What is Timesheet Management & Time Tracking Software?

Posted On June 4, 2024

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A timesheet is a sheet that details information about the working hour or logged time over a specific period. Timesheets are standard tools employees use to record and track their working hours. They're also used to bill clients for the time spent on a project.

For example, Ifeanyi works six hours daily, and his hourly rate is $43. He must record his working hours on his timesheet and pass it to his manager for approval. This approval process is the timesheet approval process.

In this article, we will talk about the timesheet approval process, how it works, and the benefit of a seamless process. We'll also outline some tools that can help and how to build a simple approval process.

Timesheet software from Oas36ty's helps employees easily track the time they spend on projects and tasks. Detailed timesheet data can then be used to process payroll, invoice clients, and give you a clear picture of your costs.

Ditch the paper time cards altogether. Digital timesheets are automatically generated from our time tracking apps for Windows, macOS, Linux, Android, iOs, and Google Chrome.


What Is a Time Sheet Management Definition?

Defining timesheets: A timesheet is a data table which an employer can use to track the time a particular employee has worked during a certain period. Businesses use timesheets to record time spent on tasks, projects, or clients. There are different methods that have been used to record timesheets, such as paper, spreadsheet software, and online time-tracking software. Paper-based timesheets have now given way to the digital formats.


What is time entry?

Any company or organization must accurately account for the time its workers spend on tasks and projects. Time entry involves employees entering the time they start and end work on a task or project on a timesheet. This data is then used in client billing as well as payroll processing.


Why should a business use Timesheet?

A business can meet its deadlines, maintain its budget, and achieve success when it uses time effectively. To do this, you need to be able to keep accurate records. This makes timesheets essential to any successful business.


Applications of timesheets

  • Payroll processing: Timesheets help employers track work hours, leaves, accruals, and adjustments for processing payrolls. Time tracking software systems also provide employers with a trackable workflow for payroll approval. Inaccurate data entry is the leading cause of payroll errors. Time tracking software systems cut down these data entry errors to keep your payroll processing smoothly.
  • Management accounting: Timesheets are a valuable tool in management accounting. They help managers to record start and end times for tasks. This is handy when managers need to know which tasks take up more time and identify areas that delay completion of work.


Service based industries

  • Law office timesheets: It is important for law firms to maintain up-to-date records of client hours and details of the services they offer their clients. Timesheets provide assistance to law firms in tracking bills based on client service hours.
  • Timesheets for freelancers: Time is money for freelancers. Many freelancers charge clients by the hour, so tracking time precisely is top priority. For those who work at a different location from their clients, knowing the amount of time spent on projects becomes difficult. Using a time tracking system, a freelancer can measure time spent accurately and share the records with clients. This helps clients see where their money goes and also provides freelancers with accurate records.
  • Timesheets for accountants: The profit made by accounting businesses depends on how efficiently workers spend time on clients. High utilization and high billability mean high profits. Timesheets and time tracking software can help accounting businesses track both their bills and their time. Thus, choosing the right software is a critical decision for accounting businesses.


Advantages of timesheets

  • Reduce time wastage: Timesheets help you understand where you are wasting labor. They help weed out tasks that take longer than necessary, and assist you in making decisions as to how you can optimize your tasks.
  • Bill accurately: Timesheets help you in billing accurately. They are a way of letting your clients know that you handle their projects efficiently and their money is not going to waste. With timesheets, your clients don't need to worry about constantly checking the status of their projects. They let them see how much time you dedicate to them and serve as proof of how accurate your billing is.
  • Automate your billing: Organizations that render services to clients based on billable hours use timesheets for billing. This can reduce your costs by automating billing and invoicing. Automated billing can also increase revenue.


Improve Project management

Timesheets are surprisingly important tools for project management in the following ways:

  • By tracking time on a project, they help in qualifying an employee for a new project, role, or job based on performance.
  • By analyzing time usage, you can determine the skill of someone in a particular area and utilize them in parts of a project for which they're better suited.
  • They help in identifying areas in which a worker takes more time than allocated and needs additional training.
  • They are helpful in measuring the overall efficiency of your project.
  • They help in identifying the availability of workers assigned to a project, making it easy to distribute the workload among group members.
  • They enable project managers to monitor progress and anticipate delays.
  • They help project managers estimate expected costs and compare them to the real cost of the project during execution.


