The use of timesheets for businesses
Timesheets are a valuable tool for businesses of all sizes.
They can be used to track employee productivity, bill clients,
and comply with labor laws.
Tracking employee productivity
One of the most important uses of timesheets is to track
employee productivity. By tracking how employees spend their
time, businesses can identify areas where they can be more
For example, if an employee is spending a lot of
time on non-billable tasks, the business can take steps to
reduce those tasks or delegate them to someone else.
According to a recent statistics most employees spend
less than 50% of the time in productive
work. The reasons for low productivity can be
multitasking, stress or
poor work management.
Timesheets can also be used to bill clients. By tracking the
time that employees spend on each project, businesses can
accurately bill clients for their services.
This is especially important for businesses that bill
by the hour.
For professional services companies, month-end or year-end reports can show if
your company is spending enough time on your high-revenue customers.
Complying with labor laws
Timesheets can also be used to comply with labor laws.
For example, the Fair Labor Standards Act (FLSA) requires
businesses to track the hours that their employees work.
By tracking employee hours, businesses can ensure that they
are complying with the FLSA and avoiding costly fines.
Billing and Invoicing
Timesheets give a detailed breakdown of the time spent by an employee for each project and task,
making the client billing and invoicing easier for different projects.
Other users of Timesheets
In addition to tracking employee productivity, billing clients,
and complying with labor laws, timesheets can also be used
for other purposes, such as:
- Allocating resources
- Tracking time off and accruals
- Managing projects
- Providing feedback to employees