Time tracking is a hot topic in the bookkeeping world. Some bookkeepers meticulously track every minute, while others prefer to focus on value-based pricing or flat rates. If you’ve ever wondered whether time tracking for bookkeepers is necessary, this post will help you explore the pros and cons, as well as tools to help you get started.
Why Time Tracking Matters for Bookkeepers
Even if you don’t bill by the hour, time tracking can provide valuable insights into how you work. Here are some reasons you might want to track your time:
1. Identifying Wasted Time
One of the biggest benefits of time tracking for bookkeepers is gaining awareness of where your time goes. Are you spending too much time on administrative tasks? Are you getting lost in social media disguised as “marketing research”? Tracking your time can help you eliminate distractions and work more efficiently.
2. Improving Pricing and Quotes
If you’re not tracking how long certain tasks take, how do you know if you’re pricing correctly? For bookkeepers who use value-based pricing, time tracking can serve as a reality check to see if your rates align with the time spent on projects.
3. Repricing Existing Clients
If you’ve been working with a client for a while, you may not realize their bookkeeping needs have expanded. Time tracking lets you analyze scope creep—where tasks go beyond the original agreement—so you can confidently adjust pricing.
4. Understanding Your Workload
Are you overworking yourself? Are you underbilling? Do you need to outsource tasks? Tracking time can help you make data-driven decisions about your workload, helping you scale your business without burnout.
Do You Need to Track Your Time?
Not every bookkeeper needs to track time. Here are some considerations:
✅ You should track time if:
- You bill clients hourly.
- You want data to improve pricing accuracy.
- You struggle with time management.
- You need justification for price increases.
❌ You might not need to track time if:
- You use flat-rate or subscription pricing and feel confident in your quotes.
- Your workflow is already optimized and efficient.
- You have no plans to change your pricing structure.
The decision is ultimately personal—time tracking is a tool, not a requirement.
Best Time Tracking Tools for Bookkeepers
If you decide to track your time, there are many tools available. Here are some popular options:
1. Excel or Google Sheets
For bookkeepers who love spreadsheets, a simple start/stop time tracker in Excel might be all you need. Add columns for client name, task description, and time spent.
2. Clockify & Toggl
Both Clockify and Toggl are free or low-cost apps that allow you to track time with one click. They provide detailed reports, making them great for analyzing where your time goes.
3. QuickBooks Time (formerly TSheets)
QuickBooks ProAdvisors have access to QuickBooks Time, which integrates directly with QuickBooks. While some bookkeepers find it cumbersome, it’s useful for tracking billable hours.
4. Timely (AI-Powered Time Tracker)
Timely is an automated time-tracking tool that runs in the background and categorizes tasks based on usage. This solution is great for bookkeepers who want time insights without manual tracking.
What Should You Track?
If you’re new to time tracking, here are some key categories to consider:
1. Client Work
- Routine bookkeeping tasks
- Researching client-specific issues
- Quality control and review processes
2. Administrative Work
- Email management
- Business development
- Marketing and social media planning
3. Internal Operations
- Team meetings and training
- Testing new software
- Workflow optimization
By tracking these categories, you’ll better understand where your time is spent—and how to optimize it.
Final Thoughts on Time Tracking for Bookkeepers
Time tracking isn’t for everyone, but it can be an eye-opening experience. Whether you track time manually, use a dedicated app, or rely on value-based pricing, the key is to be intentional about your workflow.
Do you track your time? What tools do you use? Share your thoughts in Gentle Frog’s Bookkeeping Lily Pad Facebook group—we’d love to hear what works for you!
