Meaning of Timesheet

A timesheet is a tool that helps you to record and keep track of your work time for a certain period. Previously, employees would record their work hours on paper cards, spreadsheets, emails, and registers.

But these old school methods were time-consuming and lacked accuracy. With changing times, most businesses have started using various kinds of software for tracking time.

Time tracking process


What is a Timesheet Software?

It is an electronic solution that records your employees' working hours daily, weekly, semi-monthly, or monthly for different projects. This time is recorded manually by entering work hours and work details, or by using a clock-in clock-out method.

This software gives an overview of the weekly or monthly work status for a project and helps measure employee performance.

Timesheet software ensures:

  1. Accurate billing for projects
  2. Helps you stay on budget with your projects
  3. Makes the payroll calculation process smooth
  4. Automates your attendance process.
  5. Helps in future analysis and estimation

Using Timesheet at various levels:

Employees

  • A Timesheet helps an employee record the work hours for a project and its tasks.
  • Employees can keep track of time spent daily, weekly, or monthly and help measure the output.

Employers

  • It gives an overview of the time spent by an employee on a project and work details.
  • The employers get an idea of the project status, and spot issues in work and time management.

HR

  • It contains all the needed time entries of the employees, making payroll calculations easier.
  • In addition, these entries are useful for billing and invoicing for various projects.

Use of Timesheet for businesses:

timesheet importance

Know how your employee time is spent

You need to know how exactly your employees are spending their time. According to a recent statistics most employees spend less than 50% of the time in productive work.

Get complete picture of client projects

If you work on client's projects, you want to get the status of work at any time. A timesheet report can help you provide this.

For professional services companies, month-end or year-end reports can show if your company is spending enough time on your high-revenue customers.

It also provides a glance into employee performance and productivity.

Staying compliant with regulations

For complying with labor and government regulations, an accurate time tracking system can show whether your organization is compliant. Non-compliance may lead to penalties.

If your company works in a government project, the DCAA compliance is necessary to follow.

Allocation of resources

At the end of the week or month, if the budgeted hours for a project exceed or work progress is slow, the supervisor can take action by:

  • Optimizing more labor for the project
  • Providing training to the underperforming employees
  • Delegating tasks to more efficient employees

Billing and Invoicing

Timesheets give a detailed breakdown of the time spent by an employee for each project and task, making the billing and invoicing easier for different projects.

Tracking TimeOffs and Accruals

Most companies implements various leaves like Paid Time Off, Sick Leave etc. These leaves accrue over time based on the company policy. These can be recorded and calculated along with work hours during payroll processing.


Who can use?

Professional services need to keep track of their time working on client's projects to make sure:

  • Time is correctly billed to the client
  • Resources are properly utilized
  • Projects are completed on time

Accounting

  • Assign Tasks to Employees
  • Track Tax Returns
  • Find most profitable customers

Legal

  • Document management
  • Itemize invoice by task
  • Secured information

Healthcare

  • Effective scheduling of appointments
  • Bill Clients accurately
  • Restrict confidential information

Construction

  • Efficient allocation of resources
  • Track time for laborers
  • Multiple project management

Educational

  • Manages staff attendance
  • Schedule and plan work allocation
  • Payroll management for staff

Govt. Departments

  • Complies with DCAA regulations
  • Prevent fraudulent billing
  • Edits captured during audits

IT industries

  • Tracks remote employees work hours
  • Smooth workflow approvals
  • Helps automate manual tasks

Freelancers

  • Track of each project
  • Track of time spent for each task
  • Helps billing as per work hours

Small Businesses

  • Determines project status
  • Improves productivity
  • Useful for remote work

Various uses of Timesheet Software?

timesheet management

Multiple people work on various projects and different business assignments at a given point in time. While working, the managers should know who is working on what and the work status. Without a timesheet software, the work process will be lengthy, and it will be difficult to figure out how the employees are performing.

It helps with:

  1. Proper creation of projects and tasks, along with the due date and status.
  2. Once these projects are created, they are allocated to the team members.
  3. After allocating of projects and tasks, the team members will record time for each project and tasks they have worked on.
  4. After a week, these timesheets are submitted to the managers for approval. These submissions will give an idea about the work details on different tasks and the project status.
  5. Once the manager gets an overview of the project status, they can identify how much work is remaining and the estimated time to complete it. If it runs behind time, they can allocate more resources and labor to complete the project on time.
  6. Once project work is complete, the work hours spent will be sent to the client and will help create invoices for billing purposes.

So the usage of timesheet software helps in:

  • Creating a workflow process for projects
  • Controlling expenses
  • Analyzing different parameters for future business growth
  • Making timely decisions to increase profitability
  • Ensures receiving timely payments from clients
  • Measuring the efficiency of employees

Why it is important for the payroll system?

It plays a significant role in the calculations of payroll. Check the timesheet lifecycle in the below image:

Employee timesheet processing

  • Administrators sets up the customer, projects and service items for the timesheets.
  • Employee record hours worked against each projects.
  • At the end of the period (weekly, bi-weekly etc,) employee submits the timesheet to their supervisor.
  • Upon approval, it is forwarded to HR for payroll processing.
  • HR department then considers the working hours, leaves taken, accruals, other adjustments, and then the final calculations for the payment processing are done.
  • The above process makes the payroll process smooth, quicker, and without errors.

What are the advantages of using a Timesheet?

Advantages of timesheet for businesses

Project Management:

It helps to maintain all the details of the Projects, which helps in:

  • Proper creation and allocation of project.
  • It helps to identify problem areas, and accordingly, the supervisors can take the desired action.
  • Proper analysis in project management helps monitor a project's progress and make the project deliverable on time.

