3 Ways Self-Employed Professionals Track Time and Billable Hours

When you run your own business, time tracking and billing are essential parts of the job. Whether you charge clients by the hour or by the project, knowing how and where you spend your time will keep your business productive and profitable.

How you manage your billable and non-billable hours as an independent determines how much you earn. Billable hours are those spent directly with a client or working on client projects. Non-billable hours include time spent on administrative or marketing tasks, such as billing and invoicing. While you don’t directly charge clients non-billable hours, they do factor into how you calculate your bill rate.

Regardless of the billing method you choose, you’ll want a process that allows you to accurately keep track of the time you spend working for clients so you can bill accordingly. Tracking time demonstrates accountability to your clients and allows you to provide them with a comprehensive summary of what you’ve accomplished for them and when.

Keeping track of your time will also help you to assess the profitability of your projects and adjust as necessary for future projects. There are a number of options available that will help you to efficiently and effectively track and bill your time. Below are three tools and resources to consider.

1. Do-It-Yourself Software

Today, there are many software options for independent professionals that can help with a variety of tasks including account management, billing, and accounting. When researching software that will work best for your business, there are a few important things to keep in mind. First, take a look at the integration capabilities of the software. Make sure it will work with your computer or laptop setup and with your other devices if you want to be able to access the system on the go.

Also, look at exporting capabilities: Does the software provide you with a simple template or summary you can give to your clients? If possible, try before you buy to really get a feel for how it works and what it can do for you.

Lastly, you’ll want to factor in costs. Keep in mind that many software platforms charge a monthly fee. Be sure to calculate out how much each option will cost you over the course of a year.

2. Go Mobile

If you travel a lot for work, your smartphone can be a great tool for logging billable hours or client-related expenses. Time tracking apps such as HoursTracker or Toggl can help you quickly and easily keep track of your day and many come at little to no cost.

Other apps such as Harvest, Proposify, and Tiny Scanner can assist with other tasks such as proposal writing, invoicing, and scanning and signing documents. With these apps, you have the benefit of picking and choosing the specific tasks you need help with rather than investing in an entire system. On the other hand, if you’d rather keep all of your tasks aligned in one place, an app may not be the best option for you.

3. Business Management Support

While software, cloud-based systems, and mobile apps can simplify time tracking and client billing, they might only address specific aspects of your business. Additionally, they often come with limited support and may require extra time for learning the system and manually inputting data.

If you’re truly looking to take your business to the next level, you may want to consider a more comprehensive service option. Companies like MBO Partners help independent professionals simplify and streamline back-office tasks, which translates to more valuable time in your day. Services including contract review and administration, automated invoicing and payroll, expense compliance review and processing, and payroll tax administration. This allows you to streamline various business management tasks, giving you more time to focus on your core work.

At the end of the day, the goal of time tracking and billing your time is to keep your business as productive and profitable as possible. That’s why you want to choose a system that fits the way you like to work and that will be easiest for you to use.