Types of Timekeeping Software

by Jeva Anand Google

Computerized timekeeping systems have largely replaced mechanical time clocks, as they reduce administrative overhead and ensure that employees are paid more accurately and fairly. They also help reduce fraudulent practices like "buddy punching." In addition to cost, your company's size, as well as payroll and accounting needs, will determine which type of timekeeping software is best for you.

On-Premise Software

Work sites using on-premise timekeeping software must install or download the software, then use it in conjunction with hardware such as time clocks or biometric terminals. This software must be used on a physical server and a separate computer at the site. The combined hardware and annual licensing fees make on-premise timekeeping software, an older concept developed in the 1990s, a more costly solution than more recent concepts such as Web-based or cloud-based timekeeping software.


Cloud-based timekeeping systems are Web-based. Rather than being hosted on an onsite physical server, cloud-based services draw from a number of virtual resources called virtual servers. Business who use this type of software have increasingly abandoned the use of physical time clocks. Using the concept of Software as a Service, or SaaS, employees log in to an online account to punch in or out. Cloud-based timekeeping requires no long-term contracts or license fees, and is therefore a less expensive solution than older concepts such as on-premise software.

Standalone Software

Standalone software allows employees to clock in either from a dedicated computer in a separate location or a networked computer directly on the employees' desks. The software compiles automated, basic time sheets for each employee, based on his time and attendance information. Because it does not factor in expenses and vacation time, standalone timekeeping software is generally used by smaller companies with fewer than 25 employees, who may not need more advance features.

Customized Software

Large businesses often need timekeeping software that can be integrated with accounting and payroll systems. Customized timekeeping software can track a number of payroll-related factors, such as Paid Time Off, or PTO, as well as sick and vacation time. It can also generate invoices, such as for contracted work and service calls, when integrated with the billing system. In addition, customized timekeeping software can create individualized reports, allowing companies to analyze departmental labor costs, among other things.

About the Author

Jeva Anand began writing in 1988. He has worked as an educator, media-relations coordinator and copywriter, and collaborated with regional and national media such as "Indian Country Today." Anand holds a Master of Arts in English from the University of South Dakota. He currently works as a writer and translator.

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