Timesheet management for small businesses

Timesheets are an important tool in the business context: benefits of timesheets and the possible consequences of not using them

  (photo credit: PIXABAY)
(photo credit: PIXABAY)

The term timesheet stands for a data table that enables  the employer is able to record the working time of employees. It is mainly used to determine the time an employee has spent on projects, clients or tasks. In this course, time sheets also facilitate the work of the HR department and the accounting department.

Nowadays, there are different ways of recording time. Just a few years ago, it was common practice to rely on paper-based systems. However, the paper-based system was confusing and prone to errors.

For this reason, more and more companies switched to spreadsheet programmes such as Excel. By entering the information manually, misunderstandings and problems could creep in.

In the meantime, online purpose-built time-tracking software is gaining ground. Companies have to dig deep into their pockets for these applications, but they have great advantages.

Despite the multitude of options, there are still employers who rely on trust-based working time. Small and medium-sized companies in particular distance themselves from the modern programmes and retain the classic work structures. However, it has been shown that the use of timesheets can boost company productivity and employee motivation. Read more in the following article.

5 Reasons why timesheet is important

Time is money - there's no denying that. Accordingly, a company is only as successful as its time management. This applies first and foremost to employers who pay employees by the hour. With the help of timesheets, it is possible to determine the exact working time and save costs.

The company Papershift has been aware of this fact for a long time and has developed various solutions to facilitate work time management for companies. Besides the precise documentation of hours worked, timesheets have other advantages:

Saving time

Work processes must be constantly optimized. After all, there is always a faster and more effective method. Time sheets point out time wasters and help employers to sort out tasks that consume unnecessary human resources. As a result, the existing workforce can be better utilized and the company's productivity increases.

Support for the HR department

The HR department has to deal with a lot of tasks in the course of a working day. The detailed and precise documentation of timesheets takes some burden off the shoulders of HR staff. This way, there is a better overview of the employees' holiday entitlement and payroll can also be implemented more easily.

Accurate accounting

Accuracy is key when it comes to billing. If you are billed by the hour, every single second counts and must be noted accordingly on the pay cheque. Thanks to timesheets, it is possible for companies to do justice to this Sisyphean task.

Automated billing

Some time recording software solutions are also able to automate invoicing. This lowers the costs for accounting and the workload of the HR department is reduced many times over.

Advantages for project management

Modern time tracking software is an effective tool for employers. They reveal how employees work and allow conclusions to be drawn about their productivity and motivation. The documentation makes it easier to see which employee is up to the tasks of a project manager. Thus, potential managers can be discovered, and project costs can be saved. 

What do you lose by not tracking time for employees?

While the cost savings of paper-based timesheets or spreadsheets may seem tempting, companies should rely on digital timesheets.

The software is capable of providing accurate and precise data. This information can be used to optimize work processes and identify deficiencies. It also helps employees better organize and plan their working hours.

Employers who deliberately forgo such a program are therefore not only deciding against technological progress, but also against the further development of their own company.

This article was written in cooperation with papershift.com