The Ultimate Guide to Time and Attendance Software for Small Businesses

“Wait… did Jake forget to clock in again?”

“Who actually worked overtime last week?”

“Are we really still using paper timesheets in 2025?”

If you’re running a small business, you know that tracking employee hours, managing shifts, and making sure payroll is accurate can feel like a full-time job on its own. That’s where time and attendance software can come in handy.

A good time and attendance system doesn’t just track hours—it automates your schedules with advanced scheduling, cuts down on buddy punching, syncs with payroll, and saves you hours of admin work every single week.

But with so many options out there, how do you choose the best time and attendance software for small businesses? And more importantly—how do you know which one actually works for your team?

In this guide, we’ll break it all down:

• What time and attendance software is (and how it works)
• Why you need it—even if you only have a handful of employees
• The must-have features of top time and attendance systems
• Best time and attendance software options for small businesses
• How to choose the right time and attendance software for  your team
• Get your common time and attendance software questions answered

Let’s dive in and find the right time and attendance solution to help you run payroll faster, manage schedules easier, and keep your team on track—without the stress.

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What is time and attendance software?

Time tracking software is a digital tool that tracks when employees clock in and out, log breaks, and record work hours—all without messy paper timesheets or clunky spreadsheets.

It helps businesses:

• Track employee hours in real time—so you always know who’s working.
• Automate payroll calculations—goodbye, manual data entry!
• Reduce time theft—no more “buddy punching” or forgotten clock-ins.
• Manage schedules & shifts—without last-minute chaos.

Most top time and attendance software options also come with mobile apps, GPS tracking, and payroll integrations, making it easier to manage your team—whether they work in the office, remotely, or on the go.

Simply put—if you’re still tracking hours manually, you’re working way too hard. A good time and attendance system will save you time, improve accuracy, and make payroll a breeze.

How does time and attendance software work?

Time and attendance software takes the headache out of manually calculating employee hours by digitizing the entire process to automate time tracking. Instead of relying on paper timesheets or manual data entry, everything is logged automatically—saving you time and reducing errors. 

Here’s how it works:

• Employees clock in and out digitally:  Whether through a mobile app, desktop, tablet, or biometric scanner, employees log their start and end times with just a tap—no more paper punch cards.
• Software automatically tracks time worked: The system calculates hours, breaks, and overtime in real time, so managers don’t have to manually verify timesheets.
• Managers get real-time insights and approvals: See who’s clocked in, who’s running late, and who’s approaching overtime. Approve timesheets or flag issues before they turn into payroll problems.
• Time data syncs with payroll and HR systems: Most time and attendance solutions integrate directly with payroll and HR software, so hours worked automatically translate into accurate paychecks—without extra admin work.
• Compliance and reporting made easy: Need to track labor laws, overtime rules, or paid time off? The software automates compliance tracking, generates reports, and ensures your business meets wage and hour regulations.
• Employees can access their own time data: No more “Hey, how many hours did I work last week?” Employees can view their hours, track PTO, and even request schedule changes from their own dashboards.
• Business owners get actionable insights: See labor costs in real time, track employee attendance trends, and make data-driven decisions to reduce overtime, cut unnecessary costs, and improve workforce efficiency.

With a good time and attendance system, tracking work hours becomes automated, accurate, and effortless—so you can spend less time on admin and more time growing your business.

Benefits of time and attendance software

A good time and attendance system doesn’t just track hours—it saves time, improves accuracy, and makes payroll a breeze. 

Here’s why businesses (especially small ones) are ditching manual tracking for automated time and attendance solutions:

• Accurate payroll: No more guesswork or payroll errors. Time tracking is automated, so employees only get paid for the hours they actually work—preventing costly mistakes.
• Saves time: Automating time tracking and payroll processes reduces admin work and frees up hours every pay period. No more chasing down timesheets or manually calculating overtime.
• Prevents time theft: Features like geofencing, biometric verification, and mobile clock-ins stop buddy punching and unauthorized overtime, ensuring you only pay for real work hours.
• Helps with compliance: Keeps detailed records for labor laws, overtime tracking, and mandated breaks, helping you stay compliant without extra paperwork.
• Boosts employee accountability: Employees know their hours are tracked fairly and transparently, reducing disputes and keeping schedules clear and predictable.
• Integrates with payroll: Many top time and attendance software options sync directly with payroll software, saving hours on payroll processing and eliminating manual data entry mistakes.
• Helps control costs: By syncing your time tracking with your payroll processes, good software helps you manage expenses and keep costs in check.

