![]() These records are often used in grant financial audits. By doing so, they can allocate employee compensation across the grants they're servicing. These organizations often use timesheets to record how many hours their employees spend on each program. ![]() This is especially important for non-profit organizations who are often tracking grant spend down to the penny. businesses that receive grant money, whether they are non-profit or otherwise, are required to keep meticulous records and provide strong internal controls. This helps leaders take a long lens approach to assessing project profitability. Timesheet data provides business leaders with a top-down view of all the resources and hours spent. It’s also why businesses prioritize one project over another when there are multiple initiatives vying for resources. Profitability analysis is the process by which businesses decide whether a project is worth the time, effort, and resources that will be allocated towards it. The data is often a clear indication as to where exactly in the workflow problems are arising. ![]() By breaking down projects into specific activities, patterns and process gaps become evident. Timesheets also serve as a highly effective way for white-collar workers to understand where process bottlenecks are occurring. This level of precision results in much more accurate client billing and provides complete transparency into how much billable time was charged to a project. But by using timesheets, white-collar workers can log billable time down to the very minute. Any incorrect billing may sever client trust. It’s critical that this is done accurately. When firms invoice clients they notify them of what work was completed, the financial value of that work, and the expected compensation. But when managers can identify outliers in specific projects by way of an increase in non-billable hours, it can serve as a red flag to check in with their team. Most employees will log non-billable hours at some point whether they are in training sessions, pitching a bid, or doing research. Doing so shows which projects are being bogged down versus which ones that are running smoothly. Non-billable hours are also important to track on timesheets. Knowing how many billable hours each employee is typically producing is an important consideration when it comes to forecasting revenue. Timesheet data also provides knowledge around utilization rates which determine how much an employee’s time is billable. Professional Services firms can also use this past data to help forecast potential profitability when considering new initiatives. ![]() For Project Forecastingīy using timesheets, project managers can refer back to historical project data so they can create better timelines and budget estimates. And while being under budget may initially sound positive, it can also indicate that the project isn’t progressing or hasn’t been properly scoped. These variances may present as either overages or underages, but both are problematic. For Project Costingĭuring project execution, it’s imperative to track actual costs against forecasted costs and flag any variances. ![]() The following are eight common reasons why white-collar businesses find timesheets advantageous: 1. This knowledge is particularly helpful in white-collar industries who often need to understand the true cost of projects to determine their profitability. Teams that use timesheets tend to understand in greater depth which projects and tasks are using the most resources. Why Organizations Use Timesheets, Part 1: Timesheets For White-Collar Workers ![]()
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