Maximize Profitability: Proven Methods to Track Billable Hours

Accurately tracking billable hours is critical for construction companies to maximize project profitability. With reliable time tracking, firms can avoid revenue leakage, ineffective job costing, and a lack of data to improve operations. Manually tracking hours using paper timesheets is prone to errors and inefficiencies. Construction companies need automated solutions designed specifically for their unique needs in the field.

Implementing best practices for tracking billable labor hours, validated by technology like mobile apps and GPS, is key. The data can help construction firms understand job costs, identify unbilled hours, optimize crews and schedules, and validate payroll. Time-tracking platforms like ExakTime provide the construction-specific features and integrations needed to gain insights into fieldwork and prevent lost revenue.

The Problems with Paper-Based Time Tracking

Construction companies have traditionally relied on paper timesheets and manual processes to track billable time and employee hours. However, these paper-based methods lead to a multitude of problems:

• Inaccurate and Incomplete Data: Paper timesheets rely on workers remembering to accurately log their hours worked on various tasks. This often results in guesswork, falsified records, unbilled hours and ineffective job costing when workers forget or intentionally do not track their time correctly.
• Difficult to Access Real-Time Data: Paper records do not allow companies real-time visibility into who is working, where, and on what tasks. Managers lack actionable data to adjust schedules, staffing, and more.
• Prone to Errors: Manual data entry from paper into payroll and job costing systems is time-consuming and error-prone. This leads to incorrect client invoices and payroll and can provide an inaccurate reflection of time spent working.
• Compliance Risks: Lack of proper documentation around overtime, meal breaks, prevailing wage, certified payroll, and more increases compliance risks associated with labor laws.
• No Analytics: Paper processes mean no effective analytics to identify productivity issues, problem employees, and best practices needed to improve operations.

Features Construction Firms Need in Automated Time Tracking Systems

To overcome the shortcomings of paper-based time tracking, construction firms need to adopt automated solutions designed specifically for their unique needs. Let's explore some automatic time tracking features available from ExakTime. With these project management tools, managers can ensure accurate time tracking of billable hours and use data to make smart business decisions.

GPS Time Tracking App

A GPS billable time tracker app is like having a virtual foreperson overseeing clock-ins and clock-outs at each work site. ExakTime's app offers GPS features that show you what's going on across your team at a specific job site without you having to be there. Our mobile app makes tracking billable time simple and accessible. Plus, with location tracking synched to the cloud, this app is accessible from any mobile device.

Photo ID Capture

Photo ID features capture workers' photos when clocking in/out to prevent buddy punching. ExakTime mobile comes with FaceFront Biometrics, a built-in biometric time attendance feature. With this intuitive system, you'll know exactly who is clocking in and be able to review an entry instantly.

Rugged Time Clocks

Construction is a tough industry with challenging job sites. One feature companies should look for in a time-tracking solution is a portable, rugged tracker. ExakTime's rugged time clocks come with wireless technology and tough durability and are built to withstand even the harshest conditions. Employees can easily transport these clocks and instantly clock in or out with different colored key fobs for different job codes/locations.

Reports and Analytics

One of the key features construction and field service businesses can benefit from is a time-tracking tool that generates reports and analytics. Through this data, business leaders and managers can make informed decisions about where to improve. ExakTime's software allows users to pull more than 40 instant reports based on data like hours worked, regular or overtime hours, location and more. This is an invaluable insight into field service work.

Seamless Payroll Integrations

Automated transfer of verified hours into payroll systems ensures workers are paid accurately and improves invoice generation. At ExakTime, we connect to your accounting package. You can easily automate timekeeping and payroll processing, control costs, improve compliance and optimize field operations. We even offer live (direct database) integration with QuickBooks, Sage BusinessVision and more.

