The 16 Best Time Clock Choices for Small Business

Want to minimize payroll errors and time spent managing employee hours? You need a time clock for your small business. The best time clock for small business owners will help  you accurately track and manage employee time, run efficient and accurate payroll, stay compliant, and reduce administrative labor.

Read on to learn about which is the best time clock for small business owners, exactly what to look for when shopping around for a time card machine or clock-in system, and the features to look for that will help run your business.

What is a small business time clock?

A small business time clock is a tool or system used to track and manage employees’ working hours. It helps businesses of all sizes accurately record when employees clock in and out, take breaks, or monitor the time it takes to complete tasks.

For example, an employee starts work at 9am and clocks in to begin their shift. They clock out between 1-2pm for lunch, then clock out to finish their shift at 6pm. A simple time clock for small business helps manage that process.

You can also use a time clock to understand scheduling, calculate paid time off (PTO), and process payroll.

The benefits of an employee time clock for small business.

Modernizing time tracking lets you focus your time and energy on other parts of your small business and helps ensure your business is operationally efficient.

Here’s why you should use a clock-in system for your small business:

• Streamline and simplify payroll: A small business time clock means employees are paid exactly what they’re owed and you don’t have to waste time correcting paychecks or worrying about remaining compliant with local and federal laws.
• Reduce labor costs: A time clock accurately tracks how team members use their time at work, which helps you spot any time drains and make adjustments to improve scheduling and labor.
• Minimize time theft: With a better picture of a worker’s clock-in and clock-out habits, it’s easier to spot time fraud.
• Manage employee attendance: You’ll be alerted to any attendance inconsistencies, helping you separate coincidences from regular absenteeism.
• Stay compliant: With an accurate picture of hours worked, you can make sure your business is compliant with the Fair Labor Standard Act (FLSA) and all state and local laws.

8 different types of time clocks for small business.

1. Time punch clock.

Time punch clocks, also called clock card machines, are physical devices installed at a central location. An employee inserts their time card into the time card machine for small business, which is stamped with the time their shift starts and ends. A manager then needs to gather all the time cards and manually input the hours worked into the company’s payroll.

2. Electronic time clock.

An electronic time clock is the modern evolution of the original analog time clock. Three of the most popular types of electronic time clocks for businesses are digital time clocks, biometric time clocks, and mobile time clocks.

3. Proximity time clock.

A proximity time clock is a digital time clock. It’s sometimes known as a card swipe time clock or fob time clock. An employee keeps an activation device with them at all times.

Whether it’s a scannable barcode on their ID badge or a dedicated swipe card or fob, this style of time clock usually connects to time tracking software that logs each person’s time punches throughout the workday.

4. Keycode time clock.

A keycode time clock requires employees to enter a password or a personal identification number (PIN) when they start and end their work. Keycode time clocks often work as a second form of identification to other entry methods like a barcode.

5. Online time clock.

An online time clock lets employees punch in and out through a web browser on any computer, logging in with their unique credentials through a secure webpage where they enter their workday start and end times or lunch hour.

6. Biometric time clock.

A biometric time clock uses biometric data to confirm identity and relies on voice or facial recognition, fingerprints, palm prints, or iris scans. Biometric time clocks are commonly used for security purposes, permitting only authorized workers to access a designated area.

7. Employee time clock app.

A mobile electronic time clock—also known as a time card app—is employee time clock software that lets employees clock in and out using a smartphone or tablet rather than a web browser on a computer.

Employees can access the mobile time clock through an app on their mobile devices. Using GPS technology to verify the employee’s location, a mobile time clock lets employees accurately clock themselves in and out no matter where they are.

8. Picture on punch clock-ins.

An employee time clock app can also be a biometric time clock, allowing for “picture on punch” clock-ins. This means you can have employees’ webcams and built-in cameras take their photos whenever they clock in or clock out, giving you extra security to cut down on time theft or buddy punching.

How to find the best time clock software for your small business.