Save money for your company: Timesheets let you know exactly what your employees are working on. They track efficiency of workers by comparing the amount of time they work with the output they produce. Timesheets help spot employees that perform poorly and cost your company money. By telling you who is productive and who is not, timesheets help save a lot of money for your company.


What Is a Timesheet?

A timesheet is a physical or electronic document that’s used by an employer to track the time of an employee over a period of time. It’s usually laid out in a data table that records the time an employee has spent on tasks, projects or clients. While timesheets originated as paper documents, they’re now almost exclusively used in spreadsheets or digit tools.

Timesheets serve several purposes. They allow a business to accurately amount the time its workers are spending on their tasks. Timesheets also instruct payroll in the process of compensating those workers for their work. But businesses also benefit from timesheets as they help them meet deadlines, stay on budget and manage time more efficiently.

Project Manager is award-winning timesheet management software with secure timesheets that streamline the payroll process and allow managers to track the amount of time their teams are spending on tasks. Setting up timesheets is easy. You can add tasks directly from different projects, copy the timesheet from the previous week or auto-fill timesheets. Timesheets are securely locked when submitted for approval from admins, who can approve and also track time to make sure the work is being done as scheduled. Get started with Project Manager today for free.


What Is Timesheet Management?

Timesheets record the working hours that employees have spent on their tasks. But timesheets by themselves are only so powerful in terms of helping a business run better. For this to happen, timesheets must be incorporated into timesheet management.

Timesheet management is the monitoring of employee timesheets and the analyzing of those timesheets for time-tracking purposes. This is achieved through the digitalized and automated timesheet software that boosts efficiency by connecting teams to managers.


Why Is Timesheet Management Important?

Timesheet management is important for employees and employers alike. Employees get an accurate and regular paycheck. If they’re using a digital timesheet management tool, then they’re also gaining efficiency as they don’t have to waste valuable time manually filling in their timesheets.

For employers, the benefits are many. For one, timesheet management can help reduce wasted time by allowing employers to identify where employees aren’t working productively. They can then be more selective about which tasks to assign and how to ensure those tasks that are assigned are optimized.

Employees like the simplicity of timesheet management and the feeling is shared by human resources (HR). The HR department gets the information they need to quickly and easily calculate employee pay and manage PTO.

When a business charges by the hour, timesheet management ensures their billing is accurate. If you’re not recording hours worked, then it’s impossible to bill clients, especially if you’re using freelancers. Timesheet management not only tracks those hours but gives you accountability when showing clients where their money went.

In terms of project management, the importance is also many-sided. For example, you can track performance and identify who’s working more efficiently, which can help with making assignments for the most productive members of your team. Plus, you can view who is working on what, who is available and how far team members are in completing their tasks.

Timesheet management also helps with managing estimated costs in projects. Using the above information on team performance allows managers to make more accurate cost estimates when starting a budget for a new project.


Timesheet Management Steps

There’s a process for managing timesheets. These timesheet management steps are applicable to paper-based timesheets, electronic timesheets and timesheet software. Whichever type of timesheet you use, timesheet management allows you to get the most out of your timesheets. Start by following these steps.


1. Assign Work to Your Team Members

Begin by looking at your schedule and the available hours of your team. If you have profiles on each team member, that will help you to quickly identify the best person for the job and, if they’re free, assign them tasks for the week. Be sure to calculate the hours assigned to avoid overtime.


2. Keep Track of the Time They Spend on Tasks

Once everyone has their assignments, you’ll want to start time tracking their activities. This allows managers to monitor their work and make sure they’re proceeding on schedule. Depending on the type of timesheet you’re using, this can be done automatically or it’ll have to be manually added to the timesheet.


3. Review Their Timesheet Submittals

Timesheets need to be secure, which is why timesheet management software is preferred. It has the tools to lock a timesheet once submitted, which can then only be opened by an authorized timesheet approver. This person will review the timesheet and ensure it’s been filled out correctly.


4. Approve Timesheets for Payroll Processing

If the timesheet is correct, it’ll be submitted to payroll. Again, if you’re using timesheet management software, that individual timesheet you’re approving will be locked to ensure security as it’s passed on to payroll to avoid any tampering. Payroll will then process the timesheet.


5. Save Timesheets for Future Reference

All timesheets should be archived for a couple of reasons. One, management will want to have a record of their employees’ pay in case there’s a dispute, then the timesheet can be retrieved and reviewed to resolve any issue. Second, as noted, old timesheets are valuable as historic data when researching costs for future projects.


