Time Tracking
Explore time tracking in depth - discover what time tracking is, what features it offers, why it’s important, and the benefits you get from using time tracking software.
What is time tracking?
Time tracking is the process of recording how much time is spent on specific tasks, projects, or work activities. Tracking time at work can identify inefficiencies and help teams focus on high-priority tasks. It is widely used by individuals, teams, and businesses to measure productivity, ensure accurate client billing, and manage workloads effectively.
What is time tracking used for?
Why is time tracking important, and why is it widely used? It plays a vital role in improving productivity, ensuring accurate billing for clients, and supporting payroll calculations. Businesses also use time tracking to:
- Manage project budgets
- Allocate resources effectively
- Evaluate employee performance
- Maintain compliance with labor regulations
Who uses time tracking?
Time tracking is used by a wide range of people and organizations, including:
- Freelancers who need to bill clients accurately
- Small and large businesses aiming to improve productivity and manage projects efficiently
- Remote and hybrid teams that need to monitor work hours from anywhere
- HR and payroll departments that need to ensure accurate employee compensation
- Managers who need to monitor their team’s performance
Essentially, anyone looking to understand how time is spent and optimize work processes can benefit from time tracking.
Types of time tracking
There are various types of time tracking methods designed to suit different work environments and business needs. Below, we’ll explore the most effective and commonly used ones.
Task-Based Time Tracking
Task-based time tracking is a productivity method that involves recording the time spent on individual tasks throughout the day, helping individuals and teams understand exactly where their time goes. Unlike general time tracking, it focuses on specific activities, such as writing a report, answering emails, or attending meetings.
Benefits:
- Improved productivity: See where time goes and make better choices.
- Better project estimation: Know how long tasks really take.
- Accountability: Useful for clients, teams, or billing.
- Identify bottlenecks: Find tasks that take more time than expected.
Project-Based Time Tracking
Project-based time tracking means keeping track of how much time you spend working on each project to help with planning, budgeting, and understanding where your time goes. It’s especially useful for managers, freelancers, and teams working on multiple client or internal projects.
Benefits:
- Better project planning – Helps estimate how long similar future projects will take.
- Improved budgeting – Tracks time spent to manage costs and avoid overspending.
- Accurate billing – Makes it easy to bill clients based on actual time worked.
- Streamlined reporting – Simplifies progress and time reports for stakeholders.
Activity-Based Tracking
Activity-based tracking is a method of recording the time spent on different types of activities throughout the day, such as meetings, emails, coding, or research, regardless of the project or task. It's useful for understanding how your day is structured, identifying time drains, and improving work-life balance.
Benefits:
- Improves time awareness – Shows how your time is actually used.
- Helps reduce distractions – Identifies low-value or time-wasting activities.
- Better daily planning – Supports more balanced and realistic schedules.
- Boosts productivity – Encourages focus on high-impact activities.
How time tracking works
Time tracking means measuring how much time someone spends on various activities, tasks, or projects using manual entry, automated tools, or a mix of both. Each time entry is usually connected to specific categories such as tasks, projects, clients, or team members, helping individuals and teams understand time allocation.
Manual Time Tracking
Manual time tracking means you track time by hand, either with a timer or by writing it down later. Your employees can manually start and stop the timer or enter their worked hours into spreadsheets afterward. This gives them full control over how time is recorded, but it can sometimes be time-consuming and prone to errors.
Automatic Time Tracking
Automatic time tracking uses software to run in the background, monitoring computer activity, application usage, and even idle time. Tools like TMetric help you automatically track the time you spend on tasks, monitor the apps and websites you use, detect when you’re idle, and generate detailed reports.
Hybrid Methods
Hybrid time tracking combines both manual and automatic methods. For example, an employee might use an automatic tracker to capture activity data and then manually assign it to tasks or projects. This provides both flexibility and precision.
What is time tracking software?
Time tracking software is a digital tool that enables employees to record the time they spend on tasks, projects, or client work either automatically or manually. It replaces traditional methods like spreadsheets or punch cards with more accurate, real-time tracking, improving efficiency and accountability. SaaS-based time tracking solutions have become especially popular among remote teams and freelancers due to their accessibility, ease of use, and ability to support collaboration across locations.
And let's also answer the question: How does time tracking software work?
Time tracking software helps you record and manage the time spent on different tasks or projects through a simple process:
- You set up projects and tasks.
- Start tracking time - either manually (with a timer) or automatically (software tracks activity in the background).
- The software securely saves your time data.
- You edit or delete time entries if needed.
- View dashboards, generate reports, and create invoices to bill your client.
Key features of time tracking tools
Time tracking tools are designed to help individuals and teams record and analyze time spent on tasks and projects, offering a range of features such as:
- One-Click Timers - effortless time logging with a single click.
- Timesheets and Manual Edits - review and edit daily or weekly timesheets.
- Reporting and Analytics - generate reports to analyze time usage and productivity.
- Client Invoicing - automatically generate invoices based on logged hours.
- App Integrations - sync with tools like Trello, Asana, Slack, Jira, QuickBooks, etc.
How TMetric helps you track time with accuracy and ease
TMetric is a great time tracking solution designed for freelancers, teams, and businesses of all sizes. It helps users manage and invoice their time effectively without disrupting their workflows. Try TMetric free today and see how seamlessly it fits into your daily routine.
- Sign Up for a Free Trial
- Set Up Your Workspace
- Track Time Effortlessly
- Monitor Progress & Productivity
- Integrate with Your Favorite Tools
