Best time tracking and billing software for accountants in 2024: the ultimate guide

The right time tracking and billing software can transform what feels like an endless chore into an efficient, seamless process that increases productivity. In fact, 34% of employees say they’re more productive when they use time tracking software. Yet, only 14% of businesses have increased their investment in time tracking tools. 

What does this cost businesses? On average, employers overpay 200 billable hours to employees every year because they don’t have a time tracking solution. 

A comprehensive time tracking solution is an absolute necessity for modern accounting firms. In addition to increasing productivity, it ensures a more accurate billing process and automates time-consuming manual processes that take time away from higher-level work. But, with so many options on the market, how do you choose the solution that is best suited for your tax, bookkeeping, or accounting practice? 

To help you in your search, we’ve explored the top-rated time and billing platforms in 2024.

What is time and billing software for accountants?

As the name suggests, time and billing software combines two separate but related elements: time tracking and billing. 

The time-tracking part allows you to record and monitor how much time you spend on a particular task or project. This is particularly useful for accountants, who often work on billable hours. Time-tracking is also an effective way to understand productivity on an individual, team, project or task basis.

The billing part allows you to turn the time-related data into accurate invoices, which can be generated and sent out automatically. This saves you time wasted on manual processes and streamlines your accounting workflows.

The benefits of time tracking and billing software

Using time tracking and billing software offers several benefits for accounting firms of all sizes. The right tool provides several key benefits that can transform how firms operate on a day-to-day basis, freeing up valuable time and improving overall efficiency. Consider the following benefits:

• Accurate time tracking: automated time tracking ensures that every billable minute is captured, preventing underbilling or overbilling.
• Streamlined invoicing: generating professional invoices from tracked time can be done automatically, reducing manual errors and speeding up the billing process.
• Improved productivity insights: detailed reports reveal how time is being spent, helping firms optimize workflows and improve resource allocation.
• Enhanced client satisfaction: provide clients with clear, detailed billing information to foster trust and avoid disputes over-invoicing.
• Scalability: as firms grow, the software scales with them, reducing the need for additional administrative staff while handling larger workloads seamlessly.
• Compliance and reporting: the software creates a clear audit trail with detailed records of billable time and invoicing, ensuring compliance with regulatory standards.
• Better budget oversight: firms can monitor time spent on projects against budgeted hours, helping prevent cost overruns and ensuring that projects remain financially on track.

What’s the result of these benefits? Businesses with teams that track their time more effectively can see up to a 61% increase in revenue. 

Key features of time tracking and billing software

There are a few must-have features to keep an eye out for when comparing time and billing solutions. The best software should include time tracking, billing automation, reporting, communication and integration capabilities.

1. Time tracking

An effective time tracking tool begins with the ability to precisely capture how you spend your hours across client projects. Here are some key options to look for:

• Track time manually or use timers
• Associate time entries with clients, projects and tasks
• Set up different billing rates and rules
• Mark time as billable or non-billable

The right software makes it effortless to document every minute you spend on client activities.

2. Automated invoicing

With just a few clicks, you can turn the time you tracked into professional invoices ready to send out. Look for options like:

• Invoice scheduling and automatic reminders
• Customizable templates
• Flexible billing rates and markup options
• Online payment links
• Multi-currency support

The right software makes generating polished invoices based on your tracked time, expenses and project details easy.

3. Analytics and reporting

In-depth reporting gives you valuable insights into how your business is performing. Some of the most powerful analytics and reporting features are now AI-powered. The right software will offer:

• Time breakdowns by project, client, user and activity
• Billing and revenue reports
• Productivity and profitability analysis

Visualizing all this data will help you identify areas to improve and communicate progress with clients.

4. Client communication

Seamless communication features help keep clients in the loop. Among the most important features are the following:

• Emailing invoices directly to clients
• Project status updates
• In-app client messaging
• Secure document sharing

Effective communication improves transparency and keeps clients satisfied.

5. Integration capabilities

As an accountant, you’re constantly switching between tools, from accounting systems to project management software and more. Instead of constant back and forth, look for time tracking solutions that integrate with:

• Accounting systems such as QuickBooks
• Productivity suites like Office 365
• CRM and project management tools

This creates a unified workflow with real-time syncing rather than constant exporting and importing. 

With those key features in mind, you’ve got a great starting point for evaluating options. Now let us take a closer look at the top accounting time tracking software in 2024 so that you can find the most efficient tool for your accounting needs.

