Time is one of the most expensive resources on the manufacturing floor. When work hours are tracked inaccurately or too late, labor costs rise, payroll errors creep in, and managers lose sight of what’s actually happening on a daily basis. 👀
The best way to bring structure to that chaos? Effective manufacturing time tracking.
Gone are the days of relying on paper timesheets or manual entries; modern time tracking systems let employees log hours as work happens. That shift gives manufacturers clearer insight into labor usage, production flow, and staffing needs. 💡🕒
Modern time tracking doesn’t stop at payroll systems, though.
You’ll find that it also supports job costing, scheduling, compliance, workforce planning, and overall project management. When time data is reliable, leaders can make decisions with confidence rather than react after problems surface.
Here at Method CRM, we’ve been supporting QuickBooks-based businesses since 2010. Method is trusted by manufacturing teams for its two-way QuickBooks sync, customization services, and end-to-end workflow automation.
In this guide, we’ll show you how manufacturing time tracking works, what to look for in a system, and how to use it to gain better control over labor and operations. ✅
Table of Contents
Why time tracking matters in manufacturing ⏳
The manufacturing business and the environments it operates in move fast, and labor is often the largest operating expense. Without accurate time data, small issues can snowball into major cost and scheduling problems.
Time tracking gives managers visibility into who is working, where time is being spent, and how labor aligns with production goals.
Instead of guessing or waiting for end-of-week reports, supervisors can see hours shortly after they’re logged. That visibility makes it easier to spot bottlenecks, rebalance workloads, and keep production on schedule.
Manual timesheets bring with them a lot of unnecessary risk. Things like missed punches, rounded hours, and delayed approvals all create payroll discrepancies that take time to fix.
When time tracking is automated, these errors can be prevented. This happens by capturing time entries consistently and routing them through approval workflows before payroll runs.
Labor cost control improves when hours are tracked accurately, too. It’s much easier to monitor overtime, and managers can address scheduling issues before extra hours pile up.
Before long, you’ll have better visibility into labor trends that support smarter staffing decisions and more predictable labor expenses.
Time tracking also supports better employee scheduling. With a better understanding of how long tasks actually take, managers can plan shifts more realistically and not overload their teams.
In turn, they can reap rewards like better employee productivity and less burnout.
Method supports this visibility through configurable dashboards and reporting that sync time data with QuickBooks, giving managers access to labor and job-level insights without relying on spreadsheets or disconnected systems.
Core time tracking features manufacturers need ⚙️
Given how unique manufacturing environments can be, a specific time-tracking tool is needed.
The right system should match the realities of the shop floor while remaining simple for employees to use.
With that in mind, let’s move on to the must-have features to seek out in me tracking software specifically for the manufacturing industry.
Time clock options
Some teams rely on shared kiosks, others prefer mobile devices, and some use desktop access. A time tracking system should support all of those options without forcing everyone into one process.
Mobile access that fits how work really happens
Mobile access adds flexibility. This is particularly useful for larger facilities or teams that move between stations.
With mobile access, employees can clock in and out without walking to a central terminal. Along with that convenience comes better adoption and accuracy.
Clock-in/clock‑out simplicity
Clock-in and clock-out actions should be simple and fast. Complicated processes discourage proper use and lead to missed entries.
Wherever you can, remove time-tracking friction to make keeping time a routine rather than a disruption.
Employee time off requests, approvals, and scheduling
Another way to do this is by keeping time off requests and approvals in the same system. When vacation and sick time are tracked alongside work hours, schedules stay accurate, and payroll calculations stay clean.
Alerts for overtime thresholds help managers intervene early.
Integrations with accounting, job costing and more
Integration is one of the most fundamental features. Time tracking should connect to payroll, accounting, job costing, and workforce planning systems. Without integration, time data still needs to be moved manually, which defeats much of the purpose.
Method’s time-tracking features let employees log time through mobile and web entry, with those time entries syncing directly to QuickBooks for job costing and invoicing.
