Why should you track projects and tasks?<\/h2>\n\n\n\n
According to the 3rd edition of the Project Management Body of Knowledge<\/i><\/a>, a project is a \u201ctemporary endeavor<\/b> with a beginning and an end and it must be used to create a unique product, service, or result\u201d.<\/p>\n\n\n\n In project management, each project consists of a series of tasks<\/a> that you need to accomplish with a given time period<\/b> or before a deadline in order to complete the product, fully provide the service, or reach the desired result.<\/p>\n\n\n\n So, considering that a project is a \u201ctemporary endeavor\u201d that consists of tasks that need to be accomplished in a \u201cgiven time period\u201d, both are easily trackable by definition.<\/p>\n\n\n\n And, tracking projects and tasks has several tangible benefits:<\/p>\n\n\n\n Before you can start tracking your projects and tasks, you\u2019ll first need to embark on an even more important quest \u2014 making sure you properly set up the said projects and tasks.<\/p>\n\n\n\n To properly set up, you\u2019ll need to go through the following steps:<\/p>\n\n\n\n Each step will have its own elements you should track.<\/p>\n\n\n\n A clear project outline can tell both you and the client what you can expect to accomplish with the project, as well as what you should pay attention to when working.<\/p>\n\n\n\n First, you\u2019ll need to ensure everyone involved in the project understands what needs to be achieved at the end of it \u2014 i.e. what are the project goals<\/b>.<\/p>\n\n\n\n Example:<\/i><\/b> The goal of the project is to build and maintain a fitness app, within a specific time frame and a client-approved budget.<\/p>\n\n\n\n Next, you\u2019ll need to establish several project milestones<\/b> after each set of related tasks, in order to pinpoint and track important achievements in the project.<\/p>\n\n\n\n Example:<\/i><\/b> One of the design-related project milestones you can follow for the fitness app can be the different phases of the app design:<\/p>\n\n\n\n Afterward, you can establish the Key Performance Indicators (KPIs)<\/b> you\u2019ll use to measure how well you or your team are performing with the work<\/a>.<\/p>\n\n\n\n Example:<\/i><\/b> The KPIs for your fitness app can be:<\/p>\n\n\n\n In the end, you can also establish the Objectives and Key Results (OKRs)<\/b> you\u2019ll use to define and track project objectives and their outcomes.<\/p>\n\n\n\n Example:<\/i><\/b> The Objective for your fitness app can be to \u201cImprove the quality of product releases\u201d<\/i> and it\u2019s related Key Results can be to:<\/p>\n\n\n\n To keep track of project goals<\/b>, first, plan and organize the time you\u2019ll spend on the project in a scheduler.<\/p>\n\n\n\n Account for all the resources you\u2019ll need, whether it\u2019s additional team members or equipment, or simply extra time, so that you don\u2019t go over the budget. If you come close to exceeding the budget, notify the client about possible changes.<\/p>\n\n\n\n You can associate project milestones<\/b> with specific dates or sets of tasks. Once you reach a project milestone, review the upcoming workload. This will help you better understand whether you need to change your workflow to accommodate your current pace or direction of work.<\/p>\n\n\n\n \ud83d\udca1 To learn more about how best to set and track project goals and milestones, check out our blog post on the subject of project timelines:<\/p>\n \u2192 How to create a project timeline (+ free templates)<\/a><\/p>\n<\/div>\n\n\n\n When it comes to your chosen Key Performance Indicators<\/b>, their type will determine how you can track them.<\/p>\n\n\n\n Example: <\/i><\/b>You can track the user rating for your app on Capterra<\/b>, or a similar website.<\/p>\n\n\n\n You should also differentiate between your weak points (i.e. lagging KPIs) and strong points (i.e. leading KPIs) in project work.<\/p>\n\n\n\n You can then try to learn from your leading indicators (e.g. how you can best build apps that attract great user reviews). But also, you can work on improving your lagging indicators (e.g. how you can improve the conversion rate of the apps you build).<\/p>\n\n\n\n In the end, save summaries of your project KPIs, for further analysis, comparisons, and conclusions.<\/p>\n\n\n\n \ud83d\udca1 To learn more about how best to set and track Key Performance Indicators (KPIs), check out our blog post on the subject:<\/p>\n \u2192 Key Performance Indicators (KPI): Why and how to set them, plus KPIs in Excel tutorial<\/a><\/p>\n<\/div>\n\n\n\n When it comes to your chosen Objectives and Key Results<\/b>, their type will also determine how you can track them.