What are timesheets and why you should use them in your business?

Learn how they enhance productivity, track employee hours, and streamline project management effectively

First published on Thursday, June 4, 2020

Last updated on Thursday, October 24, 2024

As an employer, you’re likely juggling multiple tasks, from managing projects to making sure your team stays productive. Timesheets may seem like a minor administrative detail, but they play a crucial role in keeping your business running smoothly.

More than just a tool to track hours, timesheets help you maintain compliance with employment standards, monitor productivity, and manage costs effectively. Here’s a closer look at why timesheets matter to your business.

What is a timesheet?

At its core, a timesheet is a system for tracking employee hours. Whether your team works on-site, remotely, or a mix of both, timesheets provide an accurate record of when employees start and finish their workday, including breaks.

They can be particularly useful for tracking project-specific tasks or monitoring time spent on different types of work.

While the old-school version of a timesheet was a physical document where you’d write down hours worked, most companies now use digital timesheets. These are often integrated into HR software with time-tracking, making it easy to log employee hours with a few clicks—no paperwork required.

This not only streamlines the process but also reduces the risk of human error.

How do timesheets benefit employers?

While timesheets help employees keep track of their hours, they offer even more benefits for employers.

Here’s why they’re worth your attention:

Accurate payroll

Timesheets ensure employees are paid correctly for the hours worked, including overtime.

  • For hourly workers, it’s a way to ensure that no time goes unpaid or unnoticed.

  • For salaried staff, timesheets can track additional hours worked or ensure compliance with vacation, overtime and leave policies.

Project management

If your business involves client-based work or multiple projects, timesheets give you a clear picture of how much time is being spent on each task. This data helps with budgeting, invoicing, and forecasting future project timelines.

Productivity insights

Timesheets allow you to monitor where your team’s time is going. Are there bottlenecks in certain processes? Are some tasks taking longer than expected? Timesheet data can highlight areas for improvement, leading to better time management and increased efficiency.

Employment law compliance

In Canada, employers must comply with various employment standards, including those related to overtime, statutory holidays, and rest periods. Timesheets provide a clear record of hours worked, helping you avoid potential legal issues and ensuring that your employees’ rights are protected.

For a breakdown of your obligations regarding working hours in Canada, see our guide to employee work hours.

Cost control

By tracking hours on specific tasks or projects, you can better understand the true cost of labour. This is especially useful when bidding on new projects or determining the profitability of current ones.

Different types of timesheets for employers

Depending on your industry and business needs, you may encounter different types of timesheets:

Hourly timesheets

These are the most common and track the exact hours worked each day. They’re particularly useful in industries like retail, hospitality, or manufacturing, where employees are paid based on their hours.

Project-based timesheets

Ideal for industries such as consulting, construction, or design, these timesheets allow you to track how much time employees spend on specific projects or tasks. This is essential for managing costs and billing clients.

Weekly or bi-weekly timesheets

For businesses that collect hours on a weekly or bi-weekly basis, this format simplifies payroll and gives you an overview of team productivity over longer periods.

Tips for implementing effective timesheet systems

Integrating timesheets into your business doesn’t have to be complicated. Here are a few tips to ensure the process runs smoothly:

Choose the right software

Invest in HR software that integrates with time-tracking and timesheets. This will make it easier to:

  • Track hours

  • Avoid mistakes

  • Generate reports

  • Improve compliance

  • Enhance employee experience

Encourage daily updates

Encourage employees to fill out their timesheets daily to ensure accuracy. Logging time at the end of the week often leads to missed hours or mistakes.

Get more tips for tracking your employees’ working hours.

Be transparent

Let your employees know why timesheets are important, and how they help both them and the business. When they understand the purpose behind tracking their time, they’re more likely to stay engaged in the process.

Learn more tips for addressing employee objections to time tracking. 

Monitor compliance

Regularly review timesheets to ensure compliance with  employment standards of your jurisdiction. This will protect your business from potential legal issues and ensure that employees are treated fairly.

Just remember that every province has their own employment standards and rules you must follow. So, be sure to check the specific regional regulations for your jurisdiction for accuracy or contact employment relations specialists, for any help you may need.

Digitize and automate your timesheets with BrightHR

For Canadian employers, timesheets are more than just a tool for tracking hours. They provide a wealth of data that helps you manage your team, control costs, and ensure compliance with employment regulations.

By implementing an effective timesheet system, you can streamline your business operations and gain valuable insights into your team’s productivity and performance.

So, whether you’re managing a small team or a large workforce, timesheets are an essential part of running an efficient, compliant, and productive business. And if you’re looking for award-winning software to digitize your timesheets, look no further than BrightHR.

Learn more about Blip, our employee time clock system that  transforms the way you track working hours and how you produce timesheets—for the better.


Lucy Cobb

Employment Law Specialist

Share this article


More on efficient shift scheduling for canadian businesses

Two people looking at a laptop,

Full-Time Employees

Hiring the right staff is key to running your business. However, some employers struggle with the question of whether to hire a full-time or ...

Read more about Full-Time Employees
A calendar

Rotating Shift

If you run a business that operates 15, 16, or even 24 hours a day, you are always going to need employees to work. You may inevitably need to split ...

Read more about Rotating Shift