What Is a Timesheet? How Does it Work & The Advantages

A timesheet is a vital tool for keeping track of how much time employees spend on certain jobs or projects throughout the day. It enables firms to track productivity, calculate payroll accurately, and comply with labor requirements.

In Singapore’s fast-paced and efficiency-driven business environment, timesheets are especially vital for maintaining transparency and control across departments and industries.

According to the Ministry of Manpower, from 1 April 2016, all employers must maintain detailed employment records for employees covered by the Employment Act, including timesheets, and retain them for a specified period to ensure compliance.

This article will explain everything you need to know about timesheets. You’ll learn about their definition, purpose, operation, and common applications.

We’ll also compare traditional paper-based timesheets to digital software, highlight the primary advantages of adopting timesheet solutions, and explain the critical features that businesses should seek. Learn more here!

What is a Timesheet?

A timesheet is a document that tracks an employee’s working hours within a set period, commonly used for payroll, project management, and client invoicing. While these were once recorded on paper, they are now typically digital or managed through time-tracking software, detailing tasks, shifts, or projects.

A timesheet’s primary function is to record employees’ working hours, ensuring that each task or project is appropriately accounted for. Timesheets are essential for organizations to track production, manage personnel expenditures, and ensure compliance with labor laws.

Companies that keep precise records of their employees’ working hours can process payroll more efficiently, calculate wages and overtime, and ensure compliance with labor requirements.

This level of surveillance also enables better resource allocation, project management, and greater insight into job performance, which is crucial for effective human resource management.

The Advantages of a Timesheet?

A timesheet’s principal purpose is to capture and track how much time employees spend on various tasks or projects. Businesses that record hours worked obtain significant insights about labor and resource allocation.

This allows them to discover areas where productivity may be increased, ensuring that workers work efficiently and do not exceed the time allotted for specific activities. Accurate timesheet management helps companies calculate foreign worker levy costs by tracking actual labor hours for compliance and cost control.

Timesheets are also an important tool for payroll administration, ensuring that employees are appropriately reimbursed for their time. They assist firms in complying with labor laws by giving a detailed record of working hours, which is required for calculating overtime, break periods, and pay.

Furthermore, timesheets enable businesses to track time spent on different projects, resulting in more accurate cost management and project budgeting. The following are the advantages achieved from using timesheet software:

1. Reduce Time Wastage

Employees can use timesheet software to log their hours quickly and precisely, reducing the amount of time spent manually entering data. This automation minimizes inefficiencies, allowing employees to spend more time on productive work rather than dealing with time-tracking problems or delays.

2. Bill Accurately

Timesheet software allows firms to bill clients accurately by documenting the precise hours spent on projects. By precisely logging labor hours, businesses may ensure that they bill clients fairly and honestly, eliminating inconsistencies and building customer trust.

3. Automate Your Billing

The automated billing feature in timesheet software creates invoices based on the hours reported, reducing the need for manual calculations. This automation saves time by speeding up the invoicing process and lowering the possibility of errors, allowing organizations to better manage cash flow and billing cycles.

4. Improve Project Management

Timesheet software delivers real-time progress data by tracking the amount of time spent on various project tasks. This allows managers to spot possible bottlenecks, change timeframes, and reallocate resources to keep projects on track and fulfill deadlines.

5. Save Money for Your Company

Using timesheet software enhances overall accuracy in payroll, billing, and project management. Businesses can save money and better allocate resources by lowering administrative costs, eliminating overpayments, and streamlining operations, resulting in greater profitability.

Why Should a Business Use Timesheets?

Businesses benefit from using timesheets in a variety of ways, including more accurate payroll processing, improved financial management, and better project tracking.

It guarantees that employees are paid accurately based on real hours worked, provides for precise labor cost analysis, and promotes effective resource allocation, all of which contribute to increased operational efficiency.

Timesheets also assist organizations in complying with labor standards and preventing legal complications over employee compensation. Here are the key functions of using a timesheet for business, including:

1. Payroll Processing

Timesheets are vital for organizations to compute correct payroll by documenting each employee’s hours worked. This allows firms to calculate pay, overtime, and other necessary deductions.

