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Generating Client Invoices from Time Logs

Accurate client billing depends on reliable time tracking data. GitScrum's integrated time tracking and reporting features capture billable hours at the task level, enabling agencies and consultancies to generate detailed invoices quickly while minimizing disputes and improving cash flow.

Manual vs Automated Invoice Generation

Manual ProcessAutomated from Time Logs
Hours reconstructed from memoryReal-time tracking
Prone to under-billingCaptures all work
Disputes commonDetailed backup
Slow invoice creationQuick generation
No project profitability insightFull cost visibility

Time-to-Invoice Workflow

TIME TRACKING TO INVOICE PIPELINE

┌─────────────────────────────────────────────────┐
│  STEP 1: TRACK TIME                             │
│  ┌─────────────────────────────────────────┐    │
│  │ Developer logs time against tasks:      │    │
│  │ • Start/stop timer                      │    │
│  │ • Or manual entry                       │    │
│  │ • Notes on work performed               │    │
│  │ • Billable flag                         │    │
│  └─────────────────────────────────────────┘    │
│                     │                           │
│                     ▼                           │
│  STEP 2: REVIEW & APPROVE                       │
│  ┌─────────────────────────────────────────┐    │
│  │ PM reviews time entries:                │    │
│  │ • Verify descriptions                   │    │
│  │ • Confirm billable status               │    │
│  │ • Approve for billing                   │    │
│  └─────────────────────────────────────────┘    │
│                     │                           │
│                     ▼                           │
│  STEP 3: GENERATE REPORT                        │
│  ┌─────────────────────────────────────────┐    │
│  │ Export billable hours:                  │    │
│  │ • Filter by client & date range         │    │
│  │ • Apply billing rates                   │    │
│  │ • Group by category/person              │    │
│  └─────────────────────────────────────────┘    │
│                     │                           │
│                     ▼                           │
│  STEP 4: CREATE INVOICE                         │
│  ┌─────────────────────────────────────────┐    │
│  │ Transform to invoice format:            │    │
│  │ • Import to accounting system           │    │
│  │ • Or generate PDF directly              │    │
│  │ • Attach detailed breakdown             │    │
│  └─────────────────────────────────────────┘    │
└─────────────────────────────────────────────────┘

Invoice Format Options

SUMMARY INVOICE (Client Preference: Simple)
┌─────────────────────────────────────────────────┐
│  INVOICE #1234                                  │
│  Client: Acme Corp                              │
│  Period: January 2025                           │
│                                                 │
│  Services Rendered:                             │
│  ├── Development Services    40.5 hrs   $8,100 │
│  ├── Design Services         12.0 hrs   $1,800 │
│  └── Project Management       8.0 hrs   $1,200 │
│                              ─────────  ─────── │
│  Total                       60.5 hrs  $11,100 │
│                                                 │
│  [Detailed breakdown available upon request]    │
└─────────────────────────────────────────────────┘

DETAILED INVOICE (Client Preference: Transparent)
┌─────────────────────────────────────────────────┐
│  INVOICE #1234 - Detailed Breakdown             │
│                                                 │
│  Development Services - 40.5 hours              │
│  ┌─────────────────────────────────────────┐    │
│  │ Date     Task                    Hours  │    │
│  │ ──────────────────────────────────────  │    │
│  │ Jan 2   User auth API endpoint   4.0   │    │
│  │ Jan 3   Auth testing & fixes     3.5   │    │
│  │ Jan 4   Dashboard component      6.0   │    │
│  │ Jan 5   Dashboard styling        4.5   │    │
│  │ Jan 8   API integration          5.0   │    │
│  │ ...                                     │    │
│  │ Subtotal                        40.5   │    │
│  │ Rate: $200/hr                          │    │
│  │ Total: $8,100                          │    │
│  └─────────────────────────────────────────┘    │
└─────────────────────────────────────────────────┘

Profitability Analysis

PROJECT PROFITABILITY FROM TIME DATA

Project: Acme Dashboard Redesign
┌─────────────────────────────────────────────────┐
│                                                 │
│  REVENUE                                        │
│  Billed hours:     160 hrs × $200 = $32,000    │
│                                                 │
│  COSTS                                          │
│  Developer A:       80 hrs × $75  =  $6,000    │
│  Developer B:       60 hrs × $70  =  $4,200    │
│  Designer:          20 hrs × $65  =  $1,300    │
│  ─────────────────────────────────────────      │
│  Total Cost:                        $11,500    │
│                                                 │
│  MARGIN                                         │
│  Gross Profit:                      $20,500    │
│  Margin:                                64%    │
│                                                 │
│  EFFICIENCY                                     │
│  Non-billable hours:  12 (7%)                  │
│  Budget variance:    -8 hrs (under budget)     │
└─────────────────────────────────────────────────┘

Best Practices

  1. Track time in real-time not end of week
  2. Use descriptive task names for invoice clarity
  3. Mark billable vs non-billable at tracking time
  4. Review before invoicing for accuracy
  5. Standardize categories across projects
  6. Keep detailed backup for disputes
  7. Automate recurring invoice generation
  8. Analyze profitability by project/client

Anti-Patterns

✗ Reconstructing hours from memory
✗ Vague descriptions on invoices
✗ No approval workflow before billing
✗ Mixing billable and non-billable
✗ Different formats for different clients
✗ No backup data for disputes