An automated timesheet significantly reduces management’s time and overhead costs while providing accurate working hours and salary calculations. This guide will help you quickly get up to speed with automated timesheets, their benefits and how to start implementing this process in your organisation.

What is an automated timesheet?

Timesheet automation refers to the process of using technology and software to streamline and simplify the tracking and management of employee working hours. Traditional timesheets often involve manual entry of hours worked on paper or in spreadsheets, which can be time-consuming, error-prone, and susceptible to manipulation.

5 key benefits of timesheet automation

When managing shift workers or operating a staffing agency, timesheets are one of the core aspects of your organisation. Automating this process can help you optimise your business significantly with the following benefits.

1. Accuracy and accountability

Automated time-tracking systems ensure precise accounting of billable hours, reducing the risk of disputes and building trust with clients. Managers benefit by gaining real-time insights into employee working hours and attendance, and this enables more effective resource allocation and better-informed decision-making.

2. Quick approval workflows

Whether working with paper timesheets or Excel spreadsheets, timesheet approval is one of the most tedious, time-consuming and error-prone processes. Timesheet automation lets managers, employees and clients review and approve timesheets digitally, reducing delays in the approval process and ensuring timely payroll processing.

3. Reduce overhead costs

By reducing the time and effort spent on manual timesheet processing, organisations can achieve considerable cost savings. Automation leads to increased efficiency, fewer errors, and a more streamlined payroll process. Accuracy and quick approval workflows of digital timesheets free up a significant amount of management’s time and this offers substantial savings from overhead costs.

4. Integrations

Automated timesheet software can be integrated with other business systems, such as project management tools, HR software, and payroll systems. This integration streamlines data flow across different departments, reducing the need for redundant data entry and further improving overall efficiency.

5. Compliance and reporting

An automated timesheet system will help ensure that your organisation complies with labour laws and industry regulations when managing working hours and overtime. Automated timesheet system also provides you with reporting features, allowing managers to analyse time data for various purposes, such as project costing, resource allocation, and productivity assessment. This can be an exceptionally useful tool when needing to archive employee records for compliance purposes.

How to implement automated timesheets? Full 7-step guide

1. Define objectives and requirements

Before diving into automated timesheets, clearly articulate the goals you aim to achieve. Identify the specific requirements your organisation needs, considering factors like integrations, mobile accessibility, and reporting capabilities. For example, a medical staffing timesheet might look significantly different from a retail timesheet. This foundational step helps guide your selection process and narrow down the selection.

2. Select a timesheet software

Research and choose a timesheet software that aligns with your organisation's needs and budget. Look for a solution that is user-friendly, scalable, and capable of integrating with existing systems. Evaluate different options and select the best time-tracking app for your requirements.

3. Customise and Configure

When you have selected your automated timesheet software, you should tailor it to match your organisation's unique workflow and policies. This involves configuring settings such as work hours, overtime rules, and approval workflows. Take the time to ensure the system is aligned with how your organisation operates.

4. Migrate Data

If you're transitioning from manual processes to another system, plan and execute the migration of existing data to the new automated system. Pay close attention to data accuracy and completeness during this process to avoid discrepancies.

5. Communicate with your team

Communicate the reasons behind the change and the benefits of the automated timesheet system to the entire organisation. Encourage user adoption by providing ongoing support, addressing questions, and fostering a positive attitude toward the new system.

6. Train your employees

Conduct training sessions for employees, managers, and other stakeholders on how to use the new automated timesheet system. Emphasise the benefits of the change and address any concerns. A well-trained workforce is crucial for successful implementation.

7. Integrate with other systems

If applicable, integrate the timesheet system with other business systems such as project management, HR, and payroll. Thoroughly test these integrations to ensure smooth data flow between systems and minimise disruptions.

Automated timesheets vs traditional time tracking methods

Common issues with traditional timesheets

The margin for human error looms large when working with manual timesheets. The reliance on paper or spreadsheet-based systems introduces a host of issues, from accidental data entry mistakes to the potential for intentional manipulation, such as 'buddy punching.' These practices can lead to discrepancies in recorded work hours, compromising the accuracy of payroll processes and labour cost calculations. The sluggish pace of manual submission and approval processes further hinders efficiency, causing delays in payroll cycles. Let’s take a closer look at some of the common issues with manual timesheets.

Buddy-punching

Buddy punching refers to a situation in which an employee asks a colleague, a "buddy," to clock in or out on their behalf, often to dishonestly manipulate their recorded working hours. This practice is a form of time theft and can lead to inaccuracies in attendance records, payroll, and overall workforce management.

The term originated from traditional timekeeping systems where employees used physical time clocks or time sheets to record their working hours. In a buddy punching scenario, an employee might ask a coworker to clock them in even if they are not present at work, or vice versa, to artificially inflate the hours worked or to cover up tardiness.

Human errors

Buddy-punching is not the only issue with legacy time clocks. An exemplary employee may also accidentally punch the card in with errors. And not only that. Human errors can occur within management as well and take multiple forms. These can be simple mistakes in calculations or data entry. Paper timesheets can get lost, and sometimes the issues can be as absurd as ineligible handwriting.

