Since you’re not (likely) a doctor, we’ll help you get started with this quick guide, which explains what time tracking involves, how easy it is, and the benefits you can expect once you fess up about how you spend each hour of the day.<\/p>\n\n\n\n
TL;DR\u2014Key Takeaways<\/h2>\n\n\n\n\n- Time tracking is exactly what it sounds like \u2014 recording and analyzing how you spend time <\/strong>on different tasks and activities.<\/li>\n\n\n\n
- It has many benefits,<\/strong> such as more accurate invoicing, a better understanding of project costs, the ability to create timesheets, improved project management, and others.<\/li>\n\n\n\n
- There are multiple ways to track time<\/strong>, such as manual, digital, and automated, as well as productivity techniques such as Pomodoro and time blocking.<\/li>\n\n\n\n
- Great time tracking software<\/a> should have a great user experience, lots of integrations, customization options, detailed reporting, and data security, <\/strong>among other features.<\/li>\n\n\n\n
- To get your team excited about time tracking<\/strong>, explain why it\u2019s important, show them the ropes, and lead by example to demonstrate your own commitment to optimizing time.<\/li>\n<\/ul>\n\n\n \n Further Reading:<\/span>\n \n \n \n
![\"How](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/07\/get-employee-track-time-112x67.jpg\")
\n How to Get Employees to Track Time The Right Way<\/span>\n <\/a>\n <\/div>\n \n \n ![\"How](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/08\/hubstaff-timedoctor-track-112x67.jpg\")
\n How to Set and Achieve Your Goals with Toggl Track Goals<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nWhat is time tracking?<\/h2>\n\n\n\n
Time tracking is the process of recording and analyzing how you spend time on different tasks and activities. You can record these details individually or as part of a team. And it\u2019s also suitable for analyzing what\u2019s happening in both your personal and work hours.<\/p>\n\n\n\n
For example, on Monday, you might spend 35 minutes eating lunch, 4 hours 15 minutes in meetings, 1 hour 15 minutes at the gym, 2 hours 10 minutes commuting to work, etc. Once you\u2019ve tracked these insights, you\u2019ll see the big picture of where every minute goes. Beware\u2014there might be some shockers in there!<\/p>\n\n\n
\n \n \n ![\"Top](\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\")
\n Top tip:<\/span>\n <\/span>\n \n The main point:<\/strong> the purpose of time tracking is not to track time in itself but to use the information as a means to an end, whether improving your quality of life or becoming more efficient at work.<\/p>\n<\/div>\n <\/div>\n \n\n\nWhat are the benefits of time tracking?<\/h2>\n\n\n\n
When we commit to time tracking, the main benefit is increased productivity. Being presented with how we spend our time in black and white makes it impossible to ignore the minutes we waste on unproductive activities. <\/p>\n\n\n\n
When we harness our personal time better, we can spend more quality time with our friends and families, doing things we love and care about. Sounds like a win to us.<\/p>\n\n\n\n
In a professional<\/em> context, you\u2019ll also enjoy some of the following benefits of time tracking:<\/p>\n\n\n\n\ud83d\udcc4 Producing more accurate client invoices<\/h3>\n\n\n\n
Accurate time tracking is critical if you charge your clients by the hour. A minute here or there daily can stack up to thousands of dollars of damage every year.<\/p>\n\n\n\n
In some cases, you might overcharge your clients and face their questions or lose them to a business rival. But equally, it\u2019s just as easy to shoot yourself in the foot and forget to charge for all of the work time you\u2019ve spent on a particular client.<\/p>\n\n\n\n
Time tracking also helps when differentiating between billable hours<\/a> and non-billable hours. This highlights the amount of time your employees spend on tasks that don\u2019t improve your bottom line. The promise? Commit to time tracking, and you\u2019ll enjoy better invoicing and increased revenue.<\/p>\n\n\n\n\ud83d\udcb0 Understanding project costs better<\/h3>\n\n\n\n
When you track time for projects, you\u2019ll start to understand how long it takes to complete portions of the project and the final product. Most importantly, you\u2019ll know how long you require to produce quality work without feeling rushed or burned out.<\/p>\n\n\n\n
For example, a good developer can build a website in one month. If a new client approaches them and asks to build a website in ten days, the designer knows it\u2019s not feasible.<\/p>\n\n\n\n
The result is a better estimation of project costs. They\u2019ll become better at resource allocation, budgeting, and predicting timelines for future projects.<\/p>\n\n\n\n
Let\u2019s say a prospective customer asks the developer to build that website for $5,000. Based on time tracking entries, they can determine if this means $20 or $80 per hour and whether the fee is worth their time.<\/p>\n\n\n\n
\u231b Creating simple timesheets for hourly workers<\/h3>\n\n\n\n
HR teams use employee timesheets<\/a> for non-salaried workers to determine:<\/p>\n\n\n\n\n- Who worked<\/li>\n\n\n\n
- How long they worked for<\/li>\n\n\n\n
- How much to pay them<\/li>\n\n\n\n
- How much time off they\u2019ve accumulated<\/li>\n<\/ul>\n\n\n\n
While an important part of the working arrangement for hourly workers, time reports can be extremely tedious for the employees filling them in and the admin teams processing them. Ideally, you\u2019ll use time tracking tools to manage time entries automatically. This ensures:<\/p>\n\n\n\n
\n- Each employee gets accurate and fair compensation<\/li>\n\n\n\n
- No one has to spend hours digging through spreadsheets in Excel<\/a> and calculating time entries<\/li>\n\n\n\n
- Payroll is automated, and legal compliance becomes a breeze<\/li>\n<\/ul>\n\n\n \n \n \n \n Top tip:<\/span>\n <\/span>\n \n
PS.<\/strong> Every good time clock app should have timesheets as a feature<\/a>. You can see how timesheets work<\/a> in Toggl Track here.<\/p>\n<\/div>\n <\/div>\n \n\n\n\ud83d\udc77 Streamlining project management<\/h3>\n\n\n\n
When you determine where your team\u2019s time is spent, project management takes on a completely new level.<\/p>\n\n\n\n
Employee time tracking<\/a> shows you:<\/p>\n\n\n\n\n- The total time spent working on a project<\/li>\n\n\n\n
