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All about timesheet invoice

Updated on :  

08 min read.

A timesheet invoice is an invoice type used to charge clients for a particular task or a project. It is a precise billing method used by specific industries.

Meaning of timesheet invoice and uses

A timesheet invoice is one where a business uses its employees working hours on a particular project to charge its customers. Timesheet invoice is used by businesses that provide services to their customers based on billable hours charged. It helps to improve its employee productivity and retention. Timesheet invoicing helps the organisation to manage its greatest asset, which is its employees. Some of the industries which widely use timesheet invoices are:

  • Consulting, law and accounting firms
  • Freelancers
  • Healthcare industry
  • Manufacturing and construction
  • Hospitality

Benefits of timesheet invoice

 Some of the benefits of using timesheet invoices are:

  • Helps in project management: It helps the project manager track the time and labour expenses incurred on a particular project. Time and labour tracking help the business to reduce its cost by making payroll processing more efficient. 
  • Automated and accurate billing: With timesheet tracking, one can do automated billing. It provides accurate data for timesheet billing. It also speeds up the timesheet billing process and thus, in turn, ensures faster payments.
  • Useful for future projections: Timesheet invoicing provides a detailed breakdown of total labour hours charged, labour costing, full costing, job estimate, etc., which is helpful for future projections.

All you need to know about time entry

Time entry means recording the start and end timestamps for every service provided. It refers to the recording of time spent by an employee on a particular task. It is essential for an organisation to accurately account for the time spent by its employees on a specific task or a project. This data is also helpful in billing its clients and processing its payroll. It helps the business to use its time effectively by maintaining accurate records. This makes time entry essential for every business.

Application of timesheet invoicing 

  • Processing payroll: It helps to track labour hours worked. It provides a basis for payroll approval. Timesheet invoice helps to cut data entry errors and ensure smooth processing of payroll.
  • Management accounting: It helps the project managers to record labour time spent on a particular project. It helps in further analysis, such as which task takes more time and identifies time-consuming tasks.

It is helpful in industries that use labour hours charged on a particular project as a basis for charging its customers.

Format, templates and contents of timesheet invoice

Below are some of the templates of the timesheet invoice:


Along with all the details required for a standard tax invoice, it contains additional details regarding labour hours spent on the project, labour rate, and cost.

Differences between standard timesheet and timesheet invoice

Some of the differences between a standard timesheet and a timesheet invoice are:

Standard TimesheetTimesheet invoice
It uses standard check-in and check-out time for calculating labour hours.It uses actual check-in and check-out time for calculating labour hours.
Standard timesheets are used for estimating project costs.Timesheet invoices are used to track actual time spent on a particular project.
It helps in analysing the reasons for the difference between the standard time and actual time.It is used for billing its customers.