Time tracking for accountants brings many advantages to accounting firms looking to boost profits and work smarter:

• Increases billable hours by capturing all client work that might otherwise go unrecorded
• Shows which clients and projects are most profitable based on actual time spent
• Helps identify services that take too much time compared to what you charge
• Makes client billing more accurate and easier to explain when questions arise
• Provides data to improve future project estimates and proposals
• Reveals which team members might need extra training or support
• Highlights inefficient processes that waste valuable staff time
• Helps manage workloads more fairly across the team
• Accounting timesheet automation gives a detailed record of work performed
• Reduces time spent on administrative tasks through automation

When accounting firms track time properly, they typically find they’ve been giving away hours of unbilled work each month. 

This insight alone can significantly boost revenue without finding new clients.

When choosing time tracking software for your accounting firm, look for these important features:

• Easy time entry with one-click timers or simple manual entry options
• Multiple time entry methods (desktop, mobile app, browser extension)
• Automatic idle time detection to maintain accuracy
• Project and client organization that matches your firm’s structure
• Custom hourly rates for different staff members and service types
• Ability to assign time to specific tax returns, audits, or client projects
• Integration with popular accounting software (Invoicera, QuickBooks, Xero, etc.)
• Customizable categories for different accounting services
• Offline time tracking for when internet connection isn’t available
• Automatic timesheet reminders for staff
• Simple approval workflows for managers
• Strong reporting tools with visual dashboards
• Client portal for sharing accounting time reports when needed

The best time tracking software for accountants doesn’t just count hours—it organizes them in ways that match how accounting firms actually work and bill clients.

Separating billable from non-billable time helps accounting firms understand true profitability:

• Create clear categories for common non-billable activities like team meetings and training
• Set up project codes that automatically mark certain tasks as billable or non-billable
• Use color coding in your tracking system to visually separate different time types
• Track internal administrative work separately from client-facing activities
• Set up specific codes for business development and marketing activities
• Create separate tracking for research that benefits multiple clients
• Establish guidelines for when client communication is billable versus courtesy
• Use different time codes for billable client work versus internal review time
• Track professional development hours in their own category
• Monitor write-off time when work takes longer than can be billed
• Review billable ratio reports regularly to identify improvement opportunities
• Set targets for billable hours percentage for different staff levels

Good accounting time tracker like Workstatus shows the real story behind your numbers.  

Many accounting firms discover they’re spending too much time on activities they can’t bill for, and can then make changes to improve their billable ratio.

Powerful reporting helps accounting teams make smarter business decisions:

• Billable hours by client, project, and staff member
• Profitability analysis showing revenue versus time cost for each client
• Weekly and monthly team utilization reports
• Accountant productivity monitoring for performance comparisons across similar tasks
• Time spent by service type (tax preparation, audit, bookkeeping)
• Budget versus actual time comparisons for fixed-fee projects
• Capacity planning reports showing team availability
• Overtime management during busy tax seasons
• Deadline compliance reporting for regulatory filings
• Client realization reports showing billed versus worked hours
• Year-over-year comparison of time spent on recurring clients
• Custom dashboard showing key performance indicators

Reports should be easy to generate, understand, and share. 

The best systems allow you to schedule automatic reports to be delivered to partners and managers, saving administrative time while keeping everyone informed.

Accurate time management for accountants leads to more precise, defensible billing practices:

• Captures all billable activities that might otherwise be forgotten
• Creates detailed time entries explaining exactly what work was performed
• Tracks time in real-time rather than relying on memory at day’s end
• Separates time by specific services provided to the same client
• Allows notes and comments to explain complex or unusual tasks
• Creates clear audit trails for billing disputes or questions
• Makes it easy to provide clients with detailed breakdowns when requested
• Helps identify scope creep on fixed-fee engagements
• Supports value-based billing with data on actual time investment
• Reduces billing errors that might result in undercharging
• Speeds up invoice creation with automated time summary reports
• Builds client trust through transparent, well-documented billing

When clients can see exactly what they’re paying for, they’re less likely to question invoices. 

The best client invoicing software like Workstatus reduces payment delays and strengthens relationships through transparency and professionalism.

Time tracking is essential for successful remote accounting teams:

• Creates visibility into work hours without micromanaging staff
• Shows when team members are available for collaboration
• Helps identify early warning signs of employee burnout or overwork
• Makes workload balancing easier when you can’t see who looks busy
• Provides structure and accountability for remote workers
• Helps new remote team members understand time expectations
• Creates data for fair performance evaluations regardless of location
• Shows productivity patterns that might suggest better working arrangements
• Maintains billing accuracy even with distributed teams
• Helps identify communication gaps that waste time
• Supports flexible schedules while ensuring adequate coverage
• Creates connection between remote workers and the projects they support

For accounting firms with hybrid or fully remote teams, good time tracking replaces the visual cues managers once relied on in the office.