Timesheet management is the practice of analysing and monitoring the timesheets of your employees to calculate payroll or invoice clients based on the times recorded in the timesheets. There are many different kinds of timesheet software out there, and many different ways that you can calculate how you want to pay your employees.
There are many legal requirements that a business has to follow, that is why using timesheet software likely is the best way to go when thinking about timesheet management, however, using other methods to manage timesheets and do your payroll are still valid.
Here are a few things that timesheet management software can do for your business.
What can timesheet management do for your business?
A big part of what goes into calculating payroll is how much time did every employee put in. Using timesheet management software, we can very easily see when each employee clocked in, clocked out, went on breaks, etc.
There are some things that timesheet management software doesn’t pick up, and many of these kinds of software are easy to trick, but using a combination of looking at the timesheets and regularly checking in on your employees, you shouldn’t run into too many problems calculating payroll with timesheet management software.
If you just finished working on a massive project for one of your clients, you might not know exactly how much you should bill them. Obviously, you should be billing them for the materials used, but how much to bill for the labour of your employees?
Thanks to the help of timesheet management software, you should be able to see when and where employees were at any given date during the lifespan of the project. Using timesheet management, you can easily factor in the manhours that your employees put in and how much you should bill your client for.
Analyse the efficiency of your business
Throughout the day, your business will have both upper and lower peaks. Times of peak efficiency are times that everyone is busy, and your business is pulling in the most money while spending the least amount of money.
Using timesheet management, you can see what times you need all the employees on the clock and what times you don’t need as many employees.
Analysing the timesheets, and scheduling based off the efficiency of your business will increase the amount of profits that you receive and can make seeing areas of improvement very easy.
Depending on how long you have been in business, you might be able to predict some aspects of the future. For example, during some months you might not be spending that much on maintenance workers, but during other months you are spending lots on maintenance and your employees are getting stuff done slowly and you are potentially losing sales because of it.
Using timesheet management software and going over the data from previous years, you can see what times of year you need specific things and if you predict that there is likely going to be a problem in the future, you can get a good head start before the problem arises.
There are many different ways that you can use timesheet management software to your advantage. These tools are great for businesses of any size and you can learn a lot just by pouring through the data and pointing out things that you think your company is doing right, and finding areas of improvement within your company.
Whether you are the owner of a company, or just a higher up employee, learning about and using it to improve your business is a great skill to have.