Avoid Delayed Client Billing With a Time Card Calculator

Time cards offer a better alternative to labor-intensive methods of time tracking such as ledgers and spreadsheets. However, they are not invincible. Unless you have a proper process in place to calculate time cards, chances are that you will face issues in one or more areas such as client billing.

Why Client Billing Delays Must be Addressed

Most organizations have processes in place to ensure that their clients are billed on time and ensure timely payments. It is a simple fact that the faster you send out your invoices, the faster you are likely to be paid. Invoicing delays are always a concern and these delays mean that clients become incapable of paying on time, even if they would normally do so. The inefficiency in billing ends up affecting the organization’s cash flow and hindering its profitability and growth.

To avoid such a situation, it is imperative for organizations to focus on getting their invoices out the door at the right time. While improving billing efficiency is vital, the fault does not always lie with the accounting department. Indeed, in many cases, the issue can be traced back to faulty time tracking.

Solving Billing Delays with a Time Card Calculator

Time cards offer a low cost method to tracking the work hours of your employees. They can capture not only regular work hours but also overtime and meal breaks if needed. Using that information, organizations can quickly calculate the number of hours worked and determine the wages. Additionally, the time data captured can also be leveraged to calculate the hours spent on a project and use that information to drive billing and invoicing. However, to use that data, it is a good idea to leverage a time card calculator, as seen in the examples below.


Digitize at Scale and Speed for Modern Workforce

Download Ebook Now

Eliminate Incorrect Invoicing

However, calculating those hours manually requires considerable time and effort and the risk of errors is high. Inaccurate calculations will result in incorrect invoices being sent out, leading to issues such as customer dissatisfaction, delays in receiving payments and extra administrative effort to rectify mistakes. All of these can be avoided by leveraging a time card calculator. As these calculators can perform the calculations correctly, you can reduce the risk of sending out incorrect invoices which can delay clients from paying their bills.

Remove Bottlenecks

Timecards are typically filled and submitted on a weekly or fortnightly basis. However, this gives rise to the issue of bottlenecks, especially when you have a large number of employees submitting their time cards at the same time. It is a huge administrative burden to quickly and accurately calculate the hours for each time card to get the data you need for billing. Here, a time card calculator can be of benefit by taking care of the calculations for you, speeding up the process without compromising on the integrity of the data. This leads to faster invoicing that reduces delays in billing.

Best Practices for Client Billing

In addition to the above-mentioned ways to improve billing with a time card calculator, there are other best practices for client billing that you can implement. Here are some of them.

Automate Wherever Possible

By automating your billing process, you eliminate a massive potential for human error while also saving money by reducing extra administrative costs. Using a time card calculator is a step in the right direction. In the long-run, automation will save you considerable time and effort in both accounts payable and receivable.

Track All Expenses

There may be additional expenses as part of certain projects related to travel, equipment etc. It is important to track all of these expenses as they occur so as to include them in the invoice. Have a mechanism in place to identify these expenses and verify their legitimacy and accuracy. Ask employees to submit receipts with those expenses to have the necessary documentation to support your invoices. It may also be a good idea to establish an upper limit for certain project expenses such as travel and food or you may have some explaining to do when you send out the invoices.

Streamline Time Tracking

Time tracking is one of the biggest areas for potential billing leakages if left unchecked. Time cards must be filled correctly and submitted on time but many employees fail to do either. Therefore, organizations must implement a time tracking system that streamlines the process and makes it easier for time cards to be submitted on time and accurately.

Review Sent Invoices Regularly

Another common reason behind billing leakage is faulty invoicing practices. Implement a centralized system for tracking and managing all invoices to make it easier to review regularly. Develop a mechanism to follow up on invoices whose payments are still outstanding. Remember that a longer billing cycle means your cash flow can be throttled. Therefore, get the invoices out on time and don’t let dues remain pending for more than what is necessary. A centralized system will also make it easier to send out reminders for payments and track them as required.

Delayed client billing can be the result of several factors but time tracking does play a critical role. Manual methods of calculating time cards are no longer a viable option for organizations looking to streamline their billing process. A time card calculator can be the first step towards modernizing your time tracking system and improving your billing process.


Digitize at Scale and Speed for Modern Workforce

Download Ebook Now

Arpan Patra
Arpan Patra
Arpan is an assistant content marketing manager at Replicon. He enjoys learning and writing about technologies that are making the world a better place. Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Top Challenges that Large Services Organizations Need to Tackle Now

Unforeseen market dynamics, the rise of disruptive technologies, new business models, and global competition are transforming the business landscape, especially large services organizations. As revenue growth slows down, professional services…Read More

Top 5 Mobile Timesheets On the Go to Make You More Productive in 2022

Time tracking software is the backbone of every company when it comes to recording time and attendance as well as project management. The demand for such software is always increasing…Read More

How can Large Service Organizations Maximize Resource Utilization to Drive Higher Project Profitability

Large services organizations are facing several challenges in their business. On one hand, they need to maintain a flexible hybrid workplace that supports collaborations and can bridge the gap and…Read More

Will AI replace consultants?

The onset of AI and smart machines automating formerly-human jobs has been discussed at length as of late -- often in relation to manufacturing and manual labor jobs. And yet,…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others