Incorporating Analytics in Timekeeping Software

Incorporating Analytics in Timekeeping - clock on desktop with cell phone and notebook

Timekeeping software is an essential part of running an effective and profitable business. The days of employees manually inputting data on time sheets or using paper time cards to log work hours are long gone. Enter digital timekeeping software, which HRMS calls the updated and streamlined version of old-school timekeeping methods.

What is digital timekeeping software?

With each employee clocking or swiping into the system automatically each day, today’s timekeeping software is able to collect massive amounts of time and attendance-related employee data in real-time. This is where data analytics enters the picture.

Through the combination of digital time tracking software data and analytics software, any company can plan the deployment of its workforce, administer leave and time off, and calculate payroll more accurately. While the data for all of this has always been there, with the help of artificial intelligence, or AI, enabled data analytics tools, companies can work towards these tasks much more efficiently and thus, increase overall profits.

How does data analytics play a part?

Modern employee time keeping devices are powered by two of the fastest-growing technologies: artificial intelligence and data analytics. These two innovations have already made massive changes in the way several industries operate. In an extensive post by Maryville University on the outlook for data analytics graduates, they note that the top industries to take advantage of analytics by 2020 will be banking, manufacturing, federal/central government, and professional services. Not only that, since more than 5% of Americans are already working from home, you can already say AI and data analytics-backed businesses are the future.

What insights can timekeeping software give?

There’s no denying that digital timekeeping is the next logical step when it comes to fostering business growth, no matter the size of the industry. Here at Hour Timesheet we understand how critical it is for employers to gain insights into how much time their employees spend on everyday tasks, including breaking down billable hours and accounting for time by projects and tasks. This data lets them see the typical day of an employee, which can help streamline a company’s workflow and create more achievable goals while immediately adding real-time analysis to assist with the ability to manage projects and estimate projects.

How can time tracking and data analytics benefit employees?

Good timekeeping software with an intuitive interface also allows managers to take care of employees’ interests. Employees can track time daily, weekly or hourly online and in real-time. Popular software platforms like Intuit’s QuickBooks desktop and online solutions like Hour Timesheet combine timekeeping with accounting software and directly integrate with QuickBooks. This means that timesheet data can automatically sync between the two systems. Not only is it a more affordable way to manage a company’s invoicing and payroll, but it’s also a great way to keep track of an employee’s leave balance history.

Can time tracking software be used for remote employees too?

We recognize the importance of timekeeping software like Hour Timesheet that can also track leave and work hours online and on a mobile time clock app. This is because it’s more accurate than the typical Excel spreadsheet. A cloud-hosted, time management provider such as Hour Timesheet allows workers to do their jobs remotely.

With a workforce time clock, employers won’t have to worry about their employees tracking their work time, they can keep tabs on leave and absence time, and make sure their employees are working as efficiently as they would if they were in an office. Any dip in performance can be correlated to the data obtained from the employee timesheets; without this data and subsequent review, analytics in timekeeping software would be useless.

Timekeeping software is a powerful tool that companies must use to improve their overall efficiency. It gives employees more control over the time they spend at work, and allows employers to accurately track how much time is spent on different projects. This allows the company to create a positive culture with an improved work/life balance.

At Hour Timesheet, we strive to make a product that will offer the best, most accurate time tracking, in the most intuitive platform possible. If you want to learn more about our software, contact us today to receive a free, 30-day trial.

Article solely for the use of Hour Timesheet.

Written by Alicia Clay.

Indirect Cost Pools

You Can’t Manage What You Can’t Measure

A key aspect of complying with government regulations is creating processes and utilizing software tools that allow your organization to be compliant. Because we all know you can’t manage what you can’t measure, it is important to understand the basic categories of your organization’s indirect cost pools and to establish a mechanism to efficiently track employee time against these pools.

Direct costs are traceable to the production of a specific good or service. Labor and direct materials, which are used in creating a specific product or service, constitute most direct costs.

Indirect costs are those cost necessary to keep your business in operation. Indirect labor costs make the production of cost objects possible but aren’t assigned to a specific product.

Indirect Cost Pools

Overhead – indirect costs incurred that are not direct costs, but that can be attributed to a specific revenue-generating project or job. Any indirect labor or expenses that can be attributed to a certain project can then be distributed across those projects based on the projects’ direct labor hours, direct labor costs, or direct material costs

Fringe costs – include employee related costs including payroll taxes, fringe benefits such as health insurance and compensated absences (vacation, holiday and sick time).

General and Administrative (G&A) Expenses. These are management, financial, and other expenses related to the general management and administration of the business. To be considered a G&A Expense, the expenditure must be incurred by, or allocated to, the general business unit. Examples of G&A Expense include:

Salary and other costs of the executive staff of the corporate or home office.

