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Introduction
End-of-week timesheet chaos—chasing down missing submissions, correcting obvious errors, and reconciling contradictory information—consumes hours of manager time and creates payroll delays. Modern timesheet software transforms this process from painful administrative burden into streamlined automation.
Understanding Timesheet Software
Timesheet software digitizes and automates the timesheet creation, submission, approval, and processing workflow. Rather than manually filling out paper timesheets or spreadsheets, employees enter time through structured software that validates data, enforces policies, and integrates with downstream systems.
The best timesheet software makes time entry easy enough that employees actually do it, provides managers with approval workflows that catch errors before they reach payroll, and integrates with accounting and payroll systems to eliminate duplicate data entry.
Why Manual Timesheets Fail
Traditional timesheet processes create multiple failure points.
Memory-based time entry produces inaccurate data. When employees reconstruct an entire week of work on Friday afternoon, they rely on memory rather than contemporaneous records. Studies consistently show people overestimate time on high-priority tasks and underreport interruptions and context switching.
Spreadsheet timesheets lack validation rules, allowing impossible entries (30 hours in one day), inconsistent formatting, and calculation errors. Each employee might use slightly different conventions, creating reconciliation nightmares.
Paper timesheets require manual data entry into payroll systems, introducing transcription errors and substantial administrative overhead. Lost or damaged timesheets create gaps in records.
Key Features of Effective Timesheet Software
Real-Time or Daily Time Entry
Real-time or daily time entry dramatically improves accuracy over weekly reconstruction. Software that encourages or requires employees to enter time daily, or even better, track time as they work, produces significantly more reliable data.
Structured Data Entry
Structured data entry guides employees toward correct timesheet completion. Dropdown menus for project selection, required fields for task categories, and warnings about unusual entries (12-hour days, weekend work) catch errors before submission.
Approval Workflows
Approval workflows route timesheets to appropriate managers, who can review, comment, request corrections, or approve with a few clicks. Automated reminders ensure managers don't become bottlenecks.
Overtime Calculation
Overtime calculation happens automatically based on configured rules. The software knows your overtime thresholds (daily, weekly, or state-specific rules) and flags or calculates overtime rates without manual tracking.
Integrations That Matter
Timesheet software creates maximum value when integrated with your broader business systems.
Payroll integration eliminates double data entry and ensures employees are paid based on approved timesheet data. Popular integrations include ADP, Paychex, Gusto, QuickBooks Payroll, and other major payroll providers.
Project management integration lets timesheet hours flow into project costing and progress tracking. When timesheets automatically update project budgets and completion percentages, managers gain real-time visibility without additional reporting work.
Accounting integration ensures time-based revenue and costs appear correctly in financial records. For professional services firms, timesheet data drives revenue recognition, job costing, and profitability analysis.
Mobile Accessibility
Field workers, remote employees, and anyone away from their desk needs mobile timesheet access. Mobile apps should support the same functionality as desktop versions—entering time, viewing history, submitting timesheets, and receiving approval notifications.
Offline capability matters particularly for field workers in areas with limited connectivity. The app should allow time entry offline with automatic sync when connection restores.
Industry-Specific Timesheet Requirements
Different industries have unique timesheet needs that generic software may not accommodate.
Construction requires job site tracking, certified payroll for prevailing wage compliance, union reporting, and equipment hour tracking alongside labor hours.
Healthcare needs credential verification, department/patient assignment, HIPAA-compliant record-keeping, and complex shift differential calculations.
Government contractors must meet DCAA compliance requirements, including detailed contemporaneous time tracking, accurate project code assignments, and comprehensive audit trails.
Professional services benefit from billable/non-billable classification, client and project assignment, and integration with invoicing systems.
Enforcement and Compliance
Effective timesheet software includes tools to encourage timely submission and accurate entries.
Automated reminders prompt employees who haven't submitted timesheets by specific deadlines. Escalating reminders to managers help ensure nothing falls through cracks.
