What is a Timesheet?
A timesheet is a tool that tracks the number of hours worked, either using paper, an app, or software. It plays a key role in various sectors by providing accurate records for payroll, project management, detailed billing, detailed analytics and more. Timesheet data can help your business identify areas of improvement to save time and spend less time on less productive tasks.
Timesheets were originally developed for employers to track work hours, attendance, and employee time for payroll. However, timesheets are no longer used just for that.
Is It Spelled Timesheet or Time Sheet?
Both “timesheet” and “time sheet” are correct, but “time sheet” is more traditional and backed by Merriam-Webster. “Timesheet” is common in digital settings. Either works, but “time sheet” is the safer bet for formal use.
What Are Timesheets Used For?
Timesheets for employees help keep payroll in check by documenting how many hours non-salaried and salaried employees spend on their tasks. This information is used to calculate employee hours, pay, and monitor productivity and workloads.
Timesheets record the start and end time of tasks or the duration of the task. Timesheets may contain a detailed breakdown of tasks accomplished by the individual(s) who worked on the task.
What is a timesheet for work? They come in different formats: paper timesheets with manual entries, online timesheets with electronic forms, and software with automated features to track employee hours. These are employee timesheets.
Timesheets are also used to bill clients and manage projects. For businesses that charge clients based on working hours, timesheets record the total hours spent on each project. This makes invoicing more accurate and helps with project budgeting and planning.
Brief History of Timesheets
Timesheets have a long history. They date back to ancient times, with the Code of Hammurabi from 1772 BC setting wages for workers, which was an early form of linking time with pay.
In the 19th century, employee timesheets became more structured. Factory owners used them to track employees’ hours, which was important for calculating wages. By the late 1800s, the concept of time tracking had already shifted, with devices like the “time recorder” invented by a New York jeweler setting a new standard.
As technology picked up steam, so did timesheet software and the uses for timesheets. Originally focused on payroll, today’s timesheets do more than just track attendance. They now play a significant role in time utilization, project management, and client billing.
Types of Timesheets
There are a few types of timesheets: manual, digital, and mobile. Each comes with its own set of pros and cons.
Manual Timesheet
Manual timesheets involve paper timesheets, spreadsheets, or timecards for recording hours on the job. They are simple to use but can be error-prone and time-consuming.
Digital Timesheet
Online timesheets use software to automate time tracking, which improves accuracy and integrates with payroll systems. They typically track time spent on computer activity and past data as working hours on the job.
Mobile Timesheet
Mobile employee timesheets allow employees to log hours via apps or browsers on a mobile device. Mobile apps are useful for tracking time or time managing on the go, with some using AI for reminders and suggestions. They may even have GPS tracking.
Key Features of a Timesheet or Timesheet Software
- Time Tracking: Tracks start and end times to record total hours worked while they’re on the job. This helps monitor how time is spent on different tasks and projects.
- Task Breakdown: Provides detailed tracking of tasks and activities, showing how time is allocated across projects. This can help to break time or improve time utilization.
- Approval Processes: Managers review and approve timesheets for employees before finalizing business decisions.
- Integration: Connects with invoicing systems to make billing based on tracked hours or projects more accurate.
- Simplified Representation: Offers various views and filters to help manage and review time data easily. For example, you can filter monthly, daily, or weekly timesheets by project, team members, or pay period.
- Data Entry Methods: Allows logging through web portals, RFID tags, phones, and other methods. Some require manual entry.
- Integration with Other Apps: Export time records and integrate with other tools such as accounting software, mobile apps, or web applications within your tech stack.
- Timer Functionality: Features timers to start and stop for accurate time tracking.
- Manual Time Entry: Provides an option to enter time when needed manually.
- Time Summaries and Reporting: Generates summaries and reports to review time spent and track progress.
- Automatic reminders: Provides automatic reminders to employees to submit timesheets. They can be set daily or monthly depending on what you need.
Benefits of Using Timesheets
Manage Projects Better
Timesheets make managing projects more straightforward by showing exactly how time is spent. They track each time an employee puts in a time entry. This helps you track progress, allocate resources, and catch delays before they become issues.
Boost Employee Accountability
They also boost employee accountability by documenting how much time each person spends on their work, so everyone sticks to their schedules. Timesheets can indicate where time might be wasted or tasks taking longer than expected.
Better Decision-Making
On top of that, the data from timesheets for employees helps with decision-making by showing any trends in performance, attendance, and areas for improvement. They’re also key for staying GDPR compliant or compliant with labor laws, depending on where you are. This makes reporting simpler, as they keep records of hours worked for payroll. Overall, timesheets save you both time and money.
Common Use Cases
A timesheet can serve multiple purposes and is used across different sectors. Employee timesheets simplify payroll processing by tracking work hours across pay periods.
In professional services like consulting, legal, and accounting firms, timesheets track billable hours and help manage budgets. Freelancers use them for billing and record-keeping, while remote workers rely on timesheets to manage hours.
For project management, timesheets illustrate how time is spent on tasks, making it easier to keep projects on track. For example, if you’re using a model like the Organization Breakdown Structure, timesheets can help you track progress at different levels, and spot any delays or issues early on. In management accounting, they help identify time-draining tasks and boost productivity.
Challenges and Considerations
Timesheets come with a set of challenges. Here’s what to keep in mind.
- Employee Pushback: New timesheet systems can feel like an extra chore or a privacy concern, especially for workers juggling multiple responsibilities.