Here are the 13 best time tracking and billing software for accountants:

1. TaxDome
2. Harvest
3. Clockify
4. TimeCamp
5. Time Doctor
6. FreshBooks
7. ZipBooks
8. Time Analytics
9. Myhours
10. Toggl Track
11. BigTime
12. AccountSight
13. Hubstaff

TaxDome

TaxDome is an all-in-one practice management platform designed specifically for accounting firms, tax professionals, and bookkeepers. TaxDome offers an integrated suite of tools that includes time tracking, billing, CRM, client portals, and much more. Its comprehensive approach helps firms manage the entire practice in one unified system.

Key Features

• Time tracking & billing: track billable hours and generate invoices directly within the platform.
• Client and firm mobile app: clients can securely scan and upload documents, chat with their accountant, and even pay through the client mobile app. Firm’s can manage their teams on the go with the firm mobile app.
• Workflow automation: automate routine tasks, like sending reminders, collecting documents, and sending invoices.
• AI-powered reporting: advanced AI-powered reporting takes information from time tracking and provides insights into productivity, efficiency, and profitability. Firms can easily analyze staff performance, project timelines, and billable hours, allowing them to make data-driven decisions that optimize operations and improve revenue.
• Comprehensive CRM: helps manage clients and improve their experience by combining email, secure chats, and SMS messaging all in one easy-to-track platform. 
• Project management: track work status, assign tasks, and collaborate with team members in real-time.
• Invoicing & payments: generate proposals and professional invoices, track payments, and integrate with your accounting software.

Pros and cons

Best for

TaxDome is built for firms of all sizes, but it’s particularly ideal for mid-sized and large full-service accounting firms that need a complete practice management solution that includes time tracking, billing, automation, reporting and analytics, and client management in a single platform.

Pricing

TaxDome offers an annual pricing plan starting at as little as $700 per user per year. This plan provides access to all features, and a 14-day free trial is available to explore the platform before committing.

Harvest

Harvest provides an intuitive time tracking and billing platform designed for professional services teams. Founded in 2006, it aims to simplify timesheet tracking, project budgeting, invoicing, and reporting for agencies and service providers. 

Key features

• Track time as you work or enter hours later
• Convert billable hours into professional invoices
• Set hourly rates and budgets for projects and clients
• Track expenses for reimbursements
• Generate visual summaries and reports on productivity and time spent
• Integrate with accounting tools like QuickBooks and popular tools like Trello

Pros and cons

Let’s explore the advantages and disadvantages of Harvest’s time and billing software solutions: 

Best for

Harvest is suited for use by independent accounting professionals as well as firms that are still relatively small but are growing.

Pricing

In addition to its free plan, the software also has Harvest Pro, which costs $10.80 per user per month. You can also take advantage of a 30-day free trial to explore the features before committing.

Clockify 

Clockify is a free online time tracking and billing platform designed for freelancers, agencies, and professional services teams. Founded in 2015, it offers an intuitive way to track hours, manage projects, invoice clients, and analyze productivity.

Key features

• Log activities manually or start a timer 
• Generate reports on time use and project costs
• Create visually appealing invoices
• Set hourly rates and budgets for clients
• Integrate with tools like Asana and Trello
• Monitor employees’ hourly rates

Pros and cons

Let’s dive into the major upsides and downsides of Clockify:

Best for

Clockify is best suited for independent accountants and small accounting teams seeking a basic time tracking and billing solution.

Pricing

Clockify is available for free with limited functionality and has four advanced plans: Basic, Standard, Pro, and Enterprise. Prices range from $3.99 to $11.99 USD per user per month, billed annually. Additionally, a 7-day free trial or a Demo of paid plans is available. 

TimeCamp

TimeCamp is an online time tracking tool mainly designed for tracking team productivity. Founded in 2008, it provides customizable tracking options, reporting, invoicing, integrations with project management tools, and more. 

Key features

• Time tracking with automatic idle detection
• Generate reports on time use, productivity, and budgets
• Create professional invoices from tracked time
• Set hourly rates and budgets for projects
• Integrate with tools like Asana, Trello, and Basecamp

Pros and cons

Let us examine the primary benefits and drawbacks of TimeCamp:

Best For

TimeCamp provides a cost-effective option for both remote and in-office employees, making it a versatile choice for diverse accounting practices. 

Pricing

You can opt for the free forever plan or choose one of the paid plans starting at $2.99 billed annually for Starter, $4.99 billed annually for Premium, and $7.99 billed annually for Ultimate. The Enterprise plan can be tailored to your specific needs.

Time Doctor 

Time Doctor is an online time tracking software with advanced reporting and productivity features. Founded in 2012, it aims to provide businesses with insights into time spent on tasks and projects.

