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Tracking billable hours is more than just a task—it’s a strategic advantage for businesses looking to maximize profitability and strengthen client relationships. By accurately tracking time, you ensure that every hour worked is accounted for and properly billed. This not only improves cash flow, but also helps maintain transparency and trust with clients. Whether you use traditional timesheets, digital tools, or automated solutions, effective tracking can streamline your operations.
In this blog post, we go over simple, effective ways to track billable hours so you can capture all the time you spend on client work. You’ll find tips on how to choose the right tools, avoid common mistakes, and improve accuracy to increase profits and build trust with clients. Whether you're just starting out or looking to enhance your current system, tracking billable hours well can make a big difference for your business.
3 best practices for tracking billable hours
There are various methods for tracking billable hours for your business. The most common methods include:
Manual timesheets: Manual timesheets allow employees to track and log their own hours. Unfortunately, this method is time-consuming and often leads to human error. Manually tracking hours can work for smaller teams or projects, but it’s challenging to scale as you grow.
Digital time-tracking software: A billable time tracker allows employees to log their hours through apps or online platforms. This makes it easy to monitor and analyze time usage. With features like start/stop timers, project categorization, and reporting, digital tools significantly reduce the administrative burden. The software improves accuracy, which is critical for accurate billing in project management.
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Automated solutions: These tools can track time in the background, record breaks, and even differentiate between billable and non-billable hours. Automation not only saves time but also improves accuracy, making it perfect for agencies and financial companies where precision is key.
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3 simple steps to accurately track billable hours
Accurately tracking billable hours is key to running profitable projects and maintaining strong client relationships. Here’s how to do it right:
Define your cost rate: This prevents you from charging too little and shows clients the quality of your work. Setting a cost rate that covers your expenses and matches industry standards ensures you’re charging fairly and not undervaluing your work.
Set clear client terms: Lay out clear terms with your clients, covering scope, timelines, and post-project support. This keeps everyone on the same page and avoids confusion. Clear agreements keep projects on track and ensure clients know what to expect from the start.
Invest in a billable tracker solution: With a billable time tracker, you can easily log hours, track project progress, and share real-time insights with clients. This level of transparency saves time and keeps your team focused on billable work. With tools like Teamwork.com, you can take the guesswork out of billing with real-time reports.
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7 of the best billable hours tracking tools to use in 2025
When tracking billable hours, there are many software options available on the market. Each tool has its features, advantages, and drawbacks, so it's important for businesses to select the right one for their operations.
Let’s take a look at the best billable hours tracking tools:
1. Teamwork.com
Teamwork.com is designed to streamline project management and improve collaboration while effectively tracking billable hours. With an intuitive interface, it allows teams to manage tasks, track time, and communicate with clients all in one place. Teamwork.com creates detailed reports that help with accurate billing and offer useful insights to boost overall efficiency. The platform allows clients to see project progress and understand how their money is being spent.
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Pros
Comprehensive features: Teamwork.com provides a wide range of features to support project management and billable time tracking. Task management features let teams assign and track tasks in real time, ensuring everyone knows what to do. Users can log hours directly within their tasks, making time tracking seamless. The platform includes Gantt charts, which make it easy to see project timelines and understand how tasks are connected. With built-in reporting features, businesses can evaluate how well projects are doing and keep track of their budgets.
User-friendly interface: Teamwork.com is intuitive, allowing team members to log their billable hours quickly and efficiently. It minimizes confusion, making it easy for users of all skill levels to navigate. This means less time spent on training and more time focused on productivity. The streamlined process for logging hours encourages team members to track their time consistently, which leads to more accurate billing.
Client collaboration: Teamwork.com allows clients to view project progress and time logs. This feature allows clients to monitor how their budgets are being spent in real time. Clients can also provide feedback directly within the platform, making collaboration easy. Keeping clients informed helps businesses build stronger relationships and ensure everyone is on the same page.
Reporting and insights: Teamwork.com’s detailed reporting features help businesses analyze time spent on projects. Users can generate custom reports that highlight key metrics, such as billable versus non-billable hours, resource allocation, and project profitability. This allows businesses to identify trends and areas for improvement, leading to better project management.
Cons
Learning curve: If you're used to traditional tools, it might take some time to get used to Teamwork.com’s streamlined interface and features. The platform is very easy to use once you start: Teamwork Academy offers plenty of helpful training materials to help you learn quickly. Plus, with a support team available 24/7, you’ll always have someone to assist you if you have questions.
See what the Creative Director at CrucianPoint has to say about Teamwork.com's time tracker.
We were using Harvest, but cancelled since Teamwork.com has stronger time tracking and Timesheets. It’s easy for my team to see what they worked on and enter their time.
Shomari Moorehead
President / Creative Director at CrucianPoint
2. Accelo
Accelo is designed for service-based businesses, offering a blend of time tracking, project management, and billing capabilities. Its automation features aim to reduce manual work, making it easy to manage multiple projects.
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Pros
Integrated solution: Combines time tracking with project management and billing, streamlining workflows.
Automation features: Offers automation tools to reduce manual data entry and improve efficiency.
Cons
Complex interface: Some users might find the interface confusing because it offers a lot of features. This can make it hard to navigate, especially for newcomers. As a result, it may take a while to learn how to use all the tools.
