A professional timesheet is the primary tool for tracking employee work hours, but what exactly should it include? This guide from terra explains everything you need to know about using a timesheet template effectively. We’ll provide 10+ free downloadable Excel templates to help you manage attendance, track projects, and ensure payroll accuracy.
What is a timesheet?
A timesheet is a formal record used to track and log the amount of time an employee spends working. At its core, it documents the start and end times of work periods, as well as any breaks taken. It is the primary source of data for a company’s payroll system, ensuring that employees are paid accurately for the hours they have worked.
In most countries, labor laws require businesses to maintain precise records of employee work hours. This includes tracking regular time, overtime, and leave. Therefore, a timesheet is not just an administrative tool but a critical compliance document that protects both the employer from legal disputes and the employee from being underpaid.
Key components of a timesheet
To be effective for payroll and compliance, a timesheet must be more than just a simple log. A professional template needs to include several key sections to capture all necessary data accurately.
- Employee information: This section serves as the header and clearly identifies who the timesheet belongs to. It must include the employee’s full name, employee ID number, and their department or manager. This basic information is crucial to prevent mix-ups and ensure the hours are credited to the correct person.
- Working hours and shifts: This is the main body of the timesheet. It should feature a clear grid or rows for each day of the pay period. For each day, there must be columns to log the Start Time (clock-in) and End Time (clock-out), which are then used to calculate the “Total Hours” worked for that day.
- Overtime and breaks: A compliant timesheet template must legally separate different types of hours. It needs dedicated columns to record non-billable time like Breaks (e.g., lunch) and, crucially, Overtime hours. Tracking overtime separately is essential because this time is often paid at a different, higher rate than standard hours.
- Project or task allocation: This component is vital for businesses that manage multiple projects or clients, such as agencies or consulting firms. It allows an employee to log how their hours were spent by assigning them to specific project codes, tasks, or clients. This data is invaluable for job costing, client billing, and productivity analysis.
- Approval and submission section: A timesheet is not considered valid until it is verified. This final section must include signature lines for both the employee and their direct manager or supervisor. This approval step is a critical internal control to prevent errors and time theft.
Types of timesheets
Businesses can choose from two main methods of time tracking. The method you choose depends on your company size, work environment (office vs. remote), and your need for automation.
Manual timesheets (paper or excel-based)
This traditional method involves employees manually filling out a paper form or a digital spreadsheet like Excel or Google Sheets. This timesheet template is then submitted to a manager for manual review and approval. While simple, it places the full burden of accuracy and honesty on the employee.
- Pros: This method is flexible, requires no financial investment, and needs no technical training.
- Cons: It is extremely time-consuming for HR to manually collect and re-enter this data into the payroll system. It is also highly prone to human error, such as calculation mistakes, incorrect entries, or forgotten hours.
Digital timesheets (software-based)
This modern approach uses specialized time-tracking software where data is captured automatically. This can be through a physical clock-in/out device, a web browser, or a mobile app with GPS tracking. The data is logged centrally and in real-time.
- Pros: Digital timesheets are highly accurate and eliminate manual data entry. They integrate directly with HR and payroll software, automatically calculating overtime and leave, which saves significant time and reduces errors.
- Cons: This method requires a financial investment in software subscription fees. It also requires a setup and implementation period to configure the rules and train employees on how to use the new system.
Functions of a timesheet
A timesheet serves multiple critical functions beyond just recording time. It is a strategic tool that impacts finance, operations, and legal compliance across the entire organization.
- Track employee working hours and attendance: This is the primary function. A timesheet provides a detailed, factual record of employee punctuality, attendance, and total hours worked, which forms the basis for calculating their wages.
- Record overtime, breaks, and leave for accurate payroll calculation: It separates different pay categories, ensuring that overtime is correctly calculated at its premium rate and that leave (like sick days or vacation) is properly deducted, leading to a precise salary slip.
- Allocate time to projects or tasks for performance analysis: By logging time against specific tasks, managers can analyze project profitability and internal labor costs. This data is critical for benchmarking your team’s efficiency and spending against industry standards, like the average salary in Vietnam for specific tech or creative roles.