Best Practices for Tracking Billable Hours

In addition to using the right technology, construction companies should also follow best practices to ensure time-tracking data is complete, accurate, and actionable:

• Require Real-time Entry: Mandate workers clock in and out of tasks as they begin and end them throughout the day using mobile apps or onsite clocks. Real-time entry prevents reliance on memory, leading to guessing, falsifications, and missed billable hours. Set expectations during onboarding and provide frequent reminders. Perform audits of hours versus GPS data to identify areas of non-compliance.
• Separately Track Billable and Nonbillable Time: Require employees to accurately categorize all time as either billable work for a client or non-billable internal activities. Billable time should be tied to a specific project code for detailed tracking. This clarifies utilization rates and prevents revenue leakage from missing billed hours.
• Use Granular Project and Task Codes: Implement project codes for each client job site and task codes for phases of work. Tracking at this granular level feeds accurate job costing data and helps identify problem areas. Codes should match up with budgeting and invoicing terminology.
• Set Up Custom Alerts: Configure rules-based alerts for conditions like employees approaching overtime thresholds, taking excessive breaks, or frequently forgetting to clock in/out. Proactive notifications enable managers to course-correct behaviors before they get out of hand. Alerts create a feedback loop to reinforce compliance.
• Mandate Frequent Timesheet Review: Require employees to review timesheets daily to identify and correct any errors in time or cost coding. Additionally, mandate managers review and formally approve all timesheets at least weekly. This provides another validation point to catch inconsistencies and ensure accuracy.

The Impact of Accurate Billable Hour Tracking

Implementing precise billable hours tracking can transform construction businesses, and ExakTime's solutions are at the forefront of this revolution. With features like GPS-enabled mobile apps, rugged time clocks, and seamless payroll integrations, ExakTime empowers construction companies to maximize their profitability and efficiency. Let's explore the key benefits of accurate billable hour tracking:

• Improved project estimation and bidding: With accurate historical data on time spent on various tasks, companies can create more precise estimates for future projects. This leads to more competitive and profitable bids and improved project planning and scheduling.
• Enhanced client trust and transparency: Detailed, accurate time tracking allows for clear, itemized invoices that clients can easily understand. This transparency builds trust and can lead to stronger, long-term client relationships and repeat business.
• Better resource allocation and workforce management: Understanding how time is spent enables managers to optimize crew assignments, identify skill gaps, and make informed decisions about hiring or training needs. This results in more efficient use of human resources and improved project outcomes.
• Increased profitability and reduced revenue leakage: By capturing all billable hours accurately, companies minimize unbilled time and can identify areas where time is being wasted. This directly impacts the bottom line, potentially increasing profitability by reducing revenue leakage.

Find Your Innovative Time Tracking Solution with ExakTime

Due to ineffective time-tracking methods, construction firms cannot afford to lose billable hours and profit. Adopting automated solutions that are purpose-built for the construction industry allows companies to collect accurate field data, improve job costing, optimize crews, ensure payroll accuracy, and maximize revenue.

ExakTime is proud to offer construction-specific features that give you visibility into real-time labor utilization. With over two decades of experience serving the construction industry, ExakTime understands the unique challenges you face. Our team of experts provides unmatched support, ensuring integration and ongoing success. Join thousands of satisfied customers who have revolutionized their operations with ExakTime. From rugged time clocks to GPS features, our platform can be used in tons of ways, so it's tailored to your needs. Get started with our platform today.

Frequently Asked Questions

How does time tracking software help construction companies?

Automated time tracking provides construction firms with real-time data on employee activities rather than relying on paper records. This improves job costing accuracy, prevents revenue leakage from unbilled hours, helps optimize crews, and validates payroll - maximizing profitability.

What features should construction companies look for in time tracking software?

Construction-specific capabilities include mobile apps with GPS timestamps, geofencing, photo ID verification, custom alerts, robust reporting, and straightforward payroll integrations.

What are some best practices for tracking billable hours?

Require real-time time entry using apps or onsite clocks, confirm attendance with GPS, use project codes, configure overtime alerts, and mandate frequent timesheet review. You should also analyze reports to identify improvement opportunities.