- How much time each task requires<\/li>\n\n\n\n
- Who spends their time on which task (and how much)<\/li>\n<\/ul>\n\n\n\n
As a result, you can spot obstacles and inefficiencies without micromanagement. For example, you can determine that a particular client is taking double the time for task completion while paying the same as everyone else. Or you\u2019ll become aware that certain employees purposely take longer to complete a task.<\/p>\n\n\n\n
Ultimately, project time tracking gives you full visibility of your team\u2019s activities, and you\u2019re less likely to take on too much or work too little to be profitable.<\/p>\n\n\n\n
\ud83d\udd13 Building trust and transparency<\/h3>\n\n\n\n
Imagine you have to charge a client $50,000 to build a mobile app. The client has just started working with you, and they don\u2019t know much about app development.<\/p>\n\n\n\n
The best way to convince them the work is worth the investment? Detailed timesheets.<\/p>\n\n\n\n
Time tracking creates a bond of trust and transparency between a business and its clients. For each item on the invoice, you can add a line describing how much time it took, the hourly rate, and even who completed the work.<\/p>\n\n\n\n![\"Why](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/10\/Why-its-important-to-track-employee-time-1024x593.png\")
<\/figure>\n\n\n\nPopular time tracking methods<\/h2>\n\n\n\n
There\u2019s more than one way to crack an egg, and the same is true of how you choose to track time. Here are some methods you can choose to slide into your workflows:<\/p>\n\n\n\n
Manual time tracking<\/h3>\n\n\n\n
As the name suggests, you manually track the time to complete a task. You write down when you started and finished and then add the numbers at the end of the day, week, or month.<\/p>\n\n\n\n
The biggest benefit of the manual method is that it\u2019s easy and free. However, it\u2019s very time-consuming, and you can quickly get tired of navigating spreadsheets and staring at the clock nonstop.<\/p>\n\n\n\n
Swipe cards<\/h3>\n\n\n\n
Swipe-card time systems track employees\u2019 time at physical locations and monitor attendance, absences, and breaks. They\u2019re easy for the whole team to use and don\u2019t require training.<\/p>\n\n\n\n
Although more modern than punch card systems, this type of time clock still has some limitations. One is that it can\u2019t be used to track remote employee time.<\/p>\n\n\n\n
Digital time tracking<\/h3>\n\n\n\n
Time tracking apps such as Toggl Track allow you to hit a button to start a timer and once more when the work is done. Besides saving time, you also get integrations with other tools (e.g., project management software), automated timesheets and invoices, and much more.<\/p>\n\n\n\n
This method allows you or your team members to track time on mobile devices, too, making it ideal for a team that is on the go.<\/p>\n\n\n
\n \n \n \n Top tip:<\/span>\n <\/span>\n \n The only downside of this timekeeping method is it may take time for your team to get accustomed to it. However, depending on the solution you choose, you might get help with that. Toggl Track Enterprise plans, for example, come with access to Toggl Solutions \u2014 enterprise-level time tracking system customizations.<\/p>\n<\/div>\n <\/div>\n \n\n\n
Automated time tracking<\/h3>\n\n\n\n
Keeping an accurate record of all activities in one place is easy when everything is automated. An app can simply analyze the window or app you\u2019re using and break down your time entries.<\/p>\n\n\n\n
For example, it can tell you how long you spent in Google Docs, Figma, Docker, or some other app. This method is ideal as it doesn\u2019t add new bottlenecks to your workdays; instead, it breaks down activities neatly without manual work.<\/p>\n\n\n\n
Mobile time tracking<\/h3>\n\n\n\n
If you have a distributed workforce across various locations, they can log their time using their mobile devices. With the right time tracking software, they can start the timer on their mobile and stop it on a desktop device.<\/p>\n\n\n\n
Geofencing<\/h3>\n\n\n\n
As an alternative to mobile tracking, geofencing is another way to automatically track the time when an employee enters or leaves a specific location. Administrators set up virtual boundaries, and when employees enter or exit these boundaries, an app automatically tracks their time.<\/p>\n\n\n\n
This method can be useful for businesses with field workers or remote employees who may not have access to a computer. However, it can feel too much like surveillance for some.<\/p>\n\n\n\n
Pomodoro time tracking<\/h3>\n\n\n\n
In this time tracking system, you do focused bursts of productive work (usually 25 minutes) followed by a break (usually 5 minutes).<\/p>\n\n\n\n
Pomodoro forces you to work without distractions and take breaks to get rest and prepare for another Pomodoro cycle. It\u2019s also one of the templates offered in many time tracking platforms.<\/p>\n\n\n\n
Time blocking<\/h3>\n\n\n\n
In this method, you block off a time period to work on a specific task or set of tasks without interruptions. For example, you might allocate a one-hour block to write or respond to emails. It\u2019s ideal for those with busy schedules who work on tasks they can easily group.<\/p>\n\n\n\n![\"Different](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2018\/08\/Different-types-of-time-blocking-1024x971.png\")
<\/figure>\n\n\n\nHow to use time tracking in different industries<\/h2>\n\n\n\n
Anyone can use time tracking tools, from small businesses and remote teams to Fortune 500 companies. However, different types of users will experience different benefits:<\/p>\n\n\n\n
Freelancers<\/h3>\n\n\n\n
Freelancers can use time tracking<\/a> to bill clients more accurately and get fair payment for the work they deliver. They can easily distinguish non-billable and billable time and only invoice clients for the work on their projects. <\/p>\n\n\n\nPerhaps most importantly, freelancers can use time tracking entries to establish trust and transparency with clients.<\/p>\n\n\n
\n Further Reading:<\/span>\n \n \n \n ![\"The](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/01\/peak-work-productivity-112x67.jpg\")
\n The Best Free & Paid Time Management Apps For Every Need (2024)<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nLawyers<\/h3>\n\n\n\n
