Best Time Tracking Software for Agencies That Bill by the Hour
Hourly agencies do not need a prettier stopwatch. They need a clean way to capture work, split billable from non-billable time, approve entries, report to clients and turn approved hours into invoices. We ranked this list around that billing workflow, not generic productivity tracking. Toggl Track is the highest-index time-tracking pick in our data, Harvest is strongest when invoicing and payments sit closest to tracked time, and Teamwork matters if time tracking needs to live inside client project delivery. This guide is for agencies, freelancers and small teams billing by the hour. If you sell fixed-fee projects only, some of these features still help margin tracking, but the buying decision is different.
Reviewed by Marcus Taylor · how we score · Last updated 2026-06-30 · compare tools · affiliate disclosure
At a glance
| Tool | Index | Ease | From | Free | Best for |
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Choosing the right tool
Start with the billing workflow, not the timer. A good setup captures time, marks it billable or non-billable, applies the right rate, gets reviewed, then moves into reporting or invoicing without spreadsheet cleanup.
Check rate flexibility before rollout. Hourly agencies often need client, project, task, role or person-level rates, and a flat workspace rate can become a problem once senior and junior work sit on the same client account.
Do the free-plan maths. Toggl Track has a useful Free plan for small teams, while Harvest Free is mainly for solo use with 1 seat and 2 projects. Teamwork Free supports up to 5 users and 5 projects, but deeper billing workflows sit on paid tiers.
Treat approvals as revenue protection. If staff can edit vague entries after the invoice is drafted, your reports become harder to defend. Timesheet approvals, reminders and audit-friendly reports matter once hourly work becomes a real revenue line.
Watch the invoice and payment handoff. Harvest is the cleanest fit if you want tracked time to become invoices and online payments. Toggl Track is stronger as a lightweight capture and reporting layer, while Teamwork is better when hours belong inside client projects and budgets.
Pilot with one real client for a week. Ask the team to track desktop, mobile, calendar and browser-based work, then send a draft client report. If that test is a slog, the tool will not get better once every client is inside it.
FAQ
What is the best time tracking software for agencies that bill by the hour?
Toggl Track is the safest default if your main problem is accurate time capture and clean reporting. It ranks highest among the time-tracking tools in our data, with a Free plan and paid pricing from $9. Choose Harvest instead if invoicing and online payments matter more than timer simplicity.
Is Harvest better than Toggl Track for hourly billing?
Harvest is better if you want tracked time, expenses, invoices and client payments in one workflow. The trade-off is pricing and fee complexity, including usage-based language and extra Harvest payment fees on some plans. Toggl Track is cleaner if you already invoice elsewhere.
Should an agency use Teamwork instead of a standalone time tracker?
Use Teamwork if time tracking needs to sit inside client projects, budgets, rates, retainers and approvals. It is less lightweight than Toggl Track, and meaningful invoicing or approval workflows are tier-gated, but it can replace a separate project-management and time-tracking stack.
Can small agencies rely on free time tracking plans?
Sometimes, but the limits matter. Toggl Track Free can work for small teams, Harvest Free is limited to 1 seat and 2 projects, and Teamwork Free supports up to 5 users and 5 projects. Once hourly billing becomes client-facing, paid approvals, reports and invoicing features are usually worth pricing properly.
How are the tools in this ranking scored?
We score tools on ease of use, feature depth, how well they scale with client work, and price and value. The same underlying tool data powers our reviews, rankings and comparison pages.