Paper timesheets may seem a relic of the past, but according to Quickbooks, 38% of companies still use punch cards and paper timesheets to track their employees’ time.

Dozens of sources online claim paper timesheets are unreliable and difficult to analyze, but is it really so?

Let’s make a fact-based comparison to get the truth of the matter.

What Timesheets Are and Why Businesses Use Them

Timesheets are documents or software applications that record an employee’s time on work-related tasks.

They typically include each task’s start and end dates and times and a brief work description.

The collected information is used for various business purposes, such as:

• Billing and payroll. Timesheets provide a record of the number of hours worked by each employee, which is used to calculate their pay and accurately bill clients for the time spent on their projects or services.
• Project management. Timesheets help managers track how much time is spent on different tasks and projects, which can be used to make informed decisions about resource allocation and project timelines.
  Performance evaluation. Timesheets can be used to evaluate employee performance by comparing the time spent on tasks to the expected or budgeted time. This can help identify areas for improvement or training.
• Budgeting and forecasting. Timesheets provide valuable data for planning future projects, which helps organizations to allocate resources more effectively.
• Compliance. Some industries use timesheets to collect the time-tracking for compliance with local regulations, government contracts, or labor laws.

Both paper and digital timesheets cover the above features, but which are better? By “better,” we usually mean minimal employee training, easy data access, safety, reasonable pricing, etc.

Considering these factors, you will be able to choose the way to maintain your timesheets that meets your business requirements and helps you manage resources effectively.

Digital and Paper Timesheets Compared

Below we will take a closer look at each excellent timesheet attribute.

Onboarding

Digital timesheets are usually easy to use and don’t require any special user training due to the intuitive interface.

Though there are complex human resources information systems that are not that straightforward.

On the other hand, paper timesheets require no onboarding at all. Moreover, some employees may be more accustomed to them and find them easier to use. This is particularly true for employees who need to gain computer skills.

Ease of Use

Overall, paper timesheets may seem easier to use than digital timesheets, as there are no rules and requirements on how to fill them in.

However, paper timesheets are less accessible than digital timesheets. They are only accessible in their physical location, which can be a challenge for remote or mobile workers.

Besides that, filling in paper timesheets is a manual process, which can be time-consuming, not to mention the need to transfer the data into a computer system for further processing.

Digital timesheets, on the contrary, can be accessed from anywhere with an internet connection. They can also be customized to meet the specific needs of the business or user and sometimes integrated with other software and systems, such as payroll and project management tools.

Apart from that, digital timesheets are automated to a great extent. For example, users can set up automatic reminders and notifications to prompt them to fill in their timesheets.

Track time easily with free timesheet templates!

Accuracy

Digital timesheets are more accurate than paper timesheets. Automation mentioned above reduces the risk of human error, such as forgetting to record time or entering the wrong hours worked.

Digital timesheets can have a built-in error-checking algorithm, which can also help to reduce mistakes. For example, the system may flag missing information or incorrect data, which needs review.

Manually filled paper timesheets can be prone to errors. Employees may fail to record time or enter incorrect hours worked, which can affect the accuracy of the timesheet data.

Analytics

When it comes to analytics, digital timesheets have a clear advantage over paper timesheets.

Digital timesheets aggregate data from multiple sources, such as payroll systems, project management tools, and browsers, to provide a more comprehensive view of employee time usage.

This data is in custom reports on various aspects of time-tracking, such as hours worked, time off, or project completion time, giving businesses real-time updates on employee time usage.

You can also create visual representations, such as graphs and charts, to analyze trends and patterns in your team’s performance to identify areas of improvement and optimize resource allocation.

Paper timesheets cannot aggregate data from multiple sources and provide limited reporting capabilities, as they only contain basic information such as employee names and hours worked.

Generating reports from paper timesheets is extremely time-consuming because the data is not stored in a digital format that can be analyzed. It can limit the manager’s ability to make timely and informed decisions or establish the right connections between employee behavior and project issues.

Data Storage

As long as you have enough space for paper registers and time cards, there is no difference between paper and digital data storage, except for security.

If a paper timesheet is lost, altered, or damaged, it may not be possible to fully recover the data.

Digital timesheets are generally stored on protected servers, which makes them more secure. They are also usually password-protected, and access to them is restricted to authorized personnel.

Direct Costs

Paper timesheets are absolute winners in this category. They cost nothing but paper and ink used to print out a template.

Digital timesheets are software tools requiring a subscription, costing $1 to more than $10 per user.

It is the game-changer for many businesses still sticking to the paper, but let’s not overlook the indirect expenses.

Indirect Costs

Unfortunately, the material costs of paper timesheets are just a tiny part of what your business may pay.

A study by AffinityLive revealed that misreporting costs US employers within the professional services sector $52,000 in billable hours per professional per year.

Where does such a colossal sum come from?

• Minor inaccuracies and rounding up time. When you record your work hours on paper, it is almost impossible to attribute every minute to a specific project, especially when it comes to email response times or other small tasks. Automation options in digital timesheets, such as tracking online activities, can solve this problem.
• Payroll processing errors. The extra effort required to maintain paper timesheets makes mistakes almost inevitable. These can be related to poor memory or handwriting and cost your business a lot unless everything is automated and double-checked.
• Time theft. Almost half of the hourly employees admit to cheating when clocking in or out or stealing some time through buddy punching. Paper timesheets create just perfect conditions for that. Digital timesheets, on the contrary, have various functionalities to prevent unauthorized access and inaccurate data entry.

Judicious Approach to Time-Tracking

Increased busywork and project costs and the need for more efficiency are the main reasons why modern businesses are giving up on their paper system.

Modern time-tracking tools provide companies with better solutions for tracking employee hours.

Minute-by-minute timers, real-time data display, mobile time-tracking, financial analytics, and automated payroll processing are just a few benefits modern timesheet software offers.

They combine the capabilities of a smart-time tracker with project management functionalities creating highly-versatile environments for businesses of all sizes.

Let’s look at how actiTIME can ease your routine.

• Flexible approach to time-tracking. actiTIME offers several tracking options, including manual entry, timer, and mobile app. Time can be tracked for individual tasks or entire projects.
• Integrated project management. actiTIME allows users to manage tasks, assign work, and track project progress. It also provides users with real-time project status updates and the ability to generate project reports.
• Resource management features. actiTIME allows users to manage employee schedules, track vacation time, and monitor time off requests. It helps ensure that resources are effectively allocated and used.
• Invoicing. actiTIME can generate invoices based on the time tracked for individual clients or projects. It also integrates with accounting software, speeding up invoicing and payments.
• Integrations. actiTIME integrates with other software and systems, such as payroll, accounting, and project management tools. It allows users to streamline their workflows and reduce the need for manual data entry.
• Customization. actiTIME lets users add custom fields, reports, and workflows in a few clicks.
• Mobile App and Chrome extension. actiTIME allows users to track their time and manage their tasks from anywhere. It can be beneficial for remote workers or those who work off-site.

So, if you want to do more by doing less, consider actiTIME!