Even if time clocks are slowly becoming obsolete: Time recording is still popular in many companies. What the time tracking where it needs to be done and the best way to do it:

Why working time recording is necessary in companies
In many industries, recording working hours is becoming increasingly complex. Instead of a timesheet for entering hours or time cards, it is often a matter of providing proof of working hours to external bodies such as the customer or the tax authorities.
Also in the controlling time recording plays a major role - especially for companies that work on projects. In order to be able to calculate efficiently, for example, the hourly wages invoiced externally must be compared with the internal billing rates. The resulting difference is the working hours to be invoiced.
In addition, time recording is also used for employees an important tool for checking the efficiency of their working time. Because ultimately, it also leaves them with a better feeling when their working time can be used effectively. Tasks that take up too much time can be „unmasked“ by structured time tracking and subsequently optimised in personnel deployment planning. This data also provides an important basis for holiday planning., calculation of posts and benchmarking.
The statutory Documentation obligation can be easily followed up with good working time recording. For example, in the case of 450-euro salaries, proof must be provided that the legally stipulated working hours (Minimum Wage Act; 50.9 hours per month at 8.84 euros per hour) are adhered to. As an employer, verifiability is much easier if there is a clearly structured time recording system that employees can maintain themselves for each job. Accuracy is recommended here, as otherwise a fine of up to 30,000 euros may be imposed (§ 21 Para. 1 No. 7, Para. 3 MiLoG).
Pros and cons
Per
One clear advantage of recording working hours is that orders can be invoiced accurately right up to the end. Especially in service companies or in companies that work on projects, a few extra hours are quickly lost if they are not accurately documented. It is therefore important for the company and its employees that their work is also correctly documented, that it is correctly recorded in Invoice can be provided. A security that can be particularly relevant for employees, as nobody wants to work overtime for nothing (overtime accounts). But working time recording is also a good way for self-employed people to organise and bill their time correctly. In addition, working time planning enables precise planning and calculation of orders and resources.
Contra
It becomes difficult with working time recording in company departments where it's not strictly necessary. Full-time logging, as practised in some companies, can have negative consequences for the workplace atmosphere, as employees feel they are not being trusted. Furthermore, such a mood often develops into a culture of control. People look left and right to see if everyone is adhering to their „working hours,“ which creates a degree of rivalry. For the company, precise time tracking also means that overtime can no longer be ignored. This can lead to higher personnel costs.
Info on the side:
If the company has a works council, it may have a say in the introduction of a working time recording system (§ Section 87 (1) No. 6 BetrVG). However, the works council may not decide which system is used. But it can decide exactly how the system is used.
Which working time recording options are used today
Electronic capture
Especially in manufacturing companies, working hours are now recorded using „hardware terminals“. Similar to the punch clock, employees record their arrival and departure. Instead of a card, however, they use a chip or a magnetic card. Sometimes even passwords or fingerprints are used. This makes time recording „tamper-proof“. Recently, there has also been continuous development in other biometric methods, such as facial recognition.
Capture through software
Excel is still widely used to record working hours. However, an Excel spreadsheet is not considered tamper-proof and is therefore not recognised as proof of working time. However, there is a simple solution to this: simply save it as a PDF.
Today, it is more professional to use specialised software for working time recording, which often runs via online providers. These online time recording systems often include various project and billing functions that can be customised to the company. Online time recording can also be used on mobile devices. Service providers benefit from this as working time can also be documented outside the company.
The recording of working time by means of software is actually always based on trust, as the employees record their working times themselves.
A company can also decide whether it wants to use a standard system for time recording or whether it would prefer to use a customised industry solution. Standard systems such as SAP Business One often already include a Integrated time recordingwhich offers exciting opportunities to compare and analyse working times with other company data. This type of controlling software is particularly helpful for companies that work a lot on projects, as all data is always to hand and can be synchronised quickly. However, there are also many systems that can be integrated externally and specialise in sectors such as skilled trades, retail, care professions, etc.
ECJ ruling obliges to record working time
Why time tracking should be popular again
Away from the time card: Recording working time today
Integrated time recording - when the ERP system takes notes
WEB time recording for SAP Business One