Why Track Time?
Accurate billing
If you charge clients by the hour, your time records are the basis for your invoices. Inaccurate tracking means you either undercharge (losing money) or overcharge (losing trust). Neither is good for your business.Understanding time allocation
You might think you spend most of your time on client work, but many freelancers are surprised to discover how much time goes to admin, emails, meetings, and other non-billable activities. Tracking everything gives you an honest picture.Better project estimates
After tracking time on several projects, you build a data set of how long things actually take. This makes your future quotes more accurate and your project timelines more realistic.Proof of work
In disputes or when a client questions an invoice, detailed time records serve as documentation. A clear log of what you did and when can resolve disagreements quickly.Best Practices
1. Log daily
The single most important habit is logging your time every day. Ideally, track as you work or at the end of each day. Trying to remember what you did last Tuesday is a recipe for inaccurate records.2. Use descriptive comments
Do not just log “4 hours — client work.” Instead, write what you actually did:- “Developed login page and form validation” (good)
- “Programming” (not useful)
- “Client meeting: reviewed Q1 results, agreed on next sprint scope” (good)
- “Meeting” (not useful)
3. Choose a consistent rounding interval
Pick a rounding method and stick to it:- 15-minute intervals — The most common choice in Swedish consulting. A 25-minute task is logged as 30 minutes, a 10-minute task as 15 minutes.
- 6-minute intervals (0.1 hours) — Used in legal and some professional services. More granular but still practical.
- Exact minutes — The most accurate but can feel overly precise for most freelancers.
4. Track non-billable time too
It is tempting to only track billable hours, but non-billable time is just as important to understand. Track categories like:- Administration — Invoicing, bookkeeping, tax filing
- Marketing and sales — Finding new clients, writing proposals
- Learning — Courses, reading, skill development
- Internal projects — Building your website, improving your tools
5. Separate projects and clients
Always log time against a specific project or client. This makes invoicing straightforward and lets you analyze profitability per client or project.6. Review your timesheets weekly
Take a few minutes each week to review your time entries. Check for:- Missing days or gaps
- Entries without descriptions
- Time that should be reassigned to a different project
- Patterns in how you spend your time
Common Pitfalls
Forgetting to log
The number one problem. If you find yourself forgetting, set a daily reminder or use the timer feature in Aourly to track as you work.Batching time entries at the end of the week
This almost always leads to underreporting. Studies consistently show that people forget 10-20% of their work when logging retroactively.Not tracking small tasks
A five-minute email here, a ten-minute phone call there — these add up. If you consistently ignore small tasks, you could be losing several hours of billable time per month.Mixing billable and non-billable in one entry
Keep them separate. If a two-hour block was one hour of billable development and one hour of internal testing, log them as two separate entries.Time-Based vs. Value-Based Billing
While this article focuses on time tracking, it is worth noting that billing by the hour is not the only option:Hourly billing
You charge for the actual time spent. Simple, transparent, and common for ongoing work or when scope is uncertain.Fixed-price billing
You agree on a total price for the project. Time tracking is still important here — it helps you understand your effective hourly rate and improve future pricing.Value-based billing
You price based on the value delivered to the client rather than time spent. This can be more profitable but requires experience to price accurately. Time data helps you calibrate. Regardless of how you bill, tracking your time gives you the data to make informed decisions about pricing and profitability.Summary
- Log your time every day — do not let entries pile up
- Use clear, descriptive comments on every entry
- Pick a rounding interval (15 minutes is standard) and apply it consistently
- Track non-billable time to understand your true capacity
- Review your timesheets weekly to catch gaps and patterns
- Use your time data to improve estimates and pricing over time
Frequently Asked Questions
Should I track time even if I charge fixed prices?
Should I track time even if I charge fixed prices?
Yes. Tracking time on fixed-price projects helps you understand your effective hourly rate and improve future project estimates.
What rounding interval should I use?
What rounding interval should I use?
15-minute intervals are the most common in Swedish consulting. Some industries use 6-minute (0.1 hour) intervals. Choose one method and apply it consistently.
Should I track non-billable time?
Should I track non-billable time?
Absolutely. Tracking admin, marketing, and learning time gives you a realistic picture of your available billable capacity and helps you price your services correctly.
Sources: General industry best practices