• 1. Track Time While You Work
  • 2. Log Every Entry Against a Client, Project and Task

Good time tracking means recording time while you work rather than afterward, logging each entry against a client, project and task, tracking non-billable time as well as billable time, and reviewing your entries before you invoice. Then, once a month, compare the hours you tracked with what you charged, so your next estimate and price reflect how long the work takes.

Billed publishes this page. For choosing a time tracking tool, see best time tracking software for freelancers. The US recordkeeping rule for employees is quoted from the US Department of Labor, opened on October 30, 2026.

1. Track Time While You Work

Start a timer when you start a task and stop it when you stop, or write down the start and end times as you go. Entries written up days later depend on memory, and small tasks get missed.

2. Log Every Entry Against a Client, Project and Task

8 hours, Client A can't be checked. 2.5 hours, Client A, homepage design can. Task-level entries show which part of a job took the time, and they give you the history you need for estimating project hours.

3. Track Non-Billable Time Too

Admin, email, quotes and invoicing don't go on a client's bill, but they use hours you'd otherwise sell. Tracking them shows how much of your week is billable, which is the starting point for setting your rates.

4. Write Descriptions a Client Can Read

Describe the work in the client's terms, such as revised logo, round 2, not internal shorthand. Clear entries make the invoice easier to check and questions easier to answer.

5. Use One Rounding Rule and Say What It Is

Decide whether you bill to the minute or round, such as to 6-minute increments (0.1 hour), and use the same rule for every client. Put it in your agreement or terms so the client knows how hours are counted. For employees, rounding is covered by employment rules; ask a payroll professional.

6. Review Your Entries Before You Invoice

Before each invoice, check that every billable entry is marked billable, nothing is missing for the period, and each description makes sense on its own. See the guide to hourly invoicing.

7. Review the Numbers Each Month

Once a month, work out:

  • your billable share: billable hours ÷ total hours tracked;
  • your effective hourly rate on fixed-fee work: the fee ÷ the hours it took.

Compare them with what you planned. The hourly rate calculator can help you check your target rate.

If You Have Employees (US)

The US Department of Labor's Fact Sheet #21 on recordkeeping under the Fair Labor Standards Act (revised July 2008) says: "Every covered employer must keep certain records for each non-exempt worker." Among them are "Hours worked each day." and "Total hours worked each workweek." It also says: "Employers may use any timekeeping method they choose." and "Any timekeeping plan is acceptable as long as it is complete and accurate." Ask a lawyer or payroll professional which rules apply to your business.

Worked Example: One Week for a Freelance Designer (sample figures)

These are sample figures for a fictional freelance designer, invented for this example.

  • Hours tracked in the week: 38.0
  • Billable hours: 26.5 (client work, logged by task)
  • Non-billable hours: 38.0 − 26.5 = 11.5 (email, quotes, invoicing)
  • Billable share: 26.5 ÷ 38.0 = 0.697…, about 69.7%

The same week, the designer finished a fixed-fee logo project priced at $3,000.00. The tracked entries for it add up to 24.0 hours.

  • Effective hourly rate: $3,000.00 ÷ 24.0 = $125.00 an hour

If the designer's target rate is $100.00 an hour, the project beat it by $125.00 − $100.00 = $25.00 an hour. The task entries show where those 24.0 hours went, which helps price the next logo project.

Where Billed Fits

Billed's time tracking page says: "Log time for each task as you work, and see how much time goes into each project." It also says: "Create timesheets from the time you and your team have tracked to see how the team is spending its time, and export them when a client or your accountant needs a copy." and "From the project dashboard you can invoice one task or several at once." Billed's mobile app page says: "Start and stop a timer per project from your pocket, then roll those hours straight into an invoice."

When This Guide Isn't for You

If you track employees' hours for payroll, or a client contract sets its own timekeeping and billing rules, follow those rules and ask a lawyer or payroll professional about the requirements where you work.

Related Guides

FAQ

Should I track non-billable time?

Yes, if you want to know how much of your week is billable. In this page's sample, 11.5 of 38.0 tracked hours were non-billable, so about 69.7% of the week was billable.

Is it better to use a timer or log time later?

Tracking as you work, with a timer or by noting start and end times, records time when it happens. Entries written up later depend on memory.

How should I round billable time?

Choose one rule, such as billing to the minute or rounding to 6-minute increments, use it for every client, and state it in your terms. For employees' hours, ask a payroll professional.

What records does a US employer have to keep of employees' hours?

The Department of Labor's Fact Sheet #21 says: "Every covered employer must keep certain records for each non-exempt worker." Among them are "Hours worked each day." and "Total hours worked each workweek."

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