Companies use this information to guarantee that employees are rewarded appropriately and on time, reducing errors and delays in payroll processing, hence maintaining employee satisfaction and trust. Integrating payroll software with timesheet data further streamlines this process, ensuring accuracy and efficiency in payroll management.

2. Management Accounting

Tracking labor expenditures with timesheets is critical for management accounting, especially for companies with high labor costs.

Businesses that record hours worked can allocate labor expenditures to certain projects or divisions, which helps with budget forecasting and financial planning. This also enables improved cost control and resource optimization, which improves overall financial performance.

3. Project Management

In project management, timesheets help allocate labor costs to specific tasks or projects. By recording work hours, they provide insight into employee productivity and enable businesses to assess project costs. This helps in managing project budgets effectively and ensures that labor resources are utilized efficiently throughout the project lifecycle.

4. Compliance

Timesheets play a key role in ensuring compliance with labor laws and regulations. They track employee work hours, overtime, and rest periods, ensuring businesses adhere to legal requirements. Proper record-keeping helps businesses avoid legal issues related to employee work hours and ensures transparency in their labor practices.

5. Billing

For service-based businesses, timesheets are vital for client billing. They provide accurate records of hours worked on client projects, enabling businesses to generate precise invoices.

This ensures that clients are billed fairly for services rendered, with detailed documentation that supports the charges, helping avoid disputes and ensuring timely payments.

How does a Timesheet Work?

A timesheet tracks how many hours an employee works each day. This can be done on paper or electronically with specialized timesheet software. Employees keep track of their starting and ending times, as well as any breaks or overtime.

They also record the precise tasks or projects on which they worked, ensuring that their daily activities are accurately documented, which later feeds into the payroll cycle to ensure proper compensation. Once time data is obtained, firms can use it for a variety of purposes, such as payroll, billing, and performance analysis.

Timesheets give useful information on staff productivity, resource allocation, and project progress, all of which are essential elements within the talent management cycle. Using this data, businesses can streamline payroll processing, ensure proper client billing, and assess operational effectiveness.

Types of Timesheets

Different businesses rely on various types of timesheets depending on their workflow, payroll cycle, and reporting needs. Each format offers unique advantages, from detailed daily tracking to broader monthly summaries.

Understanding these types helps organizations choose the most suitable method for managing employee work hours efficiently.

1. Daily Timesheets

Daily timesheets capture an employee’s work hours on a day-to-day basis, offering detailed visibility into tasks, shifts, and productivity.

They are useful for roles with frequent task changes or industries requiring precise tracking, such as construction, retail, or field operations. This format helps managers identify trends and address issues quickly.

2. Weekly Timesheets

Weekly timesheets summarize all work hours completed within seven days, making them suitable for teams with stable schedules.

They reduce administrative workload compared to daily logs while still providing enough detail for payroll and project monitoring. Many organizations use weekly sheets to evaluate performance and balance workloads.

3. Bi-weekly Timesheets

Bi-weekly timesheets record work hours over a two-week cycle, aligning with payroll structures commonly used by many companies. This format helps streamline payroll processing and reduces the frequency of submissions.

It also provides a broader view of employee time patterns, which assists managers in planning resources more efficiently.

4. Monthly timesheets

Monthly timesheets track an employee’s hours across an entire month, offering a high-level overview suited for roles with predictable schedules. They reduce administrative effort and are often used in salaried environments. Although less detailed, they give management a clear snapshot of attendance trends and time allocation across longer periods.

5. Timesheets for salaried workers

Timesheets for salaried employees focus on attendance, project hours, and productivity rather than calculating pay. These formats help organizations monitor workload distribution, time spent on initiatives, and overall utilization.

They also support project forecasting, client billing, and compliance for roles where hours may not directly affect compensation.

Timesheet Use Cases

Timesheets are widely used across different business functions, offering valuable insights into how time is spent and how work is distributed. Beyond tracking hours, they support decision-making, cost control, and accountability. These use cases help businesses improve productivity, strengthen financial accuracy, and manage teams more effectively.

