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Introduction
Managing employee timesheets across teams, projects, and locations creates complexity that manual processes can't handle efficiently. Employee timesheet software provides structured time entry, multi-level approval workflows, project allocation tracking, and integration with payroll and accounting systems—transforming timesheet management from administrative burden into strategic workforce intelligence.
What Is Employee Timesheet Software?
Employee timesheet software digitizes how teams record, submit, approve, and process time worked. Unlike simple time clocks that just track clock-in/clock-out, timesheet software captures how employees allocate time across projects, clients, and tasks—providing the granular data needed for project costing, client billing, and resource planning.
The best employee timesheet software balances ease of use (so employees actually submit timesheets) with comprehensive tracking (so managers get the visibility they need) and seamless integration (so time data flows into downstream systems without manual data entry).
Multi-Level Approval Workflows
As organizations grow, simple manager-approves-all workflows become bottlenecks. Employee timesheet software should support multi-level approval chains where timesheets route through appropriate approvers based on employee role, project assignment, or organizational structure.
For example, a consultant's timesheet might first go to their project manager for approval on project allocation and hours, then to their practice area lead for final approval before flowing to payroll or billing. The software should automate routing, send notifications to each approver, and provide delegation capabilities when approvers are unavailable.
Approval Efficiency Features
Bulk approval functionality lets managers review and approve multiple timesheets simultaneously, dramatically reducing approval time for large teams. Exception-based approval workflows can automatically approve timesheets meeting standard criteria while flagging unusual entries (excessive hours, weekend work, missing project codes) for manual review.
Project and Task Allocation
Employee timesheet software should make it easy for employees to allocate time to the correct projects and tasks. Hierarchical project structures (Client → Project → Phase → Task) let organizations track time at appropriate granularity.
Smart features that improve accuracy include recently-used project lists, favorite/pinned projects for employees working on consistent assignments, project search functionality, and warnings when employees try to allocate time to projects they're not assigned to or that are over budget.
Budget and Capacity Tracking
Integration between timesheet and project management provides real-time visibility into project budgets and team capacity. As employees log time, managers see how actual hours compare to budgeted hours, identify projects trending over budget, and spot capacity issues before they create problems.
Managing Remote and Distributed Teams
Remote and distributed teams need timesheet software that works seamlessly across locations and time zones. Cloud-based architecture ensures everyone accesses the same data regardless of location. Mobile apps let employees submit time from anywhere. Time zone handling ensures times display correctly for each user while maintaining accurate records.
Automated reminders become particularly important for distributed teams where managers can't physically see who hasn't submitted timesheets. The software should send notifications in each employee's local time zone and escalate to managers when submission deadlines pass.
Edit Controls and Audit Trails
Employee timesheet software needs robust audit controls to maintain data integrity while allowing necessary corrections. The system should track every change—who entered time originally, who edited it, when edits occurred, and what changed.
Permission Levels
Different roles require different permissions. Employees should be able to enter and edit their own time before submission. Managers need permission to approve timesheets and potentially edit entries with proper documentation. Administrators might have broader editing capabilities but should still leave audit trails.
Once timesheets are approved and flow to payroll or billing, the software should lock entries or require special permissions and business justifications for any changes, ensuring financial data integrity.
Payroll and Accounting Integration
Employee timesheet software creates maximum value when integrated with payroll and accounting systems. Approved timesheets should flow automatically into payroll, applying correct pay rates, overtime calculations, and deductions without manual data entry.
For professional services firms, timesheet integration with accounting ensures labor costs appear correctly in job costing and project profitability analysis. Time-based revenue (for hourly billing) flows into financial records automatically, maintaining accuracy between operations and finance.
Popular integrations include ADP, Paychex, Gusto, QuickBooks, Xero, and NetSuite. The integration should be bidirectional where appropriate—for example, new projects created in accounting should automatically appear in timesheet software, and vice versa.
Harvest: Professional Time Tracking for Teams
Harvest provides sophisticated employee timesheet software designed for professional services, agencies, and project-based businesses. Team members track time using flexible timers or manual entry, managers approve time with one-click efficiency, and comprehensive reporting provides visibility into project progress and team utilization.
With seamless integration into invoicing, accounting, and project management tools, Harvest ensures time data flows throughout your organization without duplicate entry. For businesses where time equals revenue, Harvest transforms employee timesheet management into strategic advantage.
Start tracking team time with Harvest →
Frequently Asked Questions
How many approval levels do I need in timesheet software?
Most organizations function well with 1-2 approval levels. Single-level approval (direct manager approves) works for straightforward organizational structures. Two-level approval (project manager then department head, or manager then finance) suits matrix organizations or businesses requiring financial oversight beyond operational management. More than two levels typically creates bureaucratic delays without commensurate benefit. Design approval workflows around your actual decision-making structure, not theoretical organizational charts.
Can employees see each other's timesheets?
This depends on your configuration and privacy policies. Most employee timesheet software defaults to privacy—employees see only their own timesheets. Managers typically see timesheets for their direct reports. Some organizations enable broader visibility for project managers to see time allocation across all team members on their projects, or for employees to see aggregate team data without individual details. Configure permissions based on your organizational culture and legitimate business needs.
What happens if an employee quits before submitting timesheets?
Quality employee timesheet software allows managers or administrators to submit timesheets on behalf of terminated employees using historical data, calendar records, and manager knowledge of worked hours. The system should clearly flag admin-submitted timesheets in audit trails. Best practice is to require timesheet submission as part of offboarding procedures before the final workday, but the software should provide fallback options when this doesn't happen.
How do I handle corrections to already-approved timesheets?
Employee timesheet software should allow corrections to approved timesheets with appropriate controls. Typically, corrections require manager approval, include mandatory comments explaining the change, and create detailed audit trails. If timesheets have already flowed to payroll, the system might require special permissions or administrator intervention. Some organizations lock timesheets after payroll processing and handle corrections through separate adjustment entries rather than modifying historical records.
Should timesheet software integrate with project management tools?
Yes, integration between timesheet and project management software provides powerful benefits. Projects, tasks, and budgets defined in project management tools automatically appear in timesheet software for time entry. Conversely, actual hours from timesheets flow back into project management, updating project progress and identifying budget variances in real time. This integration eliminates duplicate data entry and ensures operational and financial views stay synchronized.
How do employee timesheet systems handle overtime calculation?
Professional employee timesheet software automatically calculates overtime based on configured rules (40 hours per week, 8 hours per day, state-specific regulations, etc.). The system applies appropriate overtime multipliers and can flag employees approaching overtime thresholds so managers can make informed staffing decisions. For complex rules (California's daily and weekly overtime, union contracts with different rules), choose software that supports custom overtime calculation logic.
What's the difference between employee timesheets and contractor timesheets?
Employee timesheets typically feed payroll systems and track hours for wage payment and labor law compliance. Contractor timesheets typically feed invoicing and accounts payable, as contractors are paid based on invoices rather than payroll. Many organizations use the same timesheet software for both but route data differently—employee timesheets to payroll, contractor timesheets to AP or automated invoice generation. The software should clearly distinguish employee versus contractor status and handle each appropriately.
Can employee timesheet software prevent timesheet fraud?
While no system prevents fraud entirely, employee timesheet software reduces opportunities through multiple mechanisms: approval workflows where managers review time against known work, integration with attendance systems that verify presence, project budget comparisons that flag excessive hours, audit trails that make patterns visible, and edit controls that require explanations for changes. However, software alone isn't sufficient—organizational culture, clear policies, and manager oversight remain essential.