Lawyers rely on time tracking<\/a> to bill clients by the hour, often commanding a hefty fee. Tracking their work hours on cases or in court helps them maintain transparency and justify their costs. <\/p>\n\n\n\nThey can also determine which clients are taking more time than the others and what tasks take up most of their days.<\/p>\n\n\n
\n Further Reading:<\/span>\n \n \n \n ![\"The](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/09\/Best-Time-Tracking-Software-for-Lawyers-112x68.png\")
\n The 6 Best Time Tracking Software for Lawyers: Our Top Picks for 2026<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nContractors<\/h3>\n\n\n\n
Contractors typically juggle multiple clients at a time which requires strong self-discipline and careful time management. <\/p>\n\n\n\n
Using time tracking platforms, contractors can accurately track projects and tasks per client. They can create accurate time logs and invoices, monitor progress, and identify bottlenecks in each project.<\/p>\n\n\n
\n Further Reading:<\/span>\n \n \n \n ![\"8](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/12\/contractor-time-tracking-112x67.jpg\")
\n 8 Best Time Tracking Apps for Contractors & Construction Teams<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nService providers<\/h3>\n\n\n\n
Service providers like IT support can use time tracking to improve their project management and determine which tasks and projects take up a huge chunk of their time. Based on their time analysis, they can better allocate their resources, prioritize tasks and projects, and improve their productivity.<\/p>\n\n\n
\n Further Reading:<\/span>\n \n \n \n ![\"7](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/03\/time-tracking-developer-112x67.jpg\")
\n 7 Best Time Tracking Software Apps For Developers (2026 Comparison)<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nCreative agencies<\/h3>\n\n\n\n
Creative agencies can use time tracking to monitor their employees and clients. On the one hand, they get time cards with each employee\u2019s records for the day and month, ensuring everyone earns their salary.<\/p>\n\n\n\n
On the other hand, agencies can more accurately predict project pricing and scope. For example, they can easily avoid scope creep<\/a> and charging too little for a project that could take double the estimated time.<\/p>\n\n\n \n Further Reading:<\/span>\n \n \n \n ![\"10](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/04\/agency-time-tracking-software-112x67.jpg\")
\n 10 Best Agency Time Tracking Software for 2026<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nLarge teams<\/h3>\n\n\n\n
The famous Pareto principle states that 20% of the input is responsible for 80% of the results. But in large teams, it can be easy to lose track of who does what (and when).<\/p>\n\n\n\n
Time tracking in large teams lets you determine responsible stakeholders and their total contribution to the finished project. Additionally, large teams can save massive amounts of time with automated timesheets, invoices, and payroll.<\/p>\n\n\n
\n Further Reading:<\/span>\n \n \n \n ![\"Toggl](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/05\/toggl-solutions-2-1-112x67.jpg\")
\n Toggl Solutions: Customizations To Power Your Company<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nEssential features of great time tracking software<\/h2>\n\n\n\n
The features you need will depend on your goals and needs. However, any great time tracking software should have the following:<\/p>\n\n\n\n
\n- User-friendly interface:<\/strong> The app should be easy to navigate so employees can adopt it quickly without a steep learning curve.<\/li>\n\n\n\n
- Integration capabilities:<\/strong> Integrations with tools such as project management platforms, invoicing apps, and payroll software save time for your team. Instead of switching back and forth between apps, you can do everything in one window.<\/li>\n\n\n\n
- Real-time tracking:<\/strong> You\u2019ll gain a bird\u2019s eye view of your team and their performance, enabling quick decision-making and prioritization.<\/li>\n\n\n\n
- Detailed reporting:<\/strong> You should be able to generate detailed and insightful reports for each task, project, and employee. These reports are valuable for your clients and your team, as you can pinpoint obstacles, improve productivity, and track project progress.<\/li>\n\n\n\n
- Customization options:<\/strong> Each team has its own processes, workflows, and stakeholders. Your time tracking solution should adapt to your unique needs and preferences.<\/li>\n\n\n\n
- Data security:<\/strong> The data in the time tracking platform should be yours and yours only. This protects your business, employees, and clients from unauthorized access.<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/10\/usergroup-desktop-app.gif\")
<\/figure>\n\n\n\n3 common time tracking mistakes<\/h2>\n\n\n\n
Time tracking is a powerful tool for managing work and productivity, but it can be less effective when these mistakes occur:<\/p>\n\n\n\n
1. Confusing time tracking with employee monitoring<\/h3>\n\n\n\n
Time tracking and employee monitoring can often be mistaken for the same practice, but they serve entirely <\/em>different purposes. <\/p>\n\n\n\nManagers can use time tracking to understand work patterns, optimize processes, and improve productivity. In contrast, employee monitoring involves recording employees\u2019 activities to ensure they work as expected. Compared to time tracking, employee monitoring is incredibly invasive, often using tracked keystrokes and screen activity as \u201cproof\u201d of what workers are doing.<\/p>\n\n\n
\n \n \n \n Top tip:<\/span>\n <\/span>\n \n Toggl is firmly against employee monitoring <\/strong>as it promotes a culture of surveillance rather than trust.\u00a0If you\u2019re looking for non-invasive time tracking tools, here are 7 Best Employee Monitoring Software (That Aren\u2019t Creepy)<\/a>.<\/p>\n<\/div>\n <\/div>\n \n\n\n2. Not tracking billable and non-billable hours<\/h3>\n\n\n\n
Often, employees only track billable project hours they can charge their clients for. They forget about all those extra hours spent on non-billable tasks like internal meetings or administrative work. <\/p>\n\n\n\n
This is a mistake, as tracking non-billable hours can help you spot inefficient work processes and understand overall productivity. Proper tracking can also help you adjust your rates. <\/p>\n\n\n\n