Timesheet Template

This timesheet template for Excel is ideal for any type of business that employs hourly employees. It helps you keep track of your team members’ work hours and calculate their pay based on their hourly rate.


What Is Timesheet Management Software?

We’ve mentioned timesheet management software a few times, but haven’t defined it. Timesheet management software is a digital tool that controls the timesheet process, while also monitoring and analyzing it to find ways to work more efficiently.

Unlike paper timesheets or even electronic spreadsheets, timesheet management software gives employees more free time to focus on their job and not have to do as much paperwork. While it provides their employers with a window into their productivity to help them better manage workers.

That’s just the broad strokes. Timesheet management software improves payroll processing by tracking the workflow for payroll approval. It also ensures the accuracy of the data to avoid any errors in payroll and, at the same time, keeps the payroll process moving smoothly.

It can be a work management tool by helping managers record the start dates and end dates for the tasks they assign to their teams. This allows managers to see which tasks are taking more time to complete than the others. From that information, they can identify bottlenecks and other issues that are delaying work and resolve them.

Timesheet management software also acts as employee time tracking, as noted above. Once you have an employee schedule done, you can use timesheet management software to track the amount of time it’s taking them to complete their tasks. This will help managers track progress and allocate resources as needed to stay on track.

If your time is distributed and you are managing remote employees, timesheet management software is essential as it provides accountability. When managers aren’t in the same office as their employees, they can still monitor their team’s work through timesheets. That ensures everyone is working at capacity and keeping up with the project schedule.


Oas36ty Is a Timesheet Management Tool

Oas36ty is award-winning project management software with timesheet management features that has timesheet tracking. Our online timesheet software helps you keep track of your team’s project tasks whether they’re in the same building, on the job site or working from home. Use our secure timesheets to add efficiency to your payroll process and get time-tracking features to keep your project on track. Our timesheets seamlessly integrate with all our other project management features to provide users with all the tools they need to manage payroll and projects.


Use Multiple Task Management Tools

Timesheets are also a task management tool, but only one of many featured on our software. We have multiple project views, such as Gantt charts, kanban boards, task lists and more, all of which use robust task cards. Each task card tracks progress, sets priority and adds tags to make them easier to discover. You can comment and add files to foster collaboration. Another feature is workflow automation to free of busywork, while task approval settings ensure that only quality deliverables move forward. A summary page shows all your tasks in one place, including a workload chart and more.


What are the benefits of deploying timesheet management system?

There are multiple benefits of implementing a robust timesheet management system. The most significant advantage of such a system is the accurate tracking of employee productivity. Additionally, it also helps understand the time required to complete projects, which will help provide better project completion estimates to future clients.

The major benefits of timesheet software are:

  • Improve Accuracy: The timesheet software requires employees to enter the time required to undertake specific tasks. The manager (or multiple managers) approves these entries, and the final data is recorded. As a result, you can get accurate information about your workforce’s productivity.
  • Paperless Data Entry: You can ensure precise data and avoid malpractice with paperless data entries. It also avoids the cost of maintaining the bulky ledgers on which such entries are usually recorded.
  • Easy Reporting: Since the records are maintained on the system, accessing and retrieving the records becomes very easy. Along with the bifurcation of billable and non-billable work, it helps in easier reporting.
  • Increased Efficiency: Timesheet maintenance and data retrieval become more efficient with a dedicated system to track and manage employee productivity. As a result, the staff starts performing well, and you can avoid instances of time theft in your business.


What are the features of a good employee timesheet management software?

There are multiple benefits of implementing a robust timesheet management system. The most significant advantage of such a system is the accurate tracking of employee productivity. Additionally, it also helps understand the time required to complete projects, which will help provide better project completion estimates to future clients.

Some of the most significant features of employee timesheet software are:

  • Simplified View: The timesheet software should have a simple dashboard or an overview of employee productivity. It helps the manager keep track of their staff’s productive hours. On the other hand, it also helps the employee understand their productivity and make any changes if required.
  • Timesheet Approvals: Timesheet management systems should have the option for the manager to approve the timesheet entries by their employees. Additionally, one can also avoid time theft by having multi-level approvals.
  • Remote Access: Since many employees work at the client location, they may not always have access to their system. In such a scenario, having a dedicated mobile app proves immensely helpful in remotely accessing and filling the timesheets.
  • Billing Support: There should be an option to bifurcate billing and non-billing hours as it helps to bill the client accordingly with the backing of precise data. It helps make the process transparent and efficient.
  • Custom Reporting: Reporting is another prominent must-have feature for any timesheet system. It helps understand various metrics such as project progress, employee productivity, time theft occurrences, task-specific average time, etc.



