How to Keep a Time Sheet for the Self Employed
One of the perks of being self employed is the freedom to set your own schedule. Instead of having to show up and "punch in" at 8 am every Monday through Friday, those of us who are self employed are free to work when we want. However, even though we aren't tied to a schedule, it's still a wise idea to keep a time sheet for ourselves. Why?
--A time sheet helps track the hours we put in on a specific job. If your home business bills by the hour, a time sheet documents the hours worked and furnishes proof of the time spent on the job.
--For jobs that are "bid" instead of billed hourly, tracking the hours worked is useful as a planning tool. Newbie freelancers often under estimate the time it takes to do a certain job; tracking hours gives you a better idea of how much time a task really takes which will help in preparing future bids.
-Keeping your own time sheet, travel and work logs helps validates your position as an independent contractor, as opposed to an employee who is subject to employment taxes.
--For deadbeat clients who won't pay, a time sheet combined with an invoice is legal evidence that can be used in court to support a claim of nonpayment.
How to track your time
If your home business bills by the hour, the best method for tracking your time is with a time sheet. Most time sheets follow a simple format of a lined form with a space for the client name, address, and job description at the top, and separate columns below for recording the date, hours worked, and description of work done. You can find free, printable time sheets at formville.com.
For home businesses that track more than just hours, a rough work invoice might be a better alternative. We use invoices in our business as a detailed work log that tracks the total hours worked that day, the type of work, driving time, and out-of-pocket expenses. When the job is complete, information is pulled from this "working copy" to prepare an itemized statement for billing. The client does NOT receive a copy of the rough invoice unless the job is being billed by the hour.
No matter what method is used to track your hours, what's important is that hourly work records are kept. A work sheet is more than proof of a job done, it is also a valuable tool in helping us prepare future estimates so that we don't shortchange ourselves on time.
More articles by this author:
How to start a business from your home
Can I start a business in my garage?
How long do I keep records for my home business?
--A time sheet helps track the hours we put in on a specific job. If your home business bills by the hour, a time sheet documents the hours worked and furnishes proof of the time spent on the job.
--For jobs that are "bid" instead of billed hourly, tracking the hours worked is useful as a planning tool. Newbie freelancers often under estimate the time it takes to do a certain job; tracking hours gives you a better idea of how much time a task really takes which will help in preparing future bids.
-Keeping your own time sheet, travel and work logs helps validates your position as an independent contractor, as opposed to an employee who is subject to employment taxes.
--For deadbeat clients who won't pay, a time sheet combined with an invoice is legal evidence that can be used in court to support a claim of nonpayment.
How to track your time
If your home business bills by the hour, the best method for tracking your time is with a time sheet. Most time sheets follow a simple format of a lined form with a space for the client name, address, and job description at the top, and separate columns below for recording the date, hours worked, and description of work done. You can find free, printable time sheets at formville.com.
For home businesses that track more than just hours, a rough work invoice might be a better alternative. We use invoices in our business as a detailed work log that tracks the total hours worked that day, the type of work, driving time, and out-of-pocket expenses. When the job is complete, information is pulled from this "working copy" to prepare an itemized statement for billing. The client does NOT receive a copy of the rough invoice unless the job is being billed by the hour.
No matter what method is used to track your hours, what's important is that hourly work records are kept. A work sheet is more than proof of a job done, it is also a valuable tool in helping us prepare future estimates so that we don't shortchange ourselves on time.
More articles by this author:
How to start a business from your home
Can I start a business in my garage?
How long do I keep records for my home business?
Published by C. Jeanne Heida - Featured Contributor in Business & Finance
Jeanne is a small business owner with 25 years experience in the real estate industry. A consistent Y!CN Top 100 writer, her articles can be found at Y!Finance, Shine, Your Wisdom, DEX, and the Scripps Net... View profile
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8 Comments
Post a CommentThis is most useful. Thanks.
Terrific info here! You don't realize how much time you work 'til you see it on paper.
Super advice- when I track how long I work, I realize more often than not I put in far less than I thought, so I make the actual effort to work longer! Pays off $$$
Thanks this article is great for those of us who freelance!
Monette
Even if you're not billing clients hourly or by the job, it's a good idea to see where you're spending your time. This will help you determine what types of activities or jobs are most profitable. great advice!
Good article, enjoyed learning something every time I read your work.
What great advice, ty!
Wow! I never thought of actually tracking how much I sit at the computer and work. I am a work-a-holic and never really gave it much thought -- I will probably cry when I start to track it.