Efficient time management is the backbone of a productive workplace with a remote or hybrid work policy. It helps improve team management and employee retention while fostering a healthy company culture.
In this article, we will explore the benefits of time-tracking software. You will also learn how to track time for billable hours and what to look for in time-tracking software for your business.
Let’s dive in.
What is Time Tracking Software?
Time-tracking software is a digital tool that enables businesses to track employees’ time on different tasks and projects. It helps both the employer and employee overview and record time spent per project on a daily, weekly, and monthly basis.
Key benefits of adopting a time-tracking software for your business are
Enhanced productivity – Automating time tracking helps identify bottlenecks and improve workflows, boosting employee productivity.
Accurate billing – Accurate billable hours tracking ensures you are billed correctly, minimizing revenue loss.
Better cost management – Reduce costs and manage your budget by tracking all billable hours and expenses in one database.
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Tracking Billable Hours with Time Tracking Software
In a nutshell, billable hours are the amount of time spent on tasks and projects that your employees can invoice you for. Time-tracking tools enable you to track time and ensure that you are invoiced accurately, ensuring transparency for both you and your employees.
Opposite to that, non-billable hours refer to the time an employee spends working on other company-related tasks, free of charge. These tasks can include administrative work, paperwork, employee training, attending meetings, attending company or networking events, etc.
By tracking billable hours, your management is able to keep track of time and money invested in a project. This insight allows for process optimization, and better finance management for future projects.
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Key Features of Time Tracking Software for Billable Hours
Ready to adopt a time-tracking tool for billable hours in your company? These are the most important features you should look for.
Timekeeping and attendance tracking
First and foremost, your time-tracking tool needs to enable real-time tracking of attendance and billable hours. Besides the ability for automated time-tracking, you should have the options for manual time entry and editing. For example, you can diversify billable from non-billable hours manually.
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Budgeting and cost management
Besides the ability to track time, a perfect software solution incorporates the ability to track project status and your overall budget. This will enable you to track project-related expenses and costs. Based on these reports, employees can invoice their billable hours that are equal to the expected amount.
Planning and scheduling
Real-time project monitoring allows you to manage your resources and capacity. Moreover, it improves coordination and enables efficient planning and task scheduling.
Why is this feature useful? With the help of this feature, a good project manager can delegate tasks optimally, ensuring that no employee is overwhelmed with work. At the same time, you will ensure that all employees meet their desired salary threshold for the month.
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Reporting and analytics
Reporting and comprehensive analytics are features that help you gaze into the future and optimize strategic planning. Use the numbers to understand the areas for improvement and allocate your budget to raise your margin.
Source: Freepik
Payroll and invoicing integration
A comprehensive time-tracking software can seamlessly integrate with your payroll and invoicing software. Employees can generate invoices based on the information from the time-tracking app, while you can automate the payroll for all invoices that match the expected amounts.
Choosing the Right Time Tracking Software
In the sea of tools you can use for tracking time to record billable hours, how to choose the time-tracking app that matches your business needs?
Here are the key factors to evaluate and determine whether you need a basic time-tracking tool or something more sophisticated:
Evaluate your current workflow – Identify the areas for improving your project workflows. Sometimes all you need is a better project management tool.
Consider the time-tracking features you need – Understanding the specific features you require will help you choose the tool that suits you best.
Ask for recommendations – Consult your managers. Perhaps they have previous experience you can find useful.
Once you know what you’re looking for, research and compare different time-tracking software. Consider exploring trial versions, reading reviews, and evaluating the features and integrations of tools available on the market.
Here, we did just that. Below is our selection of the 5 best time-tracking software to help you track billable time and optimize your billing process.
The Top 5 Best Time Tracking Software for Billable Hours
Now, let’s review the top 5 time-tracking apps and help you find the best time-tracking solution for your business.
#1 WebWork
WebWork is a time-tracking app with an exhaustive set of features that make it suitable for businesses of all sizes. Its billable hours tracker enables you to set charged rates for your team members and projects, ensuring accurate payments.
Furthermore, it offers comprehensive reporting, the ability to generate invoices and automate invoicing and payroll processes. WebWork is an optimal solution for companies and freelancers who need a billing solution based on real-time data.
