Time tracking is the process of recording the time spent on tasks. It helps you see how much time a person spends on a task. The collected time-tracking data enables informed decisions about productivity, performance, and planning. It means using tracking time, an individual can identify work patterns and areas for improvement (productivity), an organization can see how an employee is using their time (performance), and a manager can see how much time a task takes to complete in order to help make better planning decisions in the future (planning).
There are multiple ways to track the time spent on tasks. One can log time manually on paper, use digital spreadsheets for time entries, or use automated time-tracking software. Logging the time manually is a simple but rigorous process, whereas logging the time using an automated tracker is an easy and accurate process. Also, time tracking software ranges from a simple built-in tracker in a project management software to dedicated time tracking apps and employee monitoring systems. Thus, to choose the right system to track the time spent on tasks and projects effectively, it is important to first understand the purpose of various types of time tracking, your time tracking needs, and time tracking systems.
In this post, we are going to cover the topic of time tracking comprehensively to help you create an effective system to track the time spent on tasks and projects effectively.
Why should you track time spent on projects and tasks?
Time tracking is the process of recording the time spent on tasks. It is primarily used for the following purposes:
- To identify how a person is spending their time. It helps in improving productivity by identifying work patterns and accurate client invoicing and billing by making accurate entries.
- To track how much time is required to complete a task. It helps in project planning by providing accurate estimates and process optimization by identifying bottlenecks
- For employee monitoring and performance management. It helps ensure the right utilization of a remote worker’s time, fair compensation, and unbiased evaluation of performance.
What are the benefits of tracking the time spent on tasks and projects?
Tracking the time spent on tasks and projects has various benefits. Here are some of the most important ones:
1. Accurate estimation for future projects
Time tracking helps you record how long specific tasks take to complete. You can use this data to develop more accurate time estimates for future projects, along with analyzing the difficulty and scope of a task. It also helps project managers make better project cost estimations. In addition to that, time tracking data helps you identify the deviation between the estimated time and the actual time. This analysis helps in process improvement and optimization by identifying bottlenecks.
2. Project scheduling
For projects with many interdependent tasks and dependencies, time tracking data can provide decent insights into how a delay in one task can impact the other independent tasks. By comparing the actual progress against the planned, you can make better predictions, reveal if specific tasks are blocking progress on other tasks, and if some tasks are running over their estimates, and how they can impact the project timeline. This allows you to adjust and shift resources to get things back on schedule.
3. Workload balancing
Time tracking software provides an accurate detail of each resource and the time spent by each resource across various projects. When you have all the data of all the resources working across the portfolio in one place, you can make better resource balancing and workload management decisions. You can easily identify which resources are overloaded and who is underutilized. The detailed time reports of a resource also help in the fair performance evaluation.
What are the methods of time tracking?
There are primarily three methods of time tracking: manual entries on a paper-based time register, manually creating a digital log on a spreadsheet, and automated time tracking software. In this section, we will talk about the pros and cons and complexities, and strengths of those three methods.
1. Manual pen-paper-based time logs
Manual pen-paper-based timelogs are one of the oldest methods of time tracking. It simply includes filling in time-in and time-out entries for each task on a paper timesheet. For each task, an individual manually inputs the start and end times for each task along with any relevant details or notes. For more precise time tracking, an individual can also use the time clock. However, generally in and out time is mentioned for each activity.
Pros of manual time tracking
- It is free and does not require paying for software
- It is ideal for environments where technology or internet access is not available
Cons of manual time tracking
- It is prone to errors, such as forgetting to make an entry
- It requires record keeping and storage of the paper-based timesheets
- It is not as accurate as you want it to be. Makes it difficult to keep track of the breaks and intervals
2. Spreadsheet-based digital time logs
Spreadsheet-based digital time logs are also a manual method of time tracking, where a user has to input the start and end entries for each task. It is better than pen-paper-based time logs in the fact that it is easy to maintain records in the spreadsheet and easy to analyze the data. Also, with the availability of endless rows and columns in a spreadsheet, it is easy to capture more details, such as break time, intervals, and idle time.
