Time Tracking – How to Gain Control Over Hours, Projects, and Invoicing

What is Time Tracking and Why Track Hours?

Time tracking is the method by which businesses and individuals document work hours across clients, projects, and tasks. The purpose is to create a basis for invoicing, payroll calculation, resource planning, and financial follow-up. Recording hours allows you to see how much time is actually spent on a project and whether the time usage aligns with budgets and agreements. For project-based businesses, time tracking is a prerequisite for documenting work and sending accurate invoices to clients.

Digital time tracking has simplified the process by allowing hours to be recorded directly via mobile or browser, linked to clients and projects in one system. This eliminates the need for manual spreadsheets, paper timesheets, and post-entry in other systems. Once hours are recorded under the correct client and project, they can be used as a basis for invoicing with just a few clicks.

In practice, the process usually works like this: You create a client in the system, then add one or more projects under that client. When you record work hours, you link them to the correct project. Each hour can be associated with an hourly rate, and the recorded hours thus become the basis for generating an invoice. This way, you move from work to invoice without having to gather information from multiple sources.

The Difference Between Time Tracking, Time Recording, and Timesheets

The terms time tracking, time recording, and timesheet are often used interchangeably, but there are some nuances. Time tracking refers to the actual recording of hours in a system, typically linked to clients and projects. Time recording often refers to the ongoing process of entering hours and keeping track. A timesheet is the result of time tracking, essentially an overview of recorded hours for a period, a client, or a project.

In practice, the terms overlap significantly. When you log hours in a digital system, you are doing both time tracking and time recording simultaneously. And when you need to invoice or report, you extract a timesheet based on the recorded hours. The most important thing is that the system allows you to record work hours in a structured way that provides an overview and can be used in the invoicing process.

Work hour registration is often used when the topic relates to labor laws and the obligation to record work hours for employees. Time tracking in this context is more about invoicing and project follow-up, but technically the same system can cover both needs.

Billable and Non-Billable Hours

When recording hours, it is common to distinguish between billable and non-billable hours. Billable hours are work that can be charged to the client, such as performed consulting work, installation, planning, or development time. Non-billable hours are spent on activities that should not be invoiced, such as internal administration, meetings, skill development, or preparation.

The distinction is important because it affects both the invoicing basis and project economics. If you record all hours as billable even though parts of the work are internal, it can create confusion and errors in invoices. Conversely, if you do not record billable hours at all, you lose income.

In a system like Timero, you can mark hours as billable or non-billable, allowing you to have a complete overview of actual time usage while ensuring the invoicing basis is correct. This provides better control over profitability per project and client.

Time Tracking for Different Businesses

Self-Employed and Freelancers

For self-employed individuals and freelancers, time tracking is often the basis for getting paid. Many work on an hourly basis or a fixed price based on estimated time usage. Without recording hours, it becomes difficult to know whether a project is profitable or if you are working for free without realizing it.

A simple time tracking system allows you to start and stop a timer while you work or manually record hours afterward. Once hours are recorded under the client and project, you can extract a timesheet and create an invoicing basis directly.

Tradespeople and Project-Based Businesses

Tradespeople, electricians, plumbers, and other project-based businesses often need to record hours at multiple locations, preferably via mobile. Additionally, it is important to distinguish between different projects and clients to ensure invoices are accurate.

Many of these businesses also work with material costs, travel, and other expenses that need to be included on the invoice alongside work hours. A good system should therefore be able to handle both time tracking and expenses, so everything is consolidated into one invoicing basis.

Businesses with Employees

When a business has employees, time tracking often becomes part of payroll processing, capacity planning, and financial management. Employees record hours on projects, and management can monitor resource usage and profitability in real-time. The system should make it easy for employees to record hours via mobile or web, while administrators get an overview of what has been recorded.

What Should You Look for in a Time Tracking System?

Key Features in a Time Tracking System

• Easy recording via mobile and web – employees and self-employed individuals must be able to record hours wherever they are, without unnecessary complexity.
• Client and project structure – the system should allow you to link hours to clients and projects, giving you an overview of time usage and profitability per client.
• Billable and non-billable – the ability to mark hours as billable or non-billable provides a better basis for accurate invoicing.
• Hourly rate and invoicing basis – hours should be able to be linked to an hourly rate, allowing you to quickly generate an invoicing basis based on recorded time.
• Overview and reports – the system should provide an overview of recorded hours per period, client, and project.
• Start/stop timer or manual entry – some prefer to start and stop a timer while they work, while others prefer to record hours manually afterward. The system should support both.
• Integrations – if you use accounting systems, CRM, or other tools, integrations can save time by avoiding duplicate entries.

Free vs. Paid Solutions

Free time tracking solutions exist, but often have limitations on the number of users, projects, or features. For an individual or very small business, a free solution may work for a while, but as needs grow, there will quickly be a need for better structure, better reports, and integrations.

Paid solutions generally provide better support, more features, and the ability to grow without having to switch systems. The cost is often small compared to the value of better oversight and less administration.

Who is Timero Suitable For?

Timero is developed for Norwegian businesses looking for a simple yet powerful tool for time tracking, project follow-up, and invoicing. The solution is suitable for self-employed individuals, freelancers, consultants, tradespeople, and small businesses with employees.

In Timero, you can create clients, add projects, record hours via web or mobile app, and use recorded hours as a basis for invoicing. The system consolidates everything in one place, so you don’t have to jump between spreadsheets, calendars, and invoicing systems. Timero provides an overview of billable hours, project economics, and time usage, without unnecessary complexity.

The platform is developed closely with users, and many of the features available today are a result of specific feedback from businesses using the solution in practice. The goal has always been to create a tool that is easy to get started with, yet powerful enough to give businesses full control over work hours, project economics, and invoicing.

Frequently Asked Questions