Love them or loathe them, timesheets are an essential business tool that have been around for centuries, enabling workers to account for their time and earn a fair wage. With the first record of timesheets being used dating back to multiple centuries ago, timesheets have evolved significantly in modern times, but the basic principles remain the same.
From Ancient Wages to Modern Times
The first timesheets recorded in history are found in the Code of Hammurabi, a Babylonian treatise set in 1722 BC. This code established the typical worker’s daily wages. After the development of the time clock by Willard Burdy in the 1880s, the daily wage was replaced by the hourly wage. This allowed for a more accurate record of an employee’s time, particularly during the Industrial Revolution when factory work was in high demand.
Nowadays, this method is still widely used by businesses and self-employed individuals across the globe. This has led to the concept of the Billable Hour, which, along with non-billable hours, make up the bulk of every project. Workers across every profession can track tasks using timesheets, to gain a better understanding of the billable and non-billable time that it takes to complete individual tasks and full projects.
How Timesheets Work
The main purpose of a timesheet is to keep a record of hours worked by employees within a company. In the past, timesheets were paper-based and served as a basis for Human Resources when processing payroll. Nowadays, many companies opt for digital timesheet software to improve efficiency and accuracy. Digital timesheet tools can go beyond simply tracking hours worked, to include different analytical and reporting features.
In both traditional and digital timesheets, employees are asked to fill in details such as start times, end times, project names, client names and dates. With digital timesheets, this data can then be translated into detailed dashboards and reports that provide a summary of how time is being spent across your business.
Are Timesheets Still Necessary?
While many people may argue that paper timesheets are outdated, switching to digital timesheets can present organisations with useful insights into their business functions.
Sophisticated timesheet software can help businesses streamline their work by accurately tracking their time, and understanding where time is being spent, which projects are taking up the most time and which clients would benefit from more attention.
As a result, businesses can get a better understanding of their employees’ work processes, and adjust their tasks to optimise their workflow.
Moreover, timesheets are still relevant as they help businesses bill more accurately. Modern timesheet tools can generate bills based on the hours spent on a specific client or project, which can act as ‘proof’ when issuing invoices.
Lastly, timesheets enable businesses to create better forecasts for future projects. The more time is tracked, the more accurate estimates can be created. This can help businesses plan their time, resources and costs to prevent projects from running over budget.
Choosing the Right Timesheet Software for Your Business
Timesheets remain the most useful way of recording working time and data, and modern timesheet tools have brought about several innovative functions that have proven valuable for businesses.
With several timesheet tools to choose from, opting for a user-friendly online platform can help streamline the process and save employees time when compared to using more complex tools. It’s important to remember that not all timesheet software is equal; some may be better suited for larger corporations while others are most useful to individuals or small businesses.
If you’re a small or medium-sized business, hidma’s timesheet tool provides all the functionalities you need to effectively manage your time and data. From easy-to-use timesheets to detailed dashboards, one-click reporting and invoicing, hidma provides everything required to track time, bill clients, and understand your teams’ workflows.
Get in touch for a free two-month trial for your team today!
