What is a time keeping system?
A time keeping system is a tool or method for tracking when employees start and end their shifts, as well as any breaks or overtime worked. It helps businesses keep accurate records of hours worked to run payroll correctly and stay compliant with labor laws.
For small business owners, a reliable time keeping system is necessary. Whether you're running a retail shop, a restaurant, or a service-based business, knowing who worked when (and for how long) makes managing payroll, scheduling, and compliance a whole lot easier.
Why time keeping matters
Accurate time tracking helps you:
- Pay employees correctly for hours worked, including overtime
- Avoid wage and hour disputes that could lead to penalties or back pay
- Stay compliant with federal, state, and local labor laws
- Keep labor costs under control by monitoring hours
- Run smooth operations by having real-time visibility into attendance and shift coverage
Manual time keeping methods like paper timesheets or spreadsheets can be time-consuming and error-prone. That’s why many small businesses use digital time keeping systems that automate the process.
Types of time keeping systems
There are several ways to track time, each with its pros and cons:
- Punch clocks: Employees clock in and out using a physical time clock
- Paper timesheets: Employees write down their hours manually (low-cost but less accurate)
- Excel or spreadsheets: A digital version of paper timesheets
- Mobile or web-based apps: Employees clock in and out from their phone or a shared device, and hours are stored automatically
- Biometric systems: Clock-ins using fingerprints or facial recognition (typically more expensive)
Figuring out the best timesheet software for you depends on your business size, budget, and how your team works.
What to look for in a time keeping system
If you’re upgrading your system or setting one up for the first time, look for time keeping features like:
- Ease of use: Simple for both managers and employees to clock in and review hours
- Real-time tracking: So you always know who’s on the clock
- Automatic timesheet generation: Saves time and reduces payroll errors
- Break and overtime tracking: Helps you stay compliant with labor laws
- Integrations with payroll software: Streamlines the payroll process
- Mobile access: Ideal for businesses with remote or field-based teams
How to introduce a new time-keeping system
Rolling out a time-keeping system is easiest when it’s clear, consistent, and well-communicated:
- Choose the right tool: Pick one that fits your team’s workflow and size
- Train your employees: Walk them through how to clock in and out and why it matters
- Set clear policies: Define when and how breaks are tracked, and what happens if someone forgets to clock in
- Monitor and adjust: Keep an eye on attendance and tweak settings if needed
If you’re on the fence, you can experiment with free digital timesheets to track employee hours, breaks, and overtime without needing to invest in a costly option.
How Homebase helps with time keeping
Homebase makes it easy for small business owners to ditch the spreadsheets and get accurate, automated time tracking. With Homebase, you can:
- Let employees clock in and out from a mobile app or POS terminal
- Automatically calculate hours, breaks, and overtime
- Generate digital timesheets that are ready for payroll
- Prevent early clock-ins and buddy punching
- Monitor attendance and get alerts for missed shifts or late clock-ins
Sign up for Homebase today to streamline time tracking, reduce payroll errors, and stay compliant with confidence.