Here are the examples using timesheets in business industries, including:

1. Service-Based Industries

Timesheets are essential for documenting billable hours spent on client projects in service-based enterprises such as consulting firms or information technology companies.

Businesses that track the exact amount of time worked can appropriately bill clients for the services they deliver. This promotes transparency and confidence among clients while avoiding billing problems.

2. Law Office Timesheets

In law companies, timesheets are used to log billable hours for each case. Because law companies frequently charge clients based on the time spent on legal problems, adopting timesheets ensures that all work is properly recorded and billed.

According to the Ministry of Law Singapore, the Legal Technology Platform Initiative (LTPI) was launched on 19 July 2022 to support the digitalization of the legal industry, enhancing processes like timesheet management.

This method is critical for creating bills and maintaining transparency, so as to avoid conflicts and ensure appropriate pay for legal services provided.

3. Timesheets for Freelancers

Freelancers use timesheets to keep track of their work hours and charge accurately. Freelancers can guarantee that they are fairly compensated for their services by keeping track of the time they spend on various client assignments.

Timesheets also give clients clear, complete information, which promotes transparency and reduces misunderstandings about billable hours.

4. Timesheets for Accountants

Accountants use timesheets to keep track of the time they spend on various duties like tax preparation, audits, and client consultations.

Proper time tracking allows accountants to accurately bill clients based on their real work hours, ensuring that they are adequately compensated. It also allows accountants to evaluate their productivity, improve workflows, and better allocate their time to high-priority assignments.

Tips for Timesheet Management

Effective timesheet management is crucial for maintaining operational efficiency, accuracy, and compliance in any business. By following the right practices and using the right tools, businesses can optimize their timesheet systems. Below are practical tips to improve timesheet management and ensure accurate, reliable data collection across teams.

1. Choose the Right Timesheet Software

Selecting the right timesheet software is the first step in efficient timesheet management. Look for software that suits your business needs, offering features like ease of use, integration with payroll and project management systems, and mobile accessibility.

A well-chosen tool streamlines the tracking process, reduces errors, and enhances data accessibility across departments.

You can use ScaleOcean’s timesheet software, that the best software to help businesses automate time tracking, ensure accurate reporting, and integrate seamlessly with payroll and project management systems for more efficient operations.

2. Ensure Accuracy

Accuracy in timesheet entries is essential for proper payroll, budgeting, and project management. Encourage employees to enter their hours consistently and verify data before submission.

Automated reminders or real-time tracking features can help minimize mistakes. Regular audits and checks should also be in place to catch discrepancies early and maintain data integrity.

3. Boost User Adoption

For timesheet management to be effective, employees must consistently use the system. Provide proper training and support to ensure users understand how to enter time correctly.

Highlight the benefits, such as simplified payroll and better project tracking, to motivate adoption. The easier and more intuitive the system, the more likely employees are to engage with it regularly.

4. Customize To the Business’s Needs

Customize your timesheet system to match your business’s specific requirements. This could include setting up project codes, custom fields for different tasks, or adjusting time entry categories based on work schedules.

A tailored approach ensures the timesheet system fits seamlessly into your existing workflow, improving overall usability and relevance.

5. Foster Accountability

Encourage accountability by making employees responsible for accurately tracking their time. Set clear expectations regarding timesheet submissions and deadlines. Regularly review timesheet data for accuracy and provide feedback when needed.

Accountability fosters a sense of responsibility, ensuring that time is tracked consistently and honestly across the organization.

6. Monitor and Analyze

Consistently monitor and analyze timesheet data to identify trends, inefficiencies, or discrepancies. Use reports and analytics to assess productivity, project timelines, and labor costs.

Regularly reviewing this data allows you to make informed decisions about resource allocation, project budgeting, and workforce management, ensuring continuous improvement.

Paper Timesheets vs. Digital Timesheets Software

Paper timesheets have long been a common way to track staff hours. However, they require manual entry, which can be time-consuming and error-prone. Paper-based solutions are also not integrated with other corporate processes, making it difficult to store and retrieve data effectively.