Whether you're looking for payroll time and attendance software, cloud-based time tracking, or an all-in-one workforce management system, the right time and attendance solution will save time, reduce errors, and make managing your team easier than ever.

Features to look for in time and attendance software

Not all time and attendance software is created equal. A good time and attendance solution should do more than just track hours—it should automate processes, prevent errors, and help you run payroll faster. 

If you’re looking for a system that actually makes life easier, here are the must-have features to keep an eye on:

• Mobile clock-in: Employees can clock in and out from anywhere using their phones, making it perfect for remote teams, field workers, and businesses with multiple locations. Many top time and attendance software options also support selfie verification to prevent time fraud.
• GPS & geofencing: Set virtual boundaries so employees can only clock in when they’re actually at work. No more clocking in from the parking lot—or worse, from home. Cloud-based time and attendance solutions ensure accurate location tracking without micromanaging.
• Biometric authentication: Fingerprint and facial recognition clock-ins prevent buddy punching and time theft. If security and accuracy matter to you, a biometric time and attendance system is a game-changer.
• Overtime & break tracking: Stay compliant with labor laws by automatically tracking overtime and required breaks. No more worrying about miscalculated wages or labor violations.
• Payroll integration: The best time and attendance software syncs directly with your payroll and HR systems, making payday a one-click process instead of a stressful, hours-long chore. Payroll time and attendance software eliminates the need for manual calculations.
• Real-time reporting: See who’s working, who’s late, and who’s on break at any moment. Time and attendance tracking software with real-time insights helps catch attendance issues before they become payroll problems.
• Automate employee schedules: Duplicate or create employee schedules in a few clicks. And when someone needs a shift swap? Great time tracking software lets your team handle shift trades. No more being the go-between!

Best time and attendance software for small businesses

Choosing the right time and attendance software can revolutionize how you manage your team. Let's dive into some top options tailored for small businesses, breaking down who they're best for, key features, and pricing.

1. Homebase

Who it's best for: 

• Small businesses seeking an all-in-one solution for scheduling, time tracking, and team communication.​

Key features:

• Employee scheduling: Create and publish schedules with ease.​
• Time tracking: Accurately manage time and  monitor clock-ins and clock-outs.​
• Team communication: In-app messaging keeps everyone connected.​
• Payroll integration: Streamlines payroll processing.

Pricing:

• Free plan: Includes basic scheduling and time tracking for unlimited employees.​
• Essentials: $24.95/month per location, offering advanced features.​
• Plus: $59.95/month per location, adds hiring tools and more.​
• All-in-One: $99.95/month per location, includes all features plus HR and compliance tools.​

2. TSheets by QuickBooks (now QuickBooks Time)

Who it's best for: 

• Businesses that are already using QuickBooks for seamless integration with their existing software.

Key features:

• Mobile time tracking: Employees can clock in/out via mobile devices.​
• GPS tracking: Monitor where employees are clocking in from.​
• Scheduling: Assign shifts and notify employees.​
• Payroll integration: Syncs effortlessly with QuickBooks.​

Pricing:

• Premium: $20/month base fee + $8/user/month.​
• Elite: $40/month base fee + $10/user/month, offering additional features like project tracking.

3. Clockify

Who it's best for: 

• Businesses seeking a free, user-friendly time tracking solution.​

Key features:

• Time tracking: Efficiently track time across projects and tasks.​
• Reporting: Generate detailed time reports.​
• Team management: Monitor team activities and workloads.​
• Integrations: Connects with various project management tools.​

Pricing:

• Free plan: Unlimited tracking for unlimited users.​
• Basic: $3.99/user/month, adds features like time rounding.​
• Standard: $5.49/user/month, includes invoicing and approvals.​
• Pro: $7.99/user/month, offers scheduling and expenses.​
• Enterprise: $11.99/user/month, for advanced needs.​

4. Paychex Flex

Who it's best for: 

• Businesses seeking a comprehensive HR solution with robust time tracking.​

Key features:

• Time and attendance: Automated tracking and reporting.​
• Payroll services: Full-service payroll processing.​
• HR management: Employee benefits and onboarding tools.​
• Mobile access: Manage HR tasks on-the-go.​

Pricing:

• Custom pricing based on business needs.​

5. UKG Ready

Who it's best for: 

• Mid-sized to large businesses needing advanced workforce management.​

Key features:

• Time tracking: Comprehensive attendance management.​
• Scheduling: Optimize workforce deployment.​
• HR management: Recruitment, onboarding, and performance tools.​
• Analytics: Data-driven insights for decision-making.

