The best time and attendance software records hours accurately wherever your team works. It enables fast clock-ins and exports approved time sheets to human resources (HR) and payroll. As a result, your small business pays employees correctly, assigns billable hours to the right projects, and spends less time managing compliance.
This guide breaks down what you should evaluate when comparing small business time tracking solutions. It compares leading time and attendance tools, sharing expert insights into must-have features for different teams and use cases.
Guide to selecting a time and attendance solution
Cloud-based time and attendance systems range from simple online time sheets and free time clock apps to artificial intelligence (AI)-powered tools with real-time GPS tracking. Notably, over 800 technology platforms offer time-tracking features. Find the software you need at an affordable price by identifying your business goals and workforce challenges. Learn how to build your criteria checklist, review employee time-tracking tools, and choose the best time and attendance software for your small business.
What to look for in time and attendance solutions
Digital time trackers and online time sheets help small businesses record hours so employees receive accurate pay for their time. Time-tracking benefits extend beyond compliance and administrative support. Solutions with paid time off (PTO) and scheduling features help employees manage their work-life balance. And there are systems geared toward shift-based workers, remote teams, and field crews. Create your shortlist using these guidelines.
Workforce fit and usability
Consider your business model, job roles, and industry when assessing time and attendance functionality. Software might be priced right but not perform well in the field. Time clock glitches and usability issues slow down employees, make them feel like you don’t value their time, and could translate into incorrect time sheets. If you staff a mix of full-time and part-time roles, build your criteria around managing part-time schedules so the coverage and costs align.
See how time attendance systems work for various use cases:
- Field service workers and frontline teams: Maintain accountability and safety with live GPS tracking or geofencing. Explore built-in communication tools and see if the time-tracking apps offer an offline mode.
- Hybrid and remote employees: Maximize in-office time and increase visibility with shared calendars, availability settings, a company directory, and absence tracking. Look for time and attendance tools that let teams switch devices easily and integrate with project or customer relationship management (CRM) software.
- Shift-based workplaces: Enable PIN or photo logins on mobile phones, time clock kiosks, or integrated point-of-sale (POS) systems. Confirm that the tracking app syncs with or offers communication and scheduling tools for covering shifts and tracking absences.
- Private practices: Choose solutions that help your business comply with financial, legal, or healthcare regulations while automating time sheets for salaried employees and tracking billable hours or non-billable expenses.
- Multilocation or growing businesses: Consider software that offers configurable overtime rules, flexible job codes, customizable PTO structures, and real-time exception tracking. Look for advanced workforce analytics and API access.
Plug-and-play integrations
Integrating payroll and time tracking offers small businesses one of the biggest benefits. Time and attendance systems capture time data and automatically transfer it to payroll. Depending on your current process and complexity, this step could save hours each month. Several time clock applications integrate with top payroll processing providers, like Gusto.
In addition to payroll, the best time-tracking tools integrate with accounting software, such as QuickBooks or Xero. Project management integrations are valuable for professional and service-based businesses, whereas retail and restaurant staff may look for POS integrations.
Connecting time clocks to remote time management tools reduces app switching. Other popular integrations include Slack and Google Drive. Prioritize plug-and-play integrations over APIs or Zapier, as these are easier to install.
Consider your business model, job roles, and industry when assessing time and attendance functionality. Software might be priced right but not perform well in the field.
Compliance support
When it comes to the Fair Labor Standards Act (FLSA), time clocks are optional, but accurate timekeeping is not. In fact, most FLSA back wages cases stem from overtime mistakes. The best time and attendance systems for small businesses enforce overtime rules and break compliance automatically. They should also handle state-specific regulations like the California meal break premium pay rule.
Look for time attendance apps with overtime management support that not only enable compliance but save time spent on compliance activities. According to the 2024 Q4 U.S. Chamber and MetLife Small Business Index, nearly half of small business owners spend too much time on regulatory compliance. Recordkeeping and taxes are the top two most burdensome tasks.
See if the software offers real-time exception alerts, which help catch missed breaks or unexpected overtime. Tools should support FLSA time rounding rules and settings must maintain neutrality. Many time clocks automatically and consistently apply FLSA rules, such as the 7/8-minute rule (7-minute rule). This helps you comply with labor laws and provides you with proof. If you track leave, make sure your software setup aligns with optional and forced PTO policies and leave management processes.
Reporting and audit tools
Time and attendance systems for small businesses provide pay period summaries, and exception reports show missed punches, attendance or absences, early and late logins, and missed breaks. GPS-enabled software offers location reports, whereas task and project-based tools generate detailed statements showing how employees spend their time.
