Time tracking for small businesses
Even in small companies, it is crucial to maintain an overview of employees’ working hours and absences at all times and to comply with existing legal requirements. This is why an efficient time recording solution in the form of digital tools, which are inexpensive and easy to implement, is also suitable for small businesses with up to 10 employees. These systems enable working hours to be recorded accurately and make it easier to calculate overtime. In addition to meeting legal requirements, structured time tracking for small businesses also improves productivity, as employees can track their working hours and absences such as vacations, flexitime or sick days more transparently.
Legal requirements for time tracking in Germany
The obligation to record time tracking was already specified in 2019 by a ruling of the European Court of Justice (ECJ) and the subsequent ruling of the Federal Labor Court (BAG) in 2022. Companies are now obliged to document their employees’ working hours systematically, reliably and accessibly.
The 2025 coalition agreement between the CDU/CSU and SPD also pays special attention to the issue of time tracking. The parties emphasize the importance of transparent and comprehensible working hours. It is assumed that companies will be legally obliged to introduce precise systems for recording their employees’ working hours across the board in future.
Efficient methods for time tracking in small businesses
It is particularly important for small businesses and SMEs to find a cost-effective and legally compliant solution. For companies with up to 10 employees, simple digital systems are available, which can be supplemented with a digital time clock or time recording terminal if required, and enable affordable and user-friendly time tracking.
Time clocks for small businesses are a classic but still popular method. For a more modern approach, apps or web-based solutions that also support mobile time tracking can be used.
Cloud-based systems allow you to record working times in real time and access them from anywhere. These solutions are often inexpensive time tracking systems that can be easily integrated into existing processes. Mobile apps also offer the option of recording times directly from smartphones or tablets, which is particularly beneficial for field staff.
By using digital time tracking with DATEV integration, all data relevant to wages and salaries can also be seamlessly transferred from time management to the DATEV payroll software in-house or at the tax consultant. In addition to working hours, this also includes overtime and absences, for example.
It is important that the chosen system both meets the legal requirements and minimizes the administrative effort. In this way, you can ensure that your time tracking for small businesses is efficient and legally compliant.
Tips for implementing a time recording solution for SMEs
- Why introduce time tracking? Legal requirements and the desire for fair, transparent working time recording speak in favor of the introduction – also to relieve employees who previously managed attendances and absences manually.
- Select the right tool: Clarify requirements: mobile or stationary, ease of use, interfaces (e.g. DATEV), support & costs. Involve future users in the decision.
- Technical implementation: Install software or simply use a cloud solution, set up time clocks if necessary. Simple access via browser or app is often sufficient. Usually uncomplicated with a short introduction.
- Start using: Employees use the tool on a daily basis. Depending on the solution, little training is required, but support should be available.
- Monitoring and control: Plan a transition period, clarify questions, name contact persons and check whether time tracking is being used correctly.
These steps will help you to make time tracking legally compliant and efficient. You can also find detailed tips on introducing time tracking in our blog article Introducing time tracking in 5 steps.
Conclusion: Benefits of time tracking for small businesses
Efficient and legally compliant time tracking offers numerous advantages for small businesses. It not only ensures compliance with legal requirements, but also optimizes operational processes. By using modern time recording solutions, such as time clocks for small businesses or inexpensive time recording systems in the cloud, you can record and manage working times accurately. This leads to a better overview and planning, which can be particularly important for small businesses with up to 10 employees.
In addition, transparent time tracking promotes employee confidence as they can track their working hours. Overall, well-implemented time tracking for small businesses helps to increase efficiency and satisfaction within the company.