Key features

• Oversee tasks and measure productivity
• Track time using idle detection
• Generate detailed reports on employee productivity
• Integrate with other project management software
• Leverage advanced analytics features

Pros and cons

Let us go over Time Doctor’s strengths and weaknesses:

Best for

Time Doctor is tailor-made for small or medium companies predominantly operating with remote or outsourced accounting employees. The advanced features suit larger businesses.

Pricing

The pricing structure offers four plans: Basic for $5.90 per user per month, Standard for $8.40, Premium for $16.70, and Enterprise tailored to individual needs. The software also provides a 14-day free trial.

FreshBooks 

FreshBooks is an online invoicing and accounting software for small businesses and self-employed professionals. Launched in 2003, it aims to provide an easy way to send invoices, track time, manage expenses, and gauge profitability.

Key features

• Create, customize, and send professional invoices
• Time tracking with running timers and time entry options
• Generate reports on billable hours and revenue
• Capture and categorize business expenses

Pros and cons

Let us look at FreshBooks and examine the key pros and cons:

Best for

Bookkeeping and accounting firms of all sizes can benefit from FreshBooks functionality, such as time and expense tracking, invoicing, and more. 

Pricing

FreshBooks offers four plans to suit your business needs. They are the Lite plan at $17 per month, the Plus plan at $30 per month, the Premium plan at $55 per month, and a tailored Enterprise plan. At the time of publication, however, there’s a 60% discount across the Lite, Plus, and Premium plans. All plans include a 30-day free trial.

ZipBooks

ZipBooks provides a combination of advanced accounting capabilities and time tracking tools. Founded in 2015, it aims to provide an easy-to-use solution for creating invoices, tracking expenses, managing projects, and viewing business performance.

Key features

• Create, customize and send invoices
• Monitor performance with built-in time-tracker
• Capture expenses and receipts
• Generate reports on income, expenses, and profitability
• Integrations with payment processors
• Chat with clients within the app

Pros and cons

Let us overview the top positives and negatives of ZipBooks: 

Best for

ZipBooks is ideal for independent contractors and microbusinesses needing accessible accounting and invoicing.

Pricing

There are three different pricing tiers to choose from with ZipBooks: the free Starter plan, the $15 Smarter plan, and the $35 Sophisticated plan. Additionally, ZipBooks offers a custom-priced Accountant plan. You can also take advantage of a 30-day free trial to explore the features before committing.

Time Analytics

Time Analytics is professional services teams’ time tracking and reporting software. Founded in 2018, it aims to provide detailed analytics on productivity, projects, and profitability. 

Key features

• Mark hours as billable and attach notes to each timer
• Set billing and labor rates for accurate invoicing
• Generate reports on time use, utilization, and billable hours
• Integrate data with platforms like Asana, Trello, and Wrike
• Export invoices to Excel for final adjustments

Pros and cons

Let us highlight key advantages and disadvantages of Time Analytics: 

Best for

Time Analytics steps forward as a dedicated timesheet software tailored to meet the unique needs of small to medium-sized bookkeeping and accounting firms.

Pricing

You can choose between TimeCamp’s $4.99 per month Starter plan or its $6.99 per month Optimum plan. Additionally, the software offers a 14-day trial period, allowing you to explore the features before making a decision.

Myhours 

MyHours is an online time tracking software designed for professional services teams. Founded in 2012, it aims to help service businesses schedule projects, create budgets, track time, and generate reports. Key focus areas are project budgeting and monitoring billable hours.

Key features

• Set project budgets and track time against them
• Manage billable rates for accurate invoicing
• Team scheduling and assignment
• Timesheets and time logging options
• Generate reports on time, budget vs actual, and profitability

Pros and cons

Let us spotlight the most compelling benefits and drawbacks for MyHours: 

Best for

MyHours suits small agencies and service teams focused on project budgeting and monitoring billable hours.

Pricing

Myhours has two different pricing plans available: a free version and a pro version that costs $8 per active team member per month if billed annually. There is also a 14-day free trial available.

Toggl Track

Toggl Track is a time tracker and timesheet app designed to ensure that team capacity and project workloads are evenly distributed. Founded in 2006, it provides a simple way to track time across projects, set billing rates, generate reports, and invoice clients.

Key features

• Initiate time tracking effortlessly with one-click timers and idle detection
• Categorize time tracking based on clients, projects, or employees
• Generate weekly reports on time and productivity
• Integrate time data with platforms like Asana and Trello
• Leverage visual data to identify potential issues

Pros and cons

Let us assess the major upsides and downsides of Toggl Track: 

Best for

Toggl Track’s free time tracking functionality makes it ideally suited to the needs of small and medium-sized businesses.

