Time tracking is painful. Both for the people filling out timesheets, and for those chasing timesheets to be filled.
But I’m yet to come across an agency who isn’t tracking time, AND has a good understanding of the profit drivers in the business (client, team, and product).
Without that understanding, how can you grow the business more profitably (or generate greater profit without growing the size of the business)?
For most agencies, payroll takes up ~50% of every dollar of revenue, so even if you’ve progressed past billing for time and are working on output/value, you should be measuring your largest cost input in some way.
So are timesheets a necessary (and very painful) evil?
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