Follow this quick start guide to choosing the right time clock to help streamline your business:

• Assess business needs: Why do you need a small business time clock? How do you want it to help your company? How many employees will use the system?
• Figure out what features you need: What features will help your business the most? What integrations do you require?
• Set your budget: What are the upfront costs? Are there any subscription fees?
• Do your research: What do review platforms say? What time tracking software do others recommend? Can you request a demo or free trial?
• Evaluate your options: Is the software user-friendly? Is there a customer support option? Will the time clock app scale as your small business grows?
• Make your choice: Which is the best time clock for your small business, and is it within your budget?
• Review after a year: Has the software met your needs? Are there any areas you think need improvement?

The 6 most important features when finding a small business time clock.

Many factors matter when you’re settling on the best time clock system for a small business. When making your choice, you’ll want to look for certain essential features—the must-haves for making your time tracking system work in your favor.

The best time clock software for small business owners should make running your business easier. Here are six features that should be non-negotiable:

1. Payroll integration.

Time clock systems for small business owners should always streamline your payroll process by integrating time tracking. This helps your payroll remain error-free—which your employees will love you for!—and means you spend less time on manual data entry and more time on growing your small business.

2. Overtime calculations.

Your time clock should let you set when your work week starts, select what overtime wage type applies to each employee, and then automatically register that team member’s overtime hours.

Most web-based and mobile time clocks can even send you notifications when a given employee has hit overtime, helping you manage overtime issues and labor costs easily.

3. PTO tracking.

Keeping careful track of breaks and PTO is a key part of an efficient and well-run time tracking system. The benefits of taking time off extend to both your workers and your business, adding to productivity and producing higher-quality work.

Your time tracking system should be able to track your employees’ paid and unpaid breaks and reduce the costs and manual administrative tasks associated with vacation scheduling by automating the whole process, from putting in leave requests and approvals to preparing PTO reports.

4. Comprehensive reporting.

No matter how much data your time clock system collects, without good reporting options, you won’t be able to fully analyze and benefit from the information or predict your job costs.

You’ll want to look for a small business time clock system with comprehensive reporting options, such as attendance, job costing, and payroll reporting. Choose an option with multiple exporting options and the ability to customize your reports.

5. User-friendly interface.

Is your time tracking system difficult to use and understand? It shouldn’t be. Because if your chosen time clock software has a confusing or cluttered interface, it will instantly become counter-productive for your team. Plus, you’ll waste time helping your team members troubleshoot issues if they’re constantly coming up.

Make sure your time clock is easy to install, access, and navigate. If you have remote employees or field workers, then ease of use is especially important.

6. Good customer support.

Your time clock software should offer quality customer support, whether by email, phone, or live chat. Look into how knowledgeable the support is, the average response time, and how much emphasis they put on the customer experience.

Beyond these essential things to look for in an employee time clock system, a host of advanced features can benefit your business, depending on its needs and challenges.

These include:

• Biometric data-scanning like facial recognition
• “Picture on punch” clock-ins
• Geofencing
• IP address locking
• Push notifications
• Gamification

16 of the best time clock apps for small businesses.

So what is the best time clock for small business owners? Many time clock apps exist to suit different small businesses and their teams, so it’s not always easy to choose one. Each business is unique, so here’s a list to get you started on comparing features and functions to best fit your needs.

1. Homebase

There’s a reason Homebase is the best time clock app—it helps you minimize time theft, control labor costs, track hours, prep for payroll, and more.

The Homebase time clock tool is free for up to 20 employees and includes time tracking features in its lowest-cost plan.

2. Connecteam

Connecteam is a workplace management app that focuses on improving communication between remote or mobile teams and provides a time tracking and scheduling feature.

Small business owners interested in comms and task management may find Connecteam a better fit than Homebase, but it does not include built-in payroll function.

3. Everhour

Everhour is project management and time tracking software that helps teams with task management and managing budgets.

It’s more suited to project-based work than Homebase, which is built for time management and scheduling.

4. Acuity

Acuity is scheduling software that helps small businesses book and manage appointments.

Specifically designed for appointment-based businesses (e.g., hair salons, fitness studios, etc.), the software lacks the robust time tracking features Homebase has, but Acuity can be useful if you are looking for booking software.