For example, if a client project requires 25 hours spent strategizing internally but 10 hours executing the work, it would be a mistake to only charge for the 10 hours. You might need to change your rate structure or negotiate with your client to reach a fairer deal.<\/p>\n\n\n\n
3. Using time tracking data for appraisals<\/h3>\n\n\n\n
Although time tracking data shows how team members spend their work time, it doesn\u2019t capture the full picture of an employee\u2019s contributions. <\/p>\n\n\n\n
Analyzing work performance based only on time tracking data is unfair as it overlooks the quality of work, creativity, or problem-solving skills. <\/p>\n\n\n\n
How to get employees excited about implementing a time tracking app<\/h2>\n\n\n\n
As a business owner, time tracking obviously has immense value for you. But how do you explain it to Jane from accounting, who already has a packed calendar and 15 different apps she uses daily? Here are some tips.<\/p>\n\n\n\n
1. Explain why <\/em>time tracking is important<\/h3>\n\n\n\nHighlight how accurate time tracking contributes to better project estimates and billing and improves employee productivity<\/a> and accountability.<\/p>\n\n\n\nIn other words, show employees that time tracking benefits everyone, from the team to the clients. Reiterate you\u2019re not using it to micromanage or spy on your team.<\/p>\n\n\n\n
2. Show your team how to track their time<\/h3>\n\n\n\n
Before they start using a time tracking app<\/a>, show your team how it\u2019s done. Tools such as Toggl Track are super simple, but you should still show the team how you<\/em> want them to use the app.<\/p>\n\n\n\nTraining your team on how to track their time:<\/p>\n\n\n\n
\n- Ensures accuracy and consistency<\/li>\n\n\n\n
- Reduces the resistance to change<\/li>\n\n\n\n
- Optimizes tool usage<\/li>\n<\/ul>\n\n\n\n
Whether it\u2019s a simple spreadsheet or dedicated software, employees need to see practical tips on tracking time<\/a> to demystify the process. <\/p>\n\n\n\n3. Lead by example<\/h3>\n\n\n\n
Show your team that no one is exempt from time tracking, even the managers and the CEO. Otherwise, if only the employees are tracking time, they might get a feeling that management is protected and time tracking entries will be used against them.<\/p>\n\n\n\n
Fire up the automated time tracker<\/a> as you begin work, and let the app do the rest of its magic. It will benefit you (no matter your role or skill level) and show your team you\u2019re all equal.<\/p>\n\n\n\nHow Toggl Track can help you track time<\/h2>\n\n\n\n
Once you have your time tracking data collected accurately, you can use it in many different ways. We\u2019ll explore each in more detail. <\/p>\n\n\n\n
1. Track project profitability<\/h3>\n\n\n\n
Tracking project profitability helps project managers identify which projects bring in money and which do not. With these insights, they can plan future projects better to increase business profitability. <\/p>\n\n\n\n
With Toggl Track, project profitability<\/a> is easy to measure. Use the Insights feature to analyze your team\u2019s and projects\u2019 financial performance. Explore project earnings, labor costs, and employee and project profits.<\/p>\n\n\n\n![\"How](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/07\/image14-1024x411.png\")
<\/figure>\n\n\n\n2. Identify bottlenecks<\/h3>\n\n\n\n
A bottleneck in project management is a point in a process where work slows down or gets stuck. <\/p>\n\n\n\n
Identifying bottleneck tasks in a project helps managers address inefficiencies and streamline workflows. To identify bottlenecks with Toggl Track, start by estimating tasks:<\/p>\n\n\n\n
\n- Click Create New Project or Edit Project<\/li>\n\n\n\n
- Go to the Time Estimate section<\/li>\n\n\n\n
- Enter your custom hourly estimate<\/li>\n<\/ol>\n\n\n\n
To create task-based estimates:<\/p>\n\n\n\n
\n- Open the Project<\/li>\n\n\n\n
- Select the Tasks tab<\/li>\n\n\n\n
- Add or edit an estimate from the Estimate column <\/li>\n<\/ol>\n\n\n\n
After you\u2019ve created your estimates, go to the Project Dashboard to compare estimates vs. actual time tracked and identify potential bottleneck tasks.<\/p>\n\n\n\n
3. Improve resource allocation and utilization<\/h3>\n\n\n\n
Resource allocation is finding and assigning available resources to a project. <\/p>\n\n\n\n
Resource utilization refers to how effectively these resources are used for maximum productivity. <\/p>\n\n\n\n
Good resource allocation and utilization keep projects on track and within budget by improving productivity, efficiency, and waste minimization. <\/p>\n\n\n
\n \n \n \n Top tip:<\/span>\n <\/span>\n \n <\/p>\n
You can use Toggl Plan\u2019s Team Timeline to allocate resources more efficiently. You\u2019ll get a visual overview of who\u2019s working on what and when to make informed resource allocation decisions.<\/p>\n
<\/p>\n
Toggl Track integrates seamlessly with Toggl Plan<\/a>, so you can start the timer directly from Plan. Just right-click on any task and select Start time tracking<\/p>\n<\/p>\n<\/div>\n <\/div>\n \n\n\n
4. Monitor employee workload<\/h3>\n\n\n\n
Monitoring employee workload prevents burnout, keeps workloads balanced, and promotes a healthy work environment. <\/p>\n\n\n\n
With Toggl Track, you can easily view your team\u2019s tracked time and what they\u2019re working on. Go to the Team Activity tab under Organization > Workspace > Select Workspace> Activity tab. <\/p>\n\n\n\n
Here, you can see the most active team members from the past seven workdays and use the dropdown filter to review Activity by User or the last 20 time entries.<\/p>\n\n\n\n
5. Identify training needs<\/h3>\n\n\n\n
Identifying inefficient team members is important. Why? It helps you understand who needs training to perform better and who needs better tools. <\/p>\n\n\n\n
Toggl Track\u2019s Detailed Report<\/a> makes it easy to analyze individual time entries and spot ineffective work. You can access this report by clicking the Reports tab on the left side menu and selecting Detailed from the top center of the screen. <\/p>\n\n\n\n6. Compliance with local laws<\/h3>\n\n\n\n
