Timesheet cost calculator: what manual timesheets cost compared with software

How do you calculate the cost of manual timesheets?

The direct cost of manual timesheets is total hours spent on timesheets per month × the hourly labour cost of whoever does it; the annual figure is twelve times that. The arithmetic is simple; the hard part is measuring the hours honestly. Timesheets are not just filling in a sheet at month end: collecting clock-ins, chasing gaps, deducting breaks, separating overtime, recording leave, fixing disputes and sending everything to the accountant are all part of the job.

The example values only show how the calculation is built; they do not represent an average or typical workplace. Enter your own measurement.

How do you measure the hours spent on timesheets?

The most reliable way is to measure for one month, not to guess. Everyone involved in timesheets notes the time they spend on it day by day. The total at month end is the figure to enter. Count these steps separately:

• Collecting: gathering paper sheets, card reader exports or “I’m in” messages from a chat group.
• Entering: transferring each day to the sheet, deducting breaks, putting shifts that cross midnight on the right day.
• Checking: finding missing signatures, forgotten clock-outs, overlapping leave and sick days, and asking the employee.
• Separating: splitting overtime, extra hours, weekly rest day and public holiday work into separate items.
• Handover and fixes: sending to the accountant, answering questions, correcting disputes after payroll.

If several people prepare timesheets (branch manager, bookkeeping, HR), measure each one separately and add them up. If their hourly costs differ, enter a weighted average or run the calculation per person.

How do you find the hourly labour cost?

The hourly cost is the total monthly cost to the employer of the person doing the work divided by hours worked. The total includes employer contributions and regular extras on top of gross pay; your payroll or accountant has the exact figure. To convert a monthly figure to hours, established Turkish payroll practice divides by 225 hours (30 days × 7.5 hours); it is not written in Labour Law No. 4857 but is widely used for hourly rates. See hourly wage calculation.

This cost assumes timesheet hours are time that could be spent on other work. If the person cannot do other work in those hours or works overtime to fit them in, the real cost is higher; if you outsource the work, enter the hourly equivalent of that fee instead.

How to read the comparison with the product price

The tool calculates our workforce management product’s per-employee, tiered price for the headcount you enter: each employee is billed at the price of their own tier and amounts exclude VAT. The price is not typed into this page; it is read from the pricing table on the product page, and that table is regularly compared with the calculation that produces the invoice. The price you see in the tool is the price you would see on the invoice.

The most useful line in the result is the “equivalent hours”: how many hours of the timesheet preparer’s time the product’s monthly price corresponds to. If more hours than that go into timesheets today, software pays for itself on labour alone; if fewer, the decision rests on the cost of errors and disputes.

The comparison deliberately leaves something out: software does not reduce timesheet time to zero. Records build themselves, but someone still needs to check and approve the month. That is why the tool does not say “you will save this much”; it shows both amounts and the equivalent hours and leaves the decision to you.

The cost beyond hours: errors and missing records

The expensive part of manual timesheets is often not the hours but the errors. The most frequent are breaks not deducted, shifts crossing midnight recorded on the wrong day, and overtime counted daily instead of weekly. An error lands either on the employer as overpayment or on the employee as underpayment; the second can later turn into a wage claim.

Record-keeping duties are part of the cost too. The employer must prepare a document showing the overtime hours of employees who worked overtime and keep a signed copy in the personnel file (Overtime Regulation art. 10); total overtime may not exceed 270 hours a year (Labour Law No. 4857 art. 41). Tracking that running total per person on a manual sheet is a job in itself. See overtime calculation in Türkiye.

Which timesheet steps software changes

In our workforce management system, clock-ins are recorded from the phone by location or QR code, or by PIN on a shared tablet at the door; no fingerprint or face recognition is used. Timesheets build themselves from these records: days and hours worked, lateness, leave types, overtime, weekly rest day and night work are separate items. At month end the timesheet is approved, the month is locked and it goes to your accountant as CSV and PDF. Of the five steps above, collecting, entering and separating are therefore not done by hand; checking and approval stay with you. See timesheet software.

If you are not moving to software yet, you can start measuring with a free Excel sheet: free timesheet and shift templates. For a step-by-step guide see how to prepare a timesheet.

The calculators are for information only and are not legal or payroll advice. Your collective agreement or employment contract may contain more favourable terms.