5 Mistakes to Avoid When Implementing a Time Tracking System

October 15, 2021

Productivity in any business or firm is measured through effective time tracking. This is easier said than done, as it requires a lot of planning, adjustment, and resources to pull off. However, it’s definitely worth all the investment if it means keeping everyone productive and efficient in their work. This guide tackles some of the most common mistakes to avoid about time tracking so you can implement it more effectively.

1. Manual Time Tracking

A huge number of companies are still tracking their time manually, which is quite concerning. Don’t let your business get left behind and become one of those who still use manual time tracking. Using pen and paper to track your employee’s productive time can be a huge waste of time and resources for a whole number of reasons. They are prone to errors and aren’t capable of tracking time accurately and efficiently.

2. Indifference

It’s not new to have an employee or consultant who is indifferent to the time tracking policy of your company. Every now and then, you’ll see a few of these bad eggs in your employee roster. They’re basically people who track time nonchalantly and are only doing it for the sake of tracking time. Indifference usually leads to missed opportunities and inaccurate tracking. There’s also the risk of late delivery of projects.

3. Chaos and Confusion

Having no clear standard on tracking time is also a huge blunder that a lot of companies commit. Even if you have a time tracking system in place, there needs to be a standard in place that ensures the accuracy of the tracking. If you’re rounding up to the nearest 15 minutes, or you just make a wild guess on the time you put in, it will eventually lead to a lot of confusion. Your records will become tainted with inaccurate reporting and could skew your data and, by extension, your decision-making. The worst-case scenario would be your clients seeing those inaccuracies in your productivity reports and questioning your tracking methods.

4. Working in Silos

Your time tracking system needs to be standardized and uniform across all departments and across all phases of your projects. This will ensure that the tracking is captured in real-time and should flow smoothly. Otherwise, there could be some holes in your reporting after capturing your employee’s time. There’s also the issue of missing out on easy-to-use software that can automatically generate reports and invoices from your timesheets. If your time tracking is siloed and only works on select individuals, it would be impossible to take advantage of this. Integrating your time tracking system with your CRM would be next to impossible.

5. Absence of Reporting Capabilities

Tracking time has a purpose. You are actively capturing important data from your employees and consultants to see just how productive they are. That data is meant to be analyzed and discussed. Without metrics to analyze how your time is spent and where it is spent, you’re all practically blind to the date you need to better manage your time. You should make it a priority to study and understand all the data you have and try to make sense of it so you can take action and see what opportunities you have to become more efficient and productive.


For companies, employees, and consultants, time tracking has always been about getting more out of all your efforts. By avoiding these mistakes, you ensure that you are performing at your best at all times. 

Firm 360 is an accounting management software that’s also a powerhouse of key features that could make your work far more manageable and painless. We give you an all-in-one platform where you can process billing, invoices, document management, and time tracking for CPAs, among others. If you want to experience the Firm 360 innovation, contact us and book a demo today!

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