Question 1

What is time tracking software?

Accepted Answer

Time tracking software records how working hours are allocated across clients, projects, and tasks. It turns logged time into billable-hours data for invoicing, supports payroll and contractor payment, and generates utilisation and profitability reporting for agencies and professional-services firms. It differs from project management software by focusing on the time dimension of work rather than task completion.

Question 2

How much does time tracking software cost?

Accepted Answer

Freelancer plans are free or under $10 per month. Small team plans with invoicing and project tracking run $10–25 per user per month. Full-featured plans with capacity planning and profitability reporting land between $20–50 per user per month. Enterprise plans with payroll integration and advanced approval workflows reach $50–100 per user per month.

Question 3

What is the difference between time tracking and project management?

Accepted Answer

Project management software tracks task completion, deadlines, and deliverables. Time tracking software records the hours allocated to those tasks and projects. Many teams use both together — project management for workflow, time tracking for billing and utilisation. Some platforms combine both, but depth in one area usually comes at the cost of depth in the other.

Question 4

How do I get a team to actually log time?

Accepted Answer

Reduce daily logging friction to under 30 seconds per entry. Use one-click timers, browser extensions, and calendar imports rather than form-heavy entry workflows. Link time logging to the output people care about — accurate invoices, visible utilisation, and fair workload distribution. Adoption is a design problem, not a policy problem. The best policy in the world cannot overcome a tool that takes three minutes per entry.

Question 5

What is utilisation rate in time tracking?

Accepted Answer

Utilisation rate is the percentage of an employee's available hours that are billed or productive versus total working hours. An agency targeting 75 percent utilisation across its team means 6 of every 8 working hours should be allocated to billable client work. Time tracking software calculates this automatically from logged hours, which is how finance and operations teams identify over-capacity and under-capacity across the team.

Question 6

Can time tracking software generate invoices?

Accepted Answer

Most modern time tracking platforms can generate invoices directly from logged billable hours, with configurable rates per person, project, and client. Invoice quality and accounting integration depth vary — some produce export-ready invoices that connect directly to accounting software, others produce basic summaries that require manual work to invoice from. Test the invoice output on a real billing scenario, not a demo example.

Time Tracking marketplace

Hubstaff

Time Doctor