Maintaining precise records of employee work hours is not just vital for payroll and invoicing purposes, it is a legal requirement. In this guide, we will demonstrate how you keep track of work hours with time sheets and provide you with a free template.
Australian businesses are required by The Fair Work Act 2009 to keep a record of time and wages.
Timesheets, beyond being a legal requisite, offer valuable insights for both internal management and customer transparency.
In this guide, we will explain what time sheets are, why they are beneficial to use, and how you can generate one yourself. As a bonus, we’ll also provide you with a free timesheet template that you can use to create your first timesheet.
What is a timesheet?
A timesheet is a document used to log the number of hours an employee dedicates to work-related tasks. It can capture start and end times or simply durations, providing a detailed breakdown of tasks completed during a project or program.
Timesheets are available in both digital and analog formats. Smaller businesses, including self-employed individuals, often find spreadsheet-based time tracking sufficient. Conversely, larger companies typically utilize specialized time tracking software.
Are timesheets a legal recruitment in Australia?
In Australia, The Fair Work Act 2009 states that businesses must keep track of employee hours for payroll and retirement saving purposes. This record must be maintained for at least seven years to ensure accessibility for compliance and legal dispute resolution.
What purposes do timesheets serve?
Timesheets play a pivotal role in various aspects, serving as a multifaceted tool for several functions, including:
1. Billing
Timesheets serve as tangible evidence of the time dedicated to a project, forming the basis for invoicing clients accurately and transparently.
2. Payroll
Ensuring fair compensation for employees, timesheets are essential for payroll processes, guaranteeing that individuals are remunerated for the precise hours invested in their work.
3. Productivity analysis
Timesheets provide a streamlined method for analyzing task-specific time allocation. By comparing timesheets, identifying areas for enhancement becomes seamless, contributing to overall productivity improvements.
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How to create a timesheet
When creating timesheets, you’ve got a few different options. Here are some of the most popular ways to do it in 2023:
- Manual timesheet creation: Create a spreadsheet document with columns for employee name, start time, break times and end time, and have employees complete the timesheet regularly.
- Conta’s free timesheet template: Simplify the process by downloading our free weekly timesheet template and have employees complete it weekly.
- Invest in time tracking software: Opt for advanced time tracking software, a digital solution that simplifies the entire process. These tools often include features like managing time entries, tracking projects and tasks, generating comprehensive timesheets and reports, and monitoring overall productivity.
Get your free timesheet template
How to use our free timesheet template
Our free timesheet template is designed to streamline the recording of employee work hours. Download the template for free and record start and finish times, lunch breaks, leave, and overtime effortlessly.
Employees can fill in the template either on paper or digitally using spreadsheet software like Google Spreadsheets or Microsoft Excel.
Get your free timesheet template