In addition, human errors, such as wrong inputs or missed hours, are typical and might result in payroll disparities or inaccurate project invoicing.

In comparison, digital and timesheet software provide a more current and efficient method for time tracking. Electronic timesheets automatically record and save data, lowering the possibility of errors.

Digital timesheet software is also easily integrated with other corporate systems, allowing for real-time reporting, automatic computations, and more efficient payroll processing. These capabilities not only reduce time but also improve accuracy, making timesheet software the best option for firms looking to streamline their time-tracking operations.

How Did AI Change Timesheet Management?

AI has revolutionized timesheet management by automating time tracking, reducing manual errors, and improving overall efficiency. AI-powered systems can automatically capture work hours, track employee activities, and even detect anomalies in real time, ensuring greater accuracy.

With AI integration, businesses can streamline payroll processing, enhance reporting capabilities, and provide actionable insights for better workforce management. These advancements lead to a more seamless, error-free timesheet process, saving time and resources while boosting productivity.

ScaleOcean’s Best Timesheet Software Solutions in Singapore

ScaleOcean’s attendance software is the best solution for optimizing timesheet management by offering an all-in-one integration with key systems like HR, Payroll, and Project Management.

Its customizable workflow allows businesses to align timesheet policies with specific needs such as shift structures and overtime rules. Companies can manage unlimited users without incurring extra costs, making it scalable for any workforce.

With automated time tracking, ScaleOcean captures work hours, calculates overtime, and generates reports without manual input. Real-time analytics provide valuable insights into employee attendance, task completion, and productivity trends, allowing businesses to make data-driven decisions.

It also ensures it grows with your business, making it an ideal solution for both small businesses and large enterprises in Singapore. If you’re looking to experience the benefits of ScaleOcean’s timesheet software, you can sign up for a free demo to explore how it can optimize your business operations.

Additionally, ScaleOcean is eligible for the CTC (Capability Transfer and Development) grant, which supports businesses in enhancing their digital capabilities. Below are the key features of ScaleOcean’s attendance software to optimize timesheet management, including:

1. Automatic Attendance Recording: Attendance recording with a real-time system, using either fingerprints, ID cards, or mobile devices.
2. Geofencing: Ensure attendance can only be taken at locations designated by the company or branch where the employee works.
3. Work Time Management: Enables flexible work hours and manages employee overtime with an automation feature that calculates overtime based on predetermined work hours.
4. Real-Time Timesheet: Provides managers with access to real-time employee attendance monitoring and provides analytical data on employee time usage, including average overtime hours, leave time, and absences.
5. Leave and Permit Management: Allows employees to digitally and automatically request leave or permits, with notifications to their superiors for approval. Integration with work calendars makes it easier for managers to monitor and organize employee work schedules.
6. Automatic Shift Scheduling: Enables automatic shift management based on employee needs and availability, supports efficient shift rotation, and ensures each shift is filled with the right employees.

With these features, ScaleOcean Attendance Software helps companies optimize employee timesheets and attendance management, improve operational efficiency, and ensure accurate attendance data for payroll calculations and company policy compliance.

Conclusion

Timesheets are essential tools for businesses to better manage time, productivity, and costs. The correct timesheet system can help industries streamline operations by tracking staff hours and boosting payroll accuracy, as well as supporting improved project management.

Whether you’re utilizing paper-based systems or looking to transition to software, implementing a dependable timesheet solution helps you establish a more accountable and efficient team.

ScaleOcean provides one of the top timesheet software systems in Singapore, ideal for businesses looking to automate time tracking, improve team visibility, and streamline payroll operations.

In addition to timesheets, ScaleOcean’s Attendance Software can support a variety of business services such as human resources, finance, and project management.

Are you ready to experience it firsthand? Schedule a free demo now to learn how ScaleOcean can revolutionize your team’s workflow. Our software provides complete visibility of your business processes from start to finish, helping you manage tasks seamlessly and accurately.