Keeping Track of the Money
“Business 101: Keeping track of the money… In the ‘time for money’ business, which is what all professional services fundamentally are, keeping track of the time equates directly to keeping track of the money. It just makes sense.” – Consultant, Top 5 consulting firm, UK practice
Over the course of the last few months we have been conducting research on the way professionals track their time. We wanted to get a better understanding of the the current methods of tracking time and what it is costing professional services firms. We’ve composed the findings into a whitepaper that you can download here. The results are impressive. Not in a good way.
As a small sneak peek, we’ve compiled some of the findings in this blogpost. However, to get a complete view of what the issues and costs paired with time tracking are, I suggest you download the full paper.
A lot of billable time goes untracked
We asked our respondents to indicate what percentage of the time they spend on client work they actually track. A staggering 22% of the respondents records less than 70% of the time they spent on client work. Since most of the respondents indicated that their timesheets were used directly for client billing, the unrecorded time will not be billed.
Of all industries, lawyers lose the most potential revenue to time tracking
The graph below summarizes the annual losses of potential revenue per individual employee, categorized by industry. This loss consists of the untracked client work and the time spent on tracking time. The average loss is based on all professional services industries.
Time tracking processes impact multiple stakeholders differently
Time tracking needs are quite similar across different industry verticals but differ quite strongly among stakeholders of a firm. We’ve summarized the impact of time tracking processes and the stakeholders’ needs in the table below.
Overall, the findings from this research are very insightful. We were able to map the current methods of tracking time across several industry verticals. Most importantly, we were able to substantiate the impact poor time tracking has on professional services firms and learned how to offer the best possible solution to this substantive problem. Follow the link below to download the full whitepaper.
How can your firm organize people, reduce overheads and leverage technology to boost efficiency?
Clients nowadays have more complex and intricate requirements, which is becoming increasingly more difficult for law firms to facilitate properly. In this article we will focus on the ever increasing demand for transparency, especially regarding billing.
What is the next move? In this article we will outline some strategies for the two most time consuming non-billable activities that lawyers and firms can streamline to their benefit.