How to Choose Time Tracking Software: 7 Criteria That Really Matter

Choosing Time Tracking Software: Not All Are Created Equal

The time tracking software market in Spain has exploded. Since time tracking became mandatory in 2019 — and even more so with the new Royal Decree requiring digital systems — dozens of solutions have appeared. Some are excellent. Others, frankly, leave much to be desired.

The problem is that from the outside, they all look the same: “easy clocking”, “legally compliant”, “from X euros per month”. How do you know which one is right for your company?

In this guide, we give you the 7 criteria that really matter when choosing time tracking software. No beating around the bush, no unnecessary technical jargon, and with a practical checklist so you can compare options with clear criteria.

Criterion 1: Real Regulatory Compliance (Not Just Marketing)

This is first and most important. The software must comply with:

Royal Decree on Digital Time Recording (in processing)

The new regulatory framework will establish specific technical requirements:

• Electronic record: no paper or disguised Excel sheets.
• Accessibility: workers must be able to view their records.
• Integrity: data cannot be retroactively manipulated without leaving a trace.
• Retention: records must be kept for a minimum of 4 years.
• Interoperability: the system must be able to share data with the Labour Inspectorate electronically when required.

GDPR and LOPDGDD

The processing of time tracking data is regulated by data protection legislation. The software must:

• Process only strictly necessary data.
• Offer transparency about what data is collected and how it is used.
• Allow workers to exercise their rights of access, rectification, and deletion.

How to Verify

Don’t trust a landing page that says “complies with regulations”. Look in the provider’s documentation to see if it specifically details which regulatory requirements it covers and how. If there’s no clear documentation, that’s a warning sign.

Criterion 2: Available Clocking Methods

Not all companies have the same needs. A law firm doesn’t clock in the same way as a restaurant chain. The software must offer multiple clocking methods so each employee can use the one that best suits their situation:

The Basics (Essential)

• Mobile app (Android and iOS): essential for mobile workers.
• Web/browser: for office employees or remote workers.
• Kiosk mode: a tablet at a fixed point where multiple employees clock in.

Advanced (Highly Desirable)

• Browser extension: ideal for technical profiles and remote workers.
• Geolocation: important for mobile teams, construction, logistics.
• Works with limited connectivity: important if you have employees in areas with intermittent coverage.

Optional (Depending on Your Sector)

• Facial or biometric recognition: useful in industrial environments, but with privacy implications.
• NFC/card: for environments where physical access control already exists.
• Integration with access control devices: turnstiles, doors, barriers.

Red flag: If the software only offers one clocking method (for example, mobile app only), it probably won’t adapt to all profiles in your company.

With Cleverfy, you have five main methods available from day one: web, mobile app, Chrome extension, kiosk mode, and geolocation. No additional modules or extra costs.

Criterion 3: Ease of Use (For Everyone, Not Just HR)

Time tracking software is used by all employees in the company, not just the HR department. If the average worker needs a 20-page manual to clock in, something is wrong.

For the Employee

• Clocking should take less than 10 seconds. One button, one click, done.
• Clear interface: the employee should be able to view their history, see their hours for the month, and understand the information without help.
• Available in their language: seems obvious, but there are systems that are only in English or have poor translations.

For the Manager/HR

• Intuitive dashboard: see at a glance who has clocked in, who hasn’t, who is working.
• Simple configuration: adding employees, creating shifts, assigning work centres… everything should be doable without being a technical expert.
• Useful reports: not raw data, but processed reports that answer specific questions (accumulated overtime, absences, deviations…).

For the Administrator/IT

• No complex installation: cloud solutions are the most practical for SMEs.
• No own servers: maintenance, updates, and backups managed by the provider.
• API available: in case you need to integrate with your ERP, payroll, or other systems in the future.

Litmus test: ask for a demo or a free trial and ask someone on your team (not the most tech-savvy person) to clock in. If they need help, the software isn’t intuitive enough.

Criterion 4: Implementation Time

How long it takes to go from “we don’t have a time tracking system” to “the whole company is clocking in” is a criterion that many ignore and later regret.

What’s Reasonable

• Small companies (1-25 employees): less than 1 hour.
• Medium companies (25-100 employees): half a day to one day.
• Large companies (100+ employees): 1-5 days, depending on organisational complexity.

