One of my favorite tools is Basecamp, an online project management tool.  We use it at WRIS to manage our internal and client web development projects. 

My favorite features include:

• “Corralling of email” – It can get a little crazy in your inbox when there’s a bunch of people on a project and everyone starts sending “Reply All” emails.  We encourage everyone involved in a  project (including the client) to send emails via Basecamp so that we can have a central source for all communication and email threads are stored nicely.  It really cuts down on email confusion.
• To-do’s – Transparency is important when working with a client.  By creating an on-line to-do list, the client can see exactly what’s been done and what’s still to do.  No secrecy – it’s all right out in the open.
• File management – Much like email, trying to keep track of files can get hairy especially when there’s multiple revisions involved (for instance, design iterations).  Basecamp allows you to upload and store files and keeps track of who uploaded what and when.  So much easier than keeping everything on a shared drive!

My biggest qualm with Basecamp is that it really doesn’t do a whole lot of reporting.  I am a numbers person and would love to see Gantt charts, time utilization graphs, etc.

All in all, though, it’s an excellent project management tool for a small or medium size business.