you have no loans to pay off, you create and keep a cleaner financial statement, your access to cash grows with your business sales, and there is no need to re-apply. Finally, you can stop factoring at any time. There are no long contracts and you only factor the invoices you want. YOU are in control.

Conclusion

Invoice factoring is filling a tremendous void that banks have created. Companies accelerate their profit and thrive whether you are a start up or established business.

Factoring requires, less paperwork than loans and no credit or reference checks of your business and is also faster than tradition bank loans..

Invoice factoring offers bussinesses tremendous growth opportunities to assist in the management of cash flow and delivers working capital for your business needs.

If you are seeking an invoice factoring company, then Diversified Financial Services is the smart choice. Our Financial Consultants are ready to answer any factoring questions. Call today 800-954-0012.