Keeping detailed accounts of your hours and how you spend them allows you to bill clients accurately for your time. With the right system, you can easily turn those tracked hours into invoices.

Which Time Tracking Method Is Best

Recording your time as you go is the most accurate method of tracking. With a timer, you would start the clock when you start a task, and stop it when you're moving on to the next task. It provides an accurate picture of how you spend your time throughout your day. It will help you make better estimates, as you will be able to see how much time similar projects have taken.

Choosing software that offers a variety of ways to track your time as you go can help you stay on task and in budget. A desktop widget, for example, is a helpful way to record your time as you go throughout the day. They are only one keystroke away when you're at your computer, and they stay out of your way while you're working, so you can focus on the project at hand.

Keeping detailed notes about what you did during a timed task is also helpful. For example, you can track time towards a task called "Phone Call," and you can also keep notes about whom you talked to, or the gist of what you discussed. In this way, you can always account for exactly what you worked on, and you may begin to notice trends and adjust your time accordingly based on these notes.

Track Time When You're On The Go

If you are frequently away from your office, use a system that allows you to log time when you're away. This could be a tracker that works with an iPhone, Twitter/SMS, and the web.

Alternative Time Tracking Methods

If you are unable to track your time as you go, adopt a method that works best with your workflow. This might involve a daily time sheet, and either enter time throughout the day, or at the end of each day. At a minimum, keep a weekly time sheet. This way the time you've spent on the projects is still fresh in your mind, and you won't have the stress of a backlog of weeks of time to account for.

Budget Your Time

Make sure your time tracking system allows you to plan for specific time or cost budgets. This will help you keep tabs on how you're doing against your estimated budgets, so that you can adjust your workflow, change course within a project, or inform your client before it's too late.

Professional Invoices

While invoicing standards vary from industry to industry, there are many basic components to a professional invoice that you will want to include.

• List your name and company contact information, and your company logo.
• Include the client name and address, and make sure to date the invoice.
• Set your terms: Most businesses follow the net 30 days standard, but many large businesses may require net 45.
• Clearly list what you are billing for on your invoices, with a breakdown of the charges, and include a final total of what's due.
• Be sure to clarify payment instructions (methods accepted, wire transfer info, check writing specifics, and any late fee penalties).
• You may also want to ask the client in advance if they need any purchase order or identifying codes on the invoice.

Create Invoices Quickly and Easily

Use a system that allows you to generate invoices from all of the time you and your staff have tracked on your time sheets. The system should be aware of your billable hours, and easily translate those billable hours into invoices that you can finalize and send to clients.

When You Should Invoice Your Client

You should always invoice immediately, per your scheduled agreement. The tasks you completed will be fresh in your mind, and also the clients mind. This also enables you to start your payment terms from the day you send the invoice (which means that you will get paid that much sooner).

To save even more time, use a system that allows you to track accounts receivable, so that you can quickly see on one screen which invoices are due, and what's past due. If it is a regular project that is billed monthly, set up an automatically recurring invoice, so that you have one less thing you need to do at the end of the month.

Treat Your Clients Well, And They Will Return The Favor

Send your clients reminders when they have not yet paid your invoice, and select a system that allows you to automatically send a late payment reminder email to your clients. When you receive payment from your client, send them a thank you message, to let them know not only that you've successfully received payment, but also that you appreciate his or her business.

Summing Up

You’re a professional web developer, so your hour-tracking and invoicing practices should reflect your professionalism. Use these best practices to save time, get paid faster, and make your clients happy.

Editor's Note: Karen Schoellkopf is the community manager for Harvest, a leading web-based time tracking and invoicing solution.