<\/p>\n\n\n\n Example:<\/i><\/b> You can track the reduction of the number of bugs you find during the development process by 30% with a bug and issue tracking tool, such as Jira<\/b>.<\/p>\n\n\n\n Then, you can connect the data, and compare your actual results with your expected Key Results to see how successful you are.<\/p>\n\n\n\n In the end, you can once again save and further manipulate summaries of your project OKRs.<\/p>\n\n\n\n \ud83d\udca1 To learn more about how best to set and track Objectives and Key Results (OKRs), check out our blog post on the subject:<\/p>\n \u2192 Objectives and Key Results (OKR): everything you need to know<\/a><\/p>\n<\/div>\n\n\n\n Next, to make it easier to track the project, you\u2019ll need to break it down into tasks. The type of project will help you decide how you can best do that:<\/p>\n\n\n\n Example:<\/i><\/b> A software developer can use the different phases of development (e.g. planning, analysis, design, development, etc.) as tasks.<\/p>\n\n\n\n Example<\/i><\/b>:<\/b> A professional party planner can use different categories of party planning (e.g. catering, decoration, entertainment, etc.) as tasks.<\/p>\n\n\n\n Example<\/i><\/b>:<\/b> A housekeeper can use different rooms in a house he or she cleans (e.g. kitchen, bedroom, bathroom, etc.) as tasks.<\/p>\n\n\n\n \ud83d\udca1 For some projects, it will be relatively easy to decide whether you should use project phases, categories, or parts as tasks. Other projects won’t be as clear cut. For a quick and easy guide on how best to customize the process of breaking a project down into tasks, check out our blog post on the subject:<\/p>\n \u2192 How to Break a Project Down into Tasks<\/a><\/p>\n<\/div>\n\n\n\n When approaching time tracking your projects and tasks, you\u2019ll first need to choose the time tracking method to use. And, you\u2019ll need to think about how best to implement the said method in your workflow.<\/p>\n\n\n\n There are four distinct time tracking methods<\/a> you can rely on to track the time you and\/or your team spend working:<\/p>\n\n\n\n The first 3 listed methods have their cons, though.<\/p>\n\n\n\n Nowadays, the paper method may be viewed as somewhat unprofessional, inefficient, and lacking in accuracy. In the same line, the honor system relies too heavily on the client trusting that you\u2019ve done the work you claim<\/i> to have done, which may be too much to ask \u2014 especially when you\u2019re looking to attract new clients.<\/p>\n\n\n\n The spreadsheet method, on the other hand, may prove problematic for you and\/or your team. Namely, the fact that it requires you to manually enter time increases the chances that you\u2019ll eventually make a costly mistake. Both the spreadsheet and the paper method can be time-consuming processes, especially if you\u2019re working on multiple projects.<\/p>\n\n\n\n In the end, the time tracking software method emerges as the best option due to its currency, professional appeal, speed, and accuracy. So, let\u2019s see how you can best use such software to track project and task time.<\/p>\n\n\n\n To help understand and implement the concept, let\u2019s take a look at our own time tracking software, Clockify by CAKE.com<\/a>.<\/p>\n\n\n\n First, within the app, you can define your projects, tasks, and their clients<\/a>.<\/p>\n\n\n\n Then, you can choose the time tracking solution that suits you \u2014 you can:<\/p>\n\n\n\n If you want to track time with a timer<\/b>, you\u2019ll just need to enter the \u201cTimer mode\u201d, write a description for the activity you\u2019re working on, and select its project and task. Then, start the timer, and let it run until you\u2019re done with the activity \u2014 once done, stop the timer, and the system will add the newly-created time entry to a list of time entries below.<\/p>\n\n\n\n If you want to add time manually<\/b>, just switch to \u201cManual mode\u201d, and follow the same write description-specify project-specify task pattern. Afterward, you can add the duration for the task, without having to bother with the start and end times.<\/p>\n\n\n\n If you opt to enter time in a timesheet<\/b>, you\u2019ll just need to populate the timesheet rows with the projects and tasks you\u2019re working on, and then add your time in corresponding cells.<\/p>\n\n\n\n Once you\u2019re done tracking time, you can make use of the Reports section of the app<\/a>. Here, you\u2019ll be able to view the amount you\u2019ve earned for a particular project and\/or task by filtering results.