A timesheet is a detailed record of the hours an employee spends working on specific tasks or projects over a defined period (eg., daily, bi-weekly). Timesheets are crucial for accurate payroll processing, client billing, project, costing, and compliance with labor laws. They provide a clear audit trail of employee work hours, ensuring that employees are paid correctly and that businesses maintain accurate records.
Why are timesheets important?
- Accurate payroll: timesheets ensure employees are paid correctly for the hours they've worked, including regular hours, overtime, and any applicable allowances.
- Client billing: for businesses that bill clients based on hourly rates, timesheets provide the necessary data to create accurate invoices.
- Project costing: timesheets enable businesses to track labour cost associated with specific projects, helping with budgeting and resource allocation.
- Compliance: accurate timesheet records help businesses comply with labour laws, including minimum wage and overtime requirements.
- Productivity tracking: analysing timesheet data can reveal insights into employee productivity and project efficiency.
Key components of a timesheet
- Employee information: name, employee ID, and department.
- Date and time: precise record of when work started and stopped each day.
- Hours worked: total number of hours worked daily and weekly.
- Tasks or project details: description of the work performed.
- Approval: signature or digital approval from a supervisor or manager.
Types of timesheets
- Manual timesheets: traditional paper-based timesheets.
- Digital timesheets: electronic timesheets tracked via software or apps.
- Online timesheets: cloud-based timesheet systems accessible from anywhere with an internet connection.
