Timekeeping Defined

Timekeeping is the process of tracking and reporting the hours an employee spends at work. Timekeeping is typically divided into two distinct categories:

• Total time
• Time on task

For a business that pays team members by the hour (be it part-time or full-time), total time is the difference between just two numbers: when they arrive at work and when they leave work.

In some cases, a business may require team members to clock out during breaks and clock back in when they return so that management can create a more accurate picture of their total time on the job.

For a business that pays team members a salary, timekeeping is often used as a means to record time on task and to better observe and control project costs. In that case, employees may not clock in when they arrive and clock out when they leave.

Why Timekeeping Matters

Timekeeping matters for several reasons, besides the obvious need to pay your employees for their time:

1. Payroll: Timekeeping provides all the numbers necessary to calculate and process employee payroll. The Fair Labor Standards Act (FLSA) establishes many of the rules on this subject but allows each business to choose its own timekeeping system.
2. Invoicing: Accurate timekeeping gives you the numbers you need to get your invoices out on time so that you can get paid sooner.
3. Planning: Timekeeping records provide the data effective planning is based on. When you know that a specific project took X hours last year, you can use that as a metric for future projects.
4. Team Management: Employee timekeeping is a gateway to more effective team management by allowing managers to identify efficiencies among team members.

Timekeeping Best Practices

To improve your timekeeping process, consider these best practices:

1. Abide by all timekeeping laws: Ensure your business complies with local, state, and federal timekeeping regulations.
2. Choose the right timekeeping system: Implement a system that simplifies the tracking and recordkeeping process for both employees and managers.
3. Set up your system for simplicity: Use straightforward methods such as military time and rounding to make time calculations easier.
4. Implement automation: Use modern timekeeping software to automate wage settings, labor cost forecasting, and payroll report generation.
5. Backup the data: Keep backups of all timekeeping and payroll records as required by the FLSA.
6. Build a culture that values timekeeping: Encourage accurate timekeeping as part of your company culture to ensure payroll accuracy.
7. Give your team plenty of help: Provide instructions and hands-on training for new time-tracking systems.
8. Save the data: Retain hour and payroll information according to local, state, and federal laws.
9. Examine work hour numbers: Periodic analysis of timekeeping data can help optimize team management.
10. Review timekeeping practices periodically: Regular reviews can improve the timekeeping process based on feedback and audits.

Timekeeping and the Restaurant Industry

With multiple shifts overlapping throughout the day and a combination of full-time, part-time, and salaried employees coming and going, the restaurant industry is especially reliant on effective timekeeping to keep everything working efficiently.

It doesn’t matter if you run a restaurant, cafe, coffee shop, food truck, catering business, or other type of food-service establishment. The timekeeping software you choose should include tools that make your job — and your employees’ jobs — easier.

An integrated time clock is essential, but it should also integrate with other necessary features, including employee scheduling, team communication, task management, third-party integrations, employee document tracking, and labor compliance.

An all-in-one, restaurant-specific solution that includes everything you and your team need to organize and manage the daily grind is what you want to look for.