The biggest issue with manual time tracking isn’t just the time it takes; it’s the revenue you lose. Every forgotten 15-minute call, every unlogged task, and every data entry error is money left on the table. This revenue leakage might seem small on a case-by-case basis, but it adds up to thousands of dollars in lost income over the year. Think of it as trying to fill a bucket with a slow leak. Choosing the right time billing software for accountants is about plugging those leaks for good, ensuring every billable minute is captured and invoiced accurately, protecting your bottom line and securing your firm’s financial health.
Key Takeaways
- Manual billing costs more than just time: Outdated processes create revenue leaks from unbilled work and missed invoices, while also stealing focus away from strategic, high-value client activities.
- True automation covers the entire workflow: The right software manages everything from the initial proposal and upfront payment collection to automatic invoicing and reconciliation, not just time tracking.
- A seamless payment process strengthens client relationships: By eliminating awkward collection calls and making billing transparent and easy, you turn a potential point of friction into a professional experience that builds trust.
Is Manual Billing Holding Your Firm Back?
Let’s be honest: the end-of-the-month billing scramble is a ritual most firm owners know all too well. You’re chasing down timesheets, manually creating invoices, and then crossing your fingers that clients pay on time. It feels like a necessary part of running a business, but what if it’s the very thing keeping you from growing? Manual billing isn’t just a tedious task; it’s a collection of tiny inefficiencies that add up to a massive drain on your time, revenue, and potential.
These small administrative headaches create friction for you and your clients, leading to delayed payments, awkward conversations, and a constant feeling of being one step behind. When your billing process relies on manual entry and follow-ups, you’re not just wasting hours—you’re actively putting a cap on your firm’s profitability. It’s time to look at what these outdated processes are truly costing you and how you can build a more resilient, efficient, and profitable practice.
What Manual Time Tracking is Really Costing You
The biggest issue with manual time tracking isn’t just the time it takes; it’s the revenue you lose. Every forgotten 15-minute call, every unlogged task, and every data entry error is money left on the table. When your time tracking and billing systems are disconnected, you create opportunities for mistakes. Hours get entered incorrectly, or worse, they’re missed entirely. This revenue leakage might seem small on a case-by-case basis, but it adds up to thousands of dollars in lost income over the year.
Think of it as trying to fill a bucket with a slow leak. You can keep pouring water in, but you’ll never be as full as you should be. Automating this process ensures that every billable minute is captured and invoiced accurately, plugging the leaks for good.
How Billing Headaches Stunt Your Firm's Growth
Every hour you spend creating invoices, chasing payments, or correcting billing errors is an hour you’re not spending on what actually grows your firm. You’re not advising clients, developing new services, or mentoring your team. Instead, you’re stuck in the back office, managing administrative tasks that could easily be automated. This is the opportunity cost of manual billing, and it’s huge.
When your cash flow is unpredictable because you’re waiting on clients to pay, you can’t make confident decisions about hiring, investing in new technology, or expanding your services. Your firm gets stuck in a reactive cycle, putting out fires instead of planning for the future. True automation doesn’t just send an invoice; it creates a predictable system that gives you the time and financial stability to focus on strategic growth.
The Billing Challenges Every Accountant Knows Too Well
We’ve all been there. That sinking feeling when you have to send a third follow-up email about an overdue invoice. The frustrating conversation with a client who questions a line item because the scope wasn’t crystal clear from the start. Or the late nights spent trying to reconcile payments with bank statements. These aren’t just minor annoyances; they’re symptoms of a broken process.
Manual billing forces you into uncomfortable roles: part-time administrator, part-time collections agent. It also creates a clunky experience for your clients. A platform like Anchor transforms this entire dynamic. By building the payment method into the initial agreement, you eliminate the need for collections entirely. With interactive proposals and one-click amendments, you ensure total clarity from day one, turning billing from a point of friction into a seamless, professional experience.
What to Look For in Time Billing Software
Choosing the right time billing software feels like a huge decision, because it is. This tool will become the backbone of your firm’s financial operations, so you want to get it right. It’s not just about tracking hours anymore; it’s about creating a seamless experience for you, your team, and your clients. A great system should automate the tedious stuff, give you a clear view of your finances, and fit right in with the other tools you already use. Let’s walk through the non-negotiable features you should be looking for.
Automate Your Time Tracking and Invoicing
The whole point of getting billing software is to stop wasting time on manual data entry. Look for a tool that automates as much of the process as possible. At a minimum, it should make tracking time and creating invoices a breeze. But the best platforms go a step further. Instead of just tracking hours, they automate the entire billing workflow, from the initial proposal to the final payment. Imagine sending a digital agreement that, once signed, automatically triggers every invoice and payment on schedule. That’s the kind of automation that frees you up to focus on client work, not paperwork.
