How Time Tracking Helps Creative Agencies
One of the most significant business trends of recent years is the rapid growth within the creative industries sector. This sector includes graphic design, photography, advertising, and web design as well as the more traditional arts and crafts.
As a result, there are many new creative agencies springing up to bring these services to businesses. Though with so much competition they need to make sure that their services stand out. Many are looking at new technology to find tools to help them in an increasingly competitive marketplace.
Because of the nature of agency work, time tracking software has become invaluable to creative agencies, in particular, those who regularly work with freelancers. Here are five reasons why.
Increase in Remote Working
Not many companies know how to use time tracking but thanks to the last few years, there has been a huge growth in remote working. More and more people take advantage of the fact that you no longer need to sit in an office to earn a living.
With the right tools and an internet connection, you can work anywhere whether you are writing a blog, designing a logo, or creating a website. And agencies are increasingly tapping into this area. It offers the agency greater flexibility so they can choose the right person for each job.
It also has a very practical advantage, especially for smaller agencies, of not needing to provide equipment or office space. Admittedly it can be a bit more complicated logistically than doing the work in-house. But it also has many advantages for the agency.
Fortunately, time tracking helps agencies know exactly what hours their freelancers are working and how the project is progressing. This will give them more confidence in using the remote talent available.
Clients Demand Greater Transparency
In 2016 “transparency” was identified as the key concern within the advertising industry2. Clients pay large sums of money to advertising agencies to promote their products. It is not surprising that they want to know exactly what is being done with their money.
Time tracking tools help agencies to provide all the information that their clients require by running regular reports with details of hours, invoices, and expenses.
It is important that agencies can provide this information quickly. If the information needs to be pulled together from many different sources it can lead to delays in providing the information. This can look unprofessional, or worse, can even look as if the agency is reluctant to provide the information.
That is why time tracking software which includes options for expenses and invoices provides the perfect solution.
Time Tracking Makes Project Management Easier for Agencies
With so many different aspects to a project and many people working on different parts of it, it is essential to be able to get a clear overview of what is happening at any point in time.
And while time tracking can be a great way to help agencies, it is not enough on its own. That is why many agencies choose time tracking apps that integrate with other popular business software tools.
Project management tracking tools such as Trello or Asana can be useful. Integration with these apps allows you to get the most out of the software you have invested in. It helps you manage your project and keep track of milestones and resources.
The 80/20 Rule
The 80/20 rule is also known as the Pareto Principle3. According to the theory, any business will receive 80% of its income from 20% of its clients. That’s why it is important to know which contracts and which customers bring in the best profits.
This is another way agencies can benefit from time tracking and expense tracking. Some contracts might not work out so profitable when everything is taken into accounts such as payments to freelancers and expenses.
It is essential to keep track of all the information about hours and expenses to get a clearer picture of which contracts are most worthwhile. This means an agency can be more selective about bidding for future contact and can put maximum effort into securing the ones they know will bring in higher profits.
Time Tracking Helps Creative Minds Stay Focused
Perhaps one of the issues with the creative industry is the way it combines business with creativity.
As most people know, these things don’t often go together. When you hire a graphic designer, a Photoshop specialist, or a scriptwriter for an ad campaign you choose them for their creative skills, not their business skills. So you can have great people who are full of ideas. But they might need some help to stay grounded and keep on track with meeting deadlines and staying within budget.
And that’s where an easy-to-use time tracker can make all the difference.