Professional services work (and project-based work in particular) requires accurate time tracking methods. The reasoning here is obvious — for many companies, hours worked on a project determines how much to bill the client. If you can’t bill accurately, you could be losing money.
However, timekeeping isn’t just about billing. It’s also a key component of project management that can help keep your team from going over budget and overservicing clients.
A 2019 survey conducted by Ginger Research found that 90% of PR agencies overservice accounts. Similarly, a report by the Society of Digital Agencies found that 49% of creative agencies reported a profit loss of 11% or more due to overservicing, with 57% citing lack of visibility into overservicing as a reason for profit loss.
Timekeeping errors (28%) and timekeeping delays (27%) — which can often contribute to overservicing — were also cited.
Talk to professionals from other service industries — like accounting, engineering, and IT — and you’ll likely hear similar stories.
- 90% of PR agencies overservice accounts.
- 86% of staff at PR agencies have worked unpaid overtime due to overservicing.
- 49% of creative agencies have experienced a profit loss of 11% or more due to overservicing
- 57% of creative agencies cite lack of visibility into overservicing as a key reason for profit loss.
It’s clear that overserviced projects are a huge problem for services companies. Luckily, the right time tracking solution can help put the brakes on overservicing.
There are a variety of time tracking platforms available online, and many of them are free. It’s important to keep in mind that they all have their own pros and cons, and some might even create more work for your team, so automation is highly valuable.
Unlike stand-alone time tracking solutions, comprehensive PSA software can use your timesheets as a key source of project information.
Here are some key time tracking features to look for in a PSA platform: