A Complete Guide to Employee Timesheets and Their Software

  Published : May 18, 2024
  Last Updated: May 18, 2024


In today’s fast-paced business environment, accurate and efficient time tracking is crucial for any organization. This is where employee timesheet tracking comes in. They provide a vital record of the hours worked by employees, forming the backbone for payroll, project management, and overall business efficiency.

This comprehensive article takes a deep dive into the world of employee timesheets and timesheet software. We’ll explore what timesheets are, the benefits of using them, and how to find the best timesheet software for your organization.

What is a Timesheet?

An employee timesheet represents a document used to record the hours worked by an employee during a specific period, typically a week or a month. It typically includes details like:

  • Employee Name
  • Date
  • Start and End Times for Each Workday
  • Total Hours Worked per Day
  • Project or Task Codes (if applicable)
  • Overtime Hours (if applicable)
  • Leave Taken (if applicable)

Traditionally, timesheets were paper-based documents filled out manually by employees. However, the rise of technology has led to the widespread adoption of online timesheet systems.

Types of timesheets

What’s the problem with manual time-sheets?

A large portion of businesses in North America are stuck in the past when it comes to time sheet management.

  • In the US, nearly 4 out of 10 companies (38%) and a staggering majority in Canada (58%) still rely on outdated methods like paper timesheets, spreadsheets, and even punch cards.
  • This outdated approach is a major pain point for employees, too, with half (50%) of professionals admitting that manually entering and adjusting data is a huge time suck. The consequences are even more alarming.
  • Studies show that managers using paper systems spend a whopping 80% of their time correcting errors on timesheets! These inefficiencies cost companies dearly.
  • According to a 2020 WorkPuls report, employers end up overpaying employees for a combined total of 200 billion billable hours annually due to inaccurate or untracked time using manual methods.
  • That’s right, simply by relying on paper and spreadsheets, companies are losing a staggering $50 billion every year!

What is a Timesheet Software?

An online timesheet system, also known as timesheet software, is a cloud-based application that automates the process of employee timesheet tracking. It offers a more streamlined approach compared to paper-based systems.

Here’s how timesheet software typically works:

Employee Clock-in/Clock-out

Employees can clock in and out of work shifts remotely using a computer, mobile app, or even through biometric integrations.

Project and Task Tracking

Employees can track the time spent on specific projects and tasks, providing valuable insights into project progress and resource allocation.

Automated Calculations

Timesheet software automatically calculates total hours worked, overtime hours, and other relevant data.

Approval Workflow

Managers can review and approve timesheets electronically, streamlining the approval process.

Reporting and Analytics

Timesheet software generates reports and provides analytics to help businesses track employee productivity, identify trends, and make informed decisions.

What are the benefits of  Timesheet Tracking?

benefits of timesheet tracking

There are several compelling reasons to implement timesheet tracking in your organization:

Improved Accuracy: Manual timesheets are prone to human error, such as forgetting to punch in or out or miscalculating total hours. Online timesheet systems eliminate this issue by automating the process.

Enhanced Productivity

Timesheet tracking encourages employees to be more mindful of their time allocation. By logging their hours spent on tasks, they can pinpoint areas for improvement and optimize their workflow.

Simplified Payroll Processing

Accurate timesheet data streamlines payroll processing by providing a clear record of worked hours. This minimizes the chances of errors and delays in employee paychecks.

Project Management Insights

Timesheet software can categorize hours spent on specific projects. This valuable data allows managers to assess project timelines and resource allocation and identify potential bottlenecks.

Boosted Employee Morale

A transparent and efficient timesheet system demonstrates to employees that their time is valued. This can translate into a more positive work environment and improved employee morale.

Compliance with Labor Laws

In some regions, labor laws mandate employers to track employee work hours. Timesheet software ensures compliance with these regulations.

Data-Driven Decision Making

Timesheet data provides valuable insights into employee workload, project costs, and overall team performance. This data can be used to make informed business decisions and optimize operations.

How do you find the best Timesheet Software?

How do you find the best timesheet software

With a multitude of timesheet software options available, choosing the right one for your business can be overwhelming. Here are some key factors to consider when making your decision:

Company Size and Needs

Consider the size of your organization and your specific needs. Small businesses may need a simple time-tracking solution, while larger companies may benefit from more feature-rich software.


Identify the features that are most important for your company. Common features include employee clock-in/out, project tracking, reporting, mobile accessibility, and integration with existing payroll or project management software.

Ease of Use

Ensure the timesheet software is user-friendly for both employees and managers. A simple interface with intuitive navigation will encourage adoption and minimize training needs.


Timesheet software pricing varies depending on the features offered and the number of users. Determine your budget and find a solution that fits your financial constraints.


Data security is paramount. Look for software that uses secure cloud storage and offers robust data encryption to protect sensitive employee information.

Free Trial and Customer Support

Many timesheet software providers offer free trials. This allows you to test the software and see if it meets your needs before committing financially. Additionally, consider the customer support quality offered by the software provider.


Employee timesheets and timesheet software are valuable tools that enhance business efficiency, improve project management, and ensure accurate payroll processing. By implementing a user-friendly and feature-rich timesheet solution like ProHance, you can unlock numerous benefits for your organization.

Remember, the best timesheet software is the one that best addresses your specific needs and helps you achieve your business goals.

Frequently Asked Questions

Q1. What is timesheet tracking?

Timesheet tracking refers to the process of recording the hours employees work during a specific period. This can be done manually using paper timesheets or electronically using timesheet software.

Q2. What is an online timesheet system?

An online timesheet system is a software application that allows employees to electronically track their work hours. It offers features like clocking in and out, categorizing time spent on projects, and submitting timesheets for approval.

Q3. What are the advantages of using timesheet software?

Timesheet software offers numerous benefits compared to paper-based timesheets, including improved accuracy, enhanced productivity, simplified payroll processing, project management insights, and boosted employee morale.

Q4. How can I find the best timesheet software for my business?

There are several factors to consider when choosing timesheet software. These include features offered, ease of use, scalability, security, cost, and the availability of free trials to test the software before committing.

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