Timesheets: All you need to know

Timesheet, as the name suggests, is a data sheet employers or management uses to track time spent by employees on particular tasks and projects. The time spent by employees can be used in calculating client billing, payroll, and accounting. Traditionally paper sheets which include work dates, work hours, and tasks performed were used to keep records of time spent on projects which are now replaced by far better and advance cloud-based timesheet software, which integrates with payroll and HR management software.

Why timesheet?

• Payroll, HRMS, and accounting: Timesheet track time spent on tasks and breakdown of milestones achieved during those tasks which are used in client billing and determining employees’ salary.
• Project management: Project leaders can track the employee engagement on projects and eventually cost of project and estimation of resources required.
• Proof of work: Track of employee performance on a task also serves as a proof of work for employees and fair wage.
• Management: Timesheet track starting and ending time of a project and provides an insightful report to the manager about which project is taking the time and this helps the manager in identifying the areas which need improvement.

How it works

Before setting up a timesheet in any organization time-periods are created. Companies enter employees’ periods and sometimes by employee self-service employees feed their time-periods themselves. The fields include shifts, work weeks, holidays, etc. Employees enter their working time which then goes to management for approval, after getting approved this will be used in the processing of payroll and salary. Let’s summarize this into key pointers.

1. Setting up of timesheet: Beginning of timesheet starts with customization of fields according to the organization’s needs. This includes defining work time, shift time, training hours, holidays, etc.
2. Assigning of projects and tasks: Management will assign tasks and projects to employees against which employees will have to submit the projects on time, which then would be sent to project leaders or managers for approval.
3. Submission of time: At the end of the project employees fill their time in the timesheet. Then this timesheet goes to the supervisor or manager for approval request.
4. Use of timesheet data: The working time recorded will be used in many areas like payroll processing, client billing, tracking performance, monitoring projects, and scope of improvement.

Benefits of using timesheet

• Better management of resources: By tracking employees’ performance, management can better by identifying areas of improvement and relocate their resources accordingly. This will save lots of manpower.
• Ease of use: Traditionally excel sheets and paper files were used by companies to track employee’s time. This isn’t easy to set up whereas modern timesheet is easy to adopt and use. People immediately get it and start using it by accessing from any device.
• Payroll processing: With all the information in a centralized system, timesheet can be used for an organization with units across different geographies to run payroll smoothly. This also makes payroll errorless. by avoiding human error in manual data filling.
• Reduces burden on Human resources: Modern timesheet easily integrates with HRIS and payroll software. Payroll software will use all the stored information like working time, shifts, attendance, and generates payroll automatically.
• Saves money: Timesheet tracks the performance of your employees and also detects the scope of improvement. Timesheet saves a lot of money by providing information about the productivity of teams and individuals.