Key Features
Customizable billable hours: Set billable hour rates for team members and projects.
Detailed reporting: Over 15 report types, including time logs, attendance, and task management.
Invoice automation: Automatically generate invoices based on billable hours.
Productivity monitoring: Capture screenshots, track web usage, and monitor activity levels.
Integration: Works seamlessly with Asana, Trello, Slack, and other project management tools.
Pricing
Starts at $3.99 per user/month with a free trial available.
User Ratings
WebWork’s ratings are a high G2 Rating of 4.6, and Capterra Rating of 4.7.
#2 Toggl
Toggl is known for its simple interface and flexible time tracking. It offers both automated and manual time-tracking options. Toggl is designed for freelancers and small teams.
Key Features
Real-time and manual tracking: Track hours as you work or manually add entries after.
Customizable reports: Create reports of tracked time that can be exported.
Team insights: Monitor the performance of the entire team.
Integrations: Toggl integrates with Asana, Trello, and Jira.
Pricing
Starts at $10 per user/month for the Starter plan, and there is a free version that does not include billable hours tracking.
User Ratings
Toggle is overall rated as 4.6 on G2 and 4.7 on Capterra.#3
#3 ClickUp
ClickUp is an all-in-one productivity platform that offers a range of tools for task management. Its time-tracking feature, combined with the ability to log billable hours, makes it a #3 on our list. It’s a good choice for corporations that need a comprehensive solution with all management features in one place.
Key Features
Task-based time tracking: Accurately record working hours spent on each task.
Customizable billable rates: Set different rates for various tasks, team members, or clients.
Time reports: Generate detailed reports that break down billable versus non-billable hours.
Integrations: Integrates with tools like QuickBooks and Xero accounting software.
Pricing
Tracking time is available on every ClickUp plan, however, on the Free Forever and Unlimited Plan, billable hours features have 100 uses. Each instance time is tracked or entered manually counts as a use. Billable hours are available on the Business plan that costs from $12 per user per month.
User Ratings
ClickUp is rated by its users as a 4.4 on G2 and 4.5 on Capterra.
#4 Timely
Timely is a time tracker that uses AI to reduce the risk of missed hours. It is a solution created for consultants, creatives, and law firms that want automated tracking to reduce manual input.
Key Features
AI-powered automation: Automatically tracks work activities, allowing users to review and adjust.
Detailed reporting: Customizable reports that can be shared with clients or managers.
Project management tool integration: Integrates with tools like Asana and Trello.
Pricing
Starts at $11 per user/month for the Starter plan.
User Ratings
Timely is rated as a 4.7 on G2 and a 4.8 on Capterra.
#5 Desktime
Desktime offers an automated time tracker features, and it is a solid option for companies focused on monitoring productivity in addition to tracking billable hours, such as agencies.
Key Features
Automated time tracking: Automatically tracks time spent on tasks.
Productivity insights: Tracks the websites and applications used during work hours, offering deep insights into productivity.
Integrations: Integrates with tools like Basecamp, Trello, and Jira.
Pricing
Starts at $7 per user/month for the Pro plan.
User Ratings
Desktime was rated on G2 as a 4.5 and on Capterra as a 4.6.
Effective Time Tracking and Management
Here are some extra tips on how to make the most out of your time-tracking solution and improve billable hours management:
Integrate billable hours time-tracking into your existing workflow – Choose a software that fits seamlessly with your existing processes.
Train your employees to track time efficiently – Provide clear instructions and training on using the software, while encouraging them to ask questions and seek help.
Regularly review and adjust the tracking process – Analyze time data to identify inefficiencies and implement improvements.
Set clear expectations and boundaries – Stick to a transparent communication policy ensuring that your employees are on the same page as the management. Have a clear policy on what activities qualify as billable hours.
Getting Started with Time Tracking
Choosing the right time tracker is essential for managing billable hours efficiently. By selecting a tool that meets your specific needs and integrates well with your workflow, you can enhance productivity, ensure accurate billing, and improve overall business performance.
Ready to streamline your time tracking and improve billable hours management? Discover the features of WebWork and see how it can benefit your business.
