How To Hunt for PSA Software, a Guide for the Rest of Us

Spend a few hours researching software of any consequence and you’ll soon be convinced that there’s a conspiracy to make the decision as difficult as possible. That’s because software vendors tend to compete with each other by loading their systems up with lots of bells and whistles. Then, they play-up those features like hawksters at a Marrakeshi bazaar. Time tracking software is no exception to this rule, and the list of features that vendors tout can be positively daunting.

Fortunately, even a software novice can tune out the noise and find the solution that works for their firm. The key to success here is simple: focus on the business. Time tracking software falls into three basic categories, and finding the right solution begins by avoiding the wrong ones.


Enterprise time tracking software is used by large consulting firms, and it’s designed with them in mind. It typically costs thousands of dollars to purchase, and even more to install. These systems require installation specialists, and are usually sold through a “reseller” network of consultants whose job it is to implement the system.

While these systems are feature rich, they’re also too expensive for most small businesses. They’re designed to meet the needs of large businesses, so they often require staff, IT resources and outside consulting expertise (both to install and maintain). There’s nothing inherently wrong with these systems, but the soft-costs associated with them can swamp a small firm.


The other end of the spectrum is occupied by desktop solutions. These are typically “timesheet” applications that get installed on each employee’s computer, and are used solely as a replacement for a paper-based timesheet. There are dozens of these applications, and prices range from $50/user to $200/user. There are generic timesheets, timesheets that fit specific industries and even a number of “online” timesheets that can be leased for a monthly fee (usually per employee).

Systems like these are affordable, but they can’t grow as a business expands. They may be ideal for a 2-3 person shop, but they don’t permit bigger firms to manage things like budgeting, staff assignments or capacity planning.

Eventually, entrepreneurial firms will outgrow a desktop solution. So, purchasing one should be considered a stop-gap. If you do end up with a desktop solution, remember that less is more. Companies get into trouble when they attempt to stretch these systems beyond their capabilities. They aren’t built for mid-sized firms, so purchasing one with lots of bells and whistles is a waste of resources. By the time a growing company is ready to use these features, they’ll migrate to a more robust “mid-market” package.


Mid-market systems offer growing firms a suite of features to make time tracking data more useful. They tie that data to budgets; they help segment the data by team, office or department; they tie timesheets to more detailed information on the projects and accounts to which staff members are assigned; and they enable firms to link the entire process seamlessly with their accounting/invoicing process.

While these systems offer small firms the greatest flexibility, they are also the most challenging to evaluate. They tend to be feature-rich, which means it can be tough to compare them. In addition, desktop software vendors—tired of losing clients to mid-market solutions—often claim many of the same features, making the process even more confusing.

In spite of these difficulties, a mid-market solution is the best fit for small businesses. Companies can narrow their search down considerably by focusing on a few key business requirements:

BUDGET Pricing on these solutions varies (and is often priced per user), but a 20 person firm shouldn’t spend more than $2,000. Don’t forget to consider the costs required to “implement” the system (e.g. – consulting, training, support , maintenance).

NETWORK/HARDWARE These solutions typically require a network, and usually a server. In fact, firms should be wary of solutions that claim to run without one (these are probably desktop solutions more suited to one or two-man shops).

OFFICE ENVIRONMENT If employees work off-site, then they need a browser-based solution. Be wary of products that offer browser “add-ons.” Since those systems may not be built from the ground up to support remote users, they’ll be slower and more difficult to setup. Browser-based solutions are also perfect for firms with a mix of PC’s and MAC’s.

Once a business narrows the list down to a few systems, it’s time for a demo. Vendors today can usually walk a prospect through a “virtual tour” of their wares. In fact, vendors who aren’t willing to do “assisted demos” should be sent packing (their support team will be equally un-helpful). To get the most out of this evaluation, however, companies need to be prepared.

Here, once again, a business focus is essential. Spend some time up-front, mapping out typical workflow scenarios. Then, force the demo to focus on those business needs. A smart review of a system’s features will place every one of those features in a business context. That also gives managers a chance to think about specific needs before they start looking at software: allowing them to tune in the features that help and tune out the ones that don’t.

During the demo, a business focus dictates a “show me” approach. In other words, the request “Show me how to add a project, bill time to it and then invoice that time.” will be more productive than the yes/no queries: "Can I add new projects? Bill time? Create an invoice?"

While thinking through their own needs, small business may want to consider a couple of common requirements:

	Is there an accounting package that needs to be integrated? That process should be seamless.
	Do different people in the firm need different levels of access? It is OK, for example, for any employee to add a new project to the system?
	What is the ideal “approval” workflow? Most mid-sized firms want one or more managers to review time/expense entries before they’re included in invoices or sent off to the client.
	When do employees typically “record” time, and how complex can the process be?
	How difficult is it for remote users (if any exist) to record time/expenses?
	Can the system support the specific invoicing and billing scenarios that a business requires? Once again, a “show me” approach requires firms to think through their specific billing requirements ahead of time.
	How are budgets defined, and what information do managers/owners need to see in order to plan for future business? Any time entry system without budgeting capabilities won’t enable a small business to plan or forecast.

Finding the right system is only 50% of the battle. Once small businesses bring a system in house, getting it up and running can be a challenge. By zeroing in on the common causes for implementation failure, small businesses can make sure their investment pays off.

	Record only as much information as the business can use today. As a general rule, employees won’t spend more than 10-15 minutes each day recording time. Every piece of data an employee records during that 10-15 minutes should be absolutely crucial to managing the business. Don’t track, for example, what “task” an employee is working on if it’s not absolutely essential. For time tracking software, more failures are caused by attempting to track too much information, not too little.
	Know in advance what reports/screens managers will use to track the business. Then, train them on how to analyze the data. A vendor should be able to select the reports/views that are a good fit (usually by industry). A roundtable review of these key reports/screens will facilitate buy-in from managers and senior staff, and it’s a subtle way to make sure everyone is focused on the right metrics. Firms that already have a set of key reports should share them with potential vendors so they can verify that similar reports are either available as standard reports or can be custom produced.
	Pay attention to service. Mid-market solutions are complex enough to require some hand holding, so a vendor’s service levels matter. This is a great way to use reference calls. While another business may not invoice or budget the same way you do, every one of a vendor’s customer should be able to talk about their experience with customer support.
	Demand an industry solution. Getting a solution that’s tailored to a specific industry will get a small business 80% of the functionality they need out of the box.

Finding the right time tracking solution can help a small business work smarter. It can help everyone in the firm focus on the factors that drive profitability, and it can help successful firms accommodate growth. That focus, however, doesn’t come from great software. It comes from a smart and focused management team. The software is just a tool; the vision still belongs to you.