Depending on where you base your business, you may need to comply with local labor laws regarding time tracking and employee work hours. For example, new regulations in the EU<\/a> require all businesses to implement time tracking systems to record employee hours (as of July 1st, 2024.)<\/p>\n\n\n\nThrough its Export functionality, Toggl Track makes it easy to provide a detailed breakdown of time tracked when needed. You can choose to export time entries or user data with total hours worked and overtime to easily share during audits or regulatory reviews. <\/p>\n\n\n\n
7. Cultivate self-accountability<\/h3>\n\n\n\n
Project managers can use time tracking data to cultivate self-accountability among team members. Here are some tips:<\/p>\n\n\n\n
\n- Share time tracking insights with employees so they can see their work habits and areas for improvement<\/li>\n\n\n\n
- Suggest employees set personal benchmarks based on their time tracking data to keep them accountable and focused on their goals<\/li>\n\n\n\n
- Recognize and reward employees who improve their time management to motivate them to take time tracking seriously. <\/li>\n<\/ul>\n\n\n\n
Get started with a free time tracker<\/h2>\n\n\n\n
Time tracking isn\u2019t just a way to keep tabs on employees scrolling TikTok instead of putting hours in Jira. It\u2019s a tool that improves productivity and profitability and benefits everyone in the workplace. <\/p>\n\n\n\n
Even for individuals, time tracking can help you become more aware of your day-to-day obligations and become a better version of yourself.<\/p>\n\n\n\n
The best part is that time tracking is easy and free. With Toggl Track, you can gain control of where and how you spend your time.<\/p>\n\n\n\n
Try it out now by signing up for a free Toggl Track account!<\/a><\/strong><\/p>\n\n\n\n\ud83d\udcda Read more about the best time tracking tools:<\/strong><\/p>\n\n\n\n\n- 10 Best Free Timesheet Apps To Track Work Hours (2025)<\/a><\/li>\n\n\n\n
- 10 Best Time Tracking Apps & Billing Software for Consultants [2024]<\/a><\/li>\n\n\n\n
- 10 Best Agency Time Tracking Software for 2024 [Comparison]<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Discover what time tracking is and how it can boost productivity and efficiency in your business. Learn tips to master your workday and manage time effectively.<\/p>\n","protected":false},"author":641,"featured_media":53587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[996],"tags":[],"class_list":["post-53302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-time-tracking"],"acf":[],"yoast_head":"\n
What is Time Tracking & Why is It So Important for Businesses?<\/title>\n<meta name=\"description\" content=\"Discover what time tracking is and how it can boost productivity and efficiency in your business. Learn tips to master your workday and manage time effectively.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/toggl.com\/blog\/what-is-time-tracking\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Time Tracking & Why is It So Important for Businesses?\" \/>\n<meta property=\"og:description\" content=\"Discover what time tracking is and how it can boost productivity and efficiency in your business. 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\n How to Get Employees to Track Time The Right Way<\/span>\n <\/a>\n <\/div>\n \n How to Set and Achieve Your Goals with Toggl Track Goals<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nWhat is time tracking?<\/h2>\n\n\n\n
Time tracking is the process of recording and analyzing how you spend time on different tasks and activities. You can record these details individually or as part of a team. And it\u2019s also suitable for analyzing what\u2019s happening in both your personal and work hours.<\/p>\n\n\n\n
For example, on Monday, you might spend 35 minutes eating lunch, 4 hours 15 minutes in meetings, 1 hour 15 minutes at the gym, 2 hours 10 minutes commuting to work, etc. Once you\u2019ve tracked these insights, you\u2019ll see the big picture of where every minute goes. Beware\u2014there might be some shockers in there!<\/p>\n\n\n
\n Top tip:<\/span>\n <\/span>\n \n The main point:<\/strong> the purpose of time tracking is not to track time in itself but to use the information as a means to an end, whether improving your quality of life or becoming more efficient at work.<\/p>\n<\/div>\n <\/div>\n \n\n\n When we commit to time tracking, the main benefit is increased productivity. Being presented with how we spend our time in black and white makes it impossible to ignore the minutes we waste on unproductive activities. <\/p>\n\n\n\n When we harness our personal time better, we can spend more quality time with our friends and families, doing things we love and care about. Sounds like a win to us.<\/p>\n\n\n\n In a professional<\/em> context, you\u2019ll also enjoy some of the following benefits of time tracking:<\/p>\n\n\n\n Accurate time tracking is critical if you charge your clients by the hour. A minute here or there daily can stack up to thousands of dollars of damage every year.<\/p>\n\n\n\n In some cases, you might overcharge your clients and face their questions or lose them to a business rival. But equally, it\u2019s just as easy to shoot yourself in the foot and forget to charge for all of the work time you\u2019ve spent on a particular client.<\/p>\n\n\n\n Time tracking also helps when differentiating between billable hours<\/a> and non-billable hours. This highlights the amount of time your employees spend on tasks that don\u2019t improve your bottom line. The promise? Commit to time tracking, and you\u2019ll enjoy better invoicing and increased revenue.<\/p>\n\n\n\n When you track time for projects, you\u2019ll start to understand how long it takes to complete portions of the project and the final product. Most importantly, you\u2019ll know how long you require to produce quality work without feeling rushed or burned out.<\/p>\n\n\n\n For example, a good developer can build a website in one month. If a new client approaches them and asks to build a website in ten days, the designer knows it\u2019s not feasible.<\/p>\n\n\n\n The result is a better estimation of project costs. They\u2019ll become better at resource allocation, budgeting, and predicting timelines for future projects.<\/p>\n\n\n\n Let\u2019s say a prospective customer asks the developer to build that website for $5,000. Based on time tracking entries, they can determine if this means $20 or $80 per hour and whether the fee is worth their time.