Time sheet definition
/What is a Time Sheet?
A time sheet is used to record the work time spent by an employee. The sheet is set up in a matrix format, with each column assigned to a separate day. This format allows a person to write in the hours and minutes spent on various activities during each day. A sample time sheet appears in the following exhibit.
What are the Purposes of a Time Sheet?
There are numerous applications for time sheets, of which some of the more common ones are noted below:
Payroll processing. Time sheets track the hours employees work, including regular, overtime, and paid time off. This information ensures accurate and timely payroll processing by calculating wages based on actual hours worked.
Project management tracking. Time sheets help allocate employee hours to specific projects or tasks, making it easier to track labor costs. Managers can use this data to assess project profitability and ensure resources are used efficiently.
Compliance with labor laws. Maintaining accurate time sheets helps businesses comply with labor regulations, such as minimum wage laws and overtime rules. In case of audits or disputes, detailed time records provide essential documentation.
Performance evaluation. By analyzing time sheets, managers can assess employee productivity and efficiency. Understanding how long tasks take allows them to set realistic goals and identify areas for improvement or additional training.
Client billings. For businesses that bill clients based on time spent—like law firms, consultancies, or freelancers—time sheets provide a transparent and detailed record of billable hours. This practice ensures accurate invoicing and helps build trust with clients.
Resource planning. Time sheets offer insights into workload distribution and employee availability. Managers can use this information to allocate tasks more effectively, prevent burnout, and balance workloads across teams.
Cost control. By tracking time spent on various tasks or projects, businesses can identify cost overruns early. Time sheets help compare actual labor costs against budgeted amounts, allowing timely adjustments to stay on track financially.
Tracking time off and absenteeism. Time sheets record employee attendance, vacation, sick leave, and other absences. This information helps manage staffing levels, plan for coverage, and enforce company policies consistently.
Using time sheets for these purposes not only improves operational efficiency but also supports compliance, cost management, and employee accountability.
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The Difference Between a Time Sheet and a Time Card
A time sheet differs from a time card in that the time sheet is intended to allow more free-form data entry by the employee, while the time card is designed only to be stamped with the start and stop dates and times for work. Thus, a time card can only be used to calculate wages.