Accurate billing to clients:

  • Timesheets help to justify all your invoices and billable hours.
  • The details in it help the clients see where the actual time is spent and track progress.
  • Timesheets will give assurance to your clients about the efficient handling of projects.
  • Accurate billing ensures timely payments.

Improvising with powerful insights:

  • Timesheet reports give an insight into all the ongoing work.
  • It helps to identify the problem areas in the execution of the project or task.
  • This analysis will help you decide on the workflow or allocation of resources.

Improves productivity:

  • Many times employees spend most of their time on social media.
  • Making the employees track time with a timesheet software will make them accountable, encourage them to work more seriously, which will help improve productivity and reduce procrastination.
  • Tracking time will also give the management a glance at the work done by remote working employees.

Delegation and Automation:

  • Regular time tracking will help management estimate how much time a particular task takes to complete.
  • With this estimation, the delegation of tasks becomes easy. Some manual work can be automated, and employees will be designated tasks that need more focus.
  • This automation and planning reduces wastage of time, improves employee efficiency, and helps employees focus more on essential tasks.

What information is included in a timesheet?

Timesheet details

Timesheet contains information like:

  1. The week for which you are tracking time
  2. The Project which you are working on
  3. The tasks related to each Project
  4. Work hours
  5. Work details
  6. Attachments, if any
  7. Comments, if any, for the manager/supervisor
  8. If taken for that particular week, some timesheets show the time off details.

How to make your employees fill up the Timesheet?

timesheet filling process

The main reasons for employees not filling up the timesheet are they forget to fill it up, think it is time-consuming, or maybe the interface is not user-friendly.

But, it is important to make them understand a few things:

  • Firstly, the employees need to realize that their payroll calculations are based on their work hours and time offs.
  • Many times, timesheets are used for billing the clients. They indicate the amount of work done for their projects. Missing work hours and work details may affect the payments and company revenue.
  • The overtime hours recorded in a timesheet will help the employees to earn some bonus. For this, it is essential to track every working hour.
  • If the employees find difficulty filling up the timesheet, provide them with proper training to create and fill up the timesheets. 
  • Try to select a software that is more user-friendly, the one which has ability to send notifications for filling up the timesheet at the end of the day, and the one which creates a positive experience for users.

Statistics:

Different methods used for time tracking in businesses:

  • Only 25% of businesses use time tracking applications and 25% still use spreadsheets.
  • 14% use touch screen kiosks and 10% track time with punch cards.
  • Rest businesses still track time with POS systems, biometrics and emails.

Time tracking methods

General Statistics

Time tracking methods

  • Only 17% of people are actively tracking their time.
  • Multi-tasking without time tracking decreases productivity to 45%.
  • It is observed that employees are productive for 2 hours and 23 minutes per day. The remaining time they spend on social media, discussing work with collegues, breaks, making calls.

Businesses without time tracking software:

  • Around 38% of US employees still use paper timesheets and punch cards.
  • 50% of professionals who do not have automated systems say manual data input and data adjustments are the most time-consuming parts of the process.
  • 80% of those surveyed who use paper systems reported that they needed to correct 80% of the timesheets that they receive.
  • Employers overpay up to 200 billable hours per year because they do not have time tracking software at work.
  • Time tracking data revealed that the US economy loses 50 million hours in productivity per day because of unrecorded work activities.
  • Time theft and buddy punching alone costs employers roughly $373 million every year.

Time tracking methods

Businesses using time tracking software:

Time tracking methods

  • 73% of organizations are very satisfied with the returns from automating their business tools and processes.
  • Companies can eliminate daily lost productivity and recapture a total of $666,400.00 in yearly wages by automating time tracking.
  • 93% of employees in the US said their paychecks are delivered on schedule due to business and productivity tools.
  • Companies that use an integrated timekeeping and payroll solution can exceed revenue targets by 7% and 44% less likely to commit errors.

Data source: Financesonline


How OfficeClip Timesheet software proves to be an efficient choice?

efficient time tracking software

  1. Simple and easy-to-use interface: OfficeClip Timesheet has a straightforward and easy-to-use interface. Employees can log in their time and add work details or use the Check-in Check-out system to record their work timings. 
  2. Workflow Approvals:Once time is recorded, the employees can submit their timesheets to their respective managers for approvals at the end of the week.
  3. Flexibility: OfficeClip Timesheet has flexible time recording cycles like weekly, bi-weekly, semi-monthly, or monthly.
  4. DCAA compliance:Organizations working for Government contracts must have DCAA compliant timesheets for auditing purposes. OfficeClip provides a timesheet with the DCAA compliance feature, which will help the auditor closely monitor all the edits done to the timesheets. It also ensures the filling up of time entries as per the DCAA rules and regulations.
  5. Reporting: OfficeClip Reporting feature will help measure and analyze employee performance, and it also can create custom reports as per requirements.
  6. Affordable: OfficeClip timesheet is available at an affordable price with different editions.
  7. Export: Users can export timesheets in CSV format and the ADP payroll system. Addins like Quickbooks and Sage50 Accounting software are also available.
  8. Other features: Along with time tracking, users can also track their Expenses, track employees' Time off, and create Invoices within OfficeClip applications.

Free Online Timesheet Software

Unlimited Users

Hosted/Installed Version

Mobile App

Address:

OfficeClip LLC
3301 Buckeye Road, Suite 209
Atlanta, GA 30341

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Tel: +1 770-448-7375

Support:ocsupport@officeclip.com
Sales:ocsales@officeclip.com

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