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3 Reasons You Should Be Using Employee Timesheets

Every business owner wants the same thing - to know their employees are working effectively and productively each day for the benefit of the business.


As your business (and team) grows, it can become harder to keep track of what days and hours your employees are actually working, and whether they are taking their appropriate breaks.

This can lead to you feeling out-of-the-loop, assuming your staff are working their agreed upon hours, without really knowing what's going on. In some cases, your staff may be working more than the hours you're paying them for. What’s worse is, having a poor understanding of what people are doing each day, can lead to your business running inefficiently and wastefully.

This is why timesheets are vital, even if your team consists of just one or two other people.


While physical forms such as time books or print-outs work for some businesses, many are choosing to utilise time recording apps such as Quickbooks Time or MYOB add-ons like Empower and Tanda. Xero also offers an online employee timesheet portal.


So what are some of the benefits of using employee timesheets?



Why Employee Timesheets Are Important | Valley Bookkeeping Solutions

1. Measuring productivity reduces waste


By using time-sheets, employees are more accountable to you for how they spend their work hours. In some cases, you may want your employees to record not only their hours worked, but the tasks they completed during those hours. This is especially helpful for time billing, when you need to accurately bill your customers for work done.


By keeping your employees accountable to a timesheet, you are better able to see whether their work hours and breaks are reflecting the productivity you require.


2. Timesheets can help identify payroll mistakes and offer legal protection


Without an accurate record of time worked, it can be easy to under or over pay your employees. Conversations can be forgotten and emails or text messages can be lost. Having a physical or digital record that is completed and signed by each employee, safe-guards you from payroll disputes, should they arise.


Accurate timesheets are legal documents and will protect you in the event of disputes over unpaid wages or missed meal breaks. They also help you complete your payroll with ease and confidence, knowing you are doing the right thing by your employees.


3. You are better able to monitor punctuality and attendance


When employees are required to record their start and finish times, you are better able to monitor that everyone is doing what's expected. You may have a feeling someone is finishing earlier than the agreed time, or taking a longer break than they are allocated. Timesheets may help you avoid those difficult conversations, as employees will be more inclined to be transparent about the hours they work.


While it should never be about controlling your staff or making them feel as though they are under constant surveillance, timesheet accountability can ensure your business is running efficiently and that you're getting the best from your employees.


If you'd like to get started with employee timesheets, click here to download an editable template, or contact us to learn more about how your accounting software can work for you.