<\/p>\n\n\n\n HR teams use employee timesheets<\/a> for non-salaried workers to determine:<\/p>\n\n\n\n While an important part of the working arrangement for hourly workers, time reports can be extremely tedious for the employees filling them in and the admin teams processing them. Ideally, you\u2019ll use time tracking tools to manage time entries automatically. This ensures:<\/p>\n\n\n\n PS.<\/strong> Every good time clock app should have timesheets as a feature<\/a>. You can see how timesheets work<\/a> in Toggl Track here.<\/p>\n<\/div>\n <\/div>\n \n\n\n When you determine where your team\u2019s time is spent, project management takes on a completely new level.<\/p>\n\n\n\n Employee time tracking<\/a> shows you:<\/p>\n\n\n\n As a result, you can spot obstacles and inefficiencies without micromanagement. For example, you can determine that a particular client is taking double the time for task completion while paying the same as everyone else. Or you\u2019ll become aware that certain employees purposely take longer to complete a task.<\/p>\n\n\n\n Ultimately, project time tracking gives you full visibility of your team\u2019s activities, and you\u2019re less likely to take on too much or work too little to be profitable.<\/p>\n\n\n\n Imagine you have to charge a client $50,000 to build a mobile app. The client has just started working with you, and they don\u2019t know much about app development.<\/p>\n\n\n\n The best way to convince them the work is worth the investment? Detailed timesheets.<\/p>\n\n\n\n Time tracking creates a bond of trust and transparency between a business and its clients. For each item on the invoice, you can add a line describing how much time it took, the hourly rate, and even who completed the work.<\/p>\n\n\n\n There\u2019s more than one way to crack an egg, and the same is true of how you choose to track time. Here are some methods you can choose to slide into your workflows:<\/p>\n\n\n\n As the name suggests, you manually track the time to complete a task. You write down when you started and finished and then add the numbers at the end of the day, week, or month.<\/p>\n\n\n\n The biggest benefit of the manual method is that it\u2019s easy and free. However, it\u2019s very time-consuming, and you can quickly get tired of navigating spreadsheets and staring at the clock nonstop.<\/p>\n\n\n\n Swipe-card time systems track employees\u2019 time at physical locations and monitor attendance, absences, and breaks. They\u2019re easy for the whole team to use and don\u2019t require training.<\/p>\n\n\n\n Although more modern than punch card systems, this type of time clock still has some limitations. One is that it can\u2019t be used to track remote employee time.<\/p>\n\n\n\n Time tracking apps such as Toggl Track allow you to hit a button to start a timer and once more when the work is done. Besides saving time, you also get integrations with other tools (e.g., project management software), automated timesheets and invoices, and much more.<\/p>\n\n\n\n This method allows you or your team members to track time on mobile devices, too, making it ideal for a team that is on the go.<\/p>\n\n\n The only downside of this timekeeping method is it may take time for your team to get accustomed to it. However, depending on the solution you choose, you might get help with that. Toggl Track Enterprise plans, for example, come with access to Toggl Solutions \u2014 enterprise-level time tracking system customizations.<\/p>\n<\/div>\n <\/div>\n \n\n\n Keeping an accurate record of all activities in one place is easy when everything is automated. An app can simply analyze the window or app you\u2019re using and break down your time entries.<\/p>\n\n\n\n For example, it can tell you how long you spent in Google Docs, Figma, Docker, or some other app. This method is ideal as it doesn\u2019t add new bottlenecks to your workdays; instead, it breaks down activities neatly without manual work.<\/p>\n\n\n\n If you have a distributed workforce across various locations, they can log their time using their mobile devices. With the right time tracking software, they can start the timer on their mobile and stop it on a desktop device.<\/p>\n\n\n\n As an alternative to mobile tracking, geofencing is another way to automatically track the time when an employee enters or leaves a specific location. Administrators set up virtual boundaries, and when employees enter or exit these boundaries, an app automatically tracks their time.<\/p>\n\n\n\n This method can be useful for businesses with field workers or remote employees who may not have access to a computer. However, it can feel too much like surveillance for some.<\/p>\n\n\n\n In this time tracking system, you do focused bursts of productive work (usually 25 minutes) followed by a break (usually 5 minutes).<\/p>\n\n\n\n Pomodoro forces you to work without distractions and take breaks to get rest and prepare for another Pomodoro cycle. It\u2019s also one of the templates offered in many time tracking platforms.<\/p>\n\n\n\n In this method, you block off a time period to work on a specific task or set of tasks without interruptions. For example, you might allocate a one-hour block to write or respond to emails. It\u2019s ideal for those with busy schedules who work on tasks they can easily group.<\/p>\n\n\n\n Anyone can use time tracking tools, from small businesses and remote teams to Fortune 500 companies. However, different types of users will experience different benefits:<\/p>\n\n\n\n Freelancers can use time tracking<\/a> to bill clients more accurately and get fair payment for the work they deliver. They can easily distinguish non-billable and billable time and only invoice clients for the work on their projects. <\/p>\n\n\n\n Perhaps most importantly, freelancers can use time tracking entries to establish trust and transparency with clients.<\/p>\n\n\n Lawyers rely on time tracking<\/a> to bill clients by the hour, often commanding a hefty fee. Tracking their work hours on cases or in court helps them maintain transparency and justify their costs. <\/p>\n\n\n\n They can also determine which clients are taking more time than the others and what tasks take up most of their days.<\/p>\n\n\n Contractors typically juggle multiple clients at a time which requires strong self-discipline and careful time management. <\/p>\n\n\n\n Using time tracking platforms, contractors can accurately track projects and tasks per client. They can create accurate time logs and invoices, monitor progress, and identify bottlenecks in each project.