Salary and other costs of such staff services as legal, accounting, public relations, and financial offices

Selling and marketing expenses

UNUSUAL INDIRECT-COST

Two major types of indirect costs are accounted for in a very unique way in the government contracting environment.

IR&D consists of contractor research and development efforts not performed under contract or grant and not required for the preparation of a specific bid or proposal, either government or commercial. IR&D is funded and managed at the contractor’s discretion from contractor-controlled resources.

B&P is comprised of contractor efforts to prepare, submit, and support bids and proposals, either government or commercial, whether or not the bid is successful.

Contract Type Matters

To recognize the impact that changes in indirect cost rates have on both the contractor and the government, it is vital to understand the various types of contracts used in government work. In some cases, increases in indirect costs are totally or partially paid by the customer.

A cost-reimbursement contract is used when the cost of contract performance cannot be predicted with accuracy, such as in the development of weapons systems.

Cost-plus-fixed-fee (CPFF) contract, the contractor is reimbursed for his actual cost, subject to certain government requirements regarding allowability, plus a negotiated fixed fee.

A cost-plus-incentive-fee contract (CPIF) is a cost-reimbursement contract that provides for a fee that is adjusted by a formula according to the relationship of total allowable costs to target costs. The target cost, target fee, minimum and maximum fee, and the fee-adjustment formula are negotiated at the outset. The fee paid to the contractor is negotiated after contract performance and final actual costs are determined, using the formula and the minimum and maximum fees.

Additional Resources

DEFENSE CONTRACT AUDIT AGENCY INFORMATION FOR CONTRACTORS

QuickBooks Integration Q&A

Common Q&A for Timesheet integration with QuickBooks and Hour Timesheet

Question 1. How does QuickBooks sync data with Hour Timesheet?

Answer. We utilize the Web Connector (provided by QuickBooks) to sync company data between QuickBooks Desktop and Hour Timesheet in real time. The version of QuickBooks Online offers a direct sync between the two systems making timesheet integration with QuickBooks simple!

Question 2. What type of data does QuickBooks sync with Hour Timesheet?

Employees: The sync tool will import all “active” QuickBooks employees and vendors (optional) into your Hour Timesheet account. Only vendors that have a First and Last Name field value in QuickBooks will be imported.

Customers/Jobs: The sync tool will import all “active” Customer/Jobs in to your Hour Timesheet account.

Service Items: The sync tool will import all “active” Service Items in to your Hour Timesheet account.

Classes: (optional) The sync tool will import all “active” Classes in to your Hour Timesheet account.

Payroll Items: (optional) The sync tool will import all “active” Payroll Items in to your Hour Timesheet account.

Question 3. How do I add a new data in Hour Timesheet (employees, customers, jobs, etc.)?

Answer – New data will need to be entered into your QuickBooks company file first. Once the new data is entered, you can use the web connector tool to import your new data in to your Hour Timesheet account.

Question 4. How will my employees receive their Hour Timesheet login credentials?

Answer – Hour Timesheet will send an email invitation to each employee with the link and login ID to the Hour Timesheet account included in the body of the email. Once the employee accesses the link, the employee will be prompted to create an initial password to login to Hour Timesheet.

Question 5. Can my employees track time against customers and jobs, service items, classes and payroll items?

Answer – Yes, your employees will be asked to select from a list of authorized charges. Employee authorized charges (EOC) are defined by the admin at the employee level. This feature enables the employees to only see EOC’s that are assigned to each user.

Question 6. How do I delete information in my Hour Timesheet account?

Answer – Once you mark the data (employee, customer, job, etc.) as inactive in QuickBooks, the data will be updated in your Hour Timesheet account upon performing the data sync.

Question 7. How does Hour Timesheet identify billable vs non-billable items on the timesheet?

Answer – By default, any EAC that includes a service item will be marked as billable time in QuickBooks.

Question 8. Can employees add comments to a timesheets?

Answer – Yes, Hour Timesheet includes a feature to allow employees to input general comments and daily comments.

Question 9. I exported my employee’s time into my company QuickBooks file, but now I need to make corrections. How do I do this?

Answer – Hour Timesheet does not allow processed timesheet data to be edited. Hour Timesheet will display a link on the Timesheet Review page that will allow the user to create a “corrected” copy of the timesheet. The detailed audit trail will show the log of all changes made to the revised timesheet.

Question 10. Can multiple supervisors approve a single timesheet?

Answer Yes. Hour Timesheet will allow for multiple supervisors to approve a timesheet.

Question 11. We have a requirement for our employees to enter hours worked daily, does Hour Timesheet include daily reminders?

Answer – Hour Timesheet includes the option to turn on daily notifications to serve as reminders for those employees who forget to enter time daily.

