While a wrong start, lack of funding, competition, mismanagement, an incapable team, and a bad product are some of the factors that contribute to a startup's failure, productivity is one of those factors that we often overlook or tend not to consider. Because startup founders sometimes cannot account for the employees' efficiency. One way to properly handle this is by measuring the productivity of employees through time-tracking software.

Talking of time tracking, it means having a time monitor that looks at your to-do list and how many minutes, or hours you spend on each task. On the other hand, productivity focuses on how quickly you're able to complete each task. Without proper time management, individuals and businesses cannot be productive. Continue reading to discover how effective time tracking can impact your startup's productivity. You will also get to know some of the best time-tracking software you can adopt for your startup's operations.

What are time-tracking tools?

As the name implies, time-tracking tools are software and applications that use user activity monitoring (UAM) to record users' computer activities and the amount of time spent on each project. Time-tracking software is used by many different companies, especially remote companies. Time-tracking software can be used independently or combined with other programs, including project management, customer service, and accounting software. This software is already replacing conventional paper timesheets. 

Why is time-tracking software important to startups?

For startups that operate remotely, time-tracking software ought to be a mandatory aspect of their operation (this is not to say startups with a physical presence do not need to track employees' time). So the first and most noticeable importance in this situation is that time tracking software allows you to accurately monitor the amount of time your employees spend on each project and tasks that are assigned to them. 

Time tracking software also helps you effectively construct a yardstick to measure, compare, and contrast your employees' individual and team performance by providing you with the necessary insight. With this knowledge, you can accurately determine which jobs are taking up the most time and then determine whether they are consistent with your company's objectives. As you identify time-wasting activities, you can prioritize tasks that directly support the growth of your startup and then define a better workflow to maximize productivity.

Additionally, time-tracking software improves responsibility and transparency in your startup. It is easier to track progress and hold team members accountable for their duties when everyone logs their work hours and tasks. This way, everyone is aware of their efforts and appreciates the teamwork needed to accomplish the goals and objectives of your startup.

Last but not least, precise timekeeping helps with project management. As a founder, you probably manage several projects and duties at once. You can set realistic targets, distribute resources more effectively, and avoid overburdening your employees by using time monitoring software. This enhances time management and lowers the possibility of employee burnout and overall productivity.

How to choose the right time tracking tools for your startup 

Here we'll be looking at features to consider before selecting time-tracking tools for your startup.

So what are these features?

• Affordability - the more affordable the better as long as the software has all the features you need. 

• Ease of use; Ask yourself if your team members can easily navigate the software. You don’t want something that cost more time than it saves.

• It should have automated reminders and remote access, especially if your employees are remote workers.

• It should have a detailed, adaptable report that supplies your management team with the information they require for decision-making.

• Read user reviews to see how the software performs in real-world situations and to determine whether the tool delivers on its claims.

• Data Capabilities: Time-tracking data gives you an understanding of how much time is spent on each activity or project, therefore, it's always advisable to use a program that has extensive reporting options that will allow you to spot areas where you can make adjustments.

Time tracking use cases

Time-tracking use case is like saying how startups and other groups have been applying time-tracking software. Here are a few of the many of them:

Freelancers: These are individuals that work independently for different clients. They are part of the group of people who use time-tracking software. They keep track of how much time they devote to each project by tracking their work hours with time-tracking software peculiar to the platform they're using. For instance, the Upwork time tracker even takes screenshots of freelancers' activities after ten minutes and submits them to clients for review at the end of the week.

Remote workers: Remote workers are those who work from places other than a regular office. Their work hours are logged with the aid of time-tracking software. Since their employers cannot physically observe them at work, this is crucial. Even though they are not physically present with their colleagues, it enables remote workers to demonstrate that they are working the appropriate amount of time and doing their tasks.

Organizations: To manage their teams and projects, organizations, which can be businesses, nonprofits, or other kinds of groups, utilize time-tracking software. This way, they can determine the length of time required for various tasks and allocate resources accordingly. Using this software has made it simpler for organizations appropriately pay staff and assess their performance.

5-time tracking tools startups can use to boost their productivity

The following are the 5 most trusted and easy-to-use time-tracking software products you should consider integrating into your startup:

Monday.com

Monday.com is a web-based project management tool, a collaboration tool, and a time-tracking tool all in one. It is made for both individuals and teams. Whatever the nature of your business may be, Monday.com can help you automate any operation with customizable dashboards. It links teams and streamlines the tracking of project or task progress.