5. QuickBooks Time

QuickBooks Time is a time tracking tool that integrates with QuickBooks payroll software.

The app focuses heavily on payroll, while Homebase is more of an all-around solution for managing hourly teams and small businesses.

6. Hubstaff

Hubstaff is a productivity monitoring platform that includes a time tracking feature.

Built for remote teams, Hubstaff tracks employee activity levels and focuses more on improving worker productivity than Homebase, which hones in on scheduling and time management.

7. TimeCamp

TimeCamp is a time tracking app that includes project and task management, making it useful for work that has project-based billing.

If your small business involves more shift work and fewer projects, Homebase can help you stay operational and compliant while streamlining your scheduling and payroll.

8. Jibble

Jibble is attendance management software that comes with GPS, facial recognition, and timesheet management features.

In particular, Jibble can be especially useful to monitor employee time and productivity for construction or field services, while Homebase can be a strong all-around option across industries.  

9. Harvest

Harvest is a time management software that’s built for businesses to help them manage their time, with built-in project tracking and invoicing. For example, an agency might use Harvest to monitor time spent by employees or freelancers.

In contrast, Homebase focuses specifically on small businesses with hourly employees. For example, retail or hospitality.

10. Clockshark

Clockshark is a time tracking system for construction sites, field services, and trade. The platform includes GPS tracking, job costing, and project management.

Clockshark is helpful for managing remote or mobile teams. But if you’re looking for a small business app for in-house employees, Homebase might be more suitable for you.

11. Time Clock Wizard

Time Clock Wizard helps businesses manage time tracking, payroll, and project management. It allows users to clock in and out via desktop or mobile and provides detailed analytics on hours worked, attendance, and labor costs.

Homebase includes these features and also has integrated scheduling, team communication tools, and integrated payroll so you can do it all in one app.

12. TimeDoctor

TimeDoctor is a workforce analytics platform that helps businesses monitor activity and productivity. The time tracking feature means managers can see whether employees are working on the right projects or not.

TimeDoctor is best suited for remote teams and prioritizes analytics, while Homebase is the best time clock app for small business owners with hourly employees.

13. OnTheClock

OnTheClock is a simple time clock for businesses that need time tracking, scheduling, and compliance management and is built for detailed labor and project management.

In contrast, Homebase is built for retail, hospitality, and small businesses that require an all-in-one solution to team management.

14. 7shifts

7shifts is a restaurant management and scheduling solution that helps managers create, update, and distribute schedules effectively.

Homebase has similar employee scheduling, but broadens its features to include hospitality, bars, and other small business sectors.

15. busybusy

busybusy is a time clock app for construction and trades. It helps with job costing, budget management, and supervising.

The tool is helpful for field services, but if you’re a small business, Homebase will help you manage your team day-to-day.

16. uAttend

uAttend is cloud-based time tracking software that includes biometric time clock hardware, geofencing, job costing, and overtime calculations.

It’s a simple clock in system for small business owners, but businesses looking for a more holistic solution to team management may find Homebase more suited to their needs.

Homebase is the ​​best online time clock for small business owners, because our app comes with payroll, timesheets, and a time clock to help you manage hourly teams with confidence and ease. Sign up for a free 14-day trial to get started.

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The best employee time clocks: FAQ

Why are time clocks important for small businesses?

Time clocks are important for small businesses because they accurately and automatically calculate payroll, help business owners see where labor costs can be reduced, minimize the chance of time theft, help regularize employee attendance, and make it easier for companies to stay compliant with labor laws.

What are the essential features of a time clock for small business?

Even the most cheap time clocks for small business should include the capability to track employee work hours and reporting functions to view hours worked. However, an ideal small business time clock should include payroll integration, the ability to calculate overtime, PTO tracking, comprehensive and customizable reporting, a user-friendly interface, and a good customer support system.

What are the different types of time clocks?

The different types of time clocks include biometric time clocks, online time clocks, proximity time clocks, card swipe time clocks, keycode time clocks, mobile time clocks, electronic time clocks, time punch clocks, clock card machines, time clock desktop software, and time clock mobile apps like Homebase.