What is timesheet automation?
Timesheet automation uses digital software to automatically track how an employee is spending their time.
Timesheets have long been a critical part of business. They provide an insight into how much work an employee has done and where they spend the majority of their time.
In the past, office employees had to manually enter the hours they worked and what they worked on — a clunky, paper-based process that required excessive data entry for payroll.
Today, timesheet automation software can simplify and expedite that process.
The challenges of manual timesheet tracking
Difficulty tracking employee overtime or other labour regulations
While traditional (manual) timesheets allow employees to track everything from hours they worked and overtime to tasks they completed, they’re limited in how they bring that information together.
Managers have to manually check over each timesheet, which can make it difficult to identify when employees have gone over their allowed overtime or taken too much leave.
Download our FREE Timesheet template here
Manual data entry errors
Traditional timesheets rely on people entering the correct information. If a payroll officer is tired or reviewing their 17th timesheet of the day, there’s a good chance they’re going to make an error if they are manually inputting that information into their payroll system.
Slow processing times
Manually entering, processing and tracking data in a traditional timesheet is inefficient and monotonous. Automation can alleviate the monotony for those running payroll.
The benefits of timesheet automation
Better manage resources
In companies that track time on individual tasks, timesheet automation can help you quickly identify tasks and projects that are consuming too many resources. That information may prompt a discussion about “scope creep” or reveal inefficiencies in your workflows.
Stay compliant
Timesheet tools are dynamic, automatically reflecting changes in labour and wage-related laws and workplace regulations so you can remain compliant at all times. For example, when integrated with payroll software, timesheet tools can calculate correct wages based on hours worked and Award or Enterprise Bargaining Agreement rates.
Generate reports
Most timesheet automation tools produce detailed reports that highlight the status of projects, indicate which tasks take the most time and flag potential areas for improvement. This feature gives you a transparent overview of where your team is most productive so you can make strategic decisions moving forward.
Improve accuracy
Traditional timesheets ask employees to record their tasks and hours at the end of the day when their recall may not be at its best. This approach leaves room for error or, in some cases, the total exclusion of minor, easily-forgettable activities.
Timesheet automation tracks specific tasks in real time to improve accuracy. You’ll then be able to get a detailed breakdown of completed tasks so you can spot patterns and problems at a glance.
Eliminate manual billing
Traditional billing methods require managers to bring together data from disparate systems. There might be a timesheet in Excel, a separate invoicing system and a payroll system. Automated timesheets manage this data centrally and automatically populate invoices with the right information.
Timesheet automation: 5 tips to get started
1. Research different software providers
Start by determining what key data you want to track and log, then research tools that make this possible. Check the list of features, read case studies, watch demos and speak to sales representatives to find a timesheet automation tool that’s the right fit for you.
2. Consider employee needs
While manual timesheets are time-consuming and error-prone, they’re also familiar. Employees know how they work and what they need to do. If you plan on implementing timesheet automation software, you might encounter some resistance. Be prepared to offer support and explain how a new process will guarantee accurate, timely pay and reduce administrative tasks for employees.
3. Train your staff
Transitioning to paperless timesheets can save time and improve productivity levels, but only if your staff know what they’re doing. Involve employees as early as possible in the process so they know what to expect and provide ample training for them so they know how to use the tool properly.
4. Monitor employee time
Accurate time tracking provides a detailed insight into employee performance. You’ll be able to identify people that need more time to complete tasks so you can provide increased support during more complex projects. Schedule regular analyses so you can identify problems as they arise — or, even better, before they arise.
5. Evaluate your software
Once you’ve set up your timesheet automation software, evaluate its impact on your business.
Test whether it’s achieving what you want it to and where it’s saving you time and money.
Setting aside time like this to regularly evaluate the software will enable you to make any changes required to ensure it meets your business’ needs.
Download our FREE Timesheet template here
Timesheet automation with MYOB
MYOB is a business management platform that brings together software capability across the 6 core workflows that any business may require – customers, employees, projects, suppliers, finance, accounting and tax. This means you can track employee time, invoice for it (if required), and manage payday with ease.
Cloud-based, with MYOB you only pay for what you need, but can add on additional software functionality across and within those 6 workflows as your business grows and your needs evolve.
Compare MYOB plans and features and get started today!
At MYOB, we have you covered.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.