Each task's dashboard on Monday.com can include time tracking. It is a highly visual platform with project tracking tools like Kanban, Timeline, and Gantt views. The software also features file sharing and real-time feedback/communication with partners. Utilizing Monday.com with your current apps won't be difficult because you can integrate business software like Adobe Creative Cloud, Gmail, Zoom, Mailchimp, and Google Drive effortlessly.

Based on our listed criteria for choosing the best time-tracking tool for your startup, Monday.com is quite affordable because it provides a free two-user package. There are also premium packages for $6 - $22. Additionally, it provides a quote-based strategy for bigger businesses.

actiTIME 

actiTIME has contemporary tools for managing teams, workflow, billing, and invoicing, as well as customer service, among others. It can be implemented as a self-hosted program or as an online program, giving businesses more flexibility and security. Using a mobile device or a Google Chrome extension, users can manually or automatically keep track of their working hours. A range of tools are available to managers and project leaders for productivity and performance analysis. Visual charts can be created from any data on output and time utilization for reporting or presentations. 

Applications such as QuickBooks, Trello, and Outlook, are compatible with actiTIME. Pricing depends on the number of users, although it only provides free accounts for up to three people. The price starts from $6 for each user per month on an annual basis. This is quite affordable. Also, there are many ways to keep track of time. ActiTIME users can easily clock in using their smartphones and other mobile devices. They can also easily add the actiTIME Chrome plugin to their browser to track their time online.

ActiTIME's time tracking may be incorporated into any process. Depending on their work structure, paid time off policies, and personal work regulations, users can fine-tune actiTIME. With the help of actiTIME's robust data visualization capabilities, teams may instantly gain insights from their data. Users can create eye-catching charts or graphical representations of abstract data, such as measurements, statistics, and figures, using time and performance data.

Time Doctor

The software has time-tracking features like screenshot recording, manual time entry, and payroll processing. It delivers time-use warnings to users to remind them of their progress in a task and comes in both an interactive and silent form. Time Doctor is a platform that easily integrates with many other applications for easy workflow. Among them are Asana, ClickUp, and Freshdesk.

Depending on the number of users and features, Time Doctor provides three pricing options. The monthly fees per user start at $7. The unique features of this software are client accessibility, payroll integration, and the fact that it can run as a background app, silently tracking users' activities.

Harvest 

Harvest is a straightforward and user-friendly time-tracking software that has more than 70,000 users worldwide. Harvest makes it simple for users to keep track of the number of hours they put into each assignment and to monitor critical metrics like budget, schedule, costs, and resource usage. 

The software is simple to use every day because it connects with many well-known business and collaboration tools. It supports manual time editing and entry, features time use auto-reminders, and is mobile-ready.

Harvest includes tools for time monitoring as well as invoicing and payment options. To enhance payment processing, it links with several online payment platforms. Additionally, Harvest provides robust reporting features that make it simple for PMOs and business owners to assess staff and project performance.

In terms of pricing, accounts with up to two users and one project are free. While the monthly cost of the premium plan is $12. Harvest is a good option for businesses of all sizes because it has a simple time-tracking feature, an invoicing payment feature, and a reporting feature.

Insightful

Insightful was initially called Workpuls when it was launched in 2016. According to the team, they had to rebrand the product's name due to demand. Insightful is time-tracking software for small and medium-sized businesses. It gives businesses complete "insight" into how their workers spend their time. To keep track of all crucial processes, it has features like snapshots, real-time monitoring, timekeeping, and productivity tracking. Teams can use Insightful to track their time usage and fix any problems that are creating job delays.

The software has employee and manager access features, unfiltered information on workers' computer usage, manual time entries, and productivity alerts. Additionally, it has behavior analytics tools, including activity tracking and stealth mode. Daily, weekly, or monthly email reports are sent to managers. The software connects to some corporate applications, including Zoom, and Hubspot. In terms of pricing, Insightful has a paid plan that begins with an annual employee bill of $6.40. Additionally, it provides a quote-based strategy for bigger businesses. 

Key features make Insightful very unique. For instance, the software utilizes behavioral analytics, to track employee app and website usage as well as activity records. To safeguard corporate data, it also looks for suspicious and malicious activity. Then there's the productivity notification. These notifications are useful for monitoring projects and ensuring that objectives are reached on time and within budget. Productivity alerts notify users of their level of productivity and undesirable actions.

Before you go

Time-tracking software are here to stay as more people and companies collaborate online and as more companies adopt remote work arrangements. The advantages of using time-tracking software show that it is a potent component of every company's tech stack. However, carefully assessing a time tracking software to ensure it suits your company's needs is the only way to guarantee benefiting from the many advantages.

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‍Related: 20+ Productivity tools every startup founder should be using in 2023.