diff --git a/CHANGELOG.md b/CHANGELOG.md
index 74c55e4..d63c71a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,12 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 
+## [1.3.1] - 2025-08-23
+
+### Changed
+- Updated the `README.md` file to accurately reflect the current state of the application. The update includes a revised feature list, a corrected project structure diagram, and improved quick start and usage instructions.
+
+
 ## [1.3.0] - 2025-08-23
 
 ### Changed
@@ -158,6 +164,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 
 
+[1.3.1]: https://github.com/PPeitsch/TimeTrack/compare/v1.3.0...v1.3.1
 [1.3.0]: https://github.com/PPeitsch/TimeTrack/compare/v1.2.3...v1.3.0
 [1.2.3]: https://github.com/PPeitsch/TimeTrack/compare/v1.2.2...v1.2.3
 [1.2.2]: https://github.com/PPeitsch/TimeTrack/compare/v1.2.1...v1.2.2
@@ -174,4 +181,4 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 [1.0.3]: https://github.com/PPeitsch/TimeTrack/compare/v1.0.2...v1.0.3
 [1.0.2]: https://github.com/PPeitsch/TimeTrack/compare/v1.0.1...v1.0.2
 [1.0.1]: https://github.com/PPeitsch/TimeTrack/compare/v1.0.0...v1.0.1
-[1.0.0]: https://github.com/PPeitsch/TimeTrack/releases/tag/v1.0.0
\ No newline at end of file
+[1.0.0]: https://github.com/PPeitsch/TimeTrack/releases/tag/v1.0.0
diff --git a/README.md b/README.md
index 6a60c41..37c44bc 100644
--- a/README.md
+++ b/README.md
@@ -11,11 +11,13 @@
 
 TimeTrack is a simple yet powerful time tracking application designed for managing work hours, leaves, and holidays. Built with Flask and compatible with PostgreSQL or SQLite, it provides a user-friendly interface for tracking your time and analyzing your work patterns.
 
-![TimeTrack Dashboard](https://via.placeholder.com/800x400?text=TimeTrack+Dashboard)
+![TimeTrack Calendar View](https://via.placeholder.com/800x400?text=TimeTrack+Calendar+View)
 
 ## 🌟 Features
 
+- 🗓️ **Interactive Calendar Log** - Manage your schedule with a drag-and-drop monthly calendar view
 - 📅 **Flexible Time Entry** - Record multiple clock in/out entries per day
+- ⚙️ **Customizable Absence Codes** - Create, edit, and delete your own absence types
 - 🏖️ **Absence Management** - Track leaves, holidays and other time off
 - 📊 **Time Analytics** - View daily, weekly and monthly work summaries
 - 📈 **Automatic Calculations** - Track work hour balances and overtime
@@ -62,6 +64,7 @@ cp .env.example .env
 ```bash
 python init_db.py
 ```
+> **Note:** This script is interactive and may prompt you to import data, such as public holidays.
 
 6. Run the application:
 ```bash
@@ -72,27 +75,31 @@ flask run
 
 ## 📖 Usage
 
-### Manual Time Entry
+The application is organized into several key sections accessible from the main navigation bar.
 
-1. Navigate to "Manual Entry" to record your work hours
-2. Select a date and whether it's a regular work day or absence
-3. For work days, enter your clock-in and clock-out times
-4. You can add multiple time entries per day (e.g., for lunch breaks)
+### Calendar Log
 
-### Time Summary
+This is the main interface for managing your schedule.
+- View an entire month at a glance with color-coded day types.
+- Click and drag to select one or more days to change their type (e.g., assign a week of vacation).
+- Quickly override weekends or holidays to log work on non-standard days.
 
-View a monthly summary of your work hours, including:
-- Required hours based on working days
-- Actual hours worked
-- Balance (overtime or deficit)
-- Daily breakdown with detailed information
+### Manual Entry
 
-### Time Logs
+For detailed time logging on a specific day:
+- Select a date and specify whether it's a workday or an absence.
+- For workdays, enter multiple clock-in and clock-out times to account for breaks.
 
-Access a chronological log of all your time entries, including:
-- Regular work days with specific times
-- Absences and holidays
-- Daily totals
+### Summary
+
+Get a detailed overview of your logged time for any given month:
+- See a summary of required hours, completed hours, and the resulting balance.
+- View a day-by-day breakdown of hours worked versus required hours.
+
+### Settings
+
+Customize the application to fit your needs:
+- Manage absence codes by adding, editing, or deleting types (e.g., "Vacation", "Sick Leave").
 
 ## 📁 Project Structure
 
@@ -102,7 +109,8 @@ TimeTrack/
 │   ├── config/        # Configuration settings
 │   ├── db/            # Database management
 │   ├── models/        # Data models
-│   ├── routes/        # Route handlers
+│   ├── routes/        # Route handlers (Blueprints)
+│   ├── services/      # Business logic (e.g., holiday providers)
 │   ├── static/        # Static assets (JS, CSS)
 │   ├── templates/     # HTML templates
 │   └── utils/         # Utility functions
@@ -110,7 +118,7 @@ TimeTrack/
 ├── tests/             # Test suite
 ├── .env               # Environment configuration
 ├── .env.example       # Example environment configuration
-├── app.py             # Application entry point
+├── run.py             # Application entry point
 ├── init_db.py         # Database initialization script
 └── requirements.txt   # Python dependencies
 ```