Time Tracking for Freelancers: Best Apps & Strategies

Why Time Tracking Matters

Most freelancers underestimate how long tasks take, leading to underpricing, overwork, and burnout. Time tracking reveals the truth about where your time goes, helps you price accurately, and identifies productivity leaks.

Benefits of Time Tracking

• Accurate pricing: Know exactly how long projects take
• Better estimates: Quote confidently based on data
• Identify time wasters: See where time disappears
• Increase productivity: Awareness improves focus
• Justify rates: Show clients exactly what they're paying for
• Improve profitability: Eliminate low-value activities
• Work-life balance: Know when to stop working
• Tax deductions: Document billable vs non-billable time

Best Time Tracking Apps for Freelancers

1. Toggl Track

Best for: Simple, intuitive time tracking

Features:

• One-click time tracking
• Desktop, mobile, and browser apps
• Project and client organization
• Detailed reports
• Calendar integration
• Idle detection

Pricing: Free for 1 user, $10/month for teams

Pros: Super easy to use, beautiful interface, reliable

Cons: Limited features on free plan, no invoicing

2. Harvest

Best for: Time tracking + invoicing

Features:

• Time tracking with timers or manual entry
• Built-in invoicing
• Expense tracking
• Project budgets
• Team scheduling
• Integrations (Asana, Trello, etc.)

Pricing: Free for 1 user (2 projects), $12/month unlimited

Pros: All-in-one solution, great reporting, invoicing included

Cons: More expensive, can be overwhelming

3. Clockify

Best for: Budget-conscious freelancers

Features:

• Unlimited time tracking
• Unlimited projects and clients
• Reports and analytics
• Calendar view
• Timesheet approvals
• Kiosk mode

Pricing: Free forever (unlimited users!)

Pros: Completely free, unlimited everything

Cons: Interface not as polished, some features behind paywall

4. RescueTime

Best for: Automatic productivity tracking

Features:

• Automatic time tracking
• Productivity scoring
• Website and app monitoring
• Distraction blocking
• Goals and alerts
• Weekly email reports

Pricing: Free basic, $12/month premium

Pros: Automatic, insightful, helps improve habits

Cons: Not for client billing, privacy concerns

5. Timely

Best for: AI-powered automatic tracking

Features:

• Automatic time tracking
• AI-powered memory
• Privacy-first design
• Project tracking
• Team scheduling
• Beautiful reports

Pricing: From $8/month

Pros: Automatic, accurate, privacy-focused

Cons: More expensive, learning curve

Time Tracking Methods

1. Real-Time Tracking (Timer Method)

How it works: Start timer when you begin work, stop when you finish.

Pros:

• Most accurate
• Captures all time
• No guessing
• Automatic calculations

Cons:

• Easy to forget to start/stop
• Interruptions complicate tracking
• Can feel restrictive

Best for: Hourly billing, detailed project tracking

2. Manual Entry (Timesheet Method)

How it works: Record time after completing work.

Pros:

• Flexible
• Can round to clean numbers
• Less intrusive
• Good for varied work

Cons:

• Less accurate
• Easy to forget
• Temptation to underestimate
• Requires discipline

Best for: Project-based work, experienced freelancers

3. Automatic Tracking

How it works: Software tracks what you're doing automatically.

Pros:

• Zero effort
• Captures everything
• Reveals patterns
• Can't forget

Cons:

• Privacy concerns
• Requires categorization
• Not suitable for client billing
• Can be overwhelming

Best for: Personal productivity, understanding work patterns

Time Tracking Best Practices

1. Track Everything

• Client work (billable)
• Admin tasks (non-billable)
• Marketing and sales
• Professional development
• Breaks and lunch

Why: You can't improve what you don't measure

2. Be Consistent

• Track every day
• Use the same method
• Categorize consistently
• Review weekly

3. Use Clear Categories

Example structure:

• Client Work
  • Client A - Design
  • Client A - Revisions
  • Client B - Development
• Business Development
  • Proposals
  • Sales calls
  • Networking
• Admin
  • Email
  • Invoicing
  • Bookkeeping

4. Round Appropriately

• For billing: Round to nearest 15 minutes (0.25 hours)
• Minimum billing: Consider 30-minute minimum
• Small tasks: Batch and bill together

5. Review Regularly

Weekly review:

• Total hours worked
• Billable vs non-billable ratio
• Time per project
• Productivity patterns

Monthly review:

• Compare estimates vs actual
• Identify time wasters
• Adjust pricing if needed
• Set goals for next month

Calculating Your True Hourly Rate

Step 1: Track All Time for a Month

• Total hours worked: 160 hours
• Billable hours: 100 hours
• Non-billable hours: 60 hours

Step 2: Calculate Monthly Income

• Total revenue: $10,000

Step 3: Calculate Effective Hourly Rate

• Based on billable hours: $10,000 ÷ 100 = $100/hour
• Based on total hours: $10,000 ÷ 160 = $62.50/hour

Reality check: Your true hourly rate is $62.50, not $100!

Step 4: Adjust Pricing

To earn $100/hour effectively, you need to charge $160/hour billable ($100 ÷ 0.625)

Common Time Tracking Mistakes

• Not tracking non-billable time: Incomplete picture
• Forgetting to start/stop timer: Inaccurate data
• Rounding down too much: Leaving money on table
• Not categorizing properly: Can't analyze data
• Tracking too granularly: Overwhelming, unsustainable
• Never reviewing data: Wasting effort
• Feeling guilty about breaks: Breaks are necessary
• Comparing to others: Everyone works differently

Time Tracking for Different Pricing Models

Hourly Billing

• Track: Every minute
• Method: Real-time timer
• Round: To nearest 15 minutes
• Report: Detailed timesheets to client

Project-Based Pricing

• Track: For your own analysis
• Method: Real-time or manual
• Round: Not necessary
• Report: Don't share with client
• Use for: Improving future estimates

Value-Based Pricing

• Track: Optional, for your own insight
• Method: Automatic or manual
• Use for: Understanding profitability
• Don't: Let time dictate price

Retainers

• Track: To ensure you're not over-delivering
• Method: Real-time timer
• Report: Monthly summary to client
• Use for: Managing scope and capacity

Productivity Insights from Time Tracking

Optimal Work Patterns

Track when you're most productive:

• What time of day are you most focused?
• How long can you work before needing a break?
• Which days are most productive?
• What tasks take longer than expected?

Time Wasters to Identify

• Excessive email checking
• Social media browsing
• Unnecessary meetings
• Context switching
• Unclear project requirements
• Poor tools or processes

Billable vs Non-Billable Ratio

Target: 60-70% billable for sustainable freelancing

If too low (<50%):

• Too much admin work (automate or delegate)
• Too much business development (improve conversion)
• Inefficient processes (streamline)

If too high (>80%):

• Not enough time for business development
• Risk of burnout
• No time for learning or improvement

Conclusion

Time tracking isn't about micromanaging yourself—it's about understanding your business, pricing accurately, and working sustainably. Start simple, be consistent, and use the insights to improve your freelance business.

Track your time, then invoice it professionally with InvoiceKit!