Pros of spreadsheet-based digital time logs
- Makes it easy to handle, store, and analyze data
- Cheaper than pen-paper-based time tracking and time tracking software
Cons of spreadsheet-based digital time logs
- Still prone to manual errors
- Reliance on technology. It requires everyone to have access to Excel.
- Get cumbersome when data scales
3. Automated time tracking with time tracking software
This is the most commonly used method for time tracking in the modern-day world. Time tracking apps are software that allow users to track the time spent on tasks and projects with a simple start and stop timer. Start the time when you start working on a task. A digital clock will appear on your screen. Pause or stop when you are taking a break or finishing the task. The digital timer will automatically create a time sheet for you. Most digital timers allow you to add the time entries manually and make changes to the timesheets based on access to make corrections for inaccurate time entries. It is the most reliable time tracking method, with most apps supporting the mobile app for time tracking.
Pros of automated time tracking software
- Accurate entries. No manual data entry errors
- No manual work. Save time.
- Provide advanced data analytics.
- Can be paired with the project
- Can provide advanced surveillance of employee activity if needed
Cons of automated time tracking software
- More expensive than other time tracking methods
- Require technology setup and training of team members to use the tools
- Perceived as privacy-invasive and micromanaged by the team members
How to track time spent on tasks effectively?
To track the time spent on tasks effectively, here are a few things you need to keep in mind:
1. Understand the objective of time tracking
The first step to effective time tracking is to clearly define the purpose and objective of time tracking. The following questions can help you clearly define the purpose:
- Do you want to track the individual’s productivity?
- Do you want to make accurate time estimates for tasks?
- Do you want to create accurate invoices for the clients by tracking billable hours?
- Do you want to optimize team workload and resource allocation?
- Do you want to identify bottlenecks or inefficiencies in workflows?
Based on the objective of the time tracking, you decide what to track, how detailed you get, and what tools you use to build an effective system for time tracking.
2. Choose the right time tracking system
Based on the objective of time tracking, choose the right time tracking system that best serves your needs. Here are the scenarios that can help you understand the right time tracking software for various needs:
- If you are looking for a system to keep track of the time spent on tasks for internal project estimation and performance improvement, a project management software with a built-in tracker is a great option for you.
- If you have to create accurate invoices for clients, you need a time tracking software that automatically creates timesheets, helps you set the hourly rate of an employee, and creates invoices to send to the clients.
- If your client requests surveillance features such as activity tracking of screen or keystrokes, you need a time tracking software that helps you with employee monitoring features such as app usage, screenshots, and activity levels.
3. Establish clear guidelines for time tracking
Choosing the right time tracking software is half the job completed. For effective task time tracking, it is important to clearly define what and how to track. The guidelines for time tracking may include the following:
- Clearly defining what to track: individual tasks, breaks, interruptions, meetings, and context switching
- Clearly define how to track: start a timer the moment you begin a task, stop or switch timers when changing focus, and record breaks
- General guidelines for time tracking, such as avoiding filling time entries retroactively, real-time tracking, and recording interruptions honestly
4. Communicate the purpose
A time tracking system is as effective as people using it. Clearly communicate the purpose of the time tracking to the people. It is because time tracking can easily be misinterpreted as micromanaging or invasive supervision. Therefore, it is important to communicate the purpose and agenda behind the task time tracking.
Here is an example of communicating the purpose to the team:
Rather than considering more time equal to commitment and less time equal to laziness, focus on using time tracking data to remove low-value tasks and reallocate time to high-impact work.
5. Analyze the data carefully and share insights for improvement
The biggest mistake people make with task time tracking is not analyzing the data. Time tracking solely is not sufficient if you are not analyzing the data, identifying the trends and patterns, and creating insights. Establish a clear review process.
For example, you can ask questions like:
- What tasks were accomplished?
- Which tasks or categories consumed the most time?
- Where did estimates differ from reality?
- How did focus levels vary?
- What patterns help identify peak productivity hours?
