Best time tracking and billing software for accountants in 2024
Delivering work on time, within budget, and with complete payment are critical for accounting firm growth. These tools will help you get the job done.
As an accounting professional, you’re well aware of the massive impact that well-organized time tracking and billing software can have on your workflow.
Accurately billing hours, categorizing expenses, and creating invoices is a key part of doing your job and doing it well.
And as you juggle ever-growing responsibilities—from bookkeeping and tax preparation to financial analysis and consultation—it’s become increasingly important to have time and client billing features that are integrated directly into the tools you use every day.
If your firm tracks time, then imagine being able to track time and bill without needing to export data to and from apps. Accounting practice management software can help you do just that.
The best practice management solutions can automate time tracking and billing, generate data-driven financial reports, and unite your team in day-to-day workflows and communication.
This article will explore how time tracking and billing tools can directly influence your firm's profitability and highlight the top options worth evaluating.
How time and billing software improves efficiency, accountability, and revenue
With modern time and billing software, you have real-time insights into how projects are going, client statuses and tasks, and the financial health of your firm.
Time and budget features, coupled with automation, bring several key advantages to workflow improvement:
Streamlined processes. Automating time tracking, budgeting, and billing tasks simplifies your workflows by reducing manual data entry and processing, allowing you to focus more on your client relationships.
Resource management and allocation. Time and billing software can help you effectively manage your resources, helping you gain immediate ROI.
Project tracking. By keeping track of time, expenses, and project milestones, time and billing software will help your project management efforts.
Budget oversight. Automated time and billing tools allow you to continuously monitor project budgets, billable time, billable hours, and non-billable hours, identifying when budgets are nearing their limits, preventing overspending and enabling timely adjustments.
Analytics. Time and budget features auto-generate detailed reports and analytics, offering a wealth of data for analysis. This data-driven approach helps with strategic decision-making, cost management, and identifying areas for improvement.
Keep in mind: not every time and billing software option on the market offers comprehensive automation.
Before you make a purchasing decision, you need to carefully assess your options and choose a time and billing software that gives you a deeper understanding of firm profitability while actively helping you become more profitable.
Here are your best options:
The 8 best time and billing software for accountants
1. Karbon
Karbon is the collaborative practice management platform for accounting, tax, bookkeeping, and CPA firms and the #1 ranked practice management platform for accountants on G2.
With Karbon, you can manage workflows, communicate with teams, and deliver client work in one streamlined practice management solution.
Which is what makes the time and billing features so powerful.
In Karbon, you can track time, estimate budgets, bill and invoice your clients, and collect payment. All in one single location.
An example of a recurring monthly engagement with fixed fee projects in Karbon
Karbon’s time, billing and payments features include:
Time tracking: Track time with a built-in timer against a client or job
Budgets: Estimate time needed to allocate resources and track it against actuals
Invoice creation: Automate invoice creation based on the work that takes place
Invoice customization: Add your logo and branding, and control how data is presented to clients
Invoice collaboration: Discuss details with colleagues in context before approving and sending
Send invoices: Create, approve and send your invoice from one system
Write-on and write-off: Make adjustments based on time, expenses and other tracked activities
Aged receivables: Stay on top of all outstanding accounts across all clients and work
Billing reports: Comprehensive reporting on WIP, productivity, aged receivables, among other key metrics
Karbon payments: Manage, receive and track payments within one platform
Payment options: Clients have the option to pay using all major credit cards
Tracking time and budgets in Karbon is a game-changer for our entire firm. The management team can easily identify areas to improve client service and resource allocation. And the service team gains efficiency and visibility into how work is tracking at any stage.
