Top 3 Time Tracking Software Tools for Accountants

Time tracking in accounting firms is broken. Most firms are still using spreadsheets, manual timesheets, or trying to recreate billable hours from memory at the end of the week. The result? Lost revenue, inaccurate billing, and countless hours spent on administrative work that should be automated.

Research shows that firms using manual time tracking typically lose 200 billable hours per employee every year. That’s roughly $50,000 in lost revenue for a mid-level accountant billing at $250 per hour.

But here’s the reality:

The most profitable accounting firms have solved this problem. Not by working more hours, but by implementing time tracking systems that capture every billable minute automatically and integrate seamlessly with their existing workflows.

The best time tracking software for accountants helps firms:

• Capture accurate billable hours without manual data entry
• Generate invoices directly from tracked time
• Analyze profitability by client and project type
• Integrate seamlessly with accounting software platforms
• Maintain detailed audit trails for compliance requirements

These are the three time tracking solutions I recommend for accounting professionals who want to maximize billable hour recovery and streamline their billing processes.

My Top 3 Time Tracking Software Tools for Accountants

1. BigTime: Professional services-focused platform with advanced billing workflows and QuickBooks integration
2. TaxDome: All-in-one practice management with robust time tracking and client portal features
3. Toggl Track: Simple, powerful time tracking with excellent reporting and affordable pricing

BigTime

Best for accounting firms that need comprehensive project management with sophisticated billing capabilities

Pricing: $20-45 per month per user (annual billing); free trial available

BigTime is widely considered the best time tracking software for accountants, and for good reason. It’s purpose-built for professional services firms and includes everything accountants need to track time, manage projects, and bill clients accurately.

Over 2,800 professional services firms trust BigTime to manage their entire client engagement lifecycle, from initial quotes to final payment collection.

Client-Specific Time Tracking

BigTime excels at organizing time tracking around client engagements. You can set up different billing rates for different types of work, track time against specific projects or tasks, and automatically apply the correct rates when generating invoices.

For example, you might set up:

• Standard bookkeeping work at $125/hour
• Tax preparation at $175/hour
• Advisory consultations at $250/hour
• Partner review time at $350/hour

The system automatically applies the correct rate based on who’s doing the work and what type of task they’re performing. This eliminates billing errors and ensures you’re not leaving money on the table.

Advanced Billing and Invoice Automation

BigTime’s billing capabilities are where it really shines for accounting firms. The system can handle complex billing scenarios that are common in professional services:

• Retainer management: Track time against retainer balances and automatically notify clients when funds are running low
• Fixed-fee projects: Monitor time spent on fixed-fee engagements to understand profitability
• Blended billing: Combine time-based and fixed-fee components in a single engagement
• Recurring invoices: Automate monthly bookkeeping or compliance work billing

The invoice generation is sophisticated enough to handle client-specific preferences for formatting, detail level, and approval workflows. You can generate professional invoices in seconds and send them directly through the platform.

Real-Time Project Profitability

One of BigTime’s standout features is real-time profitability tracking. As time is logged, you can see immediately whether projects are profitable and identify potential issues before they impact your bottom line.

The system shows:

• Budgeted vs. actual hours for each engagement
• Labor costs and markup calculations
• Project margins in real-time
• Resource utilization rates across your team

This visibility helps partners make informed decisions about staffing, pricing, and project scope adjustments during engagements rather than discovering problems after the fact.

Seamless Accounting Software Integration

BigTime integrates directly with the accounting platforms most firms already use:

• QuickBooks Online and Desktop: Sync invoices, payments, and client data automatically
• Sage Intacct: Deep integration for larger firms with complex accounting needs
• Xero: Comprehensive integration for firms using Xero’s platform

These integrations eliminate double data entry and ensure your financial records stay synchronized without manual intervention.

Pros & Cons

BigTime Alternative: Harvest

Harvest offers time tracking with basic invoicing capabilities at a lower price point, starting at $12 per user per month. It includes simple project tracking and integrates with QuickBooks.

However, BigTime provides much more sophisticated billing workflows, better project profitability tracking, and stronger integration with accounting software. For firms that need professional-grade project management and billing, BigTime typically provides better value despite the higher cost.

Learn more: BigTime

TaxDome

Best for accounting firms that want comprehensive practice management with integrated time tracking and client communication

Pricing: From $58 per month per user (annual billing); 14-day free trial available

TaxDome is an all-in-one practice management platform that includes robust time tracking as part of a complete solution for accounting firms. While it costs more than standalone time tracking tools, many firms find it replaces 4-6 different software solutions.

The platform has a 4.7/5 rating from thousands of accounting professionals and consistently ranks as the top choice for firms that want to modernize their entire operation.

Integrated Time and Billing Workflow

TaxDome’s time tracking is designed specifically for accounting workflows. Time entries automatically link to client projects, and the billing system understands the nuances of accounting work:

• Engagement-based tracking: Time automatically organizes by tax returns, bookkeeping periods, or advisory projects
• Task-specific rates: Different rates for preparation, review, and partner time within the same engagement
• Automatic markup calculations: Built-in markup rules for different service types
• Expense integration: Link expenses to specific clients and mark them up automatically

The system generates invoices that look professional and include the level of detail clients expect from their accounting firm.

