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

What is the Difference Between Time Tracking, Time Registration, and Timesheets?

The terms are often used interchangeably, but there are nuances. Time tracking describes the action itself: you log hours for clients, projects, or tasks as work is performed. Time registration is broader and can also include employees' working hours in general, not just billable hours. Timesheets are the overview that shows recorded hours, often grouped by client, project, or time period. The three terms are interconnected through the workflow: You log hours along the way, register them in the system, and generate timesheets used for invoicing or payroll.

For consultants and project-based businesses, it primarily involves linking working hours to billable assignments. For craftsmen, it may be important to log hours on each individual project to document actual time spent. For companies with employees, time tracking provides the basis for payroll, client invoicing, and profitability analysis.

Why is Accurate Time Tracking Important?

Time tracking is the foundation for accurate invoicing. If you forget to log hours or register them under the wrong client, you lose income. If you log too few or inaccurately, you underestimate the invoicing basis and end up working for free. Conversely, reporting too much time can create unnecessary discussions with the client if it does not match the agreed scope.

Good time tracking also provides insight into project economics. When all hours are logged to the correct project, you can see how much time is actually spent, compare it to the budget, and adjust along the way. This makes it easier to say no to unprofitable assignments and prioritize work that actually yields returns. For companies with multiple employees, time tracking allows monitoring of how resources are used and which projects are tying up capacity.

How to Log Hours for Clients and Projects

The principle is simple: When you perform work, you log the time for the correct client and project with a brief description of what was done. The workflow typically looks like this:

1. Work is performed for a client or on a project 2. Hours are logged continuously, either manually or with a start/stop timer 3. The hours are linked to the correct client and project in the system 4. Hourly rates are used for billable hours 5. An invoicing basis is created based on logged hours 6. The client can be invoiced directly from the system

An example: A craftsman spends four hours on electrical work for a private client. He logs four hours on the client's project with the description "Installation of new panel and testing of ground fault." The hours are linked to the agreed hourly rate of 950 kroner. When the project is completed, an invoice is created based on the logged hours, and the invoicing basis shows both the number of hours, hourly rate, and total cost.

Consultants often work on multiple projects simultaneously. Therefore, it is important to log hours continuously and differentiate between various assignments. If you work two hours for client A and three hours for client B on the same day, both registrations must be in place before the day is over. Otherwise, you may forget what was done where.

Billable and Non-Billable Hours

Not all work can be billed to the client. Billable hours are what the client is to pay for: performed work, meetings about the project, travel to the client if agreed upon. Non-billable hours are work that is done but not charged directly to the client. Examples may include internal administration, proposals that did not turn into assignments, further education, or maintenance of your own systems.

Logging both types of hours provides a more accurate picture of project economics. If you only register billable time, you do not know how much extra work is involved. When you also log non-billable hours, you see actual time spent and can assess whether profitability is actually good enough.

Manual Time Tracking vs. Start/Stop Timers

There are two main methods for logging hours. Manual time tracking means you enter how much time was spent afterward. This works when you have a good overview and remember to note down the work continuously. The downside is that it is easy to forget hours or log inaccurately if you wait until the end of the week.

Start/stop timers allow you to start a timer when work begins and stop it when you finish. This provides accurate time usage without needing to estimate afterward. The advantage is precision. The downside is that it requires more discipline to remember to start and stop along the way.

Many combine the methods: using timers for longer tasks where accuracy is important and filling in shorter work manually. If you work on a project for several hours, you start a timer. If you respond to a few emails, you log twenty minutes manually.

Time Tracking from Mobile vs. Web

Traditional time tracking often occurs in a browser on a PC, but this requires you to be in the office or have access to a computer. If you are working out at a client, on a construction site, or in the field, it is impractical to wait to log until you return.

Mobile-based time tracking allows you to log hours directly from your phone where the work is performed. You can log hours on your way home from a client, while waiting for the next meeting, or during lunch breaks. This lowers the threshold and reduces the risk of forgotten hours.

The best solutions work both on the web and mobile, ensuring that data is always accessible regardless of where you are. You can start a timer on your mobile when you arrive at the client and stop it on your PC when you return to the office.

How to Log Hours with Timero?

Timero consolidates clients, projects, and hours in one place. The solution is suitable for freelancers, consultants, craftsmen, and small businesses with employees, and can be used on both web and mobile.

The workflow is simple:

1. Create or select a client in the system 2. Choose the correct project for the work being performed 3. Log the time manually or use the built-in timer 4. Enter a brief description of what was done 5. Mark whether the hours are billable or not 6. Get an immediate overview of logged hours and invoicing basis

Timero allows you to link hourly rates to each project or client, so the invoicing basis is calculated automatically. When the project is completed, you can create an invoice directly based on logged hours. You also get an overview of total time spent per client and per project, allowing you to monitor profitability along the way.

What Characterizes Good Time Tracking?

Good time tracking is continuous. You log hours on the same day the work is performed, not several days or weeks later. This provides better precision and less risk of forgetting work.

Good time tracking uses the correct clients and projects. If you have multiple assignments ongoing simultaneously, hours must be allocated correctly. An hour logged under the wrong client can lead to incorrect invoicing basis and confusion later.

Good time tracking includes descriptions of the work performed. If you only write "work at client," neither you nor the client will remember what was actually done when the invoice needs to be approved. A short sentence like "installed new router and tested network connection" provides better documentation.

Good time tracking records actual time spent, not estimated time. If you worked three hours and fifteen minutes, write that. Do not round up or down to make the numbers look nicer. Precision provides a better invoicing basis and better data for future projects.

Good time tracking distinguishes between billable and non-billable time. Both are important for understanding actual profitability, but only billable hours should be charged to the client.

Common Mistakes in Time Tracking and How to Avoid Them

The most common mistake is postponing time tracking until the end of the week or month. Then you forget what was done where and end up with imprecise registrations or lost hours. The solution is to log hours continuously, preferably on the same day the work is performed.

Another mistake is logging hours under the wrong project or client. This creates chaos in the invoicing basis and makes it difficult to follow profitability per assignment. The solution is to use systems that make it easy to select the correct client and project with each registration.

Lack of descriptions makes it difficult to document what was actually done. If you are to invoice based on hours, the client needs to know what the hours were spent on. The solution is to always include a short description with each registration.

Not distinguishing between billable and non-billable hours gives a false picture of project economics. If everything is logged as billable, you overstate the income basis. If nothing is logged as non-billable, you do not know how much extra work is involved. The solution is to categorize hours upon registration.

What Should You Look for When Choosing a Time Tracking System?

Choose a system that allows you to log hours both manually and with timers, so you can use the method that best suits each assignment. Check that the solution works on both web and mobile, so you can log hours no matter where you are.

Look for systems that allow you to link hours directly to clients and projects, and that support both billable and non-billable hours. If you are going to use the hours for invoicing, the system must be able to create an invoicing basis based on logged time and hourly rates.

Check if the solution provides an overview of hours per client and per project. This makes it easier to follow profitability and see how much time is actually spent. For companies with employees, it is important that the system supports multiple users and provides an overview of who has logged hours where.

Choose a system that is easy to get started with. If the solution requires extensive training or complicated setup, the threshold for using it becomes high. The best systems allow you to log your first hour within minutes.

Frequently Asked Questions