Accurately tracking labor time is not just a method for managing direct and indirect costs—it also significantly enhances cash flow management.

Link to Cash Flow:

  • More Accurate Revenue: Tracking direct labor hours helps generate precise invoices, improving incoming cash flow.

  • Better Expense Control: Monitoring indirect labor hours reduces waste and improves outgoing cash flow.

  • Financial Planning: Linking time tracking to cost centers supports more accurate cash flow forecasting based on project phases.

Using ERP systems turns time tracking into a powerful tool for boosting liquidity and profitability.