THE IMPORTANCE OF TIMESHEET COMPLIANCE

I assume you want your business to be profitable? If your product is predominantly people, in that you’re delivering a service or project, it is the same people that are your profit margin. Therefore how you measure billable time is of utmost importance; do it poorly and risk damaging your profit margin, alienating customers and creating a despondent workforce.


Beyond this any business whereby utilization is a primary metric, whether or not for forecasting deliverables or implementing them, you’ll likely be reliant on the employee themselves to accurately record their time, likely in the form of TIMESHEETS!


But, and we’re not pointing fingers here, employees tend to not like them making it problematic to the following departments:


  • finance for tracking profit/margin or accurate invoicing

  • pre-sales for precise demand forecasting

  • delivery for not having enough hours to implement

  • customer success for having to deal with unhappy, overbilled customers

  • project managers for over-serviced clients and wasted hours


The list could go on. To reverse that phenomenon, get people to fill in their timesheets...but HOW?


WHAT IS TIMESHEET COMPLIANCE?


Stage one is understanding this question. Well, it’s obvious isn’t it? Do ya timesheets! Beyond that timesheet compliance is about filling it in accurately and correctly; often these are to a set of standards that are predetermined at the company level, to establish what is pertinent to them, or on an industry level, so there is affinity to project types. This means projects are tracked effectively and forecasting is consistent and accurate, but also people get paid accurately.


WHY DO PEOPLE CARE?


For the employee it might not be that simple though. Yes there are rules to follow but as a PM you have work to do and a poor memory for the hours you’ve worked. This can cost your business for the following reasons (nicely they all turned out to be P’s):