What is a timesheet?

A timesheet is a documented record of the hours someone spends working. It dates back to simpler times, when time books were used in the 19th century to calculate wages and has evolved into digital systems that help businesses manage payroll, projects, productivity and compliance.

Timesheets can be simple paper sheets or sophisticated digital tools. The core purpose remains the same: to record work time accurately and consistently. This guide explains what timesheets are, why they matter, different formats, best practices, and how to use them effectively in your organisation.

What is a timesheet  

A timesheet is a structured record of time spent working on tasks, projects, clients or shifts. It usually includes employee identification, time covered, hours worked, break periods, and task/project details.

Originally paper-based, timesheets can now be digital, entered via spreadsheets or specialised time-tracking software that automates calculation and reporting.

Why timesheets matter

Timesheets support businesses in several key areas:

Accurate Payroll: They ensure employees receive correct pay based on actual hours worked.
Project Billing: Timesheets help service-based firms invoice clients fairly for billable hours.
Productivity Insights: Analysing timesheet data reveals where time is spent and patterns that may indicate inefficiency.
Compliance & Legal Records: In regulated environments, keeping reliable timesheet records can protect employers and employees.

How timesheets work

Users log start and end times for work periods, often daily or weekly. Approvers (managers or team leads) review entries before they are used for payroll, billing or reporting. Digital systems may automate reminders, approvals and data integration with payroll tools.

Types of timesheets

Timesheets vary by method and purpose:

Manual: Paper or Excel templates; low cost but higher administrative effort.
Digital: Online or spreadsheet tools that automate summaries.
Automated: Software that tracks time in real time and integrates with HR/payroll systems.

Timesheet management 

Whether you run a busy digital agency or a small café in your local town, timesheets can be invaluable in supporting the management of your team. Keeping records accurate and up to date whilst streamlining operations. To implement a proper process for timesheets in your business, you should first decide how often you wish to record employee working hours. Whether this is:  

• Daily 

• Weekly 

• Bi-weekly 

• Monthly 

These are the most common periods of time that a timesheet might cover. 

The frequency with which you pay your staff (e.g. weekly, monthly) will help you work out which type of timesheet works best for your payroll processes.

How to create a practical timesheet

A well-structured timesheet should capture enough detail without overcomplicating entries. Common fields include:

• Employee name or ID

• Date or period covered

• Start and end times

• Total hours

• Breaks and overtime

• Task or project description

• Billable vs. non-billable indicator

• Approval signature or workflow

Communicating with your staff  

The next step in effectively implementing the use of timesheets (digital or paper) in your business is to educate your staff. Clearly define your expectations and explain why and how a timesheet is required.  

If staff are hesitant or unsure, it is best to explain how the timesheets will benefit both them and the business.  

If you want to get started and need a quick timesheet template, we have written a guide on how you can create a timesheet within Excel.  

Timesheet best practices

1. Standardise categories. Avoid vague task names; use clearly defined project codes.

2. Log time regularly. Daily logging improves accuracy compared to weekly recall.

3. Automate reminders. Tools with reminders increase on-time submissions.

4. Audit frequently. Schedule periodic checks to catch errors early.

Common timesheet mistakes & how to avoid them

1. Rounding errors: Encourage precise time entries, not broad approximations.

2. Incomplete data: Require necessary fields before submission (e.g., project codes).

3. Approval delays: Set cut-off deadlines for submitting and approving timesheets.

Looking for a digital solution?  

Look no further than BrigthHR! The all-in-one HR software provides a range of automated HR features to save you time and money. With tools like a clocking in and out app, you can accurately record employee working hours and produce timesheet reports with real-time data.  

Keep on top of your time management with BrightHR’S award-winning HR software today. Book your free demo to discover more.