Time tracking is inevitable in consulting businesses. You need to document and log the time spent for your clients, but missing time tracking is actually a huge revenue leaker.
In average consulting firms are losing 10% of revenue due to the lack of registration of time spent.
Timekeeping is a weak spot in many time-selling businesses - and it does not matter if you are selling hours or having fixed pricing. - You should know how many resources you spend on each project.
AffinityLive commissioned a survey to find out how much money are businesses actually losing because the lose track of time.
The old saying "Time is money" indeed becomes relevant here. i.e. How often are you tracking the time you spend on reading and responding emails? More than 35% do never track time spend on corresponding with the clients by email. That is 1,5 day a week - in average! Approximately 350 hours per year!
You should be able to bill your clients for every billable hour (Nothing less).
One thing is of course the lack of registering time spent - but many timesheets are full of typos, wrong entries and so on - I know - I have spent most of my professional career in consulting or working on projects where time registrations were needed.
According to the study, a 15 employee consulting firm loses up to $1,6M per year due to incorrect or lacking time logs - and like that is not enough, many managers are spending hours or even days at every billing cycle to remediate billing to the clients, a total waste of time.
There has been several studies on the impact of postponing time registrations, and according to a study from the American Bar Association, if you track time:
once a day, you will lose about 10% of your billable time
after 24 hours, you will lose up to 25% of billable hours
end of week, you can lose up to 50%(!) of billable hours
And it is not only these studies, but studies about the brain and the brains memory capability that shows end of month or end of week registrations is bad practice.
Let me ask you - Do you remember what you did last wednesday?
According to a study by Dr. Ebbinghaus and the Ebbinghaus Forgetting Curve, after six days the human brain only retain 23% of what was learnt or experienced then. So for every day one postpone time entry it increases the impact and chance of missing or wrong time logs.
I guess that you are right now thinking something like "What about my business?"
Let us help you find out! You can get 1 month free trial on our very own TimeBot. check it out.
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TimeBot will be your business' new time log coach, and help you promote good time tracking habbits.