Pricing: 

• Custom pricing tailored to organizational requirements.​

6. BambooHR

Who it's best for: 

• Small to medium-sized businesses focused on HR management with basic time tracking needs.​

Key features:

• Employee database: Centralized employee information.​
• Time-off tracking: Manage PTO requests and balances.​
• Reporting: Generate HR reports and analytics.​
• Onboarding: Streamlined new hire processes.​

Pricing: 

• Available upon request; varies based on features and number of employees.

7. Deputy

Who it's best for: 

• Businesses needing dynamic scheduling and time tracking, especially in hospitality and retail.​

Key features:

• Scheduling: Create, update, and share rosters easily.​
• Time clock: Accurate time tracking with facial recognition.​
• Task management: Assign and monitor tasks.​
• Integrations: Connects with payroll, POS, and HR systems.​

Pricing:

• Scheduling:$2.50/user/month.​
• Time & Attendance: $2.50/user/month.​
• Premium: $4.50/user/month, includes all features.​
• Enterprise: Custom pricing for large organizations.​

How to choose the right time and attendance software

Picking the best time and attendance software isn’t just about grabbing the first option that pops up on Google. You need a system that actually solves your time tracking headaches and works seamlessly with your business. 

Here’s how to find he right fit:

Assess your time tracking process.

Before diving into time and attendance solutions, ask yourself: What’s not working?

• Are employees forgetting to clock in and out?
• Are payroll errors eating up too much admin time?
• Do you struggle with tracking breaks, overtime, or PTO?
• Is time theft (buddy punching, late clock-ins) costing you money?

If your current system is costing you time, money, and sanity, it’s time for an upgrade.

Compare time and attendance software options.

Not all employee time attendance software is built the same. 

Look for a system that:

• Fits your business size (small business vs. enterprise).
• Supports mobile clock-ins, GPS tracking, or biometrics if needed.
• Integrates with your payroll, HR, or scheduling software.
• Offers real-time reporting so you can track attendance at a glance.

Reading time and attendance software reviews can also help you narrow down the best options.

Try a free trial.

The best way to know if a time and attendance system fits your business? Test it. Most top time and attendance software options offer free trials, so you can:

• Test mobile clock-ins & GPS tracking in real-world scenarios.
• See how payroll integration works (or doesn’t).
• Check if the dashboard & reports make sense for your team.
• Make sure employees find it easy to use—because if they don’t, they won’t use it.

Talk to other small business owners.

Not sure where to start? Ask fellow business owners what they’re using. Learning from others’ experiences with payroll and attendance software can save you from trial-and-error frustration.

Whether you need a cloud-based time and attendance system, a free employee time tracking app, or an all-in-one workforce management solution, the right software should fit your business—not the other way around.

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Frequently asked questions about time and attendance software

Why do I need time and attendance software?

If you're still tracking employee hours with paper timesheets or spreadsheets, you're wasting time and risking payroll errors. 

A good time and attendance system automates the entire process—employees clock in digitally, hours are recorded instantly, and payroll calculations happen automatically:

• Eliminates time tracking mistakes
• Prevents time theft (no more buddy punching!)
• Saves hours on payroll processing
• Helps with compliance—tracks breaks, overtime, and labor laws

For small businesses, time and attendance software isn’t just a convenience—it’s a game-changer for efficiency and accuracy.

What is the best time and attendance software?

The best time and attendance software depends on your business needs. Here are some top picks:

• Homebase – Best for small businesses needing an all-in-one scheduling + time tracking solution
• Clockify – Best free time tracking app
• QuickBooks Time (formerly TSheets) – Best for businesses using QuickBooks for payroll
• Paychex Flex – Best for businesses needing HR + payroll + time tracking
• Deputy – Best for restaurants, hospitality, and retail teams

Each time and attendance system comes with different features, so make sure to try a free trial to find the best fit for your business.

What’s the difference between time and attendance software and manual tracking?

The short answer? Time and attendance software saves you from a ton of headaches.

Manual tracking:

• Employees manually fill out timesheets
• Managers approve timesheets manually
• High risk of errors, time theft & buddy punching
• Time-consuming payroll calculations
• Hard to track overtime, PTO, & compliance

Time and attendance software

• Employees clock in/out digitally (mobile, tablet, desktop)
• Automated approvals & real-time tracking
• Eliminates payroll mistakes & prevents time fraud
• Auto-syncs with payroll software for instant calculations
• Built-in reporting tracks labor laws, overtime, and breaks

If your current time tracking process is slowing you down or causing payroll headaches, it's time to ditch manual tracking and upgrade to a time and attendance program that does the heavy lifting for you.