Approved time entries flow automatically into accounting, reducing errors and saving administrative time.
Don’t miss this article next: A Practical Guide to Manufacturing Cost Estimating (2026)
Choosing the right manufacturing time tracking software 📱🖥️
Selecting the right time tracking software starts with understanding how your operation works today and where problems occur.
Cloud-based systems offer flexibility and visibility across locations. Managers can review time data, approve entries, and run reports from anywhere. On-premise systems may suit certain environments, but often require more internal support.
A system should work just as well for a 10-person shop as it does for a growing operation with multiple shifts and departments. Look for pricing and functionality that won’t force a system change as your workforce expands.
Accuracy and compliance features help protect manufacturing companies. Automated overtime calculations, approval workflows, and audit trails reduce payroll risk and support labor law compliance.
These features are especially important in environments with variable shifts and overtime.
Manufacturing time tracking: Implementation of best practices 💯
Successful implementation depends as much on people as it does on software.
Here are some strategies for implementing best practices throughout your organization:
- Define which employees will use the system, how time should be tracked, and what approvals are required.
- Employees should understand how and when to log time entries, how time off is requested, and why the system is being implemented.
- Walk employees through clocking in, submitting time, and correcting mistakes. Supervisors should understand approvals, reporting, and exception handling.
- Change resistance is common, especially on the shop floor. Involving supervisors early and showing how labor tracking supports fair pay and smoother scheduling helps gain buy-in.
- Run a short pilot to confirm payroll accuracy, approvals, and reporting.
Measuring success and ROI 📈
Measuring success with manufacturing time tracking starts with tracking the right metrics.
For many teams, the first and often most substantial benefit they’ll notice is spending less time on manual entry. In fact, data from Deloitte reports that automated payroll can reduce errors by as much as 50%.
Along with time saved, payroll errors tend to decline once time data is automated and approved before processing. Naturally, fewer corrections to make saves even more time, but it also bolsters trust.
With the right time tracking tool, overtime becomes easier to manage. Live time-tracking visibility helps managers adjust schedules before overtime grows unnecessarily.
User-friendly KPI dashboards can quickly show you overtime trends, hours per job, and labor costs. With all of this information readily available, it’s much easier to demonstrate ROI and guide ongoing improvements.
Conclusion: Manufacturing time tracking with Method 🎯
Manufacturing time tracking plays an integral role in controlling labor costs, improving visibility, and supporting smarter decisions.
The right system simplifies payroll, supports compliance, and gives managers real insight into workforce performance.
Method CRM helps manufacturers achieve this with flexible time tracking, real-time reporting, and deep QuickBooks integration. With the right setup, time tracking becomes a tool for clarity rather than a source of frustration. Start a free trial today to watch Method in action. 🚀
Frequently asked questions
What does time tracking look like for manufacturers?
Manufacturers typically use digital time clocks, mobile apps, or shared kiosks to record work hours. Time is logged as work happens and reviewed by supervisors before being used for payroll and job costing. For QuickBooks-based manufacturers, platforms like Method can be used to customize how time data connects to jobs, customers, and accounting workflows—without forcing teams into one-size-fits-all systems.
What is manufacturing time tracking software?
It’s a time tracking solution designed to record employee work hours in manufacturing environments while supporting scheduling, payroll, compliance, and production tracking.
We have a handy guide to mastering manufacturing scheduling here.
What is the difference between timesheets and automated time tracking?
Timesheets rely on manual entry after work is completed. Automated time tracking records hours as they happen, so you’ll have fewer errors and better visibility.
How does manufacturing time tracking help streamline workforce management?
Manufacturing time tracking helps streamline workforce management by giving managers real-time visibility into labor activity across shifts, jobs, and departments. With accurate data, teams can optimize employee allocation, balance workloads more effectively, and ensure billable hours are captured correctly. This visibility supports smarter scheduling decisions and reduces last-minute adjustments that disrupt production.
