Integrating Time Tracking with Billing

For agencies and freelancers, time tracking isn't just about productivity—it's about revenue. Connecting time to billing reduces invoice disputes, improves accuracy, and provides insights into project profitability. This guide covers practical approaches to billing integration.

Billing Requirements

Time Entry Setup

Billable Time Tracking

TIME ENTRY FOR BILLING
══════════════════════

ENTRY REQUIREMENTS:
─────────────────────────────────────
Each entry needs:
├── Date: When work happened
├── Duration: How long
├── Project: Client/project
├── Task: What was done
├── Description: Details for invoice
├── Billable: Yes/No
├── Rate: (often automatic)
└── Complete entries

GOOD DESCRIPTIONS:
─────────────────────────────────────
For invoice line items:
├── Specific what was done
├── Client can understand
├── Not too technical
├── Justifies the time
└── Reduces questions

Examples:
❌ "Development" (too vague)
❌ "Fixed bug in userController.js line 47" (too technical)
✅ "Fixed login authentication issue"
✅ "Implemented password reset feature"
✅ "Reviewed and tested checkout flow"

BILLABLE VS NON-BILLABLE:
─────────────────────────────────────
Billable:
├── Client-requested work
├── Contracted deliverables
├── Bug fixes (usually)
├── Meetings with client
└── Directly attributable

Non-billable:
├── Internal meetings
├── Admin work
├── Learning/training
├── Rework from own mistakes
├── Sales/proposals
└── Overhead costs

Rate Configuration

Multiple Rate Structures

RATE CONFIGURATION
══════════════════

BY TEAM MEMBER:
─────────────────────────────────────
Different rates per person:
├── Senior Developer: $150/hr
├── Developer: $120/hr
├── Junior Developer: $80/hr
├── Designer: $130/hr
├── PM: $100/hr
└── Automatic based on who

BY PROJECT:
─────────────────────────────────────
Client-specific rates:
├── Client A: $140/hr
├── Client B: $120/hr (volume discount)
├── Client C: $160/hr (rush work)
├── Agreed in contract
└── Automatic per project

BY TASK TYPE:
─────────────────────────────────────
Different work types:
├── Development: $130/hr
├── Design: $120/hr
├── Consulting: $175/hr
├── Support: $100/hr
├── Tag on time entry
└── Rate follows tag

BLENDED RATES:
─────────────────────────────────────
Single rate for project:
├── Average across team
├── Simpler for client
├── Less detail on invoice
├── Good for fixed teams
└── $125/hr blended

Approval Workflow

Before Billing

TIME APPROVAL PROCESS
═════════════════════

TEAM MEMBER SUBMITS:
─────────────────────────────────────
Weekly submission:
├── Review own entries
├── Complete missing descriptions
├── Mark billable/non-billable
├── Submit for approval
└── Before invoicing period

MANAGER REVIEWS:
─────────────────────────────────────
Approval checks:
├── Entries make sense
├── Time reasonable
├── Descriptions appropriate
├── Correct billable status
├── Correct project assignment
├── Approve or request changes
└── Quality control

CLIENT APPROVAL (OPTIONAL):
─────────────────────────────────────
For some clients:
├── Share timesheet before invoice
├── Client reviews and approves
├── Reduces invoice disputes
├── Transparency builds trust
├── Extra step but valuable
└── Depends on relationship

WORKFLOW:
─────────────────────────────────────
1. Team logs time daily
2. Team submits weekly
3. Manager reviews/approves
4. Optional: Client preview
5. Finance generates invoice
6. Client receives invoice
7. Payment received
8. Time marked as invoiced

Invoice Generation

From Time to Invoice

INVOICE GENERATION
══════════════════

INVOICE CONTENT:
─────────────────────────────────────
From time entries:
├── Period covered
├── Project/tasks completed
├── Hours per task
├── Rate per hour
├── Line item totals
├── Invoice total
├── Payment terms
└── Professional invoice

GROUPING OPTIONS:
─────────────────────────────────────
By project:
├── Project A: 25 hrs @ $130 = $3,250
├── Project B: 10 hrs @ $130 = $1,300
└── Total: $4,550

By person:
├── Sarah (Senior): 20 hrs @ $150 = $3,000
├── Mike (Dev): 15 hrs @ $120 = $1,800
└── Total: $4,800

By task:
├── Feature Development: 30 hrs = $3,900
├── Bug Fixes: 5 hrs = $650
├── Meetings: 3 hrs = $390
└── Total: $4,940

EXPORT OPTIONS:
─────────────────────────────────────
├── Direct to QuickBooks
├── Export to Xero
├── Export to FreshBooks
├── CSV for custom import
├── PDF invoice generation
└── Integration or export

Profitability Tracking

Beyond Billing

PROFITABILITY INSIGHTS
══════════════════════

PROJECT PROFITABILITY:
─────────────────────────────────────
Track per project:
├── Revenue: $10,000
├── Cost (internal rate × hours): $6,000
├── Profit: $4,000
├── Margin: 40%
├── Healthy or concerning?
└── Data for decisions

METRICS TO TRACK:
─────────────────────────────────────
├── Billable vs non-billable ratio
├── Realization rate (billable ÷ available)
├── Utilization rate (worked ÷ available)
├── Project margin
├── Client profitability
├── Team member productivity
└── Business health

EXAMPLE ANALYSIS:
─────────────────────────────────────
Client A:
├── Revenue: $50,000
├── Internal cost: $35,000
├── Profit: $15,000
├── Margin: 30%
├── Scope creep issues
└── Need to address

Client B:
├── Revenue: $30,000
├── Internal cost: $18,000
├── Profit: $12,000
├── Margin: 40%
├── Smooth projects
└── Healthy relationship

DECISIONS FROM DATA:
─────────────────────────────────────
├── Which clients are profitable?
├── Which projects underperformed?
├── Where is time leaking?
├── Where to invest more?
├── Where to raise rates?
└── Informed business decisions

GitScrum Integration

Time and Billing

GITSCRUM TIME TRACKING
══════════════════════

TIME ON TASKS:
─────────────────────────────────────
├── Log time on each task
├── Linked to project/client
├── Billable flag per entry
├── Description included
├── Automatic totals
└── Integrated tracking

REPORTING:
─────────────────────────────────────
├── Time by project
├── Time by client
├── Time by team member
├── Billable hours report
├── Export for invoicing
└── Ready for billing

EXPORT OPTIONS:
─────────────────────────────────────
├── CSV export
├── API for integrations
├── Detailed or summary
├── Custom date ranges
├── Filtered by project
└── Flexible output

INTEGRATION:
─────────────────────────────────────
├── Connect to accounting software
├── Automatic sync
├── Invoice generation
├── Payment tracking
└── End-to-end workflow

Best Practices

For Billing Integration

1. Log daily — Accurate time capture
2. Good descriptions — Client understands
3. Clear billable rules — Consistent categorization
4. Approval workflow — Quality control
5. Regular invoicing — Consistent cash flow

Anti-Patterns

BILLING INTEGRATION MISTAKES:
✗ Logging time weeks later
✗ Vague descriptions
✗ No billable/non-billable distinction
✗ No approval process
✗ Manual invoice creation
✗ No profitability tracking
✗ Inconsistent rate application
✗ Delayed invoicing

Related Solutions

• Configuring time tracking for billing
• Billable hours tracking
• Agency project management best practices