<\/p>\n\n\n Service providers like IT support can use time tracking to improve their project management and determine which tasks and projects take up a huge chunk of their time. Based on their time analysis, they can better allocate their resources, prioritize tasks and projects, and improve their productivity.<\/p>\n\n\n Creative agencies can use time tracking to monitor their employees and clients. On the one hand, they get time cards with each employee\u2019s records for the day and month, ensuring everyone earns their salary.<\/p>\n\n\n\n On the other hand, agencies can more accurately predict project pricing and scope. For example, they can easily avoid scope creep<\/a> and charging too little for a project that could take double the estimated time.<\/p>\n\n\n The famous Pareto principle states that 20% of the input is responsible for 80% of the results. But in large teams, it can be easy to lose track of who does what (and when).<\/p>\n\n\n\n Time tracking in large teams lets you determine responsible stakeholders and their total contribution to the finished project. Additionally, large teams can save massive amounts of time with automated timesheets, invoices, and payroll.<\/p>\n\n\n The features you need will depend on your goals and needs. However, any great time tracking software should have the following:<\/p>\n\n\n\n Time tracking is a powerful tool for managing work and productivity, but it can be less effective when these mistakes occur:<\/p>\n\n\n\n Time tracking and employee monitoring can often be mistaken for the same practice, but they serve entirely <\/em>different purposes. <\/p>\n\n\n\n Managers can use time tracking to understand work patterns, optimize processes, and improve productivity. In contrast, employee monitoring involves recording employees\u2019 activities to ensure they work as expected. Compared to time tracking, employee monitoring is incredibly invasive, often using tracked keystrokes and screen activity as \u201cproof\u201d of what workers are doing.<\/p>\n\n\n Toggl is firmly against employee monitoring <\/strong>as it promotes a culture of surveillance rather than trust.\u00a0If you\u2019re looking for non-invasive time tracking tools, here are 7 Best Employee Monitoring Software (That Aren\u2019t Creepy)<\/a>.<\/p>\n<\/div>\n <\/div>\n \n\n\n Often, employees only track billable project hours they can charge their clients for. They forget about all those extra hours spent on non-billable tasks like internal meetings or administrative work. <\/p>\n\n\n\n This is a mistake, as tracking non-billable hours can help you spot inefficient work processes and understand overall productivity. Proper tracking can also help you adjust your rates. <\/p>\n\n\n\n For example, if a client project requires 25 hours spent strategizing internally but 10 hours executing the work, it would be a mistake to only charge for the 10 hours. You might need to change your rate structure or negotiate with your client to reach a fairer deal.<\/p>\n\n\n\n Although time tracking data shows how team members spend their work time, it doesn\u2019t capture the full picture of an employee\u2019s contributions. <\/p>\n\n\n\n Analyzing work performance based only on time tracking data is unfair as it overlooks the quality of work, creativity, or problem-solving skills. <\/p>\n\n\n\n As a business owner, time tracking obviously has immense value for you. But how do you explain it to Jane from accounting, who already has a packed calendar and 15 different apps she uses daily? Here are some tips.<\/p>\n\n\n\n Highlight how accurate time tracking contributes to better project estimates and billing and improves employee productivity<\/a> and accountability.<\/p>\n\n\n\n In other words, show employees that time tracking benefits everyone, from the team to the clients. Reiterate you\u2019re not using it to micromanage or spy on your team.<\/p>\n\n\n\n Before they start using a time tracking app<\/a>, show your team how it\u2019s done. Tools such as Toggl Track are super simple, but you should still show the team how you<\/em> want them to use the app.<\/p>\n\n\n\n Training your team on how to track their time:<\/p>\n\n\n\n Whether it\u2019s a simple spreadsheet or dedicated software, employees need to see practical tips on tracking time<\/a> to demystify the process. <\/p>\n\n\n\n Show your team that no one is exempt from time tracking, even the managers and the CEO. Otherwise, if only the employees are tracking time, they might get a feeling that management is protected and time tracking entries will be used against them.<\/p>\n\n\n\n Fire up the automated time tracker<\/a> as you begin work, and let the app do the rest of its magic. It will benefit you (no matter your role or skill level) and show your team you\u2019re all equal.<\/p>\n\n\n\n Once you have your time tracking data collected accurately, you can use it in many different ways. We\u2019ll explore each in more detail. <\/p>\n\n\n\n Tracking project profitability helps project managers identify which projects bring in money and which do not. With these insights, they can plan future projects better to increase business profitability. <\/p>\n\n\n\n With Toggl Track, project profitability<\/a> is easy to measure. Use the Insights feature to analyze your team\u2019s and projects\u2019 financial performance. Explore project earnings, labor costs, and employee and project profits.<\/p>\n\n\n\n A bottleneck in project management is a point in a process where work slows down or gets stuck. <\/p>\n\n\n\n Identifying bottleneck tasks in a project helps managers address inefficiencies and streamline workflows. To identify bottlenecks with Toggl Track, start by estimating tasks:<\/p>\n\n\n\n To create task-based estimates:<\/p>\n\n\n\n After you\u2019ve created your estimates, go to the Project Dashboard to compare estimates vs. actual time tracked and identify potential bottleneck tasks.<\/p>\n\n\n\n Resource allocation is finding and assigning available resources to a project. <\/p>\n\n\n\n Resource utilization refers to how effectively these resources are used for maximum productivity. <\/p>\n\n\n\n Good resource allocation and utilization keep projects on track and within budget by improving productivity, efficiency, and waste minimization. <\/p>\n\n\n <\/p>\n You can use Toggl Plan\u2019s Team Timeline to allocate resources more efficiently. You\u2019ll get a visual overview of who\u2019s working on what and when to make informed resource allocation decisions.