Time Tracking Software for Accountants: Which One Fits Your Practice?

Time is money, and with the current economy, where technology is changing, the flow of information is fast. Accountants need an efficient time-tracking tool that will work to maximize productivity and provide a user-friendly interface that meets clients’ expectations. Time tracking software is an essential tool as accountants have more than one client; they have to ensure billing while working under tight deadlines. With time tracking software, clients and the accounting team can accurately track their working hours, streamline billing, ensure compliance with client contracts, and improve their work efficiency.

The market is overwhelmed with a range of time-tracker Software, making it difficult to select one tracking software that fits the needs of the client and the finance profession. This blog will compare some of the time-tracking tools in the market, analyzing their key features to determine which solution meets your practice’s unique needs. Looking at the key features, some of the expectations to look for are the ability to streamline the workflow process, enhanced communication software, and the need to meet deadlines.

However, we must determine why time tracking is essential for accountants.

Why Time Tracking Is Essential For Accountants?

Accurate Billing

Time tracking software guarantees accurate billing. This will ensure billable clients are billed correctly for the services received, help avoid disputes over over-billing, and increase revenue, as the firm’s reputation will bring in more clients.

Assists in Project Management

With efficient time-tracking software, accounting firms can observe the progress of their finance professionals, identify potential bottlenecks, and ensure the completion of client tasks on time. Tracking will also help maintain the firm’s budget needs, as work will be completed on schedule, helping them avoid any liability requiring financial compensation.

Productivity Improvement

Workflow inefficiencies can be identified, allowing you to optimize processes and improve overall productivity. They have features for idle detection, which can track when employees are not working despite being on a schedule.

Helps in Analyzing Profitability

By determining the exact time allocation for specific client tasks, a firm can plan for profitability and maximize it by offering various tasks and handling many clients. This can be challenging without tracking software since exact time allocations to tasks cannot be reached.

Ensures Compliance and Accountability

With the documentation obtained from the time records, an accounting firm will have the evidence to present to the various regulation bodies confirming their compliance with set guidelines. The records can also be used for auditing purposes.

Essential Features to Look for When Determining the Best Time Tracking Software

Time Entry Options

Good software should have a variety of time-entry options. This is convenient as it can suit the firm’s task management needs. The software can have manual input options or automatic input, where time is recorded immediately after the accountant signs in. The manual option can work in instances where there is a power failure or where a client prefers it.

Security Management

Accounting firms handle sensitive data, so they need software that can deliver accountability and data safety. Time management software will help ensure this, as it will require access permission for finance professionals. The software also defines roles, meaning that not everyone can access the system; rather, only those with certain roles and access can have permission.

Customization

Time tracking software should allow an accounting firm to customize its software to meet its needs, ensure workflow, and track time. A firm can customize its time sheets and billing rates to include hourly, monthly, or weakly scheduled hours, which will eventually determine billable hours for billable clients.

Ease of Use

Competent software should be intuitive, easy to understand, and implemented for users. This will ensure its integration into the firm’s operations as the accounting teams can understand its uses and the benefits it presents to the firm.

Mobile Accessibility

As many accountants work remotely or in clients’ offices, the best time tracking should allow for mobile accessibility. This ensures that time tracking can be done even when the finance personnel is outside the firm. It will also help ensure accuracy, monitor employee productivity, and ensure accountability.

Integration with other Tools

An efficient time-tracking software needs to offer seamless integration with other programs in the firm as well as easy assimilation with other accounting tools. This will work to ensure smooth workflow in the firm. For example, an organization can process accurate billing to their clients, whereby accounting tasks such as invoicing will be completed efficiently, and the software will collaborate with other tools, such as financial tools, to deliver accurate billings for tasks completed.

Reporting and Analytics

By choosing time tracking software, reports and analyses will be submitted regarding project progress, projected and actual time reports for tasks, and the firm’s overall performance. These reports are essential for making informed decisions and managing projects within the firm.

Client and Project Management

Clients need accurate accounts delivered promptly. Additionally, meeting certain deadlines is crucial to ensuring efficiency as a project management tool. Time tracking software ensures that clients can deliver on expectations and builds the firm’s reputation for efficient task handling.

There are various time-tracking software applications in the market; this article will analyze and compare the top-ranked software to determine which ones are considered the best based on efficiency and client consideration. This comparison will have three categories to consider: standalone Software, practice management suits, and Software that works within accounting software. Furthermore, the analysis will look into their benefits and disadvantages compared to other software.

Comparing Time Tracking Software for Accountants

Category A: Standalone Time Tracking Software

The Software in this Category is primarily focused on time tracking. As a result, it offers customizable and flexible features designed to meet client expectations.