- Support labor management compliance and billing: For agencies or freelancers, a detailed timesheet is the auditable proof required for accurate client billing. For all businesses, it serves as a critical legal document to prove compliance with labor laws regarding minimum wage and overtime pay.
11 timesheet templates for businesses
We have compiled 11 professional Excel templates to fit various business needs. Download them for free and adapt them for your company.
Daily timesheet template
This template’s key characteristic is its high level of detail, breaking a single day into multiple task entries, projects, and breaks. Its main advantage is providing granular data for meticulous productivity analysis or client billing. It is perfect for freelancers, consultants, and legal professionals who must account for every minute of their day.
[Download the Daily Timesheet Template Here]
Weekly timesheet template
This is the most common format, designed to provide a clear, one-page summary of an employee’s entire work week. Its advantage is the perfect balance between sufficient detail (daily in/out times) and simplicity for review. It is ideal for most small businesses and office staff with standard Monday-to-Friday schedules.
[Download the Weekly Timesheet Template Here]
Monthly timesheet template
This template provides a high-level, calendar-style view of the entire pay period on a single sheet. Its primary advantage is simplicity, as it’s designed to track attendance (e.g., days worked, sick days, vacation) rather than precise daily hours. It is best suited for salaried (exempt) employees where payroll isn’t calculated hourly.
[Download the Monthly Timesheet Template Here]
Project timesheet template
This timesheet is built around tasks, not just clock-in/out times. Its main feature allows employees to log their hours against multiple different projects or task codes each day. This is essential for job costing and client billing, making it a non-negotiable tool for agencies, development teams, and service firms.
[Download the Project Timesheet Template Here]
Employee timesheet template
This template is structured to cover a 14-day pay period, aligning perfectly with a bi-weekly payroll run. Its main characteristic is capturing two full weeks of data on one consolidated sheet. This is the standard format for businesses in the US and other regions that pay their employees every two weeks.
[Download the Bi-Weekly Timesheet Template Here]
Overtime timesheet template
This specialized template’s key feature is its clear separation of regular hours from overtime hours. It includes dedicated columns for different OT rates (e.g., 1.5x, 2.0x), providing an essential audit trail. This is a compliance must-have for all non-exempt (hourly) employees who are eligible for overtime pay.
[Download the Overtime Timesheet Template Here]
Remote work timesheet template
This template is built on trust and accountability for off-site employees. Its main characteristic is a “tasks completed” summary section alongside self-reported start/end times. This advantage allows managers to focus on output and deliverables, not just logged hours, making it ideal for hybrid or fully remote teams.
[Download the Remote Work Timesheet Template Here]
Task-based timesheet template
This template’s characteristic is its focus on productivity over attendance. Employees log time against a specific list of tasks (e.g., “Team Meeting,” “Client Call,” “Design Work”). Its advantage is showing managers exactly where time is being spent, which is perfect for identifying bottlenecks or optimizing workflows for creative and tech teams.
[Download the Task-based Timesheet Template Here]
Billable hours timesheet template
This is the standard for any service-based business that bills clients hourly, such as law firms, consultants, and marketing agencies. It clearly separates “billable” hours (charged to a client) from “non-billable” hours (internal admin), making the client invoicing process simple, transparent, and accurate.
[Download the Billable Hours Template Here]
Team timesheet template
This is a master sheet designed specifically for managers. Its main feature allows a supervisor to see the weekly hour totals for their entire team on a single spreadsheet. This provides a quick, consolidated overview, making the weekly approval process and labor cost tracking significantly faster.
[Download the Team Timesheet Template Here]
Shift schedule timesheet template
Designed for businesses that don’t follow a 9-to-5 schedule, like restaurants, retail stores, or manufacturing plants. This template’s key feature is a column for “Shift Code” (e.g., Morning, Night). This ensures employees working unsociable hours are paid the correct shift differentials.
[Download the Shift Schedule Template Here]
How to create and manage a timesheet
Using a timesheet template is only half the battle. A successful process requires clear rules, consistent collection, and thorough verification to ensure data is accurate before it hits payroll.