Other key features of Karbon:
Direct email integration (Gmail, Microsoft Outlook and Microsoft Exchange)
Client portal with auto-reminders and tasks
Template library with 250+ accounting-specific workflow templates
Document management integration (Dropbox, OneDrive and SuiteFiles)
GPT-powered Karbon AI (open beta)
Real-time integrations that make sense for you (i.e. other leading accounting software, including Xero Practice Manager and QuickBooks Online Accountant)
Engaged user community with 3,000+ members
Best-in-class security (SOC2 and GDPR compliant, data encryption, and authentication security)
Pros
Track time, budgets, and timesheets in real-time directly within your daily workflows
Constant innovation and frequent product releases
Easily customizable to align with client information and match your practice’s workflow
Open API so you can integrate apps, build custom solutions, and optimize workflows
CRM capabilities to track your firm’s relationship with every client and deliver the service you promise
The only accounting practice management tool where you can @mention colleagues and comment on emails, turn emails into tasks, and assign them to colleagues, clients and jobs.
Karbon Practice Intelligence for guiding critical firm decisions and improving efficiency
Software built by a team of accounting professionals and passionate industry experts
Offers a free trial
Cons
May require more time for set up and onboarding because it is a robust solution
Functionality is geared towards teams, so may not be suitable for teams of one or two
What kinds of firms use Karbon?
Karbon is best suited for a team of three or more staff members, or for sole practitioners who are looking to grow within a short period of time. Here are some of the thousands of accounting firms that use and find success with Karbon as their all-in-one practice management tool.
Reviews
4.8 stars on G2 and #1-rated in the Accounting Practice Management category
Pricing
Karbon has three pricing plans: Team, Business, and Enterprise.
Annually:
Team: $59 USD/month per user
Business: $89 USD/month per user
Enterprise: Custom pricing
Monthly:
Team: $75 USD/month per user
Business: $109 USD/month per user
Enterprise: Custom pricing
Firms under 50 users can choose either a Team or Business plan and the total cost is simply the number of users multiplied by the subscription per month (paid monthly or annually).
Learn more about Karbon and book a demo or start a free trial.
2. HubStaff
HubStaff is a time-tracking and employee-monitoring software that gives you specific insights into your employees’ and freelancers’ workloads.
It helps accounting firms manage their teams by tracking work hours, paying team members, invoicing clients, and providing performance reports.
Timesheets in HubStaff
Key features
Employee hours tracker and automated timesheets
Overtime calculation
Automatic employee monitor screenshots
Payroll integration
Time clock app
Project cost and task management
Work order management
GPS tracking
Productivity reports
Integration with QuickBooks Online, FreshBooks, and Gusto
Pros
Integrated task management platform (Hubstaff Tasks) allows for agile task management that feeds appropriate tasks to a user's timers
Offers live trainings
Cloud-based
Easy-to-use interface
Offers a free trial and is free for single users
Cons
It’s not part of an accounting practice management platform, which means your work and time are tracked in two separate places
Some functions don't allow for time tracking granularity, like decimal of hours
Many of their features don’t deliver real-time data
What kinds of firms use HubStaff?
HubStaff is suitable for businesses of all sizes who want to prioritize employee productivity. It’s particularly useful for organizations that have staff working on an hourly basis.
Reviews
Pricing
HubStaff’s prices range from $5-$10 USD/month, per user, with custom pricing plans available for enterprise companies.
3. Clockify
Clockify is a time tracker and timesheet software for businesses. Its claim to fame is that it’s 100% free (well, mostly—there are tiers of upgrades you can pay for).
Time tracker in Clockify
Key features
Time tracker
Templated timesheets
Assignment scheduling
Reminders
Employee kiosks for time clocks
Employee calendars
Team dashboards
Performance reports
Capacity and planning scheduling
PTO and time off tracker
Integration with QuickBooks Online
Pros
Ability to add tasks and subtasks to projects for better project management
Offers a Chrome browser extension that helps you add a time clock to emails, documents, spreadsheets, and other tasks
Offers a customizable system for employees to track their time in multiple ways
Unlimited time tracking on free and paid plans
Built with a team chat feature that enables real-time messaging
Simple and functional to use and set up
24/7 live support
Mobile app
Cons
It’s not part of an accounting practice management platform, which means your work and time are tracked in two separate places
Free plan lacks many features
Doesn’t offer shift scheduling tools
Lacks integrations with payroll providers
What kinds of firms use Clockify?
Clockify offers a cloud-based dashboard with team chat and in-depth employee monitoring, which can help remote accounting teams that want to track time across projects, tasks, and clients. Because of the unlimited free model, it may be useful for sole practitioners or temporary staff members who need a time-tracking tool.
