1. What is a timesheet?
2. What can I use a timesheet for?

3. Processing payroll

4. How to implement timesheets into a business

Weekly Timesheet For Working Hours Template

October 6, 2021Timesheets can be a divisive subject.Lots of freelancers, startups and businesses owners happily use timesheets for keeping track of client billing hours, managing project costs, estimating future forecasts and understanding the work demands on employees.On the other hand, many employees view timesheets with scepticism and concern, thinking that their employer's goal is to drive up efficiency by holding them to account for every minute of the day. The truth is that timesheets can have lots of advantages for anyone who uses them, but as we'll explore in more detail, it's important that everyone involved in the process is clear about why they are being used and what their purpose is. In this article, we'll explain what you can use a timesheet for and how to implement using them into your business. We've also designed a weekly timesheet template that you can download for free to help you get started.

What is a timesheet?

A timesheet is a method of recording the number of hours an individual or an employee has worked in a day or spent working on different projects or for specific clients. The ways of recording this information can vary from writing it down on a piece of paper, entering it in an excel spreadsheet or on Google sheets, or using online time tracking software.The first 'timesheet' was introduced in the 1880s as a way of keeping track of what time factory workers started and finished their shifts. Invented by William Bundy, the 'Bundy' clock would imprint a timestamp and date onto a piece of paper or card. It benefited both factory owners and workers alike, as each party now had proof of the number of hours that had been worked. Even though time cards or still widely in operation today, the way timesheets are used has evolved. It's not simply about being able to capture what time an employee clocks in and clocks out. Instead, timesheets can play a big role in making your business a success.

What can I use a timesheet for?

Agencies, businesses, contractors and freelancers can all benefit from using timesheets. The information that is recorded may change depending on your company or working situation, but it's easy to create or adapt a timesheet layout to suit your requirements.The template we have designed is a basic weekly timesheet that can be used by employers and employees to track the number of work hours in a set week, as well as the option to record time spent on specific projects or clients. If you need to add additional rows or columns to record comments, project or client codes or an employee's hourly rate, then feel free to customise your excel timesheet template. You can also alter the timesheet to record hours on a daily basis, monthly basis or biweekly basis too.Here are just a few of the ways you might want to use your timesheet.

Client billing

If you are a freelancer or contractor, the amount you get paid by a client will depend on the total number of hours you work for them. Given that time is money, you'll want to keep an accurate record of the total hours you spend each day on client work. But it's not just the number of hours you can record. You can also assign your time against different projects to create a quick summary of all the tasks you've worked on and the total for each of them per billing period. This is especially handy if you have several different clients that you are working on all at the same time. When the billing date rolls around you can simply tot the number of hours up or send your client a copy of the sheet along with your invoice. It's not just freelancers and contractors that have to bill clients, either. Many businesses work with multiple clients and some may have several ongoing projects or campaigns at any one time. By giving your employees a timesheet to complete, you can capture all of the time they spend on assignments as well as any overtime hours worked, making your job far easier when it comes to calculating the billable amounts due.A timesheet is also handy even if your client pays you a fixed amount to work a set number of hours every week or month. By tracking your time it ensures you aren't working additional hours for no financial reward.

Keeping track of work on different projects

For businesses that have lots of different team members working on several projects at once it can be very difficult to keep a handle on your spending (i.e. what the project is costing you vs whether you make a profit or loss when you sell it). Let's take a manufacturing company as an example. You might have a team of engineers who design a product, factory workers who build it, and then marketers, sales executives and admin staff who are responsible for selling it. By tracking the hours accumulated at all these different stages you can monitor progress, measure performance and efficiency, and identify areas that may need more resources in the future.

Processing payroll

If you are an employer, good payroll software can make your life so much easier. It can automate all of your payroll filings, submit information directly to HMRC and send you helpful reminders about upcoming deadlines.However, we understand that not everyone will want to use payroll software. If you are a small business or if you only have a couple of members of staff, you might not be able to stretch to the additional expense and instead manage the payroll process yourself.If you are going to manage your payroll manually, then it's vital that you have a robust system in place to accurately record the number of hours your employees work. Keeping track of when your employees clock in and clock out can ensure employees are paid fairly for any overtime hours. Failing to pay your staff on time or pay them the right amount can have huge ramifications for your business.As well as tracking employee hours, make sure you also capture sick leave or holiday leave. That way, when it comes to your payroll deadline you can easily access all of the information you need.

Forecasting future costs

When you start a new project, you can't be sure exactly how much time it is going to take you to complete it. You'll likely have a figure in mind but you'll only know when you've finished. Along the way, you might experience unforeseen blockers or delays, or find that specific tasks take a lot longer than you anticipated. The advantage of tracking your time is that it highlights all of these little problems and shows how long each step takes. Let's say you start a new business and you quote a client a flat fee for a job you think will take you 25 hours. When you tally up the hours that all of your departments have worked on it, you might find that it's actually taken 40 hours. Now, it's bound to be frustrating that you've missed out on 15 billable hours of work, but next time you quote a client for the same work you'll have a realistic timeframe of how long it is going to take, adjusting your pricing accordingly.If you carry out financial forecasts, you can also use information from tracking employee and project time to estimate future growth. If you want to take on new clients or increase your product range but are unsure of how many new employees you'll need to bring on board, you can add all of the relevant data to your forecast to find the answer.

How to implement timesheets into a business

If you are using timesheets just for your own records then you don't have to worry about this. You know exactly why you are using them and what information you want to track.However, if you are an employer and you want to introduce employee timesheets, then it's vital you give serious thought to how you introduce it. Be honest about what the timesheets are being used for; if the goal is to track time spent on project work so you can accurately bill your clients, then make sure your employees know. If you aren't transparent, it can actually have the opposite effect of what you want to achieve. Your employees could feel that you are simply keeping tabs on them and quickly become demotivated and less productive. If you make it clear that tracking their timekeeping skills is not your ultimate goal, then morale shouldn't be affected. In fact, timesheets can greatly benefit how your employee's work. Effective time management helps everyone to keep on schedule and work to project deadlines. They can also help your staff to identify specific areas that they might struggle with or tasks or projects that they excel at.

Rachel Cameron-PotterContent Marketer

Aaron Shaw

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