What Is a Timesheet? Purpose, Examples & How to Use It
A timesheet is a document that records the hours an employee works on tasks, shifts, or projects—used primarily to manage payroll, measure productivity, and track billable work.
Whether you’re running a creative agency, a consulting firm, or managing a remote team, understanding what a timesheet is and how it works can dramatically improve how you manage time, budgets, and performance. While timesheets started as paper logs, modern teams now rely on digital timesheet software to track time in real time, automate approvals, and generate actionable insights.
💡A timesheet is a document used to record how many hours an employee spends on specific tasks or projects. Businesses use timesheets to calculate payroll, measure productivity, and ensure accurate billing for clients or internal work.
What Is a Timesheet?
How to Use a Timesheet
Using a timesheet begins with establishing a consistent process for time entry and review. Employees record their working hours on a daily or weekly basis, typically logging start and end times for specific tasks or projects. These entries may include breaks, overtime, or unpaid time depending on the business’s policies and local labor regulations.
Once submitted, timesheets are reviewed by managers or team leads to verify accuracy. Approved timesheets are then used for payroll processing, project cost analysis, or client billing. In more advanced systems, timesheet data can feed directly into invoicing or financial forecasting tools, allowing for seamless operations and fewer errors.
Digital timesheet tools make this process significantly easier. Employees can start and stop timers in real time, track their time against specific tasks, and submit entries automatically at the end of each period. Managers can approve or flag entries with a single click. This automation not only increases accuracy, but also saves hours of administrative work every pay period.
How Timesheets Work
A timesheet functions as a workflow, not just a document. It typically begins with an employee logging their time—either daily, weekly, or per task. Once completed, the timesheet is submitted to a supervisor for review. If everything checks out, the timesheet is approved and forwarded to finance, HR, or the project management team, depending on the context.
Digital systems take this process a step further. They enable automatic tracking, integrate with calendars and task managers, and generate reports in real time. These systems can also trigger reminders, automate approval workflows, and flag anomalies such as missing entries or excessive hours. Automating timesheets enables your team to track work hours accurately, eliminate manual errors, streamline approvals, and focus more on productive work instead of administrative tasks.
💡Once collected, timesheet data becomes a valuable asset for payroll, invoicing, budgeting, and forecasting. It also serves as a documented history of work performed, which is useful for audits, performance evaluations, and regulatory compliance.
What to Include in a Timesheet
A well-structured timesheet should capture all the essential details that reflect how an employee’s time is spent. At minimum, this includes the employee’s name, the specific date, the time they clocked in and out, and the total hours worked. It should also record any breaks taken, which are necessary for accurate payroll calculation.
To provide deeper insights into work allocation, timesheets typically include the name of the project or task, whether the hours were billable or non-billable, and a section for supervisor approval or notes. This information ensures accountability, supports client invoicing, and provides a record for audits or compliance reviews.
Timesheet Components
While the layout of a timesheet may differ across industries and tools, there are essential elements that every effective timesheet should include:
- Employee name or identifier: To associate the time entry with the right person.
- Date and Time Logs: Including start time, end time, and total hours.
- Break Periods: To ensure accurate calculation of work hours.
- Task or Project Codes: For tracking time against specific deliverables.
- Billable Status: To distinguish between internal and client work.
- Approval Section: A manager’s sign-off or digital confirmation.
- Notes Field: For optional comments or context on unusual entries.
Many timesheet tools also include visual dashboards, filters, and export options to support reporting and analytics. The more structured and user-friendly the timesheet, the more likely your team will adopt it and maintain consistent, high-quality data. For a practical example, check out our Timesheet Templates to see how this data fits together.
💡This level of detail helps companies ensure compliance, monitor productivity, and accurately allocate labor costs. It also provides a reliable record for audits or disputes.
Types of Timesheets
Not all timesheets are created equal. The way you track time can vary depending on your workflow, team size, and tools. Understanding the main types of timesheets helps you choose the method that fits your business best.
Manual Timesheets
Manual timesheets are the traditional way to record work hours—often written on paper or filled out in Excel or Google Sheets. They’re simple and accessible but prone to human error and time theft. Tracking total hours manually takes extra effort and makes reporting less accurate.
Digital Timesheets
Digital timesheets use online templates or shared forms to simplify recording and storing data. They often calculate total hours automatically and make collaboration easier. This format is ideal for growing teams who need a more organized way to track and approve work hours.
Automated Timesheets
Automated timesheets are powered by software that records work hours in real time. These connect with your daily tools—such as project management or communication apps—and automatically generate reports. This approach reduces errors, saves time, and provides real-time insights into productivity.
Comparison Table: Manual vs. Digital vs. Automated Timesheets
Each type of timesheet offers a different level of efficiency and control. While manual and digital options can work for smaller teams, automated timesheets deliver the accuracy and speed modern businesses need. They simplify time tracking, reduce errors, and provide real-time visibility—helping teams focus less on logging hours and more on getting work done.
| Type | Description | Pros | Cons |
|---|---|---|---|
| Manual | Paper-based or Excel/Google Sheets where users enter hours manually. | Simple to set up; accessible to anyone. | Time-consuming; prone to human error; not scalable. |
| Digital | Online templates or forms with built-in calculations and cloud storage. | Faster and more accurate than manual entry; easy to share and approve. | Still requires daily input and manual verification. |
| Automated | Software-driven time tracking integrated with work tools. | Real-time accuracy; detailed analytics; automatic syncing with payroll and reports. | Requires setup and onboarding; software subscription cost. |
👉 Automated timesheets take the guesswork out of tracking time, giving managers real-time visibility into productivity and project progress.
