Time Tracking Software Comparison

What is Time Tracking Software?

The recording of hours worked has gained significant importance in the world of work, especially after some significant judgments on time recording have shaped the legal situation. The European Court of Justice (ECJ) decided that the systematic recording of working time must be obligatory for employers within the EU to protect the rights of employees. The Federal Labor Court (BAG) has adopted these regulations into national jurisdiction and confirmed that various working time models must be designed in accordance with legal regulations. The mandatory documentation is intended to ensure that overtime and breaks are recorded and compensated in accordance with legal requirements. Time tracking systems, therefore, do exactly what their name implies: With corresponding tools, companies and their employees are able to automatically record and document working hours. But many time tracking tools can do much more than that. They work closely with HR management solutions, payroll software and other business-critical programs, significantly improving the efficiency of relevant processes.

Good time tracking software has the following features or advantages, among others:

• It contributes significantly to the efficiency of time recording and essential processes around it.
• As a rule, time recording software offers the possibility of integration into existing accounting software, and/or payroll tools from third-party providers. Modern time clocks offer a high level of security against manipulation, ensuring that working hours are reliably recorded.
• It tracks, calculates and documents time as well as work effort on different levels. The precise recording of working time enables overtime to be accurately determined, protecting employees from unpaid extra work and giving employers a clear overview of the actual hours worked.
• It allows for a detailed analysis of work performance and the creation of relevant reports. The recording of breaks ensures that the legally required breaks are adhered to.
• It allows for a detailed analysis of work performance and the creation of relevant reports.

Here are some popular time tracking software:

• Crewmeister

• ZMI

• TimeTac

• Toggl Track

• GFOS

• ATOSS

• clocko:do

How does time tracking software work and what are its main benefits?

Time tracking software is used by employers and employees in a variety of industries. It primarily helps users manage work time. Time is a valuable resource for every company. But it is often not known how employees spend their time. Time tracking systems solve this problem by automating the process of recording the time spent on targeted project time recording and providing data that goes beyond typical time sheets. Based on this information, companies can gain insights into various aspects of their activity using analysis tools. For example, it can be determined which tasks require the most time, which team members have the capacity to take on additional tasks, or which processes in the company are the most profitable. This data has significant value for companies of all sizes - ranging from large corporations to small businesses and startups. Ideally, time tracking software can highlight inconsistencies in workflows and enable companies to accurately identify what works and what doesn't. This can ideally result in a highly efficient profit maximization. Not least, payroll processes and - especially with time recording services – invoicing are largely automated. This results in a massive rationalization of bookkeeping tasks. Time tracking tools can transfer time entries into payroll systems without any additional action. A transparent time tracking software also increases employee productivity, as it practically automatically promotes time awareness. Accurate time recording is primarily important for businesses that need to bill their customers in a way that includes hours, such as law firms, tax advisers, construction companies or creative agencies, as well as companies in other industries.

What are the typical functions of time tracking software?

The following presents some core functionalities of time tracking systems. Those who want to use a time tracking tool for free may have to do without some of these features. Generally, not all market solutions have all these functions on board, but it's about the typical ones.

