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What is a Timesheet?
A timesheet is a record of the amount of time an employee spends on different tasks or projects. It is stored as a data table and is recorded using different methods – on paper, spreadsheets, online time-tracking software, etc.
Today, digitally tracked timesheets have become the norm for businesses of all sizes. HR software like RazorpayX Payroll allows for time and attendance tracking and directly links timesheet data with payroll, making for easy calculations and time savings.
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Format of Timesheet
Employee Information
The name, ID and department of the employee help link the timesheet to the right individual.
Date Range
The period covered by the timesheet. Typically, timesheets are weekly or bi-weekly. They can also be aligned with monthly payroll schedules.
Time Entries
A time entry is the exact time the employee starts work and the exact time they end work. This data is the most important part of the timesheet.
Other details
Other information like sick leaves, breaks or vacation time are also recorded on the timesheet.
Advantages of Timesheets in Business
Timesheets are a powerful tool to measure productivity and reward performance. They help businesses with payroll processing, project tracking, overtime calculation, data analysis and compliance. Here are all the applications of timesheets in business:
Payroll
Timesheet data is the most important factor while calculating payroll. Payroll systems use timesheet data to calculate gross earnings based on hourly wages and time worked.
Timesheets ensure fair compensation for hardworking employees, help manage labour costs and budgets, and serve as documentation for payroll audits and compliance checks.
Strategy and Optimizations
Timesheet data gives invaluable insights into employee productivity, identifying bottlenecks, highlighting areas for process improvements, skill gaps, and instances of overwork or underutilization.
For example, a software development company analyzes its timesheet data and discovers that the QA (Quality Assurance) phase of every project consistently takes significantly longer than initially planned.
The management can then take steps to identify potential bottlenecks in the QA process, like insufficient testing resources or complex bug fixes. They can then decide to take the necessary remedial steps like investing in automation, improving test environment setup, or expanding the team.
Financial Management
By analysing time spent on projects and cross-analysing with the profitability of those projects, management can enable better resource allocation and pricing decisions. By tracking time spent on specific tasks, businesses can identify cost-saving opportunities and control labor expenses.
Human Resources
Timesheet data provides insights into employee productivity and workload, supporting performance evaluations and recognition. HR and upper management can also identify employees with specific skill sets and support talent development and succession planning.
Timesheet data also helps track overtime hours and identify potential burnout risks to support employee well-being.
Timesheet Software
Manually entering attendance and work hours on paper can lead to errors and inefficiencies. This is why companies today opt for automating their time and attendance processes with timesheet software.
Since timesheets are a function of payroll and HR management, ensure to look for a comprehensive tool that combines all these functions in one single dashboard.
Robust payroll softwares allow employees to log time entries, automatically calculate payroll with all the deductions and taxes, and instantly disburse the salaries as well.
With RazorpayX Payroll, seamless integrations with tools like Jibble and CAMS allow businesses to log and track timesheets. The software automatically uses timesheet data to calculate payroll and disburse in just 3 clicks.
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Must-have Features in Timesheet Software
Easy to integrate
A good timesheet software should be compatible with existing systems, and easy to use by all employees. Make sure to account for different operating systems like Windows and Mac OS and Linux. Training employees to use the new software should also not take too much time and effort.
Time and Attendance Tracking
Needless to say, the most important feature of timesheet software is robust time and attendance functionality. Features like biometric attendance, leave tracking, real-time status updates, and more should be readily available and customizable according to the needs of the business.
Accessibility
The software should allow employees and manager to access and enter data easily – through a web portal, RFID tags, biometric devices, mobile phones or other systems which are easily accessible.
How to Automate Timesheet Tracking
RazorpayX Payroll is a fully automated payroll and compliance software, with seamless time and attendance tracking capabilities. Automate your payroll with RazorpayX now!
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What is timesheet used for?
Timesheet is used to track the time an employee has worked in a period of time through time entries and attendance tracking.
How to create a timesheet?
There are many ways to create a timesheet - you can automate the process with time tracking software which tracks ID card taps or biometric entries. You can also use paper-based processes to track time and attendance.
Why submit timesheets?
Timesheets are important because they provide data for project budgeting, billing, and cost analysis. They also help track employee productivity and project performance. Timesheets aid in resource allocation, workload balancing, and capacity planning.