Streamlining Timesheet Approvals: Best Practices for Employers

What is timesheet approval?

Timesheet approval is the process of reviewing and validating employee work hours recorded on timesheets to ensure their accuracy before payroll processing begins. This critical step helps businesses maintain accurate payroll records and comply with labour laws while minimising errors and discrepancies.

Why timesheet approval matters

• Payroll accuracy: Validating timesheets ensures employees are paid correctly for their recorded hours, preventing payroll errors.

• Legal compliance: Properly reviewed timesheets help organisations adhere to labour laws, reducing the risk of fines or legal complications.

• Operational efficiency: A smooth timesheet approval workflow streamlines the approval process, saving time and avoiding delays in payroll or project timelines.

Purpose of timesheet approval

The main goal of timesheet approval is to ensure accurate reporting of work hours, prevent errors, and maintain a smooth payroll process. Additionally, it plays a vital role in managing projects and optimising resource allocation.

Key objectives of timesheet approval

• Verification of work hours: The timesheet approver checks for accurate time entries, preventing mistakes and reducing the likelihood of payroll discrepancies.

• Prevention of time theft: A robust timesheet approval system ensures only verified hours are approved, adding an additional layer of security to the payroll process.

• Improved resource allocation: Verified timesheets approved on time help project managers track tasks efficiently, manage budgets, and optimise workforce resources.

By establishing a reliable timesheet approval workflow, organisations can ensure that employee timesheets are submitted and reviewed accurately, helping both HR managers and finance teams stay on top of payroll and resource management.

Benefits of an effective timesheet approval process

An effective timesheet approval process does more than streamline workflows—it ensures accuracy, compliance, and improved resource management for organisations.

Accurate payroll processing

A strong timesheet approval workflow guarantees that employee work hours are reviewed and verified before payroll processing. By approving timesheets accurately, organisations can avoid costly payroll errors and reduce strain on their finance team. Ensuring payroll accuracy also strengthens employee trust and satisfaction by eliminating errors in pay periods.

Key points:

• Employees are paid correctly for approved work hours.
• Payroll errors, such as incorrect time entries or miscalculated hours, are minimised.
• Reduces the administrative burden caused by rejected timesheets or discrepancies.

Enhanced compliance

Proper timesheet approvals work hand in hand with labour law compliance. Reviewing employee timesheets ensures adherence to regulations like the Fair Labor Standards Act (FLSA) in the US and the Working Time Regulations in the UK. This process safeguards businesses against potential penalties while meeting legal requirements.

Key compliance advantages:

• Accurate timesheets help track employee work hours within legal limits.
• Avoids compliance risks related to unverified or incomplete submissions.
• Ensures records are audit-ready, benefiting both remote workers and on-site staff members.

Improved project management

Accurate timesheet data plays a critical role in project tracking and resource allocation. With a reliable approval process in place, project managers can better manage budgets, allocate resources, and track project progress.

Advantages for project management:

• Accurate time entries provide insights into task completion and project timelines.
• Helps manage budgets effectively by tracking labour costs.
• Enhances coordination among supervisors, team leads, and clients to avoid confusion.

By streamlining timesheet approvals, organisations can improve overall efficiency, achieve payroll accuracy, and maintain compliance, creating a smoother workflow for employees, managers, and the human resources team.

Challenges in timesheet approval

While the timesheet approval process is essential, it comes with its own set of challenges that can affect payroll accuracy, compliance, and efficiency.

Manual processing errors

Relying on manual methods to review timesheets can lead to costly mistakes. Errors in data entry, lost records, or miscalculated hours can result in inaccurate timesheets and payroll discrepancies. This process can be time-consuming for managers and supervisors, adding unnecessary strain on the approval process.

Key issues with manual processing:

• Increased risk of errors in time entries and calculations.
• Missing or incomplete timesheets awaiting approval.
• Challenges in maintaining accurate records for remote employees and large teams.

Delayed approvals

Delays in approving employee timesheets can disrupt payroll processing and affect pay periods. A delayed timesheet status or approvals stuck in the workflow can lead to employee dissatisfaction and reduced trust in the system.

Common causes of delays:

• Lack of clear communication between staff members and approvers.
• Inconsistent use of timesheet reminders or unclear submission deadlines.
• High volumes of timesheets requiring review, especially during busy periods.

Compliance risks

Inaccurate or incomplete timesheet records pose a serious risk of non-compliance with labour laws in the US and UK. Errors or omissions can result in fines, legal action, or strained relationships with employees.

Compliance risks include:

• Failing to adhere to recordkeeping requirements outlined by labour laws.
• Miscalculating overtime or underpaying employees due to rejected timesheets.
• Insufficient documentation for audits or disputes with employees or clients.

Best practices for timesheet approval

By adopting best practices, organisations can streamline the entire timesheet approval process, ensuring efficiency, accuracy, and compliance.

Implementing automated systems

Automating timesheet approvals work wonders for reducing errors and saving time. Timesheet approval systems with features like real-time tracking, automated timesheet reminders, and integration with payroll software simplify the process for managers and teams.

Benefits of automation:

• Reduces manual errors and speeds up the approval workflow.
• Provides a clear approval status for submitted timesheets.
• Allows team leads and supervisors to track time entries efficiently.

Establishing clear policies

Clear communication of timesheet submission and approval policies is crucial to avoid confusion and mistakes. A well-defined process helps employees understand expectations and reduces the likelihood of errors.

