If you are running a consultancy and have not yet considered time billing software, there are many reasons to do so. However, with so many programs and options available, selecting the best one for your context might seem overwhelming.
Since not all time billing software solutions offer the same features, you will need to evaluate your options to see which one offers what you need at reasonable rates. Here is what you need to know about time billing software and why it would benefit your consultancy:
What is time billing software?
Consultants, accountants, and CPA firms find that it is easy to learn how to use a time and billing software program and make running their business easier. Imagine Time’s software offers consultants, accountants, and CPA firms effective time billing solutions and converts them into invoices, reducing the time spent on this sometimes laborious process.
With time billing software, consultants can track how much time they spend on projects and tasks and bill their clients accordingly. Instead of using timesheets, spreadsheets, diaries, scraps of paper, and other ineffective record-keeping systems, consultants can use this software to create accurate records of time on task and invoice clients based on this data.
How you will know it is time to utilize time billing software
During a consultancy’s infancy, staying on top of client billing is relatively easy. However, as the business and its client base expand, this is no longer possible.
Manually tracing time devoted to each client and preparing correlating invoices can become too time-consuming and take time away from completing work for clients. Consultants find themselves working after hours to maintain spreadsheets that are often inaccurate due to human error during the input phase.
Missed deadlines are another indicator of a need for a change in your time billing approach. A tracking system prevents the stress of last-minute task completion and letting clients down due to time mismanagement. Such software makes planning your time and using it effectively much more convenient.
Key features of time billing software
Hour trackers let consultants keep records of how long task completion takes. The hour tracker can be stopped and restarted if a consultant must pause to take a phone call or attend an appointment. Data from the hour tracker can be converted into a client invoice without any additional processes.
An easy-to-use interface means that anyone can learn to use time billing software without any fuss. A consultant can set up a dashboard to monitor their billable hours, track outstanding invoice amounts, and evaluate their time management and productivity. A reminder function ensures that consultants do not miss deadlines and suffer any consequent reputational damage.
How time billing software will boost your consultancy’s profitability
Streamlined and simplified billing processes give consultants more time to focus on getting work done for their clients. Having a dashboard that demonstrates their time management abilities or lack thereof can help consultants develop new, more productive work habits and approaches that increase their profitability.
Tracking hours billed and outstanding amounts allows the consultant to determine their practice’s profitability and ensure that time is spent on work that generates revenue. This will lead to greater accountability from the consultant.
Factors to consider when selecting a time billing software solution
Cost is naturally a vital factor when determining which software option a consultancy needs. Some companies charge once-off flat fees or monthly subscriptions. Some offer a product builder option, where consultants select which features they wish to add to a basic package.
A software company’s reputation indicates the type of product quality and service a consultant can expect. Investigating the business’s standing and reputability should form part of the selection process.