For accounting firms, tracking time and attendance is crucial. Billable hours are the lifeblood of public accounting firms. Therefore, choosing the right time and attendance system is an important decision that can impact productivity, profitability, and growth.
In this blog post, we'll explore the key features accounting firms should look for in a time and attendance system. We'll also compare and contrast the pros and cons of different types of systems like paper-based, spreadsheet-based, standalone software, and cloud-based solutions. By the end, you'll have a better understanding of which time tracking system is the best fit for your accounting firm's unique needs.
When evaluating time and attendance systems, accounting firms should look for these key features:
These features allow accounting firms to gain the insight needed to maximize billable hours and ensure payroll accuracy. The right time tracking system pays for itself through recouped revenue and productivity gains.
Paper timesheets used to be the default option for many businesses. However, they have some significant downsides for modern accounting firms.
Pros:
Cons:
While paper timesheets are better than nothing, they create unnecessary administrative work and offer no insights into staff productivity. The chance of human error is also high. For these reasons, most modern accounting firms need a more robust attendance tracking solution.
Using Microsoft Excel or Google Sheets to track time offers some improvements over paper-based records. But spreadsheets still come with limitations.
Pros:
Cons:
Spreadsheets work okay for very small teams but become unwieldy as staff count rises. The lack of access controls, validation rules, and automation make them a poor time tracking choice for larger accounting firms.
For many years, standalone time and attendance software was the preferred choice for HR managers. However, cloud-based systems now offer better flexibility and mobility.
Pros:
Cons:
Traditional installed timekeeping systems require a significant upfront investment and internal IT resources to manage. This gives the modern cloud solutions an advantage for rapidly growing accounting firms.
Modern cloud-based time tracking solutions offer new levels of mobility, flexibility, and insight. They are especially well-suited for today's distributed, fast-paced accounting firms.
Pros:
Cons:
The pros of cloud timekeeping outweigh the cons for most modern organizations. Reduced administrative burden, deeper insights, and increased flexibility make the software-as-a-service model a compelling choice.
For most accounting firms today, a cloud-based time and attendance system is the best option. The ability to access real-time data and automate error-prone processes on both desktop and mobile makes cloud solutions a smart investment.
That said, we always recommend taking the time to evaluate your firm's unique needs and challenges. Develop a list of must-have features based on feedback from managers and staff who will use the system daily. Most vendors offer free trials and demos - take advantage of these to get hands-on experience before committing.
While the upfront investment may give some firms pause, the long-term benefits of maximizing billable hours, gaining data-driven insights, and eliminating manual processes quickly overshadow the costs. The right timekeeping system pays for itself through recouped revenue and saved time.
To decide on the best time and attendance system for your accounting firm, consider these key factors:
Make a list of must-have features based on your firm's pain points and growth goals. Common features to look for include:
Evaluate solutions against your feature checklist. Cloud systems tend to offer more robust options out-of-the-box.
Adoption is crucial - a time tracking system won't deliver ROI if staff don't use it consistently. Look for an intuitive interface with little to no training required. The system should fit seamlessly into employees' existing workflows.
How hands-on is the implementation process? How responsive is the vendor's support team? Look for a provider that offers implementation consulting and post-launch support to ensure you get maximum value from the system.
For accounting firms, data protection is non-negotiable when choosing any SaaS platform. Be sure to inquire about the physical and digital security measures the vendor takes to safeguard your sensitive data. Many providers undergo independent audits such as SOC 2 to validate their security controls.
Timekeeping systems range widely in terms of cost depending on features, integrations, and customization capabilities. Most offer monthly subscription plans based on the number of users. You'll also want to consider any one-time setup and training costs.
While cost is important, the biggest value comes from recouping wasted hours and gaining insights to improve productivity. Don't make price the only deciding factor.
As your accounting firm grows, can this solution scale cost-effectively? Look for systems that make it easy to add features and users as needed. The right software should grow with your business.
The ability to integrate your time tracking software with payroll, billing, ERP and other systems is key. This eliminates the need for manual data entry and reconciliation between platforms. Prioritize solutions that offer robust integration capabilities.
In today's world, a modern timekeeping solution must offer mobile apps that allow staff to track time on the go. This allows for more accurate time data as employees can log hours in real-time from any location.
Once you've chosen and implemented your time and attendance system, follow these best practices to maximize the benefits:
Host kickoff training sessions and provide user guides and video tutorials to ensure everyone understands how to use the software's key features. Periodic refresher trainings help reinforce utilization. Assign "power users" to provide ongoing support.
Take advantage of customization features to tailor the system to your firm's workflows and processes. For example, set up project codes, pay rules, workflows and notification settings.
Drive consistent utilization by setting expectations for staff to track all hours worked in the new system. Highlight the benefits of accurate time data for billing and payroll. Friendly reminders help reinforce new habits.
Leverage reporting features to gain visibility into productivty trends, identify bottlenecks, adjust capacity, and inform other key decisions. Timely insights lose value if not reviewed regularly.
Incorporate time and attendance metrics into staff performance evaluations and incentive programs. This motivates utilization and highlights the value you place on time tracking.
Solicit ongoing user feedback to pinpoint issues and opportunities for improvement. Work closely with your vendor's customer success team to optimize system configuration and expand feature utilization over time.
Some top time tracking systems used by accounting firms include:
Be sure to thoroughly evaluate multiple vendors to find the best alignment with your firm's needs and priorities. Taking the time upfront to find the right platform saves headaches down the road.
An effective time and attendance system is no longer a luxury for modern accounting firms - it's a necessity. The ability to gain insights into staff productivity, automate error-prone processes, and have unified data across systems delivers major competitive advantages.
While the software investment may represent a cost, it pays dividends through increased revenue from improved billing efficiency and recouped hours. Perhaps most importantly, eliminating the hassles of manual processes saves everyone time, allowing staff to focus on high-value work.
By taking the time to evaluate solutions thoroughly, provide staff training, and drive ongoing engagement, accounting firms can maximize ROI from time tracking software and take their business performance to new heights.
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