This is where timesheets come in. While some businesses still rely on traditional methods like paper or spreadsheets, many have turned to digital timesheets for greater speed, accuracy, and visibility.
What is a timesheet?
A timesheet is a time-tracking tool businesses rely on to track the hours employees work.
In Australia, accurate time and wage records aren’t just good practice, they’re a legal requirement. As outlined by the Fair Work Ombudsman, organisations must keep track of each employee's start and finish timings, break durations, and total hours worked, especially for those paid by time. These records must be kept for a minimum of seven years.
Some organisations still use traditional methods to manage timesheets, such as paper forms or spreadsheets. However, many have turned to digital tools that provide more accuracy, visibility, and seamless integration with payroll and workforce systems.
At their core, timesheets ensure employees are paid correctly and provide businesses with greater visibility of their workforce.
📄 Types of timesheets
Timesheets come in a variety of formats, based on the size of the business, existing systems, and industry requirements.
The common types of timesheets include:
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Manual timesheets – Paper-based logs filled out by employees or supervisors.
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Spreadsheet-based timesheets – Templates used in programs like Excel or Google Sheets
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Digital or software-based timesheets – Cloud systems or apps that automate time capture and sync with payroll or rostering software.
What’s usually recorded in a timesheet?
A timesheet provides both employees and management with a clear and reliable record of working hours, supporting payroll, cost control, and decision-making.
While formats may vary, most timesheets record:
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Employee details - Basic information like full name, employee identification number, department
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Dates worked - The specific dates an employee worked
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Work hours - The start and end times of each shift, including breaks
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Total hours - The number of hours worked each day or week.
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Tasks or projects - A description of delivered or completed tasks
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Overtime hours - Any hours worked beyond usual hours
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Manager approval - Verification and sign-off from a supervisor or manager
Traditional vs digital timesheets: What’s the best way to track time?
Capturing time accurately is essential for payroll, compliance, and workforce planning but not all timesheet methods deliver the same results.
Traditional timesheets like paper forms or spreadsheets may seem simpler to use, but are prone to human errors, delays and duplicated work. They create data silos too, as the same information must be re-entered into payroll or rostering systems — wasting time and human effort.
Digital timesheets are built for efficiency and scalability. Employees can log hours from any device, managers can review and approve submissions in real time. Most importantly, digital systems can integrate directly with payroll and workforce tools. The result? Less human intervention, more accuracy and increased visibility for all.
Here’s how digital timesheets compare to traditional methods:
1. Efficiency
Traditional: Manual entry and approvals slow down processing
Digital: Automation speeds up time capture, approvals and reporting
2. Cost control
Traditional: Limited oversight of hours worked makes cost tracking harder
Digital: Real-time data improves budgeting, scheduling and resource allocation
3. Accuracy
Traditional: Susceptible to rounding errors, missed breaks or incorrect entries
Digital: Reduces errors with built-in prompts, validations and audit trails
4. Compliance
Traditional: Manual records are harder to track, validate or store
Digital: Structured logs support Fair Work compliance and simplify audits
5. Scalability
Traditional: Becomes harder to manage as team size or complexity grows
Digital: Easily scales with changing workforce needs and award requirements
6. Ease of use
Traditional: Requires printing, scanning or spreadsheet sharing
Digital: Accessible via mobile or desktop, with intuitive user interfaces
7. Integration
Traditional: Manual re-entry of data across systems
Digital: Seamlessly integrates with payroll, rostering and workforce platforms
Advantages of timesheet
Timesheets do more than track when someone clocks in or out. They help businesses stay on top of payroll, compliance, and workforce visibility.
Here’s how timesheets can make a real difference:
✔ Accurate payroll and billing
Accurate records ensure employees are paid correctly — taking overtime, allowances, and penalty rates into account. This helps prevent errors and keeps payroll and invoicing consistent.
✔ Improved productivity
Timesheets highlight how time is spent, helping managers spot inefficiencies and keep employees accountable.
✔ Compliance with labour laws
For businesses under awards or complex rules, timesheets show that hours, breaks, and loadings are applied correctly. This reduces audit risks and ensures compliance.
✔ Better project tracking and cost control
When hours are linked to jobs or tasks, managers get a clearer view of where time and budget are going, making it easier to allocate resources effectively.
✔ Greater accountability and transparency
A shared, consistent time record helps prevent disputes, ensures fair rostering, and builds trust across teams.
✔ Better decision making
Patterns in timesheet records like regular overtime or low utilisation can improve decisions around hiring, scheduling, and budgeting.
✔ Protection against wage theft
Clear, verifiable records help ensure employees are paid fairly and businesses meet legal obligations to avoid underpayment issues and reputational damage.
Best practices for timesheet management
Effective timesheet management comes down to three things: clear processes, the right tools, and team buy-in.
Here’s how to get it right:
✔ Make entries easy and accurate
Encourage daily updates to avoid missed or inaccurate data. Digital tools with prompts and validations help reduce errors and ensure consistency.
✔ Set clear policies and provide training
Help employees understand when, how and why timesheets matter. A quick induction or refresher can go a long way.
✔ Choose the right software
Be sure to choose a software according to the size of your business and its unique needs.
- Timesheet Software - A focused, flexible option for businesses that want to digitise time capture without the complexity of a full workforce management system.
- All-In-One WFM - Solutions like Access Definitiv are ideal for larger organisations needing end-to-end functionality — combining payroll, rostering, and time tracking in one integrated system.
Digital timesheets - The smarter way forward
Digital timesheets are transforming workforce management by streamlining payroll, automating compliance, and reducing administrative tasks. For growing teams, it helps manage complex award rules and ensures greater accuracy and control.