5 Steps to Tracking Time as a Small Business Team

Rona Jobe
Published
August 5, 2025
5 Steps to Tracking Time as a Small Business Team

Welcome to the final article in my time-tracking series for solopreneurs, where we transition from individual time management techniques to implementing time tracking across a team. 

You may not have employees yet, but you might have contractors who help you run your business. And understanding how each person spends their time in their role is critical if you plan to grow your team and scale your business.

(Did you miss the last two articles? You can check them out here: 3 Reasons Solopreneurs Should Be Tracking Their Time and Rona Jobe’s 5 Favorite Time Tracking Apps for Solopreneurs)

One of the best ways to gather this information is by having them track their time as they complete tasks. Time-tracking reports allow you to make better decisions as a business owner because you will be able to:

  • Identify inefficiencies and gaps in workflows, processes, operations, and responsibilities;
  • Pinpoint areas that require better training and support;
  • Allocate resources more effectively so projects are completed on time and within budget; and
  • Foster a culture of accountability through improved transparency on workloads and roles.

Some people on your team are used to tracking their time, especially if they have worked as freelancers or contractors in the past while this may be totally new for others. Either way, tracking time at your company is new for everyone, so it is important that you have a strong system for training them. That’s where this guide comes in!

5 Steps to Implement Time Tracking on Your Team

1. Choose the Right Time-Tracking Tool

When it comes to selecting a time-tracking tool for your team, you want to choose one that fits into your existing workflows and systems as much as possible. 

  • Does the one you tested out and used have team functionality? 
  • Does your team have a platform they could recommend?
  • Is it user-friendly enough that even tech-adverse folks can learn it? 
  • Do any of your current systems have time-tracking capabilities?

As you evaluate your options, make sure the platforms include these features:

  • The ability to organize time into project folders
  • Task tracking with descriptions
  • Desktop, browser, and/or app timers 
  • Manual time entries
  • Time reporting with filters for projects, clients, team members, and dates

If you don’t know where to start, I shared five top time-tracking platforms in a previous time-tracking blog post, including the one I personally use. Select the one that fits your team’s needs, then test it out. If you don’t like that one, try another until you find a suitable platform. Don’t end up in analysis paralysis, though. If it checks off those boxes above, give it a shot.

Also keep in mind that some free time-tracking apps will require upgrades to use them at an enterprise level. That means either investing in the subscription or creating workarounds to collect and evaluate the data on the free individual plans.

2. Establish Clear Guidelines

Now that you have chosen a time-tracking platform, define how your team will track their time. This may feel punitive, but setting clear expectations at the onset allows your team to work with a high level of autonomy. 

Write guidelines that specify:

  • What should be tracked;
  • How to categorize different tasks;
  • How to pull reports, including the frequency and file type;
  • Deadlines for sending time reports;
  • Who should receive and analyze the time reports; and
  • What happens if you do not submit your time report on time.

Working remotely and/or independently requires trust, but as the business owner, it is also your job to set your team up for success. Guidelines help you do that.

3. Communicate the Benefits

Your team may be resistant at first because time tracking can feel like extra work or micromanagement, so you need to be upfront about the investment and the benefits. Take time at a meeting to discuss the upcoming initiative. Ask for feedback and recommendations on platforms. Get their buy-in by allowing them to be part of the process.

Tracking time as an organization is your commitment to clearing their roadblocks. Benefits to them include:

  • Increased personal and collective productivity;
  • More accountability and better follow-through;
  • Improved budgeting and time estimation for future proposals and projects;
  • Fewer time-wasting activities; and
  • Better time management.

This proactive communication does not eliminate friction later as you implement time tracking on the team. You will all still experience a learning curve. But this conversation will hopefully keep them motivated to learn the new process and follow it consistently.

4. Integrate Time Tracking into Daily Routines

Encourage your team to incorporate time tracking into their daily workflow so it becomes a natural part of their workday, not an additional task. For example, when they sit down to do work, they start the correct timer. They leave the timer on the screen so they see it when they switch tasks or get up. Sending time reports should be added to their calendar or task list so they get used to doing it correctly and on time. You might need to send reminders (which you can automate!) to help everyone build this new habit.

Here at LVL-Up, our project management software Hive has a time-tracking feature that we use. We track time in the correct projects, and our managers can run time reports to evaluate effectiveness across the team. The expectation is that we submit timesheets every Monday and our monthly hours on the first work day of the next month. Like many platforms, Hive also allows you to set hourly rates to track your budget, costs, and labor over time. 

5. Review and Adjust Regularly

Time tracking means nothing if you do not review it and use the information to make improvements. Many platforms allow you to analyze time across the organization to see trends across people and projects. Take a look and note any trends you see, such as too much time spent on administrative tasks, unnecessary meetings, and duplicative work.

As a team, use this information to celebrate successes and brainstorm solutions together. 

  • How can you adjust workflows and systems or allocate resources better to prevent time waste? 
  • Do you need to bring on another teammate to free up capacity or do you need to move folks to different roles?
  • Are there ways to automate or eliminate tasks that are repetitive or take too long?

After some time, you need to evaluate how well the time-tracking is going. Make the necessary tweaks and then create your Time Tracking Standard Operating Procedure (SOP) so new hires can quickly learn how to do it once they on-board.

Get Started Today

Time tracking across your organization gives you the data to make better decisions for your business. Follow these five steps to get started and unlock your team’s full potential.

Don’t have time to set up time tracking yourself? We would love to #GetItHandled for you. Schedule a free discovery call for more details.

Rona Jobe
LVL-Up Strategies