3. ClickTime
ClickTime is a flexible time tracking and resource management tool that helps teams manage their time and budgets effectively. It lets you create reports that can be customized to fit your specific needs.
Pros
Flexibility: ClickTime allows for customizable time tracking and reporting options, catering to various business needs.
Resource management: ClickTime offers tools for managing staff availability and project resources. It lets managers see who is available to work and when, making it easy to assign tasks.
Cons
Limited integrations: ClickTime offers few integration options.
4. Harvest
Harvest provides a simple and intuitive solution for time tracking and invoicing, making it a popular choice among small- to medium-sized businesses.
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Pros
Ability to set time limits: Harvest allows users to set time limits on projects, which helps visualize scope creep. With these time limits, teams can see when a project is taking longer than expected.
Intuitive user interface: Harvest is known for its easy-to-use interface, making it simple for team members to log their hours and track project progress. This minimizes the learning curve, allowing new users to get started quickly without feeling overwhelmed.
Cons
Can’t compare planned vs. actual time: Harvest doesn’t let you compare the hours you planned to spend on a project with the actual hours spent. This makes it tough for teams to see how well they are performing and whether they’re going over or under budget.
5. QuickBooks Time
QuickBooks Time offers robust time tracking capabilities and integrates seamlessly with QuickBooks accounting software, making it a great option for existing users. The mobile app provides convenience for on-the-go tracking.
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Pros
Extra integrations: Seamlessly connects with QuickBooks Payroll software for billing and accounting purposes, making it ideal for existing users.
Mobile app: QuickBooks Time provides a reliable mobile app that allows users to track their time from anywhere. This feature is great for team members who work remotely or are frequently on the go.
Cons
Location tracking difficulties: QuickBooks Time has location tracking features that help log hours based on where work is happening, but some users report having trouble with this. Tracking isn’t always accurate as users can’t access the location features on some devices.
6. Timely
Timely uses AI to automate time tracking, allowing users to effortlessly keep tabs on their hours. This reduces the chances of forgetting to log time and streamlines the tracking process.
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Pros
Records everything with the Memory Tracker feature: Timely automatically captures all your work activities in its Memory Tracker, providing a comprehensive overview of everything you do throughout the day. This feature lets users view a private timeline of their tasks, making it simple to track productivity and see how time is spent on different projects.
Flexibility: Timely offers the flexibility to customize how you log your work. Users can rename entry titles to reflect specific tasks they're working on, making it easy to recognize and categorize activities later.
Cons
Takes time to learn AI: One drawback of Timely is that it requires time and effort to train its AI to accurately recognize the types of work you do. Users may notice that the AI doesn’t always categorize activities correctly, which can lead to mistakes in tracking time.
7. Toggl
Toggl is known for its simple and flexible time tracking, making it easy for users to track time across various projects. Its user-friendly interface appeals to many, but it doesn’t offer extensive project management features.
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Pros
Customizable reports: Toggl allows users to create detailed reports tailored to specific clients, projects, or tags. This customization makes it easy to analyze time spent on different projects.
Free plan: Toggl offers a free plan that provides essential time tracking features, making it accessible for freelancers and small teams.
Cons
Individual time reports are limited: Toggl's reporting options for individual users are somewhat restricted, which can hinder detailed analysis.
Why Teamwork.com is the perfect billable hours tracker solution for your business
Teamwork.com is a great choice for tracking billable hours. Its time-tracking tools are simple to use, and the reporting options help teams understand how projects are performing. Its easy-to-use interface allows team members to log their hours quickly, while customizable reports provide clear insights based on clients, projects, or tags.
The platform includes Gantt charts and Kanban boards to help visualize project timelines and deadlines. Plus, Teamwork.com offers a free version, which is perfect for small teams wanting to try out the software without any commitment.
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FAQs about tracking billable hours
How can I Integrate billable hours software into my existing workflow?
Integrating billable hours software can improve productivity. Here are five steps to help you transition easily:
Check compatibility: Ensure the new software integrates well with your existing tools, like project management and accounting software. Look for user reviews or demos to make the switch easier.
Set up automations: Leverage automation features to minimize manual tasks. This helps save time and reduce errors, such as setting up reminders for team members to log their hours.
Train your team: Conduct training sessions to familiarize your team with the new software. Provide resources like guides or tutorials to support their learning.
Migrate data carefully: Transfer all important data, such as previous time entries, to the new platform. Verify that all data is imported successfully to ensure a seamless transition.
Align time tracking with workflows: Make sure the new software fits with how your team already works. Customize settings so that logging hours becomes a natural part of their routine.
How can I use billable hour tracking to improve my profitability?
You can improve profitability by using billable hour tracking to see how much time is spent on each project. This information helps you identify which services make the most money and where you can work more efficiently. By analyzing your billable hours, you can adjust pricing and better allocate resources.
What are the benefits of creating reports with billable hours trackers?
Creating reports with billable hours trackers offers several key benefits:
Improved transparency: Reports promote clear communication with internal teams and clients, fostering trust about time and resource usage.
Accurate invoicing: Precise tracking ensures accurate invoices, reducing disputes over charges and ensuring fair billing.
Improved resource management: Reports provide insights into time allocation, helping teams identify inefficiencies and optimize workflows.
Better financial oversight: Detailed reports show clients how their money is being spent, helping them manage their budgets and build trust in your services.
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