Why Use Time Tracking Software—22 Practical Reasons

Time tracking software is one of the most popular categories of SaaS tools. Some people love it, others hate it.

Why do people use time tracking software? What are the benefits? You’ll find it all in our short guide!

What Is Time Tracking Software?

Let’s begin with the basics—what time tracking software is. If you already know it, feel free to skip this point and jump to another section. 😉

Time tracking software is nothing but an automated form of a punch clock, only better. It’s an application that you can run either on desktop or online in your browser.

men and clock graphicsIt is a system that, as the name suggests, tracks your time. You can use it for work and for personal application to measure how long it takes to complete your tasks. 

Time trackers may have different forms and functions. Some track only time, others track time spent on projects and tasks. They can also be stand-alone systems or part of other tools such as project management software or payroll app.

Additionally, some of the time tracking apps offer mobile time tracking, GPS location monitoring, or features such as project, team, and task management.

But in general, it’s an app that records your time usage, generates timesheets and different kinds of reports.

👉 You can find more information about what time tracking software is in our comprehensive guide—What Is Time Tracking Software? 


What Is The Main Purpose of Using Time Tracking Software?

There are people who don’t believe in the concept of tracking time. They either don’t need it or simply don’t like it. But for some, it’s a must.

man and hourglass graphicsTime tracking is fundamental for many freelancers, service providers, or companies that hire hourly employees or work with professionals who bill by the hour.

And so the main purpose of using time tracking software for most people is the ability to keep track of time spent on individual activities, tasks, or the entire project.

That helps to track and manage the workload of the team members and better allocate resources.

Another vital aspect of using time tracking software are timesheets and reports that can be created for clients and stakeholders. It gives insight into the project’s progress and its health. That improves communication and collaboration.

In general, time tracking software is used mainly for better productivity, project management, resource allocation, billing, and measuring the profitability of projects.

But because of its rich features, people and companies can flexibly use it for different purposes, and adjust the system to the business needs.


What Are The Benefits of Using Time Tracking Software?

For some people, tracking time is a benefit at its best. The ability to accurately track work hours helps many to stay profitable. But it’s more than that.

What else can you gain from using time tracking software? Here’s a list of all the benefits of time tracking.


1. Focus

When using time tracking software, people can do their work and stay focused while you can check their activity and other necessary information in reports without bothering them.

Employees can also learn how they spend their time and use the most productive time for deep work.

2. Transparency

Time tracking software provides timesheets, and reports with different types of data so it’s easier for management and employees to track changes.

People have everything visible in one place and can see who works on what and how. They can easily communicate progress, report on weekly progress, or completed projects.

woman with an arrow graphics3. Confidentiality & no mistakes

Time tracking software works as a central hub of information for the company. It’s a private space available only for your team, no one outside of your organization is allowed to see it, only if you give access.

That helps to prevent mistakes, unwanted interference of third parties, and keeps the data safe.

4. Unity

Since time tracking software creates a central hub of information for the company, it helps to bring together employees but also incorporate all processes into a coherent business structure.

People work in a unified system so they share the same experience, have jokes and conversations about it rather than talking about different things when using various tools. And if they need, there are multiple integrations with their favorite tools. You can easily integrate your time tracking tool with other productivity, project management, payroll, or invoicing apps.

5. Efficient workflow

With all the data at hand, you have a better overview of the entire business. You can better understand company workflow, tiny details that are happening, and find problems to cut costs.

👉 Read more in our article on time tracking ROI.

It’s easier to understand the capacity of your team so you know when to delegate to whom.

Additionally, you’re avoiding overstaffing and understaffing which, ergonomically means a bigger office and more expenses. On the other hand, too small office works counterproductive. Not to mention that having too many or too little employees is harmful to your budget.

Overall, time tracking software helps to improve workflow, “It’s very simple to use, especially fueling it with Trello, it’s key here, we wanted to maintain our workflow and not jump over to other pieces of software to capture the time data.” says Mike Spencer, a Principal Analyst at M&C Saatchi.

6. Data

Time tracking software is not just timesheets and time stamps. If you choose the right tool, you’ll receive lots of information about your company—attendance and leaves, efficiency, profitability, state of the budget, estimates and actual numbers, tasks, and more. You also have a client and project base with all the necessary information.

Tracking additional data is helpful in project management but also in managing your company. It can show you all the information about your business state, clients, projects, and employees.

7. No multitasking

It’s difficult to track time for two or more tasks at the same time. Nobody wants to switch a timer every five minutes. Instead, you stick to one activity and don’t let your attention wander off.

Time tracking software helps to stay focused on one task at a time and deliver work successfully within a set time frame. As simple as that!

👉See how to keep track of time and work hours.

8. Improved quotes and rates

Based on your reports and accurate data, you can write better proposals and predictions for future projects; you can assess client value and see what jobs are profitable.

Also, you are able to set the right rates for long-term projects with trusted customers and stakeholders, and possible discounts.

And you don’t have to worry about underestimates or overcharging your clients.