1. QuickBooks Time

Previously referred to as TSheets, QuickBooks Time is a user-friendly platform that is most suitable for mobile accountants. QuickBooks Time is a robust time-tracking software built by Intuit, the maker of QuickBooks. A comprehensive solution integrates well with QuickBooks accounting software. Accountants prefer it because:

• It offers seamless integration with other software, especially QuickBooks for accounting. This is beneficial for accountants, as they can synchronize data and access needed information.
• It is a user-friendly interface that allows for customization of timesheets that work to reduce manual input, which encourages errors and delays in meeting deadlines.
• This interface is suitable for remote teams as the firm can track their work and time rendered for efficient reporting and management.
• It offers detailed reporting on work progress, an accountant’s performance, and the hours spent. This helps develop accurate billable hours for tasks offered.
• As expected, there are free trials, and subscription plans are offered at favorable rates of $8 per month per user.

2. Harvest

It is a user-friendly and intuitive software recognized for its time-tracking efficiency and project management capabilities. Many accountants prefer the software because:

• The offer integrates well with a range of accounting software and client management tools, such as QuickBooks, Xero, and Stripe.
• The software can support multiple employees working on different tasks simultaneously. This advanced feature ensures efficient collaboration with clients, employees, and other associated stakeholders.
• Known for its accounting efficiency, Harvest software can create detailed and customizable invoices that consider different time options and time tracked.
• It can track billable and non-billable expenses in real-time, helping to generate project costs. Furthermore, it provides clients with detailed professional invoices, with time tracking automated at hourly rates.
• Their billable rates start at $12 for each month per user. However, it offers one user free tracking for two projects.

3. Clockify

It is a free-time tracking software for small accounting firms that need real-time tracking across multiple projects. Despite it being free, it is efficient as it has basic key features that guarantee proper time tracking over projects. Accountants, especially small firms, prefer this software due to its ability to:

• Provide access to multiple users. This is ideal for an accounting firm that is growing in the industry.
• It is capable of assigning billable hourly rates to clients, making it a capable option for invoicing.
• It is a suitable billing solution for remote workers since it allows mobile access, allowing them to track time as they work outside the firm.
• It generates detailed reports, which help track productivity within the firm and monitor billable hours for assigned projects or clients, enhancing its document management efficiency.
• It is an affordable option for small and growing business owners looking to reduce their expenses since it offers unlimited users and projects free for basic essential features. Moreover, the rates for the subscribed plans are affordable, with the cheapest going for $9.99 per month per user, catering to a range of features.

  4. Timely

Accountants prefer this software for the following;

• It can automatically track computer activity and suggest billable time entries, minimizing manual processes.
• It is ideal for firms looking for automated time-tracking as it offers customizable reports that detail the business’s current financial health through their professional invoices.
• It is affordable, offering competitive prices and ease of payment processing.
• It can assign billable hourly rates to clients, making it a viable option for invoicing as it integrates project management features.

Advantages of using this Category

• It offers the most affordable option compared to other market alternatives, such as the comprehensive practice management suite, as its range of features allows it to handle unlimited projects.
• Clients and firms using this software can make online payments to settle their bills.
• It is flexible in offering hourly to monthly billable times and integrates with other software and accounting tools.
• It offers customizations for professional invoicing, with hourly or monthly rates available. Users also have the user-per-month payment option.
• Most of the time, tracking software under this Category has project management features that facilitate client communication.

Disadvantage

• An accounting firm might need complex billing software because the program needs to integrate with other software or accounting tools.

Category B: Time Tracking within Practice Management Suites

The time-tracking software in this Category is specifically designed for accounting professionals. Considerations are made for integrated time tracking, where integration might facilitate tracking accounting workflows and other price management functions. It is an ideal basic plan for tracking billable and non-billable hours for advanced reporting.

1. Canopy

• It offers integration with other accounting functions like accounting workflow and project management.
• For firms seeking comprehensive solutions, time-tracking billing software is the most used by accounting professionals because of its user-friendly features.

2. Bill4Time

Bill4Time is a time tracking and billing software that caters specifically to professionals like accountants, associated stakeholders, and consultants. It combines time tracking with powerful billing and invoicing features. Accountants prefer this software because:

• Its ability to integrate with other software, such as QuickBooks and accounting tools, and allow synchronization with other apps provides access to financial data.
• Its expense tracking software enables it to track expenses simultaneously as they occur with the client. It also has client collaboration capabilities that facilitate client communication throughout the project period.
• With Bill4Time, accountants can easily generate customizable invoices based on time and custom rates for various clients and projects.
• Bill4Time offers a wide range of reporting tools, including profit and loss reports, that help accountants manage their practice effectively.
• The pricing plans start from $14.95 per month per user, which is affordable considering it is a monthly offer price. Its billing capabilities ensure the client receives their invoices on time.