Question 12. I track my employee leave balance data manually in an Excel spreadsheet because QuickBooks doesn’t include all of the options I need, can Hour Timesheet manage leave?

Answer – Hour Timesheet has a full-function leave management feature that will allow accrued and earned types of leave tracking.

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Top Timekeeping Tips

Top Employee Timekeeping Tips

Insight into how your employees spend time is critical. That’s why employee timekeeping software tools make so much sense.

Knowing how much time your employees spend on overhead tasks, project, training, and unpaid leave is invaluable data for your business’s future. Tools that track employee hours and employee schedules will greatly reduce your hours spent processing manual time cards. Continue reading to find out more about tips for employee time and attendance and how Hour Timesheet is the perfect solution for you.

Employee timekeeping is not just for hourly employees

Nonexempt employees need to track work time for FLSA compliance but having salaried employees keep a time sheet is helpful too. Exception-based time tracking helps employers track employee attendance and improve the overall management of daily resources. Tools and solutions that include the ability for employees to track hours worked on mobile devices will provide real time job costing and absentee management at the supervisor level.

Internal policies & approval workflows are the keys to a successful employee timekeeping software implementation.

Software tools are a dime-a-dozen, but it’s how you use the software that defines your success. It’s important to document your timekeeping policies and required approval workflows before you invest in a time & attendance tool.

Don’t be afraid of internet-based employee timekeeping software tools

A detailed timesheet audit trail will flag when a user inputs timesheet data into your system from anywhere but the office. The activity log shows the IP address as well as each entry into the user’s timesheet with a non-editable time and date stamp. Online employee time tracking software also allows for integration with your payroll system with a 2-way sync to and from your payroll software like QuickBooks Online or QuickBooks Desktop.

Microsoft Excel is for spreadsheet data, not for employee timekeeping

Yes, you can keep your employees timesheet data in Excel but is that really efficient? Don’t be afraid to use the tools available to your organization to make you more productive. Rely on the experts…not Excel.

BOTTOM LINE… it’s just smart business.

Features such as daily timesheet reminders, employee leave management and embedded payroll processing make Hour Timesheet the perfect choice for your organization’s timekeeping software needs. Available on the web or your iOS and Android mobile app store.

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Measure Costs Right: Make the Right Decisions

How To Calculate And Track Overhead Costs

How do I Calculate Overhead Costs?

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Advice for Successful Grant Management for Nonprofit Organizations

Nonprofit Timekeeping for Your Organization

Managing grant dollars is one of the weakest links in the grant process chain. Directors tend to have detailed and documented process of researching and developing grant proposals. But frequently, that is where the process stops. Unfortunately, the inability of nonprofits to manage grant funds successfully with nonprofit timekeeping software is the single most important reason why a funder may not fund them in the second or third year. Tracking employee hours and timesheet entries by projects and grants can help with these lingering issues. Locate an automated time tracking software for your employees to track hours and manage projects. With an online solution, you’ll be able to gain instant access into how much time your volunteers and employees are spending supporting each grant and lower level items to be tracked.

Track and document everything

Most government grants require significant documentation of all expenditures related to grants. Grant giving organizations require recipients to submit detailed supporting documents before grant payments are made. An employee time card tracking system that has the capacity to automatically generate grant reimbursements based on grant activity not only saves time but improves accuracy. Employee time clock software should include a business rule that requires employees capture all time worked on grand and “non-grant” related activities.

Understand indirect costs and Non-profit Timekeeping

Grants come with indirect costs. Understand whether operating funds for administrative burdens will be covered or if you need to dig up additional funding. Ask your team if your organization is prepared to reallocate its administrative budget to cover the cost and if so for how long. Cost allocation will allow your organization to share overhead expenses across different programs. A good non-profit Timekeeping solution will include time off requests, real time data capture, and a means to track overhead costs. Look for a solution that includes the ability to track volunteer hours using a mobile app for no additional fees.

Know your stuff

Essential to successful nonprofit timekeeping is understanding and adherence to regulations related to grant management. Regulatory compliance starts with federal guides for Cost Principles and Auditing from the Office of Budget and Management. These regulations impact state and local government grants and sets models of best practices for foundation and other private grantors. Utilize the built-in business rules in your timekeeping software to aid with specific regulations. Features like audit logs, daily reminders, online approvals all help your organization achieve compliance.

Staying on Schedule

Being able to quickly see what is coming up or quickly see a high-level view is critical to keeping the process running smoothly. SaaS based employee scheduling solutions can be utilized to track important deadlines and send email reminders of deadlines when they are approaching. This can be a great time-saver for the person who is organizing all the elements of a grant proposal and responsible for the final submission.