Harvest
Time Tracking
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Accounting Firms Time Tracking

Harvest offers accounting firms a reliable solution for tracking billable hours and streamlining invoicing, effectively reducing revenue loss from delayed entries.

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How much revenue is your team leaving on the table?

Most agencies run at 55-60% utilization. Even a small improvement means significant revenue. See what closing the gap looks like for your team.

Number of people who track billable time
$
Blended rate across roles (junior, senior, lead)
55%
Percentage of total hours that are billable. Industry average is 55-60%.
75%
A realistic target for service businesses is 70-80%.
Monthly revenue gap $0
Revenue at current utilization $0/mo
Revenue at target utilization $0/mo
Extra billable hours needed per person/day 0h
Annual revenue opportunity $0

Start tracking team utilization

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

The Strategic Imperative of Time Tracking for Accounting Firms

Effective time tracking is vital for accounting firms, as time is their primary inventory. Accurate time tracking directly impacts profitability, resource allocation, and project performance. For instance, improving billable utilization by just 5% can significantly enhance margins. Additionally, delayed time entry can result in a substantial loss of billable hours—up to 50% if time is logged only at the end of the week. By adopting precise time tracking practices, firms can increase their realization rates, which ideally should sit above 85%.

Transparent billing fosters client trust, as clients increasingly demand detailed time logs. By leveraging data-driven insights, accounting firms can better forecast and strategically plan their operations. In 2023, the median utilization rate for accounting firms was 59.6%, with top firms achieving between 75% and 85%. Effective time tracking not only enhances client relationships but also positions firms competitively in the market.

Essential Features and Integrations for Accounting Time Tracking Solutions

When selecting a time tracking solution, accounting firms should prioritize features that cater to their specific needs. Automated time capture and multiple entry methods, such as timers and mobile access, are crucial for flexibility. Distinguishing between billable and non-billable hours is essential for accurate profitability analysis. Integration with existing systems, like payroll and CRM, streamlines operations. For instance, Harvest integrates with QuickBooks, enhancing invoicing and accounting processes.

Additional features like robust reporting and analytics provide insights into utilization rates, project profitability, and resource capacity. Security and compliance features, including audit trails and approval workflows, ensure regulatory adherence. Furthermore, customizable billing rates allow firms to accurately bill clients for different services, reflecting true service value and enhancing financial management.

Maximizing Profitability and Efficiency Through Time Tracking Best Practices

To maximize profitability, accounting firms must adopt best practices in time tracking. Encouraging consistent, daily time entry is critical as memory decay can greatly reduce accuracy after 24 hours. Clear task categories and project hierarchies ensure accurate data collection, while regular review and approval of time entries keep billing cycles efficient. Leveraging time tracking data helps identify inefficiencies and revenue leaks, with up to 25% of potential revenue lost due to delayed time entries.

Data-driven insights allow for better resource allocation and workload management, preventing burnout and enhancing team productivity. By using time tracking for accurate project estimation and pricing strategies, firms can optimize their financial performance. Harvest provides detailed reports on time utilization and project profitability, aiding firms in making informed, strategic decisions to enhance their bottom line.

Navigating Industry-Specific Challenges and Future Trends

Accounting firms face unique compliance and regulatory challenges in time tracking. CPAs need software solutions that support audit readiness and regulatory compliance, such as GAAP and IFRS. Harvest addresses these needs with features that ensure accurate documentation and billable hour tracking. Adaptations for various billing models, including hourly and fixed-fee, are crucial for maintaining profitability, regardless of the billing approach.

The shift toward remote and hybrid work environments necessitates flexible time tracking solutions that maintain transparency and client trust. As client expectations evolve, accounting firms must prioritize detailed billing and comprehensive reporting. By viewing time tracking as a strategic differentiator rather than a mere operational necessity, firms can gain a competitive edge and meet growing demands for accountability and detailed service delivery.

Harvest for Accounting Firms

See how Harvest tracks billable hours and integrates with QuickBooks for accounting firms.

Harvest dashboard showing time tracking for accounting firms

Accounting Firms Time Tracking FAQs

  • Time tracking improves profitability by ensuring accurate billing and minimizing lost revenue. For instance, increasing billable utilization from 65% to 75% can add $20,800 in annual revenue per person. Harvest helps track both billable and non-billable hours, providing insights to optimize resource allocation and reduce inefficiencies.

  • Look for features like automated time capture, integration with accounting software, and robust reporting tools. Harvest offers integration with QuickBooks, customizable billing rates, and detailed reporting on time utilization and project profitability, which are essential for accounting firms.

  • Harvest integrates seamlessly with QuickBooks, allowing you to streamline invoicing and accounting processes. This integration facilitates the sharing of time-tracking data directly into your financial systems, reducing manual entry and enhancing accuracy.

  • Tracking both types of hours provides a complete picture of your firm's efficiency. Billable hours directly impact revenue, while non-billable time helps identify areas for process improvement. Approximately 17% of an accountant's time is non-billable, which can be streamlined to enhance productivity.

  • Time tracking ensures that all billable hours are accurately recorded and documented, supporting regulatory compliance and audit readiness. Harvest provides audit trails and approval workflows, essential for accounting firms dealing with GAAP, IFRS, and other regulations.

  • Time tracking solutions range from $4.50 to $28 per user per month, depending on features and usage. Harvest offers flexible pricing plans to accommodate different firm sizes and needs, with the possibility of reduced rates for annual billing.

  • Harvest streamlines invoicing by integrating time tracking directly into your billing processes. This reduces manual errors and enhances transparency, minimizing billing disputes and improving client trust. Automated reminders for overdue invoices further support cash flow management.

  • Yes, Harvest supports time tracking in increments as small as 6 minutes (0.1 hours), which is standard for accounting and legal industries. This precision ensures compliance with industry standards and meets client expectations for detailed billing.