Reviews
Pricing
Clockify offers five pricing plans (the below prices are based on annual billing):
Free: $0
Basic: $3.99 USD/month per user
Standard: $5.49 USD/month per user
Pro: $7.99 USD/month per user
Enterprise: $11.99 USD/month per user
4. Harvest
Harvest is an online time and expense tracking tool for teams and projects of all sizes. It’s a simple, easy-to-use platform that offers time tracking, reporting and analysis, and invoicing and payments.
Time tracking in Harvest
Key features
Time tracking
Expense management and tracking
Task management
Resource allocation
Invoice management
Online payments
Project and team reporting
Customizable reports
Pros
Powerful and collaborative project management features
Email reminders and notifications help keep your team and projects on track
Offers integrations with popular apps, including QuickBooks, as well as non-accounting specific project management tools like Asana and Trello
Simple, intuitive, and easy to use
Mobile device and desktop app
30-day free trial
Cons
It’s not part of an accounting practice management platform, which means your work and time are tracked in two separate places
Harvest can be expensive for businesses with large teams that need multiple features
Limited customization
What kinds of firms use Harvest?
Because of its simple, easy-to-use interface, Harvest may be a good option for small firms and solo accountants and bookkeepers. Its project management features also make it a good choice for small firms that want to optimize their workflow. Despite these project management features, it’s important to note that Harvest is still a time and billing tool, not a comprehensive workflow tool or practice management software.
Reviews
Pricing
Harvest offers two pricing options:
Free: $0 USD (limited to one user and up to two projects)
Pro: $10.80 USD/month per user billed annually (unlimited users and projects)
5. TrackingTime
You guessed it: TrackingTime is, in fact, a time tracker. It also offers project management features and invoicing.
Dashboard view in TrackingTime
Key features
Time tracker
Online timesheets
Time cards
Attendance tracking
Project management dashboards
Custom time reporting
Pros
Custom reports for metrics like hours tracked, performance targets, and overall usage
Automatic time tracking reminders for when you are working but not tracking time
Mobile, desktop, and web app
Easily export reports to CSV, PDF, and Excel
Offers integrations with dozens of apps, including QuickBooks and Zapier
Offers a free plan (and 14-day trials for paid plans)
Cons
It’s not part of an accounting practice management platform, which means your work and time are tracked in two separate places
Does not auto-update tasks
Project management feature doesn’t allow for sub-projects, tasks, and goals
What kinds of firms use TrackingTime?
TrackingTime may be a good choice for smaller teams with less overhead, employees, clients, and stakeholders, and for firms working with freelance employees.
Reviews
Pricing
TrackingTime offers four pricing plans (prices based on annual billing):
Free: $0 USD (up to three users)
Pro: $5.75 USD/month per user
Freelancer: $8 USD/month per user
Business: $10 USD/month per user
6. My Hours
My Hours is a cloud-based time-tracking software that tracks time on projects with tasks, generates insightful reports, and sends invoices to clients.
Project dashboard in My Hours
Key features
Employee time and expense tracking
Timesheet management
Employee database
Budget estimation
Reports and analytics
Integration with QuickBooks Online
Pros
Automated timesheet approvals cuts down manual work, especially across recurring invoices
Open, documented API that allows tech-savvy users to create custom integrations
Easy to view and edit daily, weekly, and monthly tasks for projects
The free version includes unlimited clients and projects
Enterprise-grade security features
Cons
It’s not part of an accounting practice management platform, which means your work and time are tracked in two separate places
Very limited reporting on the free version
Invoicing feature has limited customization
Mobile app is basic and lacks important features like weekly timesheet entry and graph views
What kinds of firms use My Hours?
My Hours may be useful for small to medium-sized firms as well as solo practitioners. If your firm is just getting started with time-tracking and project management, My Hours is an option to test out your time and billing workflows.
But for firms that need a centralized platform to streamline their work, time-tracking, and billing processes, My Hours might not offer enough industry-specific features.