Integrate Client Payments Seamlessly
Getting paid should be the easiest part of the job, right? Your billing software should have payment processing built right in. This means clients can pay you directly with a credit card or bank transfer (ACH) without jumping through hoops. A key feature to look for is the ability to connect a client’s payment method upfront, right when they sign the engagement letter. This puts you in control of the payment schedule and eliminates awkward collection calls. Tools like Anchor even let you pass credit card fees on to the client, so you keep every dollar you’ve earned.
Get Clear Reports and Actionable Insights
Data is great, but only if it tells you something useful. Your software should provide clear, easy-to-understand reports that give you a real-time snapshot of your firm’s health. You need more than just a list of billable hours. Look for dashboards that show you project profitability, team capacity, and most importantly, your projected cash flow. Having these actionable insights at your fingertips helps you make smarter business decisions, from staffing projects to planning for future growth, without having to dig through spreadsheets to find the answers.
Connect with Your Practice Management Tools
No software is an island. Your billing tool needs to play nicely with the other systems you rely on every day. Look for a solution that offers seamless integrations with your accounting software, like QuickBooks or Xero, and your practice management platform. This ensures that data flows automatically between systems, eliminating duplicate entry and reducing the risk of errors. When your billing software can sync directly with your other tools, you get a single source of truth for your firm’s financial data and a much smoother workflow for your team.
Keep Your Data Secure and Compliant
You’re handling sensitive client information, so security is paramount. Any software you choose must have robust security measures to protect both your firm’s data and your clients’ payment details. This isn’t just about being compliant; it’s about building and maintaining trust. A secure platform shows your clients that you take their privacy seriously. It also ensures that every bill is accurate and every transaction is protected, giving both you and your clients peace of mind. This foundation of trust is critical for long-term client relationships.
A Breakdown of the Best Time Billing Software for Accountants
Choosing the right software can feel like a huge decision, but it really comes down to what problems you’re trying to solve. Are you just tracking hours, or are you looking to fix your entire billing and collections process from start to finish? Some tools are great for one specific task, while others offer a more complete solution that can transform how you get paid. Let's look at some of the most popular options so you can see how they stack up and find the right fit for your firm.
Anchor
Anchor is more than just a time billing tool; it’s a complete billing and collections platform designed to automate the entire process from proposal to payment. It starts with interactive, e-commerce-style proposals that clients can sign instantly from any device. The best part? Clients connect their payment method upfront, so you’re in control from day one. Once the agreement is signed, Anchor’s billing automation handles the rest—invoices are sent and payments are collected automatically based on the terms you set. This completely eliminates manual follow-ups and awkward payment conversations, turning your billing process into a strategic advantage.
TaxDome
TaxDome is a popular all-in-one platform built specifically for accounting, tax, and bookkeeping firms. It’s a true workhorse, bundling a ton of functions into one system. You’ll find features for invoicing and payment processing, time tracking, workflow automation, and even a CRM and client portal with eSignature capabilities. If you’re looking to manage most of your firm’s operations from a single dashboard, TaxDome covers a lot of ground. It’s a solid choice for firms that need a wide range of practice management tools and want to keep everything under one roof.
QuickBooks Time
If your firm lives and breathes QuickBooks, then QuickBooks Time (which you might remember as TSheets) is a natural contender. Its biggest selling point is the direct integration with the QuickBooks accounting suite, which makes for a pretty smooth invoicing process. It comes with a user-friendly mobile app that lets your team track their hours from anywhere, whether they’re in the office or on the go. This is a great option if your main goal is to simplify how you track employee hours and get that data into QuickBooks without a lot of fuss.
BQE Core
BQE Core is designed for firms that want to get a deeper look into their financial and project data. It brings together accounting, project management, and time tracking into one system. What makes it stand out are its in-depth financial insights and AI-driven analytics, which are designed to help you spot inefficiencies in your practice. If you’re a data-driven firm owner who loves digging into reports to find opportunities for improvement, BQE Core’s analytical approach might be exactly what you’re looking for to fine-tune your operations and profitability.
Bill4Time
Tailored for professional services, Bill4Time is a straightforward tool that aims to simplify billing cycles for CPAs and other professionals. It’s not trying to be an all-in-one practice management suite; instead, it focuses on doing one thing well. The platform includes dedicated invoicing and reporting tools that are built to make the billing process more efficient. If you’re looking for a no-frills, dedicated billing solution that helps you get invoices out the door and track payments without a steep learning curve, Bill4Time is a reliable option to consider.
Clockify
Clockify is widely known as a time tracker and timesheet software, and its biggest draw is that it’s primarily free. It’s a great entry point if you’re just starting to formalize your time tracking. The platform offers features like timesheets, scheduling, team dashboards, and performance reports. It also