3. TaxDome

It is an accounting time-tracking software suitable for tax and accounting firms.

Why it is considered as a software for accountants:

• It provides time tracking alongside its client portal, which is convenient as clients can monitor progress as they work with their accountants.
• It offers online payment options for clients to settle bills.
• It guarantees workflow automation as it integrates with other practice management tools.

4. Karbon

Accountants prefer the software because:

• It is a project management software that focuses on workflow automation and facilitates collaboration with other associated stakeholders.
•  It offers an integration billing feature for time tracking, which allows users to monitor project progress and billable hours. This helps them create customized reports and invoices. 

Advantages Associated with this Category

• Offers seamless integration with other project management software solutions.
• The software facilitates streamlined workflows within accounting firms by avoiding repetitive tasks. Its automated features allow transactions to be recorded once.
• The software is capable of providing unified data for all its transactions since it has synchronized reporting features that integrate accurate time-tracked data.
• Offers user per month payment solution.

Disadvantages

It can be more expensive than standalone time-tracking solutions.

Category C. Time Tracking within Accounting Software

Under this Category, the accounting software has built-in time-tracking features. Some of these Software are:

1. Xenett

Xenett is not solely a time-tracking software with a month per user. Developers wanted to create software for accountants, as it offers valuable insights into accounting operations.

How Xenett is different from other Categories of Time Tracking Software

Integration with Accounting Software

Xenett integrates with popular accounting software like QuickBooks and Xero, which can streamline the process of transferring time data for billing purposes.

Less Emphasis on Advanced Time Tracking Features

Compared to dedicated time tracking software like TSheets or Timely, based on computer activity, Xenett may have fewer advanced features like GPS tracking, detailed timesheets, or automatic time capture.

Time Entry Methods

Xenett offers manual time entry, where users log their hours after completing a task. It may also have timer functionality to track time in real-time as users work.

Task-Based Time Tracking

Xenett’s time tracking is primarily tied to tasks within its workflow management system. This means you can track the time spent on specific tasks related to client projects, month-end close activities, or other internal processes.  

Accountants prefer Xenett because:

• Offers clients the daily/month per user option for payment
• It prioritizes practice management, such as workflow management, communication, and time tracking. While other software might ignore these repetitive tasks, they play an essential part in meeting client expectations.
• Its time tracking integrates with other tasks in accounting, such as creating detailed reports.
• Xennet offers value integration with accounting software for services such as transferring time data for billing.
• Xenett offers automatic time-tracking solutions for its mobile employees. This feature is efficient as a billing tool since it is connected to the client project and shows detailed reports.

2. QuickBooks Online

Accountants prefer QuickBooks Online because:

• QuickBooks Online offers basic tracking functionality, which is efficient for project management and financial reporting.
• QuickBooks Online integrates with its invoicing and payroll features, making it an efficient decision-making tool for accountants for accurate timing reports.

Advantages

• It offers convenient integration with a variety of accounting tools and third-party software, ensuring accurate financial reporting for accounting data.
• It simplifies invoicing procedures and reporting. 
• Offers user per month parent option. This is convenient for users.

Disadvantage

• The time-tracking features of this software may be less robust than those of dedicated time-tracking software.

What software is considered the Best Option for Your Practice?

The best time-tracking software is one that caters to your needs as an accountant or an accounting firm. This selection is based on costs, features offered, number of users, and scalability options. Based on these categories, here are the best options from the software mentioned above:

• For small accounting firms or individual accountants, Clockify is the best since it is free and caters to basic functions related to time tracking. Harvest and Timely are also best for time tracking.
• For firms working with mobile or remote employees, QuickBooks Time can be considered the best since it has mobile access features and is fitted with GPS, allowing for the tracking of accountants. This will work for project management and performance monitoring.
• Growing firms are also considered, as they will need options that can accommodate their needs as they grow. For example, they need automated software that can account for large amounts of data over long periods. The best software for such a firm is QuickBooks Online, Harvest, Canopy, or TaxDome.

Conclusion

Accounting firms look for an intuitive interface that can improve efficiency, provide detailed reports, create accurate reports, provide customizable workflows, and ensure profitability targets are reached. Thus, implementing the right time-tracking software is crucial for enhancing the efficiency of the accounting process since it considers your needs and evaluates the available options, billing features, and expense management tools. This will allow a firm to take full advantage of automatic time-tracking software, allowing it to decide on which plan to select to move your practice to the next level. Xenett is an excellent software solution to consider as it considers all the time-tracking needs of the accounting firm and clients through its features. Remember to take advantage of free trials (normally 14 to 30-day free trial)  and demo accounts to test the software before committing to a payment plan or software option.     

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