Reviews
Pricing
My Hours offers a free pricing plan that allows for unlimited team members and projects (with limited features, however) and a paid pricing plan starting at $8 USD/month per user.
7. Canopy
Canopy is an accounting practice management solution with time and billing features that started as a tax resolution tool.
Canopy’s modular pricing means that accounting firms can pick and choose which features to add on.
But keep in mind that most add-on features are core to accounting practice management. This means you’ll likely want them all (especially their time and billing module), which will end up significantly increasing how much you spend.
Invoice reminder set up in Canopy
Key features
Invoicing and payments
Time tracking
Budget planning and tracking
Basic analytics
Integrated email inbox
Task and project management
Client tasks and auto-reminders
Client portal
CRM and client management
Document management
Integration with ChatGPT AI (for email creation)
Mobile app for both you and your clients
Pros
Recurring invoices, invoice reminders, and the ability to share invoices to the client portal
Payments with multiple billing rates and currencies
Comes with pre-built reports on firm efficiency, revenue, and billing
Cons
Key product features are only available at additional costs (e.g. time and billing, workflow management, and document management)
Complicated and expensive pricing (pay per client, per add-on module, per user)
Limited workflow templates
Despite the prebuilt reports available, customized reporting is minimal
What kinds of firms use Canopy?
Canopy is best-suited for accounting firms that value the Canopy tax resolution cases and integration with the IRS.
Reviews
Pricing
Canopy has a modular pricing model that charges by the number of features you add on.
Their Standard and Pro pricing tiers include 250 free contacts and charges extra for these add-ons:
Time & Billing: starting at $25 USD/month per user
Document Management: starting at $40 USD/month per user
Workflow: starting at $35 USD/month per user
Tax Resolution: starting at $50 USD/month per user
Canopy also offers two other tiers for firms with fewer than four staff members—these packages do not include time and billing capabilities, nor are you able to purchase the module as an add-on.
Starter:
$45 USD/month per user, plus $50 USD/month per user for their tax resolution feature.
Essentials:
$45 USD/month per user, plus $50 USD/month per user for their tax resolution feature.
8. TaxDome
TaxDome markets itself as the ‘all-in-one platform for accounting, tax, and bookkeeping firms’. It offers a breadth of basic functionality.
Time entries in TaxDome
Key features
Invoicing and payment processing
Time tracking
Proposal creation
Workflow automation
CRM
Document management
Client portal
Client-facing mobile app
Website creation service
eSignature capabilities
Pros
Payment processing and invoicing in multiple currencies
Clients receive push notifications when invoices are ready to be paid via the client app
Integrates with QuickBooks Online
Cons
No budget vs. actual reporting
No built-in reporting and analytics or customizable business insights dashboards
No high-level visibility across your entire firm’s work (limited to each ‘pipeline’)
TaxDome has a large amount of features, which makes it difficult to do them all well—this means they generally feel underdeveloped
Reviews
Pricing
TaxDome offers one pricing tier: TaxDome Pro.
The monthly price depends on how many years you sign up for (payment is required upfront):
3 years: $50 USD/month per user
2 years: $58 USD/month per user
1 year: $66 USD/month per user
Automate your accounting firm’s time tracking and billing
Time tracking and billing touches every aspect of your accounting firm—from project progress and employee resource allocation to payment automation, time management, and client satisfaction.
To sum it all up, it’s just far too important to neglect.
Investing in the right time tracking and billing automation software can streamline your operations, boost efficiency, enhance client relationships, and ultimately drive your accounting firm's growth and profitability.
US-based firm BNA discovered that firsthand.
Using Karbon’s time and billing features, they were able to create budgets to determine what the team is billing, what their pipeline looks like, and what they should be delivering in a given timeframe.
More than 2,000 tax returns are completed each year
10%+ more efficiency on key processes
10-13% more revenue per year over the last 3 years
Complete visibility and control over the firm for the first time ever
We always had an idea of what we wanted to do, but had no way of tracking it. With Karbon, we can see everything. We can share with everyone how we’re tracking, where we want to be, and what we need to do to meet those goals.
If you’re curious about how Karbon can automate your time and billing processes within the context of your firm, book a demo or start a free trial.