<\/p>\n\n\n\n Afterward, you can export a PDF, CSV, or Excel report<\/a> of the hours and minutes you\u2019ve tracked on the project and tasks, and send it to the client to serve as an invoice.<\/p>\n\n\n\n In addition to tracking the time you spend working on the project and its tasks, you will also benefit from implementing a progress tracking system.<\/p>\n\n\n\n To start tracking progress, you can try a Kanban-based system, like Trello<\/b> or Asana<\/b>.<\/p>\n\n\n\n Both apps are based on a similar principle:<\/p>\n\n\n\n Trello<\/b> also offers an option to add \u201cObservers\u201d to your boards\/projects \u2014 so, you can add your clients to their respective boards, who, unlike the members of your team, will only be able to view your progress with individual tasks, download attachments, add comments, as well as export the board.<\/p>\n\n\n\n In Clockify<\/a><\/b>, your client will be able to track project progress in terms of time, via a shared report<\/a>. Just, share a report you\u2019ve filtered by the correct parameters, copy its link, and send the link to the client who can then view changes in real-time.<\/p>\n\n\n\n Apart from using a Kanban-based app to track project and task progress, you can also use various templates to speed up<\/i> the said progress:<\/p>\n\n\n\n Now that you\u2019ve created your project outline and defined your project-related tasks, you\u2019ll need to decide how you will bill the said project and tasks:<\/p>\n\n\n\n Will you bill work by the hour? <\/i><\/p>\n\n\n\n Or, will you charge a flat fee? <\/i><\/p>\n\n\n\n If you bill by the hour<\/b>, you\u2019ll base your bill solely on the clean number of hours you put into your work.<\/p>\n\n\n\n If you charge a flat fee<\/b>, you\u2019ll base your bill on the scope of work you complete, regardless of the number of hours it takes you to finish the project.<\/p>\n\n\n\n No matter the billing approach you choose, you\u2019ll need a comprehensive list showing:<\/p>\n\n\n\n On the other hand, in case you charge a flat fee, you\u2019ll still be providing your clients with proof of what exactly you worked on (and what exactly they are paying for).<\/p>\n\n\n\n \ud83d\udca1 To help you decide how you can best bill your project work, check out our previous articles:<\/p>\n \u2192 Salary vs hourly employment: pros and cons<\/a><\/p>\n \u2192 How we use Clockify to track time and bill clients<\/a><\/p>\n \u2192 How design agencies price their projects<\/a><\/p>\n<\/div>\n\n\n\n When it comes to tracking the efficiency of your chosen billing approach, if you\u2019re having doubts, it\u2019s best that you play around with the two main choices you have.<\/p>\n\n\n\n Try implementing an hourly approach or a flat fee approach first. Perhaps you\u2019ll eventually find that the alternative approach to the one you initially choose suits your type of projects or workflow better.<\/p>\n\n\n\n Or, you may find that one type of your projects is better suited for an hourly approach while another type is better suited for a flat fee approach.<\/p>\n\n\n\n Once you\u2019ve selected the ideal billing system for you, it\u2019s time you decide how exactly you\u2019ll approach the billing process.<\/p>\n\n\n\n If you bill a specific price by the hour, there are four efficient types of hourly rates<\/a> you can implement:<\/p>\n\n\n\n One hourly rate on all projects. Great if: <\/b><\/p>\n\n\n\n Example:<\/i><\/b> A freelance team of two designers ($35) who specializes in logo design.<\/p>\n\n\n\n Specific hourly rates per team members. Great if: <\/b><\/p>\n\n\n\n Example:<\/i><\/b> A freelance team of one designer ($40) and three developers ($65) who specializes in creating landing pages for fashion websites.<\/p>\n\n\n\n Specific hourly rates for specific projects. Great if: <\/b><\/p>\n\n\n\n Example:<\/i><\/b> A freelance team of three developers ($65) who build custom apps.<\/p>\n\n\n\n Specific hourly rates for each team member working on specific projects. Great if: <\/b><\/p>\n\n\n\n Example:<\/i><\/b> A freelance team of two artists ($50), four developers ($70), two designers ($55), one audio specialist ($45), and two video game producers ($35) who create strategy and puzzle games.<\/p>\n\n\n\n Alternatively, if you\u2019re charging a flat fee, you\u2019ll likely want to base your prices on the scope of individual projects \u2014 which can revolve around specific tasks or sets of tasks.