How to effectively track time in a software house: tools and strategies

Time tracking is crucial for software houses to manage their most valuable resource: time. While monitoring attendance, logging hours and administering timesheets are important, the real deal is about effectively managing all the resources and workload.

Efficient time management is the basis for proper project management. But to achieve success, you need to know how to do it right. Here's how to track time in software development teams to take the most out of it.

Why is time tracking essential for software houses?

Let's start from basics—why would you even need time tracking for software developers if the job is focused mainly on designing, programming, building, deploying and maintaining software? What does time tracking have to do with software house?

The answer is: everything. Time tracking is essential for software houses because it helps to better plan and organize work so you can focus on what matters most.

Benefits of time tracking

There are so many good sides to time tracking that the list could go on and on but here are the most important benefits:

• It helps teams understand where the time is going, why it seems to disappear, and how they can make it work in their favor.
• Identifying bottlenecks and making data-driven decisions to improve productivity.
• Getting valuable insights with reports and analytics to improve efficiency, and ultimately deliver better results.
• Accurate billing and invoicing.
• Automatic time tracking reduces administrative tasks.
• Improved project management and resource allocation.
• Better work-life balance for team members with increased transparency and accountability.

Overall, time tracking software can help you automate work, optimize workflow, and improve business processes in your software house.

‍Stuck on time tracking? These common pitfalls could be the problem

‍In general, implementing time tracking should be easy: you sign up, set your preferences, and track your time (provided that you're choosing the right time tracking solution). But sometimes it becomes problematic.Here are the most common challenges that you may experience:

• Resistance from team members who feel micromanaged. Also, for some employees, time tracking may seem intrusive as some forms of tracking time focus on employee monitoring (which we don't recommend if you value your workforce).
• Difficulty in finding the right time tracking tool.
• Inconsistent time tracking habits.
• Logging every minute of your workday can feel like an extra task, adding overhead rather than saving time.
• Limited visibility into time spent on tasks and projects.
• Once you've been tracking for a while, the amount of data can become overwhelming. If you don’t have a clear plan for analyzing the information, it might feel like it’s not providing enough value to justify the effort.

Do any of these resonate with your experience? What to do when you find time tracking difficult? Let's keep going to see what can be done about it.

‍Choosing the right time tracking software

‍To avoid obstacles when tracking time or limit them to the minimum, look for the right tool for your company. So, how to choose the right time tracker for your software development house?

The best time tracking software on the market may not work out if it doesn't offer all the necessary functionalities.

‍Key time tracking features to consider in a time tracking software

‍Check all the key features for a good time tracker. You can find them all in TimeCamp, a free time tracking software for unlimited users and unlimited projects:

‍1) Ease of use

‍A good time tracker isn't a good time tracker if it's too complicated and requires too much time to learn its use. Software developers need straightforward solutions. Hence, opt for a simple time tracking app with a user-friendly, intuitive interface.

‍2) Automated time tracking

‍You don't want to spend extra time logging every second, especially if you work on multiple projects or perform many different activities. The right time tracker with a desktop app will automatically track employee time.

Don't forget that manual data entry is also important—your dev team may need to add some unlogged work hours or change time entries.

‍3) Billable hours tracking

‍When you track billable hours, you can ensure proper invoicing and accurate estimations for future projects and see if the project is on budget.

Note that billable hours tracking can also show you how much time developers spend on non-work related tasks, such as admin and paperwork (which usually can be reduced to the minimum or even completely eliminated).

‍4) Project management features

‍It's good if a time tracking app has built-in project management tools (i.e., organizing your work into projects with task management and assigning people and clients to them). Project time tracking will allow to track project progress, improve project planning, and ensure efficient resource allocation.

And project managers will be able to oversee all work in one place.

‍5) Reports and analytics

‍Real-time dashboards and detailed reports provide an accurate record of how many hours were spent on specific tasks.

If software teams track time spent on different projects and tasks but also activities, it can help them understand where their time goes. They can monitor personal productivity and not lose track of key priorities.

‍6) Integrations

‍Since software teams operate on so many levels, integrations can save the day.

It's also helpful when the time tracking software is available on multiple platforms (web app, desktop app, mobile app) so your software developers can easily access it.

‍7) Additional features

‍To track work hours effectively, you may look for other features that can help streamline workflow, especially for larger teams. You can choose from such options as manual time tracking, expense tracking, idle time tracking, productivity tracking, and attendance tracking.

Some tools offer customizable modules that you can adjust to your needs.

‍Top time tracking software for software houses

‍Here are some of the best time tracking tools that you can use in your work:

‍Also, communicate the importance of time tracking to team members so everybody knows what and why is happening.

• TimeCamp: automatic time tracker with billable hours tracking.
• Harvest: a comprehensive time tracking with invoicing.
• Toggl Track: a free time tracking app with basic functionalities.
• Timeular: an automated time tracking tool with a physical tracker.
• TrackingTime: a time tracking app with a focus on time blocking and planning.

Implementing time tracking in your software house: effective time tracking strategies

‍Check out the best practices for time tracking. Read on to see what you can do to maximize the benefits of time tracking.

‍Create a time tracking culture

‍First and foremost, prior to implementing time tracking software, communicate the benefits to all team members. If you want, you can establish a time tracking policy listing all pros and guidelines as a source of reference.

Provide training and support for time tracking tools if necessary. Creating a time tracking culture requires clear communication and buy-in from team members.

‍Set clear goals and expectations for time tracking

‍Set clear goals and expectations for time tracking from the very beginning. What do you want to track? How do you want to achieve it? What is your main objective? Improving productivity or finding bottlenecks?

‍Use time tracking data to improve productivity

‍You can analyze time usage statistics to identify bottlenecks and areas for improvement. This information will help you make smarter decisions to optimize workflows and improve business operations.

‍Enhance client relationships with accurate time tracking

‍Time tracking provides accurate time entries. This gives you authentic and transparent billing and invoicing.

Also, proper time management helps to deliver high-quality work on time which builds trust and credibility with clients.

‍Regularly review and adjust time tracking data

‍Regularly reviewing and adjusting time tracking data is important to know you're going in the right direction. So, perform regular check-ups to see whether things go as planned. And adjust workflows and processes as needed.

Don't forget about feedback and coaching to team members so everyone knows how they're doing at their jobs and what needs to be improved.

‍Face common obstacles to time tracking

‍Don't get discouraged if you experience obstacles. They're natural part of growth. Just make sure to address the problems, for example, resistance from team members, finding the right time tracking tool, and establishing consistent time tracking habits.

Overcoming common obstacles to time tracking requires flexibility and adaptability, which should be a daily bread for agile software developement teams.

‍Scaling your software house with the right time tracker

‍Time tracking is crucial for software houses to manage their time effectively. Automated tools can save time and increase accuracy.

By choosing the right time tracking tool and implementing effective time tracking strategies, teams can improve productivity, efficiency, and client relationships. That results in higher profits and happier employees.