Submission locks prevent payroll processing until all timesheets are approved, making late submissions immediately visible.
Audit trails track every timesheet entry and modification, showing who entered what when, who made edits, and who provided approvals. This documentation satisfies regulatory requirements and resolves disputes.
Harvest: Time Tracking and Reporting for Professional Teams
Harvest provides sophisticated timesheet functionality designed for professional services, agencies, and project-based businesses. Instead of reconstructing time weekly, team members track as they work using flexible timers or manual entry. Visual timesheets show exactly where time went, with easy editing and submission workflows.
Managers approve time with one-click efficiency, and the system generates detailed reports on project progress, team utilization, and budget vs. actual. Time flows seamlessly into invoices, billing clients accurately based on approved timesheet data. For businesses where time equals revenue, Harvest transforms timesheet management from administrative burden into strategic advantage.
Start tracking time with Harvest →
Frequently Asked Questions
What's the difference between a timesheet and a time clock?
A time clock records when employees start and stop work (clock in/clock out), primarily used for hourly workers and attendance tracking. A timesheet records how employees spent their time across different projects, tasks, or clients, used for project costing, billing, and understanding work allocation. Some modern software combines both functions, but they serve different primary purposes.
How do I get employees to submit timesheets on time?
Timely timesheet submission requires clear policies, easy-to-use software, automated reminders, and consequences for late submission. Make time entry as simple as possible—ideally requiring just a few clicks. Send daily or weekly reminders before the deadline, with escalating notifications for overdue submissions. Consider making timely timesheet submission a factor in performance reviews, and never process payroll until timesheets are complete, which creates natural accountability.
Can timesheet software calculate overtime automatically?
Yes, professional timesheet software automatically calculates overtime based on configured rules. You define thresholds (40 hours per week, 8 hours per day, California's complex rules, etc.), and the software identifies overtime hours and applies appropriate rate multipliers. This eliminates manual calculation errors and ensures payroll compliance with federal and state overtime regulations.
Is there free timesheet software for small businesses?
Several timesheet platforms offer free tiers for very small teams (typically 1-5 users) with limited features. Free versions usually restrict project counts, lack advanced reporting, and don't include integrations with payroll or accounting software. For businesses that need to bill clients, track projects, or manage more than a handful of employees, paid timesheet software ($8-12 per user per month) typically delivers better ROI through time savings and improved accuracy.
How long should companies keep timesheet records?
US labor law requires employers to keep timesheet records for at least three years under the Fair Labor Standards Act (FLSA). Some states require longer retention (California mandates four years). Government contractors may have additional requirements. Digital timesheet software makes long-term record retention simple, automatically archiving data and providing retrieval tools for audits or disputes.
Can timesheet software prevent employees from claiming hours they didn't work?
Timesheet software reduces fraudulent time reporting through several mechanisms: approval workflows where managers review claimed hours against known work, integration with attendance systems or time clocks that verify employee presence, unusual entry detection that flags improbable time entries, and detailed audit trails that make pattern detection easier. However, software alone can't prevent fraud—it requires management oversight and clear policies.
Should timesheets track time to the minute or round to 15-minute increments?
This depends on your billing model and industry norms. Professional services that bill by the hour often track to the minute for accuracy. Some industries use 6-minute (0.1 hour) increments. For payroll purposes, US Department of Labor allows rounding to nearest 15 minutes as long as rounding doesn't consistently disadvantage employees. Modern timesheet software can track precisely and round for display or reporting as needed.
How do virtual or distributed teams handle timesheet approval?
Virtual teams benefit enormously from digital timesheet software with workflow automation. Employees submit timesheets through the software, automated notifications alert managers, and managers review and approve from anywhere via web or mobile apps. Real-time visibility into submission status, commenting features for questions, and email/Slack notifications keep everyone coordinated despite not sharing physical space. This often works better than in-person timesheet processes because everything is documented and trackable.