Pricing

The Teamweek platform offers two pricing tiers: Team at $9 per user per month and Business at $15. Both plans offer a 14-day free trial for users to explore their functionalities before making a decision.

BigTime

BigTime is a professional services automation platform designed for accounting and law firms. It is one system that handles time tracking, managing projects, billing, and invoicing. 

Key features

• Capture all project-related and out-of-office time in customizable timesheets
• Log expenses and utilize automated billing
• Monitor project status, define tasks, assign activities, and more
• Manage multiple billing rates and send invoices
• Create reports on project costs, time use, and revenue
• Integrate with various accounting solutions

Pros and cons

Let us discuss the core pros and cons of BigTime: 

Best for

For large CPA, bookkeeping, and accounting firms interested in workflow automation and practice management, BigTime is a good choice.

Pricing

BigTime provides a 14-day free trial and has four monthly plans. Essentials is available for $20 per user per month, Advanced for $35, Premier for $45, and Projector for $60+. 

AccountSight

AccountSight is a professional services automation platform tailored for accounting and consulting firms. Founded in 2003, it combines time and expense tracking, project management, billing, and invoicing in one system aimed at streamlining workflows.

Key features

• Log time entries and customize timesheets
• Record and categorize expenses associated with projects
• Create and send invoices directly from the platform
• Organize tasks, allocate resources, and track project progress
• Generate reports on time use, billable hours, and profitability
• Integrate with QuickBooks Online and PayPal

Pros and cons

Let us explore the main benefits and limitations of AccountSight: 

Best for

AccountSight is a solid choice for independent specialists and small to mid-sized accounting companies in the accounting field.

Pricing

AccountSight offers a free trial for a full 30 days, a free plan with a set number of users and features, and three paid plans: Basic at $10 per user per month, Small Group at $9 per user per month, and Enterprise at $8 per user per month. Each plan allows for a progressively higher number of users.

Hubstaff

Hubstaff is a time tracking and employee monitoring solution tailored for large CPA and accounting firms. Founded in 2012, it offers employee monitoring, scheduling, invoicing, payroll, and robust analytics.

Key features

• Track time using automated screenshots and activity levels
• Plan work schedules and manage attendance efficiently
• Generate invoices and manage payments
• Access detailed reports on time usage, activities, and productivity
• Monitor project progress, budgets, and tasks
• Track employees’ locations and work-related activities

Pros and cons

Let us take a look at the pros and cons of Hubstaff: 

Best for

Hubstaff suits large CPA, bookkeeping, and accounting firms focused on advanced monitoring, productivity, and practice management.

Pricing

Hubstaff provides a free 14-day trial, a free plan for one user, and four paid plans: Starter at $4.99 per user per month, Grow at $7.50, Team at $10.00, and Enterprise at $25.

Comparing the best time and billing software for accountants

The wide range of time and billing tools available today makes narrowing down the ideal fit tricky. This table takes the guesswork out of comparing leading solutions based on essential functionality for your firm.

Alternative options

While the previously mentioned software options excel at time tracking and billing, there are also comprehensive solutions that offer additional functionality tailored to the needs of accounting professionals.

One such option is TaxDome, all in one integrated solution built specifically for tax, bookkeeping, CPA, and accounting firms. With its approach, TaxDome streamlines all aspects of your practice, saving you time and money. It combines robust time and billing functionality with other critical practice management capabilities like:

• Client portal and secure document exchange
• Workflow automation for tasks and forms
• Integrated CRM to manage clients
• Custom client questionnaires
• Shared inboxes to manage communication
• Project collaboration and status updates
• Proposals and invoice generation
• Payments and accounting integrations
• Team messaging and notifications

With TaxDome, accounting teams get an all-in-one workspace to manage the entire client lifecycle, along with seamless time tracking and billing. Everything connects together in one system – from acquiring clients, collecting documents, tracking work, billing, payments, and beyond.

The integrated approach can increase efficiency by eliminating the need to juggle multiple disconnected systems. TaxDome provides a streamlined solution built specifically to help accounting practices scale and grow their businesses while optimizing workflows.

Conclusion

When it comes to running an efficient accounting practice, proper time tracking and billing should be core priorities, not administrative headaches.

Fortunately, modern software solutions like those explored in this article offer accountants specialized tools for automating workflows, gaining insights into productivity, tracking billable time, creating professional invoices, and more.

TaxDome falls in the “much more” category here. It offers full time tracking and billing capabilities to accountants with the added benefit of an additional full suite of tools that help manage your accounting firm. 

Want to learn more about TaxDome’s capabilities? Discover all the ways it can help you in just 30 minutes by signing up for our demo below.