How to Track Hours Accurately
Accurate time tracking is critical to running an efficient and transparent business. Inaccurate timesheets can lead to payroll discrepancies, budget overruns, or client billing conflicts. There are several ways businesses can track hours:
- Manual entry remains a common method, but it’s prone to human error and time rounding. Employees often forget to record time promptly, which can result in inflated or missing data.
- Timer-based tracking, where users start and stop a digital clock as they work, offers more precision and encourages real-time logging.
- More sophisticated solutions use automated tracking, which runs in the background and monitors app usage, activity levels, or keyboard and mouse input. This is especially useful for remote teams or freelancers who work across multiple platforms and clients.
Timesheet Example
Understanding how a timesheet looks in practice makes it easier to set up your own. While formats may differ, most timesheets include similar components: employee details, dates, project or task names, daily hours, and total time worked.
Sample Weekly Timesheet
Here’s what a standard weekly timesheet looks like for one employee working on multiple projects.
| Employee Name | Week | Department |
|---|---|---|
| John Smith | November 4–8, 2025 | Design Team |
| Date | Project | Task | Start Time | End Time | Hours Worked |
|---|---|---|---|---|---|
| Mon, Nov 4 | Client A Website | UI Design | 9:00 AM | 5:00 PM | 8 |
| Tue, Nov 5 | Client A Website | Design Review | 9:30 AM | 5:30 PM | 8 |
| Wed, Nov 6 | Client B Branding | Logo Refinement | 9:00 AM | 4:00 PM | 7 |
| Thu, Nov 7 | Client B Branding | Revisions | 9:00 AM | 5:00 PM | 8 |
| Fri, Nov 8 | Internal Project | Brand Guidelines | 9:00 AM | 3:00 PM | 6 |
| Total Weekly Hours: | 37 |
What Timesheets are Used for
Timesheets serve multiple functions across different areas of a business. Primarily, they’re used to calculate payroll, helping ensure that employees are paid correctly based on the hours they’ve worked. But they also play a crucial role in project management and budgeting—allowing teams to compare actual hours to estimated timelines.
In client-service industries like marketing or consulting, timesheets help track billable hours to invoice clients accurately. Additionally, managers use timesheet data to analyze productivity, identify overworked team members, and make informed decisions about hiring or resource allocation.
For service-based businesses, timesheets directly impact revenue. Without accurate time tracking, companies risk undercharging clients or misallocating labor. For internal teams, they help managers spot inefficiencies, plan workloads, and balance staffing levels across departments.
The data captured in timesheets can also be analyzed over time to improve operations. Patterns in logged hours may reveal where teams are overextended, which tasks consume the most time, and how project scopes align with actual execution.
How Do Timesheets Help with Payroll?
In the context of payroll, timesheets serve as the authoritative source of truth for hours worked. They are used to calculate wages, including regular time, overtime, holiday pay, and other compensation variables. Timesheet data helps ensure that payroll is accurate, timely, and compliant with labor laws.
For hourly employees, this process is straightforward: hours worked multiplied by the hourly rate. For salaried employees, timesheets might be used to track paid time off, sick leave, or compliance with labor standards. Some organizations also use timesheets to track productivity or validate time spent on grant-funded work or client retainers.
Digital timesheets simplify payroll by syncing directly with accounting or HR platforms. This reduces the need for manual data entry and significantly lowers the risk of payroll errors. It also creates a transparent audit trail, which is essential for tax compliance and dispute resolution.
How Do Modern Teams Use Timesheets?
While the concept of a timesheet is universal, the way teams track time today has changed dramatically. TrackingTime is a timesheet solution built for modern businesses that want to simplify time tracking without sacrificing control or accuracy.
Designed with flexibility in mind, TrackingTime offers real-time tracking, project-based timesheets, and team-wide visibility from a single platform. Whether you’re managing an in-office team, a remote workforce, or a mix of both, your employees can track time from desktop, mobile, or directly within the tools they already use—like Trello, Asana, or Slack. And learn how to introduce timesheet software to your team.
TrackingTime automatically compiles time entries into structured, customizable timesheets. Managers can review and approve hours, while finance teams can export timesheet data for payroll, invoicing, or budget analysis. With built-in reports and productivity insights, it’s more than just a time tracker—it’s a decision-making tool.
Why Use Timesheet Software
While manual and digital timesheets can track hours, timesheet software takes time management to the next level. It automates repetitive tasks, eliminates calculation errors, and helps teams stay focused on meaningful work instead of administration.
Timesheet software provides real-time visibility into how your team spends time. Instead of collecting spreadsheets or chasing updates, managers can instantly review hours, identify productivity patterns, and make informed decisions based on accurate data.
Another advantage is seamless integration. Timesheet software connects with project management, payroll, and invoicing tools, creating a single source of truth for time, cost, and performance data. This integration reduces duplicated work and ensures everyone—from employees to finance teams—works with the same information.
For growing businesses, automation also means scalability. As your team expands, manual processes become harder to maintain. Timesheet software adapts easily to larger teams, remote work, and multiple projects without losing efficiency or accuracy.
In short, timesheet software simplifies how teams record, approve, and analyze their work hours—saving time, improving accuracy, and giving companies the clarity they need to manage projects confidently.
👉 Explore the best timesheet software for your business.
Timesheets are Essential for Smart Business Management
Understanding what a timesheet is—and why it matters—is essential for businesses looking to scale sustainably. Timesheets aren’t just about tracking hours; they’re about unlocking insights into how work gets done, where resources are going, and how your team’s time contributes to revenue and results.
For growing businesses, time is the most limited and valuable resource. When tracked correctly, it becomes a source of truth that informs hiring decisions, shapes client pricing, and improves overall performance. When ignored or mismanaged, it leads to budget overruns, payroll mistakes, and operational blind spots. If you need digital timesheets, check out our timesheet software solution.
