Reason 1: Timesheets track project costs
Business owners and project managers need to keep track of how much they’re spending on each project. This helps them ensure that they’re seeing a return on investment (ROI). It also helps them fairly invoice clients, distribute workload, and assign subtasks.
Reason 2: Timesheets help payroll
The fun part about timesheets is how they turn into money ?? Your company’s accountant will use timesheets to figure out how much to pay each employee.
Of course, paper timesheets are less user-friendly, and almost always will require a little guesswork from the employees filling them out. You can combat this by using time tracking software that easily integrates with payroll platforms — more on this later.
Reason 3: Timesheets help measure performance
Does your employee want to get a raise? Their timesheet offers an objective measurement of workplace performance. That’s because high-performing employees are significantly more productive than their low-performing counterparts — as much as 800% more productive, according to recent research.
Of course, when deciding whether to give a pay raise you’ll want to take into account factors other than hours worked. That said? Timesheets can still be helpful when looking at the big picture of worker performance.
Reason 4: Timesheets create accurate billing
Depending on where you work, timesheets may be used to create client invoices. In this scenario, it’s especially useful when timesheets are used in conjunction with project planning software. For example, the ability to break down costs based on specific projects or even tasks within that project can let clients know where their budget is going.
Reason 5: Timesheets save money
Because timesheets are so useful for budgeting, implementing timesheets can help save money over time. When collecting timesheets, you’ll see the big picture of how your workers spend their time. This will help them plan future projects and staff responsibilities in a way that maximizes profits.
Reason 6: It’s required by law
The U.S. Department of Labor Wages and Fair Labor Standards Act legally requires employers to keep certain records. That includes daily hours worked, total hours worked per workweek, pay rate, and total wages paid. Timesheets are one way to maintain records in order to be compliant with the law.