Running a business | Last updated: 7. June 2024

How to create a timesheet: Free template and guide

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.

Irish businesses are required by The Organisation of Working Time Act 1997 (the 1997 Act) 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 Ireland?

In Ireland, The Organisation of Working Time Act 1997 (the 1997 Act), 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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