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What are Timesheets and How Do They Function?

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14 February, 2024

A timesheet is a method of recording and monitoring an employee’s work hours in a structured manner. Businesses commonly use Timesheets to track the time allocated to projects, clients, or tasks.

In today’s ever-evolving technological landscape, businesses have embraced digital timesheets, replacing the traditional paper-based ones. Timesheets are a must-have to track the time and money spent on any resource intensive employee who directly/indirectly impacts the business revenue.

How do timesheet’s function?

A timesheet is a time-tracking document that accurately records how much time a an employees have spent working. You may choose to have this done automatically or manually. You can see how much time an employee has spent with respect to his allocation to various client, projects, or a specific tasks. One accurate method of determining an employee’s salary for a given time period is using a timesheet, which records each workday, including breaks, time-offs in chronological order.

Timesheets and multiple project management

Given the increasing prevalence of businesses collaborating with multiple clients and team members on various projects, timesheets offer a comprehensive record that highlights the time a company spends on each client or project, along with the corresponding billable hours. This is an excellent benefit for project managers and business owners, as it simplifies the process of tracking time and client billing.

Timesheets provide valuable insights for companies’ human resources departments to assess and evaluate employees’ work activities. This also helps in strategizing upcoming projects and client work within the organization.

Who is responsible for completing timesheets?

Usually, employees are responsible for filling out timesheets, which a designated manager reviews to ensure accuracy before they are approved for payroll. Nevertheless, in accordance with a company’s principles, these regulations may stipulate that a manager, supervisor, or owner is responsible for completing the employees’ timesheet.

Various methods for filling out timesheets, such as manual entry or automated time-tracking software.

Tracking timesheets manually

There are pros and cons to manually tracking time and using paper timesheets. One of the benefits is the cost savings from not having to buy extra software for automatic software entry. The drawbacks of manually inputting timesheets may outweigh the advantages.

Errors in timecard entries can lead to significant payroll and financial complications, affecting the accuracy and integrity of the process. Task and project costing can also be affected when records do not accurately reflect the data entry of hours worked by an employee, task, or project. This can lead to a decrease in income or strained business connections. Management report generation is major drawback, accuracy and integrity of data is always questionable, real-time decision making significantly impacted. Even though this method is traditional method and prone to error and not recommended.

Efficient tracking with automated timesheet software

Automated time-tracking systems offer several benefits. This software provides an excellent time-tracking solution for companies. It enables more accurate time calculations, reduces the chance of human error, saves time by eliminating the need for manual timesheet filling, collects valuable data for future project planning, and enhances overall efficiency.

In general, the cost of automated tracking software can be balanced out by the savings achieved through paying only for actual hours worked and the increased visibility it provides in tracking where time and money are allocated. Businesses may find that automated time-tracking software is more affordable than they think.

Fortunately, software products like AccountSight provide excellent value and a wide range of features at affordable prices. AccountSight offers a range of convenient features, including mobile apps for employees to clock in and out quickly. To know more about AccountSight, feel free to email us at pkumar@accountsight.com.

What is typically covered in a timesheet?

When generating timesheets for your employees, it is essential to incorporate specifics in this document to monitor your workforce efficiently. An official timesheet should include:

  • The employee’s name
  • The pay period
  • The specific dates and days on which the employee worked
  • The number of hours worked
  • The total number of hours worked within a week or pay period

Timesheet template ideal for small businesses

We are here to assist you if you need a timesheet template for your small business. Customize these employee timesheets to align with the pay period that best suits your business or internal needs. Our weekly timesheets are available for download in PDF format and can be conveniently emailed to clients.

Choose the complimentary weekly or daily timesheet template, and yes, it is free forever!

Is it meant for regular employees or hourly contractors?

A company’s workforce can be categorized into two distinct groups for evaluation: salaried employees and hourly contractors. Salaried employees receive a predetermined annual payment, irrespective of the number of hours they have worked, as they are remunerated on a salary basis. Exempt employees often maintain a consistent workload of 40 hours per week. Conversely, employees who are paid hourly receive compensation for each hour they work at a predetermined rate, and their working hours are meticulously recorded to ensure accurate payment.

Comparison between salary and hourly wages

Salary-based employees receive a fixed annual payment. The compensation may be disbursed weekly, bi-weekly, or monthly. Hourly employees do not earn a consistent salary throughout the course of the year. These employees receive compensation based on the number of hours they work.

Streamline the Process of Timesheets and Time Tracking

Why not make the timesheet process more efficient by using high-quality timesheet software? Experience the benefits of automatic time tracking mentioned above, enhancing your timesheet procedures and overall billable hours, resulting in a smoother experience for management and employees.

AccountSight is a reliable solution for businesses to easily track and record their employees’ work hours in real time, ensuring accurate compensation. Experience it for free today! To know more about AccountSight, feel free to email us at demo@accountsight.com.

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