Step 1: Define pay period and work rules
First, establish clear policies for everyone. Define your pay period (e.g., weekly, monthly), your rules for breaks (paid or unpaid), and your overtime calculation policy. These rules must be communicated clearly to all employees before they start tracking time.
Step 2: Collect employee time data
Implement a firm deadline for timesheet submission (e.g., End of day Friday). Whether you use a shared drive, an email inbox, or a software portal, the collection method must be consistent. Inconsistent collection is the number one cause of payroll delays.
Step 3: Review and verify entries
This is the manager’s responsibility. Before approving, managers must review each timesheet for completeness and obvious errors. They should cross-reference the hours with employee schedules and project milestones to verify accuracy.
Step 4: Approve and integrate with payroll
Once verified, the manager provides a final approval. This approved data is then sent to the HR or finance department. This is the final, critical handoff where the hours are entered into the payroll software to generate employee pay.
Comparing timesheet tools in 2025
The choice between a simple file and a dedicated software system is a major decision for a growing business. Let’s break down the practical differences to help you identify the right solution for your specific needs.
H3: Excel vs. cloud-based timesheets
This is the most fundamental choice: a free, manual tool versus a paid, automated system. Each has significant trade-offs in terms of cost, accuracy, and the time required from your HR team.
Excel / Google Sheets
- Pros:
- This method is completely free, infinitely flexible, and requires no new training.
- It’s a perfectly acceptable starting point for a startup or a team of 1-10 people.
- Cons:
- It is entirely manual and highly prone to human error in both data entry and formula calculations.
- It’s also a major time drain for HR, who must manually chase, collect, verify, and re-type all this data into the payroll system.
Cloud-Based Software
- Pros:
- The core benefit is accuracy and integration.
- A platform captures time, applies rules, and syncs data to payroll automatically, eliminating errors and saving dozens of hours.
- Cons:
- This method has a monthly subscription cost and requires a one-time setup.
- Your team must also follow a standardized process, which offers less flexibility than a blank Excel file.
H3: Mobile apps vs. web platforms
This is not an either/or choice; rather, these are two components of a single modern cloud solution. A good system must offer both to serve different types of users within your company.
Mobile apps
- Purpose:
- Designed for employees to input data quickly and conveniently.
- This is essential for your field staff, remote workers, or on-site teams (e.g., in sales, construction, or retail).
- Key Features:
- The focus is on ease of use.
- This includes GPS-enabled clock-in/out, submitting leave requests, checking shift schedules, and snapping photos of receipts.
Web platforms
- Purpose:
- This is the command center for managers and the HR department.
- It’s designed for oversight, configuration, analysis, and processing.
- Key Features:
- This is where you configure complex work rules, set up shift schedules, review and approve batches of timesheet entries, and run detailed reports on labor costs, overtime trends, and compliance.
Features to look for in a timesheet tool
When you are ready to upgrade from the limitations of Excel, it’s crucial to select a tool with the right capabilities. Don’t just look for a digital version of your spreadsheet; look for a true solution.
- Seamless Payroll Integration: The tool must not just collect time; it must automate calculations for overtime and leave based on your specific rules. It must integrate directly with your payroll module. This eliminates the need for manual data export/import, which is the biggest source of payroll errors.
- Multi-Channel Accessibility: Your workforce is diverse. A tool that only works on a PC is useless for your field staff or remote teams. The platform must serve all employees, offering a reliable mobile app (with features like GPS clock-in) for field/remote staff, as well as a simple web portal for in-office employees.
- Real-Time Reporting for Managers: The tool must provide instant dashboards. Managers need the ability to see-today-who is approaching overtime or what the real-time labor cost is for their project, not wait for an Excel report.
Benefits of timesheet automation
Moving from a manual Excel timesheet to an automated software solution provides a massive return on investment by fixing the fundamental flaws in the manual process.
Reduced errors and manual effort
Automation eliminates the need for HR to manually re-type data from spreadsheets into the payroll system. This single change drastically reduces the risk of human error in calculations, saving time and preventing costly mistakes that require payroll corrections.