• Task Timer: The heart of many time tracking tools is the ability to monitor how much time employees spend on a specific task. Users set up tasks in which they describe what they are working on, and then activate the timer with a click. The timer stops when the work is done or when the working time is over. With some products, users can also enter the hours after they have completed a task, rather than tracking them in real time.
• Project Management: In addition to recording individual tasks, time-tracking tools allow for documenting the time spent on larger projects, which often include several individual tasks. Through project time tracking, supervisors can monitor project budgets, track progress towards completion, and make forecasts about the timeline until completion. Customizable rates also allow companies that bill by the hour to set different costs for individual tasks, depending on the type of work being done or the project the task belongs to.
• Time Clock or Stamp Clock: For companies that only want to capture the general working hours of their employees, some products include a digital time clock that allows employees to punch in and out, recording their total work time for each day. This significantly reduces effort and saves employees from manually filling out time sheets. Especially for small businesses with limited human resources, this can greatly increase efficiency in payroll.
• Application-based time tracking: Some time tracking software can detect in which program or website users are currently working and then automatically start a timer for a specific task. This automatic time recording function helps to reduce the common problem of employees forgetting to press the timer button.
• Customizable Reports: One of the biggest advantages that a time tracking tool can bring is the ability to create a variety of reports using data recorded by staff. Basic reports include summaries of times spent on various projects on a daily, weekly or monthly basis. Managers can usually adjust these reports to the desired level of detail, including breakdowns of hours recorded for very specific tasks within a project. Other examples include reports that analyze working time per employee and show when staff are most productive during the day or during the week, or how much absence there was at certain times. Some platforms also offer the opportunity to automate such reports so that managers receive them regularly by email.
• Automated Reminders: A common source of frustration with time tracking programs is the fact that employees often forget to submit necessary features or even record their working hours. So that those responsible do not have to constantly remind people to use the appropriate applications correctly, many products offer automatic notifications that provide exactly such instructions. This saves manual effort and the memory of employees.
• Project Dashboards: To get a current overview of project progress, managers can use so-called project dashboards that present relevant data on a screen. These dashboards can display a variety of metrics, such as how many working hours staff have already spent on the project, how much of the project budget has been spent, and whether a project is on track to be completed within the given timeframe.
• Team Dashboards: Team dashboards, which show how much time each team member has worked and what they have spent their time on, can indicate which employees have the capacity to take on additional tasks and who might be overworked.
• Invoicing: One of the main reasons why companies use time tracking software is to easily use time information for invoicing customers. With an invoicing function, the detailed time tracking data is automatically converted into an invoice, which the company can export and send. For products that do not have an invoice tool integrated into the platform, it is often possible to transfer time entries to such a tool.
• Time Recording App: While a desktop application may be sufficient for many companies with regard to time tracking programs, a mobile app may be important for companies with field staff. These apps often synchronize time entries across devices, so employees can switch from one device to another. Location-based tracking functions in mobile apps, including geofencing features, allow managers to see not only when employees are working, but also where they are. This can be very helpful for companies trying to efficiently deploy field workers.

What types of time recording software are there?

Over the last years, the trend towards the cloud has gained momentum. Time recording software is also offered in the cloud. It is no longer hosted on local servers in the company, but with an external partner. The hours are recorded online. Many developers offer their solutions under these conditions directly on their website. If you use web-based time recording software, all you need to do to use the features is log in via a browser, and all the options of the chosen package are available. This is also referred to as Software-as-a-Service (SaaS). In fact, this approach to time recording makes a lot of sense. It enables employees to use the solution on any internet-enabled device. Furthermore, companies do not have to worry about complex setup steps and long-term maintenance. The provider takes care of all the work and often also offers comprehensive support for the most advantageous use of the system. Using appropriate time recording software for free is often only possible over a certain test period – SaaS usually costs money. Alternatively, companies still have the opportunity to use work time recording tools that function as an on-premise solution. To summarize, this is the classic provisioning principle for software. The time recording tool is typically purchased for a one-time purchase price and installed in-house in this approach. The big advantage is data protection, because all information remains exclusively on the servers of the company. At the same time, the whole responsibility for hosting or implementation and maintenance lies with the company itself. It must therefore take care of providing the necessary skills and a suitable technical infrastructure. Open source time recording software can be used very cost-effectively in certain company or requirement contexts. It is possible to get a completely free time recording tool. However, setting up and maintaining it always require specific investments.

What criteria are particularly important when choosing a time recording tool?

As with any type of software, there are also various focuses among the time recording tools. The biggest differences - apart from their basic alignment as SaaS or on-premise solution - primarily lie in the range of functions. Accordingly, interested parties should test time recording software before purchasing it, especially to check whether all necessary features are available or whether the focused tool can really meet the respective requirements. Answering the following questions is essential:

• Does the software need to be integrated into an existing system architecture - are suitable interfaces available?
• Should the tool be team capable?
• Should project times, application-related times or attendance times be recorded - or maybe all?
• Is vacation planning desired?
• Is personnel deployment planning required?
• On which end devices should times be recorded – perhaps also on classic terminals?
• Are special applications for field service staff required?
• Should times be recorded offline and synchronized automatically?
• Is it necessary to send invoices directly from the system?