- Accuracy Issues: Getting timesheet data right is critical. Mistakes or incomplete entries can get in the way of payroll, project management, and compliance. You can run into financial and legal issues down the line.
- System Integration Problems: Timesheet systems need to work well with the existing payroll, project management, and HR software you have in place. If they do not, it can lead to inefficiencies and errors.
- Struggling with Timely Entries: Workers might find completing and submitting timesheets accurately and on time challenging. This can affect the overall accuracy of timesheets for employees.
- Tracking Billable vs. Non-Billable Hours: It is important to differentiate between billable and non-billable hours to stay profitable. Without good visibility, managing these hours can be challenging.
- Scaling Challenges: Manual systems or tools might need to catch up with business growth. This can mean more admin work and a higher chance of mistakes.
- Revenue Leakage from Errors: Mistakes or missed entries can affect budgets and profits. Spotting and fixing these issues quickly are essential to avoid any financial losses.
- Lack of Real-Time Insights: Real-time data is key for making informed decisions. While historical data is useful, having immediate insights helps address issues and keep projects on course.
Also Consider: What Is the Timesheet Rule?
The timesheet rule under federal law requires companies to track employee work hours accurately. This applies to both hourly and salaried workers. They must record daily hours worked, clock-in and clock-out times, and details of breaks and meals. This ensures correct payment and compliance with labor laws.
Best Practices for Timesheet Management
Here is how accurate timesheets and regular checks can improve your workflow.
- Keep Training Regular
Make sure your team members know how to use timesheets properly. Regular training helps keep everyone on the same page about how and why to track time accurately.
- Automate the Process
Using software to handle time entry submission and approval makes things easier and more consistent. It cuts down on manual errors, speeds up the entire process, and frees up time for everyone.
- Encourage Timely Entries
Encourage your team members to log their time as they go. Set up auto-reminders and integrate time tracking with other tools to keep accurate timesheets. This helps prevent forgotten details and keeps the data more accurate.
- Go for Automatic Tracking
Automatic time-tracking tools can save a lot of hassle. They track time spent on tasks without requiring manual input and can also offer valuable insights into productivity and distractions.
- Do not Use Time Tracking as a Punishment
Use time tracking as a tool for improvement, not punishment. Keeping the process positive helps ensure better participation and more accurate data.
- Review Regularly
Check timesheets frequently to catch and fix any errors. Regular reviews help keep data accurate and reliable. For example, spotting logged-hour inconsistencies can prevent billing errors like overcharging or undercharging clients.
- Link with Project Management Tools
Connect time tracking with project management tools to track time spent on specific projects or tasks. This gives you a clearer picture of project progress and resource use.
- Track Non-Billable Time Too
Don’t forget to log non-billable times like meetings and internal tasks. This helps you gain a complete view of how time is spent and can improve overall efficiency.
- Choose Tools with Custom Features
Pick time-tracking tools that can handle special cases like overtime or weekend work. This ensures accurate tracking for various billing needs.
- Avoid Over-Monitoring
Keep an eye on time tracking without going overboard. More oversight can stress your team and hurt morale.
- Be Transparent
Be open about how time-tracking data is used. Sharing summaries and insights helps your team see the value in tracking time.
- Set a Good Example
If managers track their time, it sets a good example for the rest of the team. It shows that time tracking is important and encourages everyone to follow the same practices.
- Try a Pilot Program First
Before fully rolling out a new time-tracking system, try a pilot program. Test it with a small group, gather feedback, and adjust as needed. Garner support.
- Use Data to Boost Productivity
Analyze time-tracking data to find ways to boost productivity. Understanding how time is spent helps optimize workflows and tackle inefficiencies in projects.
Best Timesheet Software and Apps
Are you looking for the best time-tracking software or online timesheet software? It’s an amazing tool that can help your business grow. Some things to consider include how easy it is to contact support, whether there is a free version or is it free forever, and does it has unlimited users.
Here is a roundup of top-time tracking software and apps.
Upland PSA
Upland Timesheet is part of the Upland PSA suite. It makes life easier by automating project time tracking, client billing, and payroll. Not to mention, Upland Timesheet is cloud-based, so it helps cut down on admin work and works well with Upland’s other tools.
ClickUp
ClickUp combines time tracking with project and task management. It’s a solid choice for managing teams and projects all in one place. With AI, you can easily connect all your processes and apps, making everything run more smoothly.
TMetric
TMetric offers the basics of time tracking along with project and task management. It’s a good pick for a straightforward tool to monitor your time and productivity.
Toggl Track
Toggl Track is great for freelancers and small teams. It offers basic time tracking features, manual time entry, and reporting, making it a smart choice for those who don’t need a lot of bells and whistles.
Timely
Timely is built for larger teams that need automated time tracking. It uses AI to record time spent on tasks automatically and offers insights to help cut down on distractions
Looking Ahead
Clearly, when timesheets are done well, they make our lives easier. By simplifying tedious processes and offering insight into time spent, timesheets help us stay organized and efficient. And, with automation and AI on the rise, timesheets are becoming even more accurate and easier to use.
As time passes, solutions like Upland PSA will continue to prove to make manual time sheets outdated. With easy time tracking and billing, businesses will have more time to focus on what matters—getting things done.
To simplify your time tracking and billing, Upland PSA is a cloud-based tool that automates these processes. See it in action.
It makes managing time and client billing easier and reduces admin costs. Explore more.
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