How to Use Time Tracking Software and Timesheets for Billing Accuracy

In project-based businesses, time is money — literally. Yet, many companies still struggle to track where their teams spend time and how that translates to billable hours. Without accurate time tracking software, you risk undercharging clients, overworking your teams, and silently draining revenue through inefficiencies.

In fact, a recent survey shows that 40% of service firms lose billable hours due to poor time tracking. That’s not just an administrative gap — that’s a profit leak.

This guide will show you how to use time tracking software to improve billing accuracy, boost client confidence, and increase team productivity. Whether you’re a project manager, small business owner, or operations lead, these practical steps — powered by Orangescrum’s project collaboration tool — will help you take control of your time and your revenue.

Why Accurate Time Tracking Software Matters for Businesses

Time tracking isn’t just about logging hours — it’s about accountability, transparency, and profitability. Especially for service-based businesses and client-facing teams, using reliable time tracking software ensures that every billable hour is accounted for and properly invoiced.

Why Companies Should Care

• Revenue Protection:

Missed time entries = missed income. That’s money lost for work already done.

• Trust Building:

Accurate timesheets build client trust and minimize disputes. When you show your work, clients pay faster.

• Productivity Insights:

Time tracking reveals where your team spends their energy — and where inefficiencies live.

Who Benefits the Most?

• Consulting firms that bill by the hour.
• Agencies are juggling multiple projects across clients.
• Product teams analyse sprint cycles and optimize time usage.

Real-World Mistakes (And What They Cost)

• A software company billed flat retainers. Without proper time logs, they didn’t spot scope creep — resulting in thousands in hidden costs.
• A marketing agency faced late payments. Their vague timesheets made invoices disputable, delaying cash flow.
• An architecture firm underbilled a major project. They didn’t track time spent in review meetings — a costly oversight.

Sound familiar? Let’s fix that.

Best Practices to Use Time Tracking Software for Billing Accuracy

Here’s how to transform your time tracking software into a billing accuracy powerhouse — all within Orangescrum.

Centralize All Time Entries

Stop juggling spreadsheets and sticky notes. Log all work hours directly in Orangescrum’s project management dashboard. Time entries are automatically tied to tasks — giving you traceable, verifiable billing data.

Don’t Rely on Memory

People forget. When logging is delayed, it becomes unreliable. Enable real-time timers or set up end-of-day reminders. Orangescrum has built-in push reminders and one-click timers to make time logging effortless.

Use Task-Based Time Logging

No task = no time entry. This golden rule ensures all hours are linked to actual work done — not vague categories. Replace “Client call – 3 hrs” with “UI revision feedback – 3 hrs” for full clarity.

Avoid Stale Timesheets

Log daily, review weekly. Orangescrum’s task management tool sends gentle nudges to users to log time, either at task completion or end-of-day.

Separate Billable from Non-Billable Hours

Some work — like training or research — may not be client-billable. Segment your hours clearly in Orangescrum so that only valid time hits the invoice, while the rest supports internal optimization.

Set Role-Based Hourly Rates

Define default rates per project or user role (e.g., Developer = $75/hr, Designer = $65/hr). Orangescrum applies rates automatically, ensuring billing accuracy every single time.

Add Approval Workflows

Let project leads review time entries before billing. Orangescrum’s timesheet approval workflows prevent mistakes and standardize billing practices across teams.

Generate Invoice-Ready Reports Instantly

With a few clicks, export detailed, invoice-ready reports from time logs. Include task details, user contributions, and total billable hours — all client-friendly and formatted for fast invoicing.

Customer Story: Time Logs That Saved Thousands

For example, Creoworks Agency, a digital marketing firm, used Orangescrum’s time tracking software to bring clarity and control to billing across 12 client projects.

Before:

They used shared Google Sheets. Entries were late or missing. Invoices lacked detail and faced frequent pushback.

After:

• Team members logged time daily using Orangescrum’s timers.
• Project leads reviewed weekly timesheets.
• Invoices included task-level breakdowns of every billed hour.

Results:

• 40% faster payments
• Zero invoice disputes
• $12,000+ in recovered unbilled hours within three months

Key Takeaways

Accurate time tracking isn’t just admin work — it’s a business growth tool. Here’s what you should do next:

• Use time tracking software like Orangescrum to link hours to tasks
• Encourage daily logging and weekly reviews
• Automate billing with approval workflows and exportable reports

By embracing smart time tracking tools, you increase profitability, improve transparency, and ensure clients pay exactly what they owe — no more, no less.