Based on the insights, make decisions such as removing low-value tasks, reallocating time to high-impact work, and improving workflow and habits.
What are the best apps for time tracking?
Time tracking apps vary hugely from simple time trackers built into project management software to employee monitoring software. Here is the list of the best apps for time tracking:
1. ProofHub
ProofHub is an all-in-one project management and team collaboration software that comes with a built-in time tracker. It comes with a simple start, pause, and stop timer that helps you track the time spent on tasks. The platform allows you to set the estimated time and budget for each task. Thus, you can easily compare the estimated data with actual data to make informed decisions. In addition to that, ProofHub creates time reports and timesheets that you can use for invoicing and billing. ProofHub is the best option for teams looking for time tracking for making accurate project estimates and team performance improvement.
2. Toggl Track
Toggl Track is a dedicated time tracking app that helps you track the time spent on every activity. It comes with one of the most advanced time tracking features, such as background time tracking for any app, a universal timer to track about every web app, advanced time reports, and accurate invoices. It is an ideal option for teams that need time tracking to create accurate invoices.
3. Time Camp
TimeCamp is time tracking software that helps you with activity tracking and attendance management. It is an ideal option for organizations that are looking for an employee monitoring system and attendance management system for a remote workforce.
What are the main challenges in tracking time on tasks? (+Best practices)
There are several changes you are going to face in tracking time on tasks. Here is the list of the challenges and best practices for solving those challenges:
1. Forgetting to track time
Initially, a significant number of employees may forget to track the time on tasks. You need to manually add the entries and edit the timesheets.
How to solve it?
- Use an automated time tracker that automatically starts or prompts logging
- Set automated reminders for time tracking
- Build start-of-day and end-of-day check-in rituals
2. Overtracking and multiple data points
Employees may try to track every activity. This will lead to data overload and multiple categories of data.
How to solve it?
- Keep the tracking simple with 3-4 categories such as tasks, breaks, interruptions, and projects
- Use the simplest tracking method possible
- Avoid tracking every minute. Precision is less important than consistency
3. Team resistance and trust issues
This is the biggest challenge you are going to face. Team members may perceive time tracking as supervision.
How to solve it?
- Communicate purpose clearly.
- Avoid micromanagement and surveillance-style usage
- Focus on insights related to goals and use summaries rather than raw time logs
- Treat gaps as learning opportunities, not failures
- Improve estimation accuracy gradually
What are some common mistakes to avoid while tracking time?
Common mistakes include trying to track too many details, which leads to complexity and burnout. Many people also log time retrospectively instead of in real-time, resulting in inaccurate data. Forgetting to track breaks, interruptions, or context switching creates an unrealistic picture of productivity. Over-relying on manual entry without reminders often causes gaps in records. Another mistake is focusing on perfection rather than consistency. Time tracking is meant to provide insight, not exact second-by-second precision. Some users track time but never review the data, missing opportunities for improvement. Others choose overly complicated tools or switch apps too frequently, causing frustration. Finally, using time tracking as a tool for self-criticism rather than growth can reduce motivation.
What are the consequences of poor time tracking?
Poor time tracking leads to an inaccurate understanding of where time goes, making it difficult to plan tasks effectively or set realistic goals. It results in poor estimation, causing projects to take longer than expected and creating stress, missed deadlines, or overcommitment. For freelancers and agencies, it can lead to underbilling clients or losing revenue. In teams, it causes workload imbalance, inefficiency, and burnout because managers allocate resources blindly. Poor tracking also hides time-wasting habits and productivity challenges, preventing improvement. Over time, the lack of clarity reduces productivity and decision-making quality.
What is the difference between time tracking and time management?
Time tracking is the process of recording how time is spent, measuring actual work, activities, and patterns. It answers the question: What did I do with my time? Time management, on the other hand, is planning and organizing time intentionally to achieve goals. It answers: How should I use my time? Tracking shows reality; managing uses those insights to prioritize tasks, set schedules, reduce distractions, and improve workflows. Time tracking provides data, while time management creates a strategy. Both work best together.
