How Big is this Problem?
A report by Levelset states that 48% of construction businesses are paid late, with labor tracking errors being a leading cause. In addition, QuickBooks’ Guide on Construction Accounting shows that contractors often struggle with cash flow due to inconsistent labor tracking and billing inefficiencies. The need for a better way to track real-time labor data comes into play when we take into account these challenges. Contractors should not have to rely on outdated methods, like illegible handwritten timesheets and time-tracking solutions that only create confusion and can easily derail project timelines. What they need is a modern solution to capture labor data automatically from the field, something that reduces errors and that can integrate seamlessly with their billing systems. The solution comes in the form of real-time labor tracking. When you automate the timekeeping process, you can remove guesswork, make sure records are accurate, and simplify your invoicing process.Challenges of Traditional T&M Billing
If you’re reading this, you’re probably realizing your T&M billing is outdated due to labor tracking processes that can’t keep up with the fast pace of your business. The inefficiencies of paper timesheets, manual entry, and reporting delays can lead to billing errors, payment disputes, cash flow issues, and unhappy workers and clients.
| Problem | Challenge | Impact |
| Unreliable time tracking | Manual timesheets get lost, misrecorded, or filled out incorrectly. | One mistake can delay invoices, create disputes, and slow down payments. |
| Delayed labor reports | Labor data is reported late, leading to discrepancies and disputes. | Unverified hours create pushback from clients, increasing the risk of payment delays. |
| Incorrect invoices | Inaccurate hours result in underbilling or overbilling, delaying payments. | Lost revenue adds up quickly, and disputes put client relationships at risk. |
| Outdated payroll processes | Payroll teams spend too much time fixing errors and tracking missing timesheets. | Payroll processing slows down, delaying invoicing and impacting cash flow. |
| Poor record-keeping | Lack of clear, time-stamped records makes audits and wage disputes difficult to resolve. | Legal and financial risks increase, making compliance a constant challenge. |
These challenges can add up and cause a major impact, as seen in the table above. These issues don’t just create extra work for your already busy team. They can cost your business money, put strain on your client relationships, and slow down operations. The longer it takes for you to reconcile missing hours, the longer it will take to get everyone paid on time. The good news is that there’s a better way to do T&M billing. Real-time labor tracking eliminates these roadblocks and more to makes your time and materials billing faster, more accurate, and easier for your team to manage.
Take Back Control of Your Time Keeping
How Does Real-Time Labor Data Improve T&M Billing?
Outdated time and materials billing creates constant headaches for everyone involved in tracking time. Handwritten timesheets get lost, manual entry causes mistakes, and tracking down missing hours wastes time. Real-time labor tracking eliminates these problems by capturing accurate data directly from the field.
When you can access real-time labor data, you’re able to invoice faster, reduce client and worker disputes, and ultimately get people paid on time.
“We’ve had massive amounts of time savings and coordination efficiency when it comes to those processes because we had trusted partners, SmartBarrel, and the data is accurate. If the person was on site and they put their face in front of the kiosk, it captures it accurately, and it provides us near 100% situational awareness,” explained Rob Frost, Program Manager of Systems & Strategy, NexGen Contracting
Having accurate timekeeping records means fewer billing errors, provides stronger client trust, and can help allow the back office to operate smoothly. Here’s how it makes a difference:
1. Labor Data is Captured Instantly
Having real-time labor data at your fingertips takes the guesswork out of time tracking. When workers must clock in to the project with biometric facial verification, this means they can’t badge in an employee who isn’t present. It also means that even if they’re wearing PPE, a smart time clock like SmartBarrel will be able to detect and recognize that worker. This means no more missing hours or illegible paper timesheets to try and decipher. When your clock-ins are verified, you can reduce eros and keep your labor data and your budget accurate.
2. Billing is Based on Real Data, Not Estimates
When every hour worked is accounted for with real-time data labor tracking, you don’t have to round, guess, or piece together the missing records. Contractors receive a clear, fact-based record of actual hours worked, making billing more accurate.
3. Payroll and Invoicing Move Faster
When labor data flows directly into payroll and billing systems, the back office does not have to waste time fixing mistakes or tracking down missing timesheets. Invoices go out faster, which means payments come in sooner.
4. Fewer Disputes and Faster Approvals
Time-stamped, verified labor records give clients the transparency they need to approve invoices without pushback. When labor data is clear and accessible, there is less back-and-forth and fewer payment delays.
