Why do staffing firms need a specialized timesheet system?
A Unique Business Model
Staffing firms have a unique business model. The business information they need is firmly bound to time spent working for clients.
Most other business types (distributors, banks, shoe stores, etc.) don’t produce revenue from work done directly for clients. They still use timesheets, but they use them for different reasons. Their information needs are different.
Staffing Information Needs are Different
At the highest level, staffing firms use timesheets to bill the clients and pay the employees. Also, understanding the inventory of unbilled hours and the cash needed for the upcoming payroll are important for managing the credit line and keeping the doors open.
For most other businesses, timesheets play a more passive role; they help refine project estimates, help eliminate process bottlenecks, help to understand timelines, resource availability, and percent complete. Important stuff, but different than billing the clients and balancing cash flow.
The Bottom Line...
General-purpose timesheet apps are designed for the majority of business types that have different information needs than staffing firms. Yes, there is common ground, but there are important differences too.
And that’s why staffing firms need a specialized timesheet system.
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