Why Timesheet Compliance Is Important For Businesses

Timesheet Compliance - Wojo
Timesheet Compliance - Wojo

Timesheet compliance sounds serious and boring. But no matter how tedious it can be for employees to account for every minute of their working day, filling out a timesheet is an important responsibility that impacts the team and the whole business. The process of time tracking has progressed over the years as technology develops. Time cards and spreadsheets have been replaced by timesheet apps and software that made it more convenient for employees to track their time and for companies to collect accurate data. 

Let’s break down why timesheet compliance is beneficial for SMEs and large businesses. But first, let’s define what a timesheet is and a quick history of its development. 

What is a timesheet? 

Known as time books in the 19th century, a timesheet is an essential virtual or physical tool for recording and keeping track of an employee’s hours spent at work. Before the emergence of digital technology, time tracking was done on paper cards, called time cards, that workers will “punch in” or “punch out” through an automatic timestamp machine. 

Willard and Harlow Bundy, two brothers from New York, founded the world’s first time-recording company, The Bundy Manufacturing Company in 1889. They invented and patented a mechanical time clock that allows employees to stamp their time of entry and exit on their time cards. 

When computers were finally invented, automated time tracking systems were developed. It provided advanced solutions and efficiency to time keeping, asset tracking, project billing and other employee management functions. From paper-based systems, spreadsheet software dominated every office time tracking system. Today, most online timesheet apps offer integrated and complete timesheet solutions.

Timesheet Applications

Here are some of the different applications for timesheets that can be utilised by SMEs, large organisations, and freelancers: 

Task Management

Managers and employees can learn insights on productivity— which areas in the workflow are effective and which ones need improvement. 

Project Cost Accounting

Estimating costs of future projects will be more accurate and reliable.

Payroll Processing 

The main purpose of a timesheet is to record employee work hours, leaves and adjustments for employers to track and process their payroll. According to recent statistics on using timesheets or time-tracking tools in businesses, integrated timekeeping and payroll solutions have 44% fewer errors and can exceed revenue targets by 7%.

The Impact of Timesheet Compliance 

Timesheets are a powerful tool for companies to understand and measure the performance of the whole organisation. Here are some of the great benefits of using a timesheet:

  • Transparency

    Timesheet compliance puts everyone on the same page with the work process – what jobs are still in progress or have already been completed. Employers and managers are able to provide insights on which projects should be prioritised. Employees, on the other hand, are able to see the bigger picture and learn what others are doing for the completion of the project.  

  • Accountability

    Timesheet compliance reinforces accountability. Employees are able to learn about their habits, patterns and trends in their productivity. They’re able to adjust their daily goals and workflow to minimise non-billable work.

  • Measure unproductive time

    Unproductive time includes personal time off, training, administration tasks, or any time that isn’t focused on creating value. 0% unproductive time is unrealistic but measuring it helps the company to analyse the numbers that affect productivity and make adjustments for improvement.

  • Understanding employee workload

    Timesheets are a way to understand how much work are employees putting into a certain task. This is not to put pressure on them but as a way to balance their workload. Should managers transfer the tasks to more available employees? Should the company hire additional staff? This is a solution that will greatly benefit employees.

  • Improve operational and billing efficiency

    Timesheets provide business owners with accurate information on billable hours– how much time is spent on a client’s project? It also gives insights into the productivity levels of each employee who is involved in the project. 


Wojo empowers businesses with an innovative and all-in-one management system to help transform business operations. With our simple yet powerful and user-friendly ecosystem, Wojo will help increase your business’s productivity and profit with solutions that save time and costs. 

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