Best practices for policies:

• Set strict deadlines for timesheet submission and final approval.
• Use tools like a drop-down menu or templates to simplify time tracking.
• Communicate policies regularly to staff members, including remote workers.

Regular training for managers and employees

Training ensures that both employees and managers are aligned on the importance of accurate time tracking and the approval process. Regular sessions can help address gaps in understanding and improve overall efficiency.

Training focus areas:

• How to submit timesheets accurately and on time.
• Responsibilities of a timesheet approver during the review process.
• Using timesheet approval systems to streamline the workflow and manage tasks effectively.

By applying these best practices, organisations can automate tedious processes, ensure payroll accuracy, and minimise compliance risks, creating a seamless experience for all stakeholders involved.

Roles and responsibilities in timesheet approval

A well-functioning timesheet approval process requires clear roles and responsibilities for both employees and managers, supported by efficient technological tools.

Managerial oversight

Managers play a critical role in ensuring that employee timesheets are accurate and complete before approving them. Their responsibility extends to identifying discrepancies, providing feedback, and ensuring the approval process aligns with organisational policies.

Key responsibilities of managers:

• Reviewing time entries for accuracy and addressing rejected timesheets promptly.
• Monitoring approval status to prevent delays in payroll processing.
• Acting as the timesheet approver for their team, ensuring tasks and work hours are accurately tracked.
• Using approval systems to streamline workflows and verify submitted timesheets effectively.

Employee accountability

Employees are responsible for recording their work hours accurately and submitting their timesheets on time. Failing to adhere to submission deadlines can disrupt the entire timesheet approval process, affecting payroll accuracy and project timelines.

Key responsibilities of employees:

• Accurately tracking and submitting work hours for approval.
• Following organisational guidelines for timesheet submission to avoid confusion.
• Responding promptly to timesheet reminders and feedback from managers or supervisors.

Clear communication between staff members and their managers ensures that all timesheets are submitted, reviewed, and approved without unnecessary delays.

Technological solutions for timesheet approval

Modern timesheet approval systems provide tools that simplify and automate the process, reducing manual errors and administrative burdens.

Features of effective timesheet software

Selecting the right timesheet approval software is essential for streamlining workflows. Key features to look for include:

• User-friendliness: Intuitive interfaces make it easy for employees and managers to submit and approve timesheets.

• Real-time tracking: Allows team leads to monitor time entries and approval status effortlessly.

• Integration capabilities: Connecting timesheet software with payroll and project management tools creates a seamless process.

• Customisable options: Features like a drop-down menu for task selection and automated timesheet reminders simplify time tracking.

By implementing software with these features, organisations can save time and reduce errors across the entire timesheet approval workflow.

Benefits of integration with payroll systems

Integrating timesheet software with payroll systems creates a more efficient process, benefiting both HR managers and the finance team.

Advantages of integration:

• Streamlined payroll processing with accurate timesheets approved on time.
• Reduced errors in pay periods due to automated syncing of time entries.
• Easier reconciliation of employee work hours with project budgets and costs.

Technological solutions not only help automate the timesheet approval process but also improve communication between supervisors, employees, and clients, ensuring that the entire workflow runs smoothly.

Legal and compliance considerations

Understanding and adhering to labour laws is essential to ensure a compliant timesheet approval process, both in the US and the UK.

US Labor Laws

In the United States, federal labour laws such as the Fair Labor Standards Act (FLSA) directly impact how timesheets are managed and approved. Proper timesheet approval systems help organisations comply with these regulations, avoiding penalties and safeguarding employee rights.

Key compliance points under US laws:

• Recordkeeping: Employers must maintain accurate timesheet records for all non-exempt employees, including work hours, overtime, and pay periods.

• Overtime regulations: Timesheet review ensures that overtime is properly calculated and approved in accordance with FLSA requirements.

• Audit readiness: Approved timesheets act as legal documentation during audits or disputes.

By implementing efficient timesheet approval workflows, US-based organisations can reduce compliance risks and improve payroll accuracy.

UK Labor Laws

In the UK, labour laws like the Working Time Regulations define the framework for managing employee work hours and timesheet approvals. Ensuring compliance with these regulations is crucial to avoid legal and financial repercussions.

Key compliance points under UK laws:

• Working hours limits: Accurate timesheets approved promptly help ensure employees do not exceed legal working hours, including overtime.

• Recordkeeping requirements: Organisations must retain detailed timesheet records for compliance and audits.

• Fair treatment of employees: Timesheet approvals work to ensure employees are compensated correctly for their work hours.

Both US and UK organisations benefit from automated systems that streamline compliance, reduce human errors, and provide transparent timesheet approval workflows.

Simplify timesheet approval with Shiftbase

Managing timesheet approvals can be time-consuming, especially when dealing with errors, delays, or compliance risks. With Shiftbase, you can automate the entire timesheet approval process, ensuring accurate payroll and seamless workforce management.

Our software includes employee scheduling, time tracking, and absence management, giving managers full control over work hours, approvals, and compliance. Shiftbase helps streamline the approval workflow, reduce payroll discrepancies, and keep your team informed with real-time status updates.

Say goodbye to manual errors and improve efficiency with an intuitive solution that fits your business needs. Try Shiftbase for free for 14 days and experience a smarter way to manage timesheets: Start your free trial now.

Easily manage your employees' hours worked!

• Easily clock in and out
• Automatic calculation of surcharges
• Link with payroll administration

Try for free Request a demo