9. Track unreported tasks

Some activities are an inseparable part of work, yet many people don’t treat them as such. Things that usually don’t bother people, small activities, or activities like meetings, calls, that aren’t considered as part of the project in fact take a lot of time.

With time tracking software you can flexibly record time for everything you do, including lunch breaks, time off, overtime, time spent on traveling to clients, and many more.

Tracking unreported tasks will show you how much time you’re spending on things that seem to have little value.

man working in front of a macbook graphics10. Improved payroll

Payroll can be a headache. But with time tracker you have an integrated payroll system, smooth administrative processes, and accurate numbers.

All information is stored in one place, easily accessible, reliable, and transparent. All it takes is one click to calculate and manage payroll. And you don’t have to worry about overtime, breaks, and other billable or non-billable hours—it’s all done for you.

Additionally, there are financial advantages—statistics show that “organizations with integrated timekeeping and payroll reportedly overachieved their revenue targets by 7%.

11. Available everywhere

With the right time tracking tool, you can access your data on every device (desktop, web, mobile).

Most of the software can easily track and synchronize time across all devices. So no matter where you go, you always have it at hand.

12. Manage scope creep

Scope creep is part of every project. The thing is to be smart and make the right moves at the right time.

The data gathered by time tracking software helps to monitor every change, foresee difficulties, and act in advance to prevent negative scope creep. It helps to identify weak spots in real-time and reach your goal. After all, you don’t want to run out of money or time.

13. Accurate timesheets

In time tracking software, tracking time is automatic so all the numbers are always accurate. On the other hand, when people have to fill out timesheets manually, they may enter inaccurate numbers. It also takes a lot of time.

Statistics say that people who track their time use daily are 66% accurate, while those who track it weekly are 47% accurate, and those who fill their timesheets less than once per week are only 35% accurate.

There’s nothing better than having your timesheets filled out automatically and accurately for you.

14. Motivator

Time tracking software motivates you to stay on track, focus on work, don’t procrastinate, and don’t multitask. The automatic recorder disciplines people not to work on not work-related things. It motivates to achieve goals and keep going with your tasks so you can be more productive and accomplish more.

15. Increased customer and stakeholder trust

One of the best things about time tracking software is that it helps to understand how you work. What takes most of your time, what you waste it on, and when you’re most productive.

And for your clients and stakeholders, it’s the proof of your work. People can know exactly how and when you work, how you organize your team, workflow, what to allocate your budget to, or how you operate with the tasks within the project. People can also understand why certain things take longer and others can be done in just one day.

That helps to improve communication and collaboration with clients, stakeholders, management, and team members.

multitasking man graphics16. Prioritized work and projects

When you use time tracking software, in a team or as an individual, you learn to manage your time. You can assess deadlines, profitability, and other aspects of a project.

And because you know your goals, how fast you can achieve them, you can opt for the most profitable. You are the master of your time and you set the rules.

17. Real-time interactive reports

Another great benefit of tracking time is the real-time interactive reports that let you instantly see the status of work.

It gives you the ability to quickly analyze how people spend their time, what’s missing, to whom delegate tasks, or whether you’re still on the budget. You have all the power of the time in your business and can monitor every little change and act if you have to.

18. Better estimates and no missed deadlines

Time tracking software helps in estimating project costs and time necessary to complete it. That’s because you can see how many hours you or your team dedicate to certain tasks and activities.

You can precisely estimate the time and budget necessary to finish a job, project, or task.

19. Work automation & optimization

Time tracking software automates and optimizes work. Saved time on filling out timesheets, administrative tasks, paperwork, switching between different apps. Things are synchronized and smooth.

„Time tracking software (Timecamp) has been credited for automating and simplifying time tracking in the company,” says Adam Skrzypek, Chief of Research and Development of Grupa Tense.

20. Monitoring progress without micromanagement

People don’t like having their managers nagging at them every 5 minutes to do their job. Micromanagement is harmful and demotivates employees.

Thanks to time tracking software, managers have a clear overview of employee work in the reports and can monitor it in real-time. And employees aren’t stressed when they’re not micromanaged. They also have a sense of control over their time. That form of management is convenient and beneficial for both sides.

21. Record of work

One of the most important aspects of using time tracking software is proof of work for stakeholders and clients. Especially if they want to know how you’re spending their money or why you spent a certain amount of time on specific things or tasks. They can understand how you operate.

It’s also necessary during audits if you’re a government contractor. It can save you a lot of trouble, time, and money.

22. Measuring profitability in real-time

The real-time reporting system allows you to see whether the project is profitable or not, if you’re still on track with time and the budget. You can easily control costs, monitor and manage scope creep, project overrun, project margin, and other metrics that help to measure profitability.

Time tracking software gives you all the necessary metrics for profitable project management.

👉 Make your business profitable, accountable, and productive. Sign up for Timecamp.


A good time tracking software helps to scale your business. It helps to find areas for improvement. Also, if you have all processes set up right and working smoothly, it’s easier for your business to grow.

Are you using time tracking yet? Make sure to try it out for free.

Happy time tracking!


Why Use Time Tracking Software—22 Practical Reasons

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