<\/p>\n <\/p>\n Toggl Track integrates seamlessly with Toggl Plan<\/a>, so you can start the timer directly from Plan. Just right-click on any task and select Start time tracking<\/p>\n <\/p>\n<\/div>\n <\/div>\n \n\n\n Monitoring employee workload prevents burnout, keeps workloads balanced, and promotes a healthy work environment. <\/p>\n\n\n\n With Toggl Track, you can easily view your team\u2019s tracked time and what they\u2019re working on. Go to the Team Activity tab under Organization > Workspace > Select Workspace> Activity tab. <\/p>\n\n\n\n Here, you can see the most active team members from the past seven workdays and use the dropdown filter to review Activity by User or the last 20 time entries.<\/p>\n\n\n\n Identifying inefficient team members is important. Why? It helps you understand who needs training to perform better and who needs better tools. <\/p>\n\n\n\n Toggl Track\u2019s Detailed Report<\/a> makes it easy to analyze individual time entries and spot ineffective work. You can access this report by clicking the Reports tab on the left side menu and selecting Detailed from the top center of the screen. <\/p>\n\n\n\n Depending on where you base your business, you may need to comply with local labor laws regarding time tracking and employee work hours. For example, new regulations in the EU<\/a> require all businesses to implement time tracking systems to record employee hours (as of July 1st, 2024.)<\/p>\n\n\n\n Through its Export functionality, Toggl Track makes it easy to provide a detailed breakdown of time tracked when needed. You can choose to export time entries or user data with total hours worked and overtime to easily share during audits or regulatory reviews. <\/p>\n\n\n\n Project managers can use time tracking data to cultivate self-accountability among team members. Here are some tips:<\/p>\n\n\n\n Time tracking isn\u2019t just a way to keep tabs on employees scrolling TikTok instead of putting hours in Jira. It\u2019s a tool that improves productivity and profitability and benefits everyone in the workplace. <\/p>\n\n\n\n Even for individuals, time tracking can help you become more aware of your day-to-day obligations and become a better version of yourself.<\/p>\n\n\n\n The best part is that time tracking is easy and free. With Toggl Track, you can gain control of where and how you spend your time.<\/p>\n\n\n\n Try it out now by signing up for a free Toggl Track account!<\/a><\/strong><\/p>\n\n\n\n \ud83d\udcda Read more about the best time tracking tools:<\/strong><\/p>\n\n\n\n Discover what time tracking is and how it can boost productivity and efficiency in your business. Learn tips to master your workday and manage time effectively.<\/p>\n","protected":false},"author":641,"featured_media":53587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[996],"tags":[],"class_list":["post-53302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-time-tracking"],"acf":[],"yoast_head":"\nWhat are the benefits of time tracking?<\/h2>\n\n\n\n
\ud83d\udcc4 Producing more accurate client invoices<\/h3>\n\n\n\n
\ud83d\udcb0 Understanding project costs better<\/h3>\n\n\n\n
\u231b Creating simple timesheets for hourly workers<\/h3>\n\n\n\n
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\n Top tip:<\/span>\n <\/span>\n \n \ud83d\udc77 Streamlining project management<\/h3>\n\n\n\n
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\ud83d\udd13 Building trust and transparency<\/h3>\n\n\n\n
<\/figure>\n\n\n\nPopular time tracking methods<\/h2>\n\n\n\n
Manual time tracking<\/h3>\n\n\n\n
Swipe cards<\/h3>\n\n\n\n
Digital time tracking<\/h3>\n\n\n\n
\n Top tip:<\/span>\n <\/span>\n \n Automated time tracking<\/h3>\n\n\n\n
Mobile time tracking<\/h3>\n\n\n\n
Geofencing<\/h3>\n\n\n\n
Pomodoro time tracking<\/h3>\n\n\n\n
Time blocking<\/h3>\n\n\n\n
<\/figure>\n\n\n\nHow to use time tracking in different industries<\/h2>\n\n\n\n
Freelancers<\/h3>\n\n\n\n
\n The Best Free & Paid Time Management Apps For Every Need (2024)<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nLawyers<\/h3>\n\n\n\n
\n The 6 Best Time Tracking Software for Lawyers: Our Top Picks for 2026<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nContractors<\/h3>\n\n\n\n
\n 8 Best Time Tracking Apps for Contractors & Construction Teams<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nService providers<\/h3>\n\n\n\n
\n 7 Best Time Tracking Software Apps For Developers (2026 Comparison)<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nCreative agencies<\/h3>\n\n\n\n
\n 10 Best Agency Time Tracking Software for 2026<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nLarge teams<\/h3>\n\n\n\n
\n Toggl Solutions: Customizations To Power Your Company<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nEssential features of great time tracking software<\/h2>\n\n\n\n
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<\/figure>\n\n\n\n3 common time tracking mistakes<\/h2>\n\n\n\n
1. Confusing time tracking with employee monitoring<\/h3>\n\n\n\n
\n Top tip:<\/span>\n <\/span>\n \n 2. Not tracking billable and non-billable hours<\/h3>\n\n\n\n
3. Using time tracking data for appraisals<\/h3>\n\n\n\n
How to get employees excited about implementing a time tracking app<\/h2>\n\n\n\n
1. Explain why <\/em>time tracking is important<\/h3>\n\n\n\n
2. Show your team how to track their time<\/h3>\n\n\n\n
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3. Lead by example<\/h3>\n\n\n\n
How Toggl Track can help you track time<\/h2>\n\n\n\n
1. Track project profitability<\/h3>\n\n\n\n
<\/figure>\n\n\n\n2. Identify bottlenecks<\/h3>\n\n\n\n
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3. Improve resource allocation and utilization<\/h3>\n\n\n\n
\n Top tip:<\/span>\n <\/span>\n \n 4. Monitor employee workload<\/h3>\n\n\n\n
5. Identify training needs<\/h3>\n\n\n\n
6. Compliance with local laws<\/h3>\n\n\n\n
7. Cultivate self-accountability<\/h3>\n\n\n\n
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Get started with a free time tracker<\/h2>\n\n\n\n
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