5. Compliance is Automatic
With digital timekeeping, contractors generate accurate, verifiable records without extra effort. If an audit or wage dispute happens, time entries are already stored and ready to access. No scrambling to pull paperwork.
Take Back Control of Your Time Keeping
The Industry Shift Toward Real-Time Labor Tracking
The construction industry is moving toward digital solutions to solve long-standing inefficiencies. A study by McKinsey & Company found that digital adoption is accelerating, driven by growing infrastructure demand and a shortage of skilled labor.
To stay competitive, contractors need better ways to track labor, reduce disputes, and keep payroll efficient. Tools like SmartBarrel’s real-time labor tracking solution give contractors accurate, automated labor records, helping them cut down on errors and get paid faster.
A Smarter Way to Handle T&M Billing
Real-time labor tracking takes the guesswork out of T&M billing. With labor data captured directly from the field and flowing seamlessly into payroll and invoicing, contractors spend less time chasing timesheets and more time running their business.
Accurate, automated records mean fewer disputes, faster approvals, and a billing process that works for you, not against you.
Contractor and Payroll Team Benefits
When labor data is tracked in real-time, contractors eliminate delays, reduce disputes, and gain full visibility into workforce costs. These improvements impact both field operations and back-office efficiency. Here’s how:
Faster Invoicing
Payroll may be used to waiting on field reports, but it doesn’t mean they have to. When reporting is slow, so is the billing cycle. Speed up the process with real-time labor tracking so your payroll and billing teams can get instant access to real-time, accurate labor data. What does that mean? Invoices can be processed faster, and cash flow can be kept steady.
Increased Profitability
Every labor hour is accurately recorded, reducing the risk of underbilling or payroll overages. Contractors know exactly where time is spent, allowing for more precise job costing and better financial control.
Improved Client Trust
When you keep transparency top of mind while billing for T&M, it makes everyone’s jobs easier. Clients are able to see time-stamped, verified labor records, giving them the confidence they need and showing complete accuracy of invoices. This can reduce disputes and strengthen contractor-client relationships.
Less Back-Office Admin Work
Payroll and accounting teams spend less time tracking down timesheets, fixing manual errors, and reconciling discrepancies. This frees them up to focus on higher-value tasks, improving efficiency across the company.
How SmartBarrel Helps Contractors Improve Labor Tracking
SmartBarrel provides real-time labor data solutions that support accurate record-keeping, reduce payroll disputes, and help contractors stay efficient.
- Biometric Time Tracking – Ensures accurate clock-ins and clock-outs with facial verification, preventing time theft and providing accurate back-ups for billing to eliminate disputes.
“I think about the overall time entered and then the missed tracking. For example, a guy may leave early but still show up eight hours on the time card. Now, with SmartBarrel, we can verify that instantly, and it’s locked in there so we can refer back to it as needed,” said Bill Everett, Regional Manager/General Superintendent of Western Partitions, Inc.
- GPS-Enabled Jobsite Tracking – Confirms where labor hours are being logged, eliminating location-based disputes.
- Live Labor Reports – Provides instant access to up-to-date workforce data for better decision-making.
- Daily Log Reporting – Receive daily logs that show who’s on-site, complete with worker photos and job positions. Access reports in real-time, or choose automatic emails from SmartBarrel.
- Billing Rate Management – Set up custom billing rates in SmartBarrel and generate billing reports. Each report will include full backup data, providing verified records.
- Payroll Integration – Syncs real-time labor data with payroll systems, reducing manual entry and streamlining wage calculations.
- Broadcast Messaging Capabilities – Instantly send important updates, alerts, or jobsite instructions to every worker’s phone on-site in English or Spanish. Keep crews informed without relying on face-to-face communication.
Take Back Control of Your Time Keeping
Get Ahead of the Problem
Real-time labor tracking removes the frustration from T&M billing. No more chasing down timesheets, fixing errors, or fighting over invoices. With accurate labor data at your fingertips, you can bill faster, reduce disputes, and keep cash flow steady.
If you are still relying on outdated tracking methods, you are losing time and money. The right tools put you back in control and give you the data you need to bill with confidence.
Take Control of Your Labor Tracking
Stop wasting time on paperwork and payroll headaches. See how SmartBarrel can help you track labor effortlessly and get paid faster. Book a demo today and start running a more efficient jobsite.