This not only distorts the payroll calculations but also undermines the fairness and transparency of the compensation system. Inaccuracies in labour cost calculations can ripple through budgeting and financial forecasting, impacting an organization's ability to allocate resources effectively. Furthermore, these discrepancies may lead to compliance issues with labour regulations, exposing the company to potential legal and financial repercussions.

Unnecessary time waste

The utilisation of manual timesheets poses a significant drain on both time and management resources within an organisation. The manual data entry required for traditional timesheets is inherently time-consuming, often demanding extensive efforts from both employees and administrative staff. Employees must meticulously record their working hours, a process susceptible to errors, delays, and the potential for incomplete entries. This manual input not only consumes valuable working hours but also necessitates additional time for verification and correction.

From a management perspective, the administrative burden associated with manual timesheets is substantial. HR and payroll teams spend considerable time sifting through paperwork, deciphering handwriting, and addressing discrepancies. The manual approval processes are prone to delays, leading to inefficiencies in payroll cycles and potentially affecting employee morale. Moreover, the risk of errors introduces a need for meticulous scrutiny, diverting management resources away from more strategic and value-driven initiatives.

The cumulative impact of these inefficiencies reverberates across the organisation, diverting valuable time and resources away from core business activities. As industries embrace automation, the move towards digital and automated timesheet solutions becomes not only a modernisation imperative but a strategic decision to optimise operational efficiency and free up management resources for more impactful contributions to organisational success.

How automated digital timesheets combat these issues

Automated timesheets leave no room for human errors or fraudulent behaviour while significantly increasing efficiency and productivity. Let’s take a closer look at how this is achieved.

Prevent fraudulent behaviour

One of the key features contributing to this is the implementation of advanced authentication methods, ensuring that the individual clocking in or out is indeed the assigned employee. This electronic authentication leaves little room for deceit, virtually eliminating the possibility of one employee punching in on behalf of another.

Furthermore, real-time tracking capabilities inherent in automated digital timesheets provide immediate visibility into employee attendance. Supervisors can monitor attendance records as they occur, allowing for prompt identification of irregularities. Any attempt at buddy punching is swiftly detected, allowing management to address the issue promptly. This not only enhances the accuracy of time records but also fosters a culture of accountability and transparency within the workforce.

Additionally, the digital trail generated by automated systems serves as a reliable record, making it easier to investigate and resolve any disputes or discrepancies. These anti-fraud measures collectively contribute to the overall integrity of the timesheet data, ensuring that organisations can rely on accurate attendance records for payroll, compliance, and operational decision-making.

Pinpoint accuracy

Automated digital timesheets are a robust solution to combat the inherent challenges of human errors associated with manual timekeeping. One of the primary mechanisms for error reduction lies in the elimination of manual data entry. Automated systems streamline the process by capturing work hours electronically, eliminating the need for employees to manually record their time on paper or spreadsheets. This alone significantly reduces the likelihood of typos, miscalculations, and other common data entry mistakes.

The real-time nature of automated systems also contributes to error prevention. Supervisors and administrators can access up-to-date information on employee attendance and work hours, allowing for prompt identification and resolution of any discrepancies. This proactive approach minimizes the risk of errors compounding over time, ensuring that the recorded data remains accurate and reliable.

Additionally, automated systems often offer centralised management, reducing the need for manual collation and reconciliation of disparate timesheets. This centralisation further minimises the risk of errors associated with data consolidation and reporting. In embracing automated digital timesheets, organisations not only enhance accuracy but also streamline their timekeeping processes, saving valuable time and resources that can be redirected toward more strategic initiatives.

Efficient workflows

Instead of employees having to physically write down or type in their working hours on paper or in Excel, automated systems provide user-friendly interfaces for digital input. A digital platform offers a straightforward form where employees can quickly and accurately input their start and end times, along with any additional details relevant to their work hours. This not only saves time but also reduces the likelihood of data entry errors that can occur when transcribing information from paper to digital formats.

Automated systems also facilitate digital approval workflows that can be completed with just a few clicks. This not only expedites the approval process but also minimises the risk of delays, ensuring that payroll cycles and other critical processes remain on schedule. This ensures that timesheets move swiftly through the approval chain, reducing unnecessary administrative time waste and enhancing overall workflow efficiency.

Need a reliable automated timesheet system? Try Parim

Simple tools for intricate business processes

PARiM time tracking software allows your employees to effortlessly clock in and out of shifts and document their break times from their phones, tablets or computers to provide a timesheet calculator for UK companies. Managers will receive instant updates about each time clock action their employees take. GPS features ensure that employees clock in at their job sites. This enables supervisors to oversee a multitude of locations and manage a large number of staff while having a real-time view of employees’ time and attendance.

Automated timesheets with 3-way approval process

After an employee has clocked out of their shift, an automated timesheet is generated which can be approved by the employee and the supervisor from the app or desktop environment. As an added bonus you can also provide access to your clients for a 3-way approval process to streamline your communication and minimise unnecessary touch points. This is especially useful for staffing agencies and companies that provide staff as a service.

Accurate salaries for complex pay rules

With PARiM, you don’t need to worry about manual salary calculations while accounting for overtime. Set up custom pay rules with additional rates and multipliers for overtime hours and holidays and our software automates salary calculations for you. You can bulk export timesheets to your payroll provider and be sure that each employee receives accurate salaries on time.

What Are Automated Timesheets & How to Use Them for Staffing Companies