What It Should Include

• Company registration and initial setup.
• Employee registration (ideally with bulk import from CSV or Excel).
• Schedule and shift configuration.
• Employee invitations (an email or link for them to register themselves).

Red Flags

• If the provider tells you implementation takes “several weeks”.
• If you need an “implementation consultant” to set up a time tracking system.
• If software needs to be installed on each computer individually.
• If it requires specific hardware from the provider (a proprietary clocking machine?).

With Cleverfy, complete setup is done in less than 10 minutes. You register your company, invite your employees, and start clocking in. No consultants, no hardware, no waiting.

Criterion 5: Transparent Pricing with No Surprises

Time tracking is a tool that the entire company will use every day, so price matters. But more than the price itself, what matters is transparency.

Common Pricing Models

• Per user/month: the most common and fairest. You pay for each person who uses the system.
• Flat rate: a fixed price regardless of the number of users. Attractive for large companies, expensive for small ones.
• Freemium: basic functionality free with paid options for extras. Caution: often the free features don’t cover legal requirements.
• Perpetual licence / Lifetime Deal: pay once and use forever. Good option if you find it from a reliable provider.

What’s Included (And What’s Not)

Pay attention to what’s included in the base price:

• Should include: all clocking methods, reports, support, updates, data storage.
• Red flag: charging extra for basic modules (geolocation, reports, data export).
• Red flag: setup or implementation cost.
• Red flag: lock-in periods or cancellation penalties.

Calculate the Real Cost

For a company of 20 employees:

• Average market software: 3-5 EUR/user/month = 60-100 EUR/month.
• Cleverfy: 1.50 EUR/user/month = 30 EUR/month. No lock-in, no setup cost, everything included.
• Not having a time tracking system: fine of up to 7,500 EUR per detected violation.

The maths is simple.

Criterion 6: Support and Reliability

A time tracking system is critical infrastructure — the whole company uses it every day. If it goes down on Monday at 8 am, you have a serious problem.

Availability

• SLA (Service Level Agreement): does the provider guarantee a percentage of uptime? The standard is 99.9% (less than 9 hours of downtime per year).
• Servers in the EU: mandatory to comply with GDPR.
• Automatic backups: your data must be protected against any incident.

Technical Support

• Available channels: email, chat, phone. In your language?
• Response time: hours or days? For critical incidents, the response should be in hours.
• Knowledge base: tutorials, guides, FAQs. The more self-service documentation, the better.

Updates

• Frequency: software that isn’t regularly updated is software that becomes obsolete.
• Regulatory adaptation: when legislation changes (as happened with the new Royal Decree), the software must be updated to comply. If the provider takes months to adapt, you have a compliance problem.

Direct question to the provider: “When was the last product update?” If they can’t answer or it was more than 3 months ago, be careful.

Criterion 7: Scalability and Flexibility

Your company has 10 employees today, but in a year it might have 30. Or you might open a second location. Or you might start with an on-site model and migrate to hybrid. The software must grow with you.

Scalability

• Does the price scale linearly or are there sudden plan jumps? (E.g.: “up to 25 users costs X, from 26 to 100 costs triple”).
• Can you add employees at any time without migrating plans?
• Does it support multiple work centres, departments, and roles?

Flexibility

• Can you configure different types of working day? (Full-time, part-time, flexible, rotating shifts…)
• Does it adapt to your collective agreement? (Public holidays, maximum annual working hours, surcharges…)
• Does it allow managing exceptions? (Holidays, sick leave, permits, remote work…)

Integrations

• Can it integrate with your payroll software?
• Does it have an open API to connect with other systems?
• Does it export data in standard formats (CSV, Excel, PDF)?

Advice: choose thinking about what you’ll need in 2-3 years, not just what you need today. Migrating from one time tracking system to another is a hassle you’d rather avoid.

5 Red Flags That Should Make You Run

Beyond positive criteria, there are warning signs that should make you immediately discard a provider:

1. Mandatory Lock-in

If they require a minimum commitment of 12 or 24 months, ask yourself why they need to tie you down. A good product maintains itself with service quality alone, not contractual clauses.