Think about who will use reporting dashboards for daily time management versus what information you need for high-level decision-making. Look at the report formats and customization levels. You should be able to filter data for different departments and dates while maintaining a visually appealing format.
Look for time clock software that provides a time sheet audit trail with edit history, time stamps, and approvers. It should allow you to lock time sheets so your records are defensible in audits.
Secure, scalable time-tracking tools
Even startups and small businesses using free time and attendance software should see if step-up plans are worth the upgrade. The challenge is that when you outgrow free time-tracking tools, it coincides with growth and changes in your company, and switching time clocks is disruptive. Choosing a low-cost or free time tracker that scales will be less painful later.
Regardless of the cost, look for these security features:
- Role-based permissions based on the principle of least privilege.
- Multifactor authorization login methods.
- The ability to track who has made changes and report export controls.
- Limits on who can view personally identifiable information and pay-impacting fields.
Onboarding, self-service, and customer support
Time and attendance companies may offer email, chat, or phone support. However, not all providers are available around the clock. Onboarding is typically self-guided, although some have add-on onboarding or support contracts for dedicated assistance. Before choosing time clock software or hardware, check out the self-service options, interact with customer support agents, and assess your team’s training needs.
Adding a new step and app or device to workflows isn’t as simple as it sounds. According to PwC, nearly half of employees said their workloads increased substantially and they had to learn new technologies in the past 12 months.
To make the onboarding and time clock adoption process fast and seamless, look for:
- Embedded tooltips or digital assistants to help employees locate features and tools relevant to their job roles.
- Web-based, desktop, and mobile apps with clearly labeled functions and organized layouts with uncluttered displays.
- Online resources and an intelligent search bar to help employees and administrators find answers quickly.
Time-tracking must-have features
Most time and attendance management systems come with core features for tracking time, including an in-person or online time clock, basic reporting and analytics, time sheet management, and calendar integrations. Apps may offer buddy punching prevention, PTO and leave management, and geofencing or GPS tracking. Shift-based time-tracking software and upper-tier plans often enable employee scheduling.
Here’s a quick guide to the top time and attendance features:
- Punch methods: Time clock software supports multiple clock-in and clock-out methods, including punching in via a mobile app, a time clock kiosk, a web browser, or a physical device. Some are compatible with PINs or swipe cards, whereas others use QR codes or biometrics like photo clock-ins.
- GPS and geofencing: Timekeeping solutions offer geolocation tools to set boundaries where employees can log in and out, record locations of mobile workforces, and alert managers if individuals or devices leave the area.
- Time sheet management: This feature lets employees track time spent on projects or tasks and categorize entries as billable or non-billable hours. Some time tracking systems offer automated time sheets for salaried workers and have built-in approval workflows.
- PTO accruals and balances: The best time and attendance programs track PTO accruals and days off, matching them to time sheets for accuracy. Some systems include online time-off request forms and approval processes.
- Basic scheduling tools: Some time and attendance systems have simple scheduling software or offer add-ons. These may include scheduling templates, recurring shift features, and drag-and-drop building tools.
- Calendar management: This feature lets employees set preferred work hours and share their availability with co-workers. It may send reminders or alerts for deadlines or meetings.
- Reports and analytics: Standard dashboards and reports come with most time-tracking apps. Some provide productivity analysis features, whereas enterprise tools offer workforce costing and profitability reports.
- Exports and integrations: Tracking apps often integrate calendars and offer one-click exports to payroll and accounting systems. Some offer APIs or integrations through Zapier.
How much do time and attendance systems cost a small business?
Most small and midsized businesses pay up to $12 per user per month for online time and attendance software. For 10 to 25 employees, expect to pay around $40 to $200 monthly, depending on features and hardware. If you add a physical device, time-tracking providers may charge additional monthly fees for hardware device plans plus a one-time charge for purchasing the hardware.
Time and attendance pricing models are either per user, a base fee plus per user costs, per location with unlimited employees, or a flat fee covering a set number of employees in different tiers. FLSA requires companies to retain time cards for two years, so review software solutions for built-in storage capabilities or compute costs for long-term cloud storage.
Additional considerations include:
- Mandatory minimums: Some time and attendance companies require a minimum number of licenses.
- Setup fees: Most small business time-tracking apps don’t charge setup fees. But enterprise suites and HR systems with time clocks may charge for implementation.
- Add-ons: Several providers offer upgrades for payroll processing, advanced GPS, AI analytics, data retention, or text message alerts.
- Training: Leave room in your budget for administrative and staff training, even when relying on self-service documents.
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