Back to the blog
Industry guides

Time Tracking Software: What Actually Matters If You Bill by the Hour

Time tracking software records how long you spend on tasks, clients, or projects, then sorts that time into billable and non-billable hours so you can turn it into an accurate invoice. If you charge by the hour, the tool matters less than what happens to the number it produces.

Search for time tracking software and you will find dozens of tools built for very different jobs: employee monitoring for large teams, productivity analytics for remote workers, and simple stopwatches for solo freelancers who just need to know what to bill. Picking the wrong category means paying for features you will never open.

What Time Tracking Software Actually Does

Timers versus manual entry

Most tools offer two ways to log time: a start and stop timer running in the background, or a manual entry you fill in after the fact. A live timer is more accurate if you tend to forget to log time until the end of the day. Manual entry works fine when your hours are predictable and you would rather not run another app all day.

Sorting billable from non-billable hours

For billing purposes, the core job of a tracker is tagging each block of time to a client or project and marking it billable or not. Internal admin, unpaid discovery calls, and actual client work should never sit in the same bucket when it is time to invoice.

Features That Matter for Billing, Not Just Tracking

Per-client and per-project hourly rates

If you charge different clients different rates, or bill some projects flat and others hourly, look for software that sets a rate per client or per project rather than one flat rate across the whole account. This is a common dividing line between free and paid tiers rather than a given. On Toggl Track, for example, billable rates are not part of the free plan at all and first appear on the Starter plan at $9 per user per month. Source: toggl.com/track/pricing, checked live 1 September 2026.

If you have not settled on the rate itself yet, that is a separate decision from the software, and our guide to flat rate versus hourly pricing works through which one fits the kind of work you do.

Idle detection and rounding rules

Idle detection flags time the timer kept running while you stepped away, so it does not quietly inflate an invoice. Rounding rules matter too, whether to the nearest 5, 6, or 15 minutes. A tool that rounds up aggressively can make an invoice look padded even when the work was not.

Reports you can actually hand to a client

A report that says 14.5 hours is not enough for most clients. Look for one that breaks hours down by day, task, or project description, because that is what backs up the invoice if a client ever questions the total.

After the timer stops

Turn tracked hours into an invoice

Bring your totals over, add your rate, and send a branded invoice with automatic reminders when payment is late. Free for 30 days, no credit card required.

Start your free trial

What Time Tracking Software Does Not Do

It usually does not send invoices

This is the part that catches people out. A dedicated time tracker's job normally ends at the report. Clockify is a clear example: invoicing is not included in its free plan and first appears on its Standard tier at $5.49 per seat per month billed annually, or $6.99 billed monthly. Source: clockify.me/pricing, checked live 1 September 2026. Most dedicated trackers are built the same way, which is to track first and invoice somewhere else.

It does not collect the payment

Even tools that offer a basic invoice export still need a separate way to actually get paid, whether that is a payment link, a bank transfer, or invoicing software that handles both the document and the collection.

How Tracked Hours Become a Real Invoice

The handoff most freelancers already do

At the end of a billing period, total your tracked hours by client, multiply by the agreed rate, and enter that as a line item. The rate-setting and invoice-formatting side of hourly work is covered in our companion guide on how to invoice hourly work, so this section sticks to the tracking-to-invoice step itself.

Building the invoice once hours are totaled

In Billbooks, an hourly invoice is just a line item: a description, a quantity that holds your hours, and a rate. Recurring clients can be set up once and reused each cycle, so the only thing changing week to week is the number you bring over from your tracker. Grouping that work by client and project is handled on the Billbooks side, which is a useful place to keep the structure even though the timing itself happens elsewhere.

To be straightforward about it: Billbooks does not track time. It covers invoicing, quotes, estimates, expenses, and client and project management, with no built-in timer or timesheet. Source: the feature list on billbooks.com/invoicing and billbooks.com/pricing, both checked live 1 September 2026. It is the step after the tracker, not a replacement for one.

Free Time Tracking Software Versus Paid

What free plans typically include

Free plans are more capable than people expect. Toggl Track's free tier covers time tracking on web, desktop, and mobile plus integration with more than 100 tools through its browser extension, though it is limited to a small team and excludes billable rates. Clockify's free plan supports up to 5 users with unlimited time tracking. Sources: toggl.com/track/pricing and clockify.me/pricing, both checked live 1 September 2026.

When paying actually earns you something

Paying starts to make sense when you bill several clients at different rates, need timesheet approvals, or want profitability reporting across a portfolio of work. On Toggl Track those sit on the Premium plan, which is $14 per user per month for the first year on annual billing and renews at $18. Source: toggl.com/track/pricing, checked live 1 September 2026. For a solo freelancer tracking one or two clients, a free plan is often genuinely enough.

Choosing the Right Tool for Your Business

Match the tool to how you actually work rather than to the longest feature list. A solo freelancer billing two or three clients rarely needs workforce analytics or approval chains. A small agency billing a dozen clients across several people probably does. Either way the tracker's job is to hand you an accurate, defensible number, and the invoice is a separate step.

Two free tools for the two numbers this comes down to, no signup:

Whatever you track with

Bill for those hours properly

Billbooks turns your totals into a client-ready invoice with your rates, your branding, and reminders that chase late payment for you. Plans from $7.95 a month, every feature included.

See pricing

Worth a few minutes once the hours are tracked:

FAQ

Does time tracking software send invoices too?

Rarely as its core function. Most dedicated trackers stop at the time report. Clockify, for instance, does not include invoicing on its free plan at all, and it first appears on the Standard tier at $5.49 per seat per month billed annually. Source: clockify.me/pricing, checked live 1 September 2026.

What should a freelancer look for first in time tracking software?

Accurate billable versus non-billable tagging, per-client or per-project rates if you charge different amounts, and a report detailed enough to support an invoice if a client asks questions. Everything else is secondary.

Is free time tracking software good enough for freelancers?

Often yes, for someone tracking hours for one or two clients. Toggl Track's free plan includes web, desktop, and mobile tracking with over 100 integrations, and Clockify's free plan supports up to 5 users with unlimited tracking. The usual catch is billable rates, which Toggl Track puts on its paid Starter plan. Sources: toggl.com/track/pricing and clockify.me/pricing, both checked live 1 September 2026.

How do I turn tracked hours into an invoice?

Total your billable hours for the period, multiply by the agreed rate for that client, and enter it as a line item with the hours as the quantity and your rate as the unit price. Billbooks supports hourly line items and repeat billing for recurring clients.

Does Billbooks track time?

No. Billbooks handles invoicing, quotes, estimates, expenses, and client and project management, not a built-in timer or timesheet. Pair it with a dedicated tracker and bring the totals across when you invoice. Source: billbooks.com/invoicing, checked live 1 September 2026.

Related Reading

For the pricing decision behind the hours, see Flat Rate vs Hourly. For turning those hours into a document a client will pay, see How to Invoice Hourly Work. If you want to see what the invoicing side covers before committing, the Billbooks invoicing overview and pricing lay it out.

try it free

Put this into practice with Billbooks

Create, send, and track invoices. Get paid faster, no spreadsheet gymnastics.

Start free

Keep reading

More from Industry guides.

stay in the loop

Getting-paid tips, once a month

Short, practical, no spam. The best of the blog plus new tools, straight to your inbox.

Suggest a feature for Billbooks

    Use Billbooks your way

    Submit an enquiry