2. Opaque Pricing

If the price isn’t published on the website and you need to “talk to a salesperson” to find out, prepare for an aggressive sales experience and an inflated price. Price transparency is a sign of trust.

3. Only Works with Proprietary Hardware

If you need to buy a specific device from the provider for the system to work, you’re creating a dangerous dependency. What happens if the provider closes or raises hardware prices?

4. Doesn’t Allow You to Export Your Data

Your time tracking data is yours. If the provider doesn’t allow you to export it in standard formats, they’re holding you hostage. This could also be a GDPR violation.

5. No Visible Updates

A public changelog or update history is a sign of a living, evolving product. If you can’t find evidence of recent updates, the product may be abandoned or in minimal maintenance mode.

Checklist: Evaluate Each Option in 5 Minutes

Use this checklist to compare the options you’re considering. Score each criterion from 1 to 5:

Regulatory Compliance:

• Does it comply with the Digital Recording Royal Decree?
• Is data stored in the EU?
• Is it accessible to the worker?

Clocking Methods:

• Does it have a mobile app (Android + iOS)?
• Web/browser clocking?
• Kiosk mode?
• Browser extension?
• Geolocation?

Ease of Use:

• Can an employee clock in less than 10 seconds?
• Is the HR panel intuitive?
• Are reports clear and exportable?

Implementation:

• Can it be configured in less than 1 hour?
• Does it allow bulk employee import?
• Does it not require additional hardware?

Pricing:

• Is it transparent and public?
• No lock-in or penalties?
• No setup cost?
• Does it include all functionality without extra modules?

Support:

• Support in your language?
• Reasonable response time?
• Self-service documentation available?

Scalability:

• Does it scale without sudden price jumps?
• Does it support multiple locations and departments?
• Does it export data in standard formats?

Our Recommendation (Yes, We’re an Interested Party)

We’re transparent: we created Cleverfy precisely because existing solutions didn’t convince us. Too expensive, too complex, or too oriented towards large companies.

This is what we offer:

• Price: from 1.50 EUR/user/month. Also Lifetime Deals for those who prefer to pay once.
• Clocking methods: web, mobile app, Chrome extension, kiosk mode, geolocation. Everything included.
• Implementation: 10 minutes. Really.
• No lock-in: cancel whenever you want, without penalty.
• 100% compliant: Royal Decree, GDPR, LOPDGDD. All covered.
• Support in Spanish: because it’s normal when your market is Spain.

Is Cleverfy the best option for every company in the world? No. But for a Spanish SME looking for something simple, affordable, and that works, we believe it’s hard to beat.

FAQ: Choosing Time Tracking Software

How much should time tracking software cost for an SME?

For an SME, a reasonable range is between 1 and 5 EUR per user per month. If they’re asking for more than 5 EUR/user/month and your company has fewer than 50 employees, you’re overpaying. Also be wary of “free” options that then don’t cover basic legal requirements.

Is cloud software better or software installed on my own servers?

For the vast majority of SMEs, cloud is better. You don’t need your own infrastructure, updates are automatic, data is backed up, and access is from any device. On-premise installation only makes sense for large companies with very specific security requirements.

Can I try before I buy?

You should be able to. Any serious provider offers a free trial or a personalised demo. If there’s no way to try the product before paying, discard it. Don’t buy blind something that the whole company will use.

What happens to my data if I change providers?

Before contracting, verify that the system allows you to export your data in standard format (CSV, Excel). Your time tracking records are yours and you must be able to take them with you. Additionally, the outgoing provider is required by GDPR to facilitate data portability.

Do I need the software to integrate with my payroll programme?

It’s desirable but not essential from day one. The minimum is that you can export worked hours data in a format your accountant can import. Direct integration is a plus that becomes more important as the company grows.

Can time tracking software also manage holidays and absences?

Many do. It’s a very useful complementary functionality that centralises all time management in the same system. Check if it’s included in the base price or if it’s an additional paid module.

---

Ready to choose? Check out Cleverfy’s features and our pricing from 1.50 EUR/user. Try Cleverfy free and see if it meets your 7 criteria. Setup in 10 minutes, no credit card, no commitment. Or if you prefer, book a demo and we’ll answer all your questions in person.