Client Portal Integration

What sets TaxDome apart is how time tracking integrates with client communication. Clients can see project progress in real-time through their secure portal:

• Status updates: Clients see when work begins, is in review, or is complete
• Time transparency: Show clients how time was spent on their projects (optional)
• Automatic notifications: Clients receive updates when milestones are reached
• Document linking: Connect time entries to specific documents or deliverables

This transparency builds trust and reduces client questions about billing, which saves additional time for your team.

Workflow Automation with Time Tracking

TaxDome’s workflow automation extends to time tracking, making it easier to capture accurate time without disrupting work:

• Smart timers: Automatically start when specific client work begins
• Template-based tracking: Pre-configured time categories for common accounting tasks
• Approval workflows: Route time entries through appropriate reviewers before billing
• Deadline integration: Connect time tracking to project deadlines and capacity planning

The automation reduces the administrative burden of time tracking while improving accuracy.

Advanced Reporting and Analytics

TaxDome provides comprehensive reporting that helps firms understand their time utilization and profitability:

• Utilization reports: See how efficiently each team member is working
• Profitability analysis: Understand which clients and services generate the best margins
• Capacity planning: Predict when you’ll need additional staff or can take on new clients
• Realization rates: Track the percentage of tracked time that actually gets billed and collected

These insights help firm owners make strategic decisions about pricing, staffing, and service offerings.

Pros & Cons

TaxDome Alternative: Karbon

Karbon offers practice management with time tracking features focused on team collaboration. It provides good workflow management and client communication capabilities.

However, TaxDome offers better client portal functionality, more comprehensive automation, and stronger integration between time tracking and other firm operations. For firms that want a complete solution rather than just time tracking, TaxDome typically provides better value.

Learn more: TaxDome

Toggl Track

Best for solo practitioners and small firms that need simple, reliable time tracking without complexity

Pricing: Free for up to 5 users; paid plans from $9 per month per user; 30-day free trial

Toggl Track focuses on doing one thing exceptionally well: time tracking. It’s beloved by freelancers and small teams because it’s intuitive, reliable, and doesn’t try to be everything to everyone.

For accounting professionals who need accurate time tracking without the complexity of full practice management software, Toggl Track is an excellent choice.

Effortless Time Capture

Toggl Track’s strength is making time tracking so simple that you actually do it consistently. The interface is clean and intuitive:

• One-click timers: Start tracking with a single click from your browser, desktop, or mobile device
• Smart suggestions: The system learns your patterns and suggests project and task combinations
• Idle detection: Automatically prompts you when it detects you’re away from your computer
• Flexible entry: Add time manually, use timers, or bulk import from calendars

The browser extensions are particularly useful for accountants, as they add Toggl timers directly to web-based accounting software, client portals, and other tools you use daily.

Project and Client Organization

Toggl Track’s project management is simple but effective for accounting work:

• Client hierarchy: Organize work by client, then by project type (tax prep, bookkeeping, advisory)
• Task tracking: Break projects into specific tasks for detailed analysis
• Color coding: Visually distinguish between different types of work
• Billable vs. non-billable: Easily separate billable client work from administrative tasks

This organization makes it easy to generate accurate time reports for billing purposes.

Reporting

Despite its simplicity, Toggl Track provides robust reporting capabilities that accountants need:

• Summary reports: Quick overview of time by client, project, or team member
• Detailed reports: Drill down to see exactly what was worked on and when
• Billable time analysis: See utilization rates and identify opportunities to increase billable hours
• Export options: Generate reports in multiple formats for invoicing or analysis

The reports are professional enough to share with clients and detailed enough for internal analysis.

Extensive Integrations

Toggl Track integrates with over 100 tools, including many that accountants use regularly:

• Accounting software: QuickBooks, Xero, FreshBooks
• Project management: Asana, Trello, Monday.com
• Calendar apps: Google Calendar, Outlook
• Communication tools: Slack, Microsoft Teams

These integrations mean you can track time without switching between different applications or disrupting your existing workflows.

Pros & Cons

Toggl Track Alternative: Clockify

Clockify offers similar time tracking functionality with a free plan for unlimited users. It includes basic project management and reporting features.

However, Toggl Track provides better mobile apps, more polished user experience, and stronger integration ecosystem. For professionals who need reliable, everyday time tracking, Toggl Track typically offers better value and user satisfaction.

Learn more: Toggl Track

Other Tools We Use in Our Time Tracking Workflow

Effective time tracking often requires integration with other essential tools:

• QuickBooks Online for seamless invoice generation from tracked time
• Microsoft 365 for calendar integration and automatic time tracking suggestions
• Zapier for connecting time tracking data to other business systems
• Chrome Extensions for tracking time directly within web-based accounting software
• Mobile Apps for capturing time when working outside the office during client visits

Wrapping up

The right time tracking software doesn’t just capture hours, it transforms how your firm operates and bills clients.

Choose based on your firm’s specific needs and current systems:

• Choose BigTime if you need sophisticated project management and billing workflows with deep accounting software integration
• Choose TaxDome if you want comprehensive practice management that includes time tracking as part of a complete client management solution
• Choose Toggl Track if you need simple, reliable time tracking without the complexity and cost of full practice management software

The most successful firms start simple and evolve their time tracking as they grow. The key is to begin capturing accurate time immediately rather than waiting for the perfect system.

Focus on consistent adoption first, then add more sophisticated features as your team becomes comfortable with time tracking. The goal is to recover every billable hour while making the process so seamless that it becomes second nature for your team.