Better payroll accuracy
A software-based system automatically enforces your company’s rules. It correctly applies complex overtime rates (e.g., 150% on weekends, 200% on holidays) and accurately deducts unpaid breaks, ensuring every paycheck is 100% correct based on your policies.
Real-time insights for management
Instead of waiting until the end of the month, managers can access real-time dashboards. They can instantly see who is approaching overtime, what the labor cost for a specific project is, or analyze attendance trends, allowing them to make proactive decisions.
Improved employee accountability
A digital timesheet system creates a single source of truth that is transparent for both managers and employees. When employees can log in and see their own approved hours, it reduces pay disputes and builds a culture of trust and accountability.
Frequently asked questions (FAQs) about timesheets
Here are answers to some of the most common questions managers and HR professionals have about the purpose and practice of using a timesheet.
What’s the difference between a timesheet and attendance record?
Answer: A timesheet is the detailed input, while an attendance record is the summary.
Timesheet: The detailed record of actual activity, capturing precise clock-in/out times (e.g., 8:57 AM – 5:03 PM).
Attendance Record: The payroll summary, which converts the timesheet data into finalized totals (e.g., 8 regular hours, 1 day sick leave).
Are timesheets mandatory for all employees?
Answer: It depends on the employee type and local laws.
Timesheets are almost always mandatory for non-exempt or hourly employees to calculate overtime pay accurately. While often optional for salaried employees, many companies still use them to track time against projects for billing and cost analysis.
How long should timesheets be kept?
Answer: Typically for a minimum of 10 years, depending on your location.
According to the Law on Accounting 2015 in Vietnam, accounting records and documents directly related to salaries and wages (including timesheets summarized into payroll) must be retained for a minimum of 10 years. These records serve as a legal basis for enterprises during tax inspections, social insurance audits, or labor disputes.
Can timesheets be used for performance evaluation?
Answer: Yes, as a supplementary data point.
A timesheet can provide data on an employee’s punctuality, adherence to working hours, and frequency of time-off requests, all of which reflect discipline and commitment. If using project-based timesheets, it can also help assess efficiency in allocating time to specific tasks. However, it only measures the quantity of time, not the quality or impact of their work output.
How does a digital timesheet improve payroll accuracy?
Answer: By eliminating manual data entry and automating rule calculations.
The system automatically calculates total hours, applies correct overtime multipliers, and deducts unpaid breaks according to your set policies. This removes the risk of human error from complex Excel formulas or manual calculation.
What is the best format for a timesheet: Excel, Google Sheet, or software?
Answer: It scales with your company size.
Excel is fine for 1-10 employees. Google Sheets is better for collaboration. Once you have more than 20 employees, a dedicated HR recruitment software or HRIS with time tracking is the only way to manage the complexity accurately.
terra HR management system – Simplifying time tracking, attendance, and payroll
Managing timesheet files manually is a major pain point, leading to data entry errors and compliance risks. The terra HR Management System is a comprehensive terra HR Solution designed to solve this by automating the entire time tracking and payroll workflow, starting with a powerful and flexible attendance capture module.
The terra HR Software moves beyond a one-size-fits-all approach. The Attendance Management module is built to handle every work environment, from a fixed office to a remote construction site.
- WiFi-Based Attendance: Employees check in simply by connecting their mobile device to the company’s internal WiFi network. The system auto-detects their presence, reduces time fraud, and requires no additional hardware.
- GPS-Based Attendance: Perfect for construction, technical, or field service teams, this method uses GPS positioning to track attendance at specific off-site locations.
- Camera Attendance: The system automatically records attendance when employees walk past designated cameras, which minimizes fraud and eliminates time-consuming queues at the start of a shift.
- Flexible Attendance: This option allows employees to check in from anywhere with just an internet connection, providing an optimal solution for non-fixed working environments.
All this diverse data flows seamlessly into one unified terra HR Platform. The system then automatically processes this data, applies complex payroll rules, calculates overtime, and prepares an accurate salary slip, ensuring your timesheet data is managed perfectly.
Contact terra now for detailed advice!
Conclusion
Ultimately, a timesheet is the foundational document for ensuring your team is paid fairly and your business is protected. While a good timesheet template is a great starting point, the true value lies in a consistent process.