What is the purpose of a time sheet?

A timesheet is a data table which an employer can use to track the time a particular employee has worked during a certain period. Businesses use timesheets to record time spent on tasks, projects, or clients.


What is the process of timesheet?

The whole timesheet approval workflow is technically straightforward. The employee initiates the process by filling out the timesheet. They then submit their timesheet to their team lead, manager, or point of contact within the organization. The team lead or manager approves the timesheet if everything is accurate.


What are timesheets in Excel?

These timesheet templates can help you track your work on a daily, weekly, bi-weekly, or monthly basis. Timesheets can help keep track not just of working hours, but of vacation and sick days, too, so these templates are perfect for both hourly and salaried employees.


What is timesheet with example?

Companies use timesheets to determine an employee's pay for a given period. For example, a weekly timesheet would calculate how much income an employee earned in a given week given the amount of time they spent working in that time period.


Who signs the timesheet?

"Signing" a timesheet typically refers to an employee acknowledging and confirming the accuracy of the recorded hours worked. It is a way for employees to verify that the information on the timesheet is correct and that they agree with the reported hours.


How do you read a time sheet?

A timesheet typically includes basic information such as the day of the week, date, and the time you began working, the time you stopped working to take your lunch break, the time you returned to work after your lunch break, and the time you finished working for the day.


What is Timesheet Management Software?

Timesheet management is a practice of tracking time spent by employees. This is a set of data that helps to analyze how much time is spent on the project or a task they are assigned with. This data can be also utilized for the payroll calculation by the accounting and human resource department. This software helps to reduce employee time theft. With advanced technology, we now have AI-powered software that helps to give accurate data and store all the important information on the cloud for you. To get the most efficiency we need tools that are easy to operate, low maintenance and are accessible remotely with ease.


Why do you require a timesheet management system?

An online timesheet management system helps keep accurate track of your employee’s productivity. It provides precise fool-proof data about the tasks undertaken by each employee. Having this information ensures that you have a clear picture of the various activities carried out by your workforce in a specific period. You can also understand the time spent in completing a task and measure the difference in the productivity rate of different employees by comparing the time spent to complete it.

A timesheet management system also provides accurate data that can be shared with your clients for billing them accordingly. It can provide precise data as the entries are fixed under the approval and cannot be changed by the employees. It also helps to easily retrieve past information and generate accurate reports irrespective of time. Since the process requires zero paperwork, it is also less expensive and requires minimal employee and management effort.


Does a startup require timesheet tracking software?

A start-up requires time tracking software as it helps improve employees’ productivity by avoiding time theft and providing measurable productivity figures. Additionally, it helps understand the cost, time and effort required for specific project completion, which ensures better estimation of these parameters in future. A better estimate also results in better client satisfaction, which is crucial for a start-up.

The timesheet management system also helps the management realize the relative productivity rate of its employees. You can identify the low-performing employees and have a word with them to understand their issues and help resolve them. It enables you to improve your brand as an employer while leaving you with satisfied employees.


How does timesheet management software track time of the employees?

The employee timesheet system helps the company easily track its employees’ output with the help of timesheets. A timesheet is a sheet that details time each employee takes to complete specific tasks. The standard details in the timesheet include the task name, task-begin time, task-end time, employee name, client name, and other remarks or descriptions regarding the task.

The timesheets are required to be updated by the employees once they finish a task. Their manager will verify its authenticity and approve the entry to make a permanent record. This data helps the companies understand their employees’ output and develop a robust estimate for common projects they undertake regularly.


How do employee time tracking and timesheet management help in payroll?

Processing employee payroll is a time-sensitive process that needs to be undertaken with utmost diligence. Any oversight from the HR and accounts team could result in enormous losses for the company. The initial step in processing payroll is to collate the employees’ work time in a salary cycle.

With a manual time-tracking system, companies are often left at the mercy of employees doing malpractices such as time theft, buddy punching, etc. However, with an automated system handling timesheet management, recording employees’ productive hours becomes more streamlined, accurate and foolproof. As a result, it ensures correct working hours data and makes it easier for the HR and accounts team to import this data into their payroll software.

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