What is a time tracking system?

A time tracking system is a digital tool for recording employees' working hours. The system automatically keeps track of when employees clock in and clock out, and records any breaks and shift changes.

In hospitality – where schedules change often, many people work part-time or irregular hours, and the busiest periods fall outside normal office hours – an effective time tracking system is essential. It ensures correct pay, gives an overview of staff working hours and frees up time spent on administration. Compared with old-fashioned punch clocks and paper time cards, a digital solution eliminates manual errors and makes the data easy to access.

With a time tracking system you no longer have to collect and calculate working hours by hand. The system records all hours automatically and can integrate directly with both your payroll system and your POS system. The result is one joined-up solution that saves time and resources. In a busy café or restaurant, that means you can focus on your guests instead of paperwork – while keeping full control that every hour is recorded accurately and every employee gets the right pay.

Time tracking systems in practice in restaurants, cafés and bars

Picture an ordinary day in a café: when the morning team arrives, each employee goes to the POS or a tablet in the staff room and clocks in by entering a personal code. A barista starting at 8:00 logs in, and the system records that her shift has begun. During the day she takes a short break at 12:00 – she marks the break in the system, and when she is back she clocks in again. When her working day ends at 15:30, she clocks out. All her working hours (including the break) are now recorded correctly. The manager can see the barista's total hours in the system the same day – or at the end of the week – and approve them for payroll. This digital registration saves the manager time, since timesheets no longer have to be kept by hand, and the employee can be sure her working time is recorded precisely.

Another example is a busy Saturday night in a restaurant or bar. Perhaps 5–6 employees are working, with staggered start times. The time tracking system gives a real-time overview of who is clocked in. If a waiter stays an hour longer than planned to help during the rush, the system records the extra time automatically when the waiter clocks out later than scheduled. If an employee forgets to clock out in the hurry at closing time, they will still show as on shift in the system – the next morning the restaurant manager can quickly spot the error in the overview and correct the time so the actual working hours are right. In practice, the system ensures that even in hectic periods with many guests or unexpected changes, every hour is recorded accurately. Both employees and managers can trust the data, and there are fewer misunderstandings about who worked when.

Why is time tracking important in a POS system?

Integrating time tracking into your POS system creates a direct link between operations and data. First, you avoid duplicate work: when employee hours are recorded directly in the POS system, you no longer need to enter them into a separate payroll system or spreadsheet. That saves time and minimises the risk of typing errors. Second, it makes day-to-day management and planning easier. You can compare sales and staffing in real time – for example, revenue per hour against the number of employees on shift. This helps you assess efficiency and adjust staffing so your labour cost percentage (wage costs relative to revenue) stays at a healthy level.

Reporting and overview are another important reason: a time tracking system gives you detailed reports on working hours, overtime, breaks and staff costs. That makes it easy to analyse operations, build budgets and make informed decisions – for example, you can identify periods of the day or week where you are overstaffed or understaffed relative to customer flow.

Last but not least, it is about compliance and peace of mind. With automatic time tracking you can document employees' working time against both legal requirements and collective agreements. Without a system it can be hard to prove that you comply with working time rules (for example maximum weekly hours and required breaks), but with digital clock-ins you always have the documentation at hand. Without system support, errors are also more frequent – a forgotten clock-in or clock-out on a paper slip can lead to incorrect pay, which can hurt employee satisfaction and, in the worst case, break the law. That is why time tracking in the POS system matters so much: it ties accurate employee data to the rest of your business and makes everyday operations efficient and error-free.

How does Flexybox support time tracking?

Flexybox' POS solution has a built-in time tracking system that makes it easy for your employees to record their working hours and for you to manage them. With Flexybox, employees can clock in and out directly on the POS or on a connected device (e.g. a tablet in the staff room). The system records start times, breaks and end times precisely and in real time. As a restaurant owner or café manager you get a complete overview: on your screen you can see which employees have clocked in, who is on a break and when people went home. That gives full transparency in the schedule and makes it easy to follow operations minute by minute.

Flexybox' time tracking is fully integrated with both the digital shift scheduling system and the POS. This means planned shifts and actual registrations work together. If an employee arrives early or stays longer than planned, the system can catch it – and the manager can approve or adjust the time in the system.

All data is stored securely and can easily be transferred to your payroll system, as Flexybox integrates with a wide range of payroll solutions. For example, you can export approved hours for payroll in a few clicks, without entering anything manually.

The system can also be set up to apply rules such as automatic registration of supplements for night work, weekend work or overtime, so the correct rates are included in payroll.

In short, Flexybox supports your time tracking by automating the processes, reducing errors and making sure both employees and management trust the recorded data. The result is less administrative hassle and more time to create great guest experiences.

Benefits and effects

Correct pay every time: Automatic registration ensures employees get exactly the pay they have earned, based on accurate hours – neither too much nor too little.

Less administrative work: Digitising time tracking saves you time on manually entering and calculating hours. Running payroll becomes simpler with automatic data transfer, freeing up time for other important tasks.

Better shift planning: With a clear view of when you are busy, you can plan shifts more precisely. You avoid under- or overstaffing, as historical data helps you match staff numbers to demand.

Lower labour cost percentage: When you continuously follow hours worked and compare them with revenue, you can optimise staffing and keep wage costs down. That means a lower labour cost percentage and a healthier bottom line.

Legal compliance: A digital time tracking system makes it easier to comply with working time legislation and collective agreements. All hours are documented automatically, so you can always prove that rules on e.g. maximum working hours, rest periods and breaks are followed.

Higher employee satisfaction: When employees know their hours are recorded correctly and they get the right pay on time, it creates peace of mind. Transparent registration reduces the risk of disagreements about pay and working hours, contributing to a better working environment.

Related terms

Frequently asked questions

A time tracking system records the actual hours worked by each employee, while a shift schedule only shows the planned working hours (when employees are expected to work). Both matter: the schedule makes sure staff are present when needed, and time tracking ensures the hours actually worked are documented and used for correct pay.

Yes, it is strongly recommended that all employees clock in and out via the system – whether they are waiters, chefs, baristas or dishwashers. Only when everyone records their working time consistently do you get the full overview and an accurate count of total hours. It also ensures no hours of work fall through the cracks.

Under EU law, as interpreted by the EU Court of Justice in 2019, employers must have a system for recording employees' working time, and each country implements this in its own rules. In Denmark, for example, a duty to register working time has applied to all employers since 1 July 2024. Rules differ by country, so check what applies where you employ staff. In practice, this means that as an employer you must be able to document your employees' hours. A time tracking system helps you meet these requirements easily by automatically storing all necessary data on start times, breaks and time off.

Yes, Flexybox' time tracking system can integrate with a number of different payroll systems. This makes it simple to export recorded and approved hours directly to payroll, without manual entry. You avoid errors and save time, as payroll data flows automatically from POS/time tracking to your payroll system.

If an employee forgets to record their start or end time, it can be corrected afterwards in the system. A responsible person (e.g. the manager) can adjust the time manually and add a note explaining the correction. That way the actual working time is still correct, and every adjustment is documented, so the change is transparent.

It depends on the system. With Flexybox and similar modern solutions, employees can clock in and out via a mobile app or a web portal if you want. Many restaurants, however, choose a fixed terminal or tablet at the workplace for time tracking, to make sure clocking in happens physically on site and reliably.

Yes, most digital time tracking systems – including Flexybox – can be set up to automatically register overtime and periods with special supplements. You can define rules for when overtime pay, night supplements, weekend supplements and so on apply. The system then flags these hours and includes them when payroll is run, so employees are paid correctly without manual calculation.