<\/p>\n\n\n\n Example<\/i><\/b>:<\/b> A freelance team of one designer, two developers, and a copywriter who creates websites views each element of the project as a separate task with its own fee:<\/p>\n\n\n\n \ud83d\udca1 For more insights into how you can bill your projects and tasks, check out our blog post on the subject:<\/p>\n \u2192 The definitive guide to project billing and invoicing<\/a><\/p>\n<\/div>\n\n\n\n When it comes to tracking the accuracy of your billing process, a comprehensive invoice with a clean list of completed tasks is always key. It will help the client better understand the value (and, subsequently the accurate price) of your work.<\/p>\n\n\n\n Of course, you\u2019ll also need to ensure your prices are accurate in itself:<\/p>\n\n\n\n Now, it\u2019s time to decide what tasks you will directly bill for? And, what tasks will you leave out of the invoice?<\/p>\n\n\n\n You\u2019ll definitely want to mark primary, project-specific tasks as billable and add them to your invoice. For example, software developers will bill for all development-related tasks.<\/p>\n\n\n\n But, software development is a complex process that also requires certain secondary, recurring tasks<\/a>. You\u2019ll likely need to hold team and client meetings, communicate with the client and team members via email or chat, as well as manipulate project-related data on a regular basis.<\/p>\n\n\n\n Although these tasks are crucial for the development project, you should probably refrain from marking them as billable and adding 20 separate \u201cDaily meeting\u201d items in your official invoice.<\/p>\n\n\n\n Instead, you can have the time you spend in meetings, on emails, and manipulating data be reflected in the hourly rate you\u2019ll use for the development tasks \u2014 i.e. make your hourly rates higher.<\/p>\n\n\n\n\n Time tracking software used by millions. Clockify by CAKE.com is a time tracker and timesheet app that lets you track work hours across projects.<\/p>\n\n When tracking time in Clockify<\/b> by CAKE.com, you can specify whether activities (or even entire projects) are billable or non-billable.<\/p>\n\n\n\n If you\u2019ve marked a task as billable, its amount will be added to the total amount for that project.<\/p>\n\n\n\n Alternatively, by marking a task as non-billable, you\u2019re excluding it from your direct earnings.<\/p>\n\n\n\n The key here is to maximize the time you spend on billable tasks, in order to increase the value you\u2019ll personally get out of the project. So, consider whether you are wasting time on some tasks and should instead allocate this time to more important (and more profitable) tasks in the future.<\/p>\n\n\n\n Example: <\/i><\/b>You\u2019re a freelance team of 5 people who find that they spend 1 hour on daily meetings, but could instead cut this time to half \u2014 this way, you could be saving 2.5 hours per day, or 12.5 per week, in total.<\/p>\n\n\n\n\n
How to set up and track projects and tasks<\/h2>\n\n\n\n
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1. Setting up and tracking project outlines<\/h2>\n\n\n\n
How to create a project outline<\/h3>\n\n\n\n
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How to track a project outline<\/h3>\n\n\n\n
Tracking project goals and milestones <\/h4>\n\n\n\n
Tracking Key Performance Indicators <\/h4>\n\n\n\n
Tracking Objectives and Key Results <\/h4>\n\n\n\n
2. Setting up and tracking time and progress on projects and tasks<\/h2>\n\n\n\n
How to break a project into tasks<\/h3>\n\n\n\n
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Choosing the time tracking method<\/h4>\n\n\n\n
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Implementing the time tracking method<\/h4>\n\n\n\n
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Tracking progress with apps<\/h4>\n\n\n\n
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<\/center>\n\n\n\nMaking progress tracking easier<\/h4>\n\n\n\n
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3. Choosing a billing approach and tracking its efficiency<\/h2>\n\n\n\n
How to decide what billing approach you\u2019ll use<\/h3>\n\n\n\n
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How to track the efficiency of your billing approach<\/h3>\n\n\n\n
4. Setting up a billing approach and tracking its accuracy<\/h2>\n\n\n\n
How to approach billing by the hour or charging a flat fee<\/h3>\n\n\n\n
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How to track the accuracy of your billing approach<\/h3>\n\n\n\n
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<\/center>\n\n\n\n5. Setting up and tracking billable and non-billable tasks<\/h2>\n\n\n\n
How to distinguish between billable and non-billable tasks<\/h3>\n\n\n\n
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