What is a Timesheet? A Business Owner's Guide to Painless Payroll

Your team is expanding rapidly. But are you staying on top of time tracking to match its growth pace? Some employees clock in through your time tracking software, others send screenshots of their hours, and a few still email rough estimates. Meanwhile, your payroll deadline approaches, and you're piecing together a puzzle of work hours. How can you keep track of it all? Timesheets. Keep reading to learn exactly what they are and how tech can simplify payroll, track work hours, and save your business money.

What is a Timesheet?

A timesheet is a digital or physical log that tracks when people start work, take breaks, and end their day. Modern timesheets do more than count hours. They help you manage projects, plan resources, and accurately pay all parties involved. Here's what a typical timesheet includes:

• Clock-in and clock-out times

• Break periods

• Project or task codes

• Overtime hours

• Paid time off

• Approval signatures

Your timesheet software should match how your team works. Different businesses need different types of timesheets. If you run a cozy café or a bustling restaurant, Justworks' HR and payroll solutions can help simplify administrative tasks. Are you a growing consulting firm? Your team might need detailed project time tracking. However, across the board, timesheets always include:

• Daily logs for shift workers

• Weekly summaries for salaried staff

• Project-based tracking for contractors

• Biweekly records that match pay periods

Pro tip: Look for time tracking software that syncs with your payroll system. When your time tracking software automatically shares data with payroll, you eliminate double entry and reduce errors.

Paper vs. Digital Timesheets: Understanding the Differences

The time tracking method you choose shapes your workday. Here's what you need to know about each option:

1. Paper Timesheets: Old School has Limitations

Some small teams still use paper timesheets. Employees record their hours, managers sign the sheets, and payroll performs the calculations. Straightforward? Yes. Savvy? Not quite. Paper timesheets may result in:

• Hours spent adding up time cards.

• Filing cabinets stuffed with old records.

• Zero backup when papers vanish.

2. Spreadsheet Templates: Excel Isn't Excellent

Excel templates may seem like a potential middle ground. They beat paper, and formulas handle the math. But ask anyone who's dealt with "TimeSheet_Final_v3_REAL_Final.xlsx" how that's working out. Spreadsheets can lead to major headaches, especially when: 

• Files get corrupted or overwritten.

• Anyone can change any number.

• Formula errors hide until payday.

• Copy-paste mistakes multiply.

3. Digital Time Tracking: Apps That Actually Help

Modern time tracking apps turn your phone into a time clock and your computer into a command center. Employees tap to clock in, managers view hours in real time, and payroll receives precisely what it needs. What makes digital different?

• Clock in with your phone (no more paper cards).

• Catch overtime before it happens.

• Track time by project or client.

• Handle Paid Time Off (PTO) requests instantly.

• Connect directly to payroll.

• Keep records safe and searchable.

Justworks' Time Tracking empowers your team to effortlessly and reliably track time whether they work remotely or clock in onsite. It maintains accurate records across your entire team. When connected to a comprehensive HR platform, your time tracking data flows seamlessly into payroll, ensuring everything remains accurate without additional effort.

How Time Tracking Helps Your Bottom Line

Small business owners often wonder if investing in effective time tracking software is worthwhile. The short answer is yes. Here's how:

1. Payroll Accuracy You Can Count On

Manual time tracking leads to costly mistakes. Whether it's forgotten overtime hours or mistyped numbers, each error affects your team's paychecks and your bottom line. Timesheets integrated with powerful HR tools and software reduce these errors while saving your HR team hours of double-checking.

The right time tracking system also saves money by preventing time theft (when employees are paid for hours they haven't worked), ensuring accurate payments, and helping managers detect workflow issues before they become significant problems.

2. Under Control Project Costs

Ever wondered why specific projects eat up more budget than expected? Detailed timesheets clearly show where hours are allocated. You can identify which tasks take longer than planned and adjust future project estimates accordingly. This insight enables you to price services more accurately and maintain profitable projects.

3. Smart Resource Planning

Time tracking data reveals the following patterns in your workflow:

• Which days are busiest?

• When do you need extra staff?

• How long do specific tasks take?

• Which projects or clients require the most resources?

• When does your team experience peak productivity, and when do they hit low points?

Use these insights to schedule tasks more effectively and maintain a balanced workload for your team. For example, your timesheet data might reveal that customer service requests spike every Monday morning, but your current schedule has minimal coverage during those hours. These insights let you adjust schedules, redistribute work, and keep your team running smoothly.

Get Your Time Tracking Right With Justworks

Accurate time tracking does more than count hours—it protects your business, keeps your team happy, and helps you make informed decisions. When time is logged accurately and managers detect issues early, you prevent payroll mistakes, missed overtime, and compliance risks. No more hunting down missing timesheets, fixing data entry errors, or wondering if your labor costs are accurate.

Are you working with a partner who handles payroll for small businesses? Justworks time tracking software can make all the difference. Get the accuracy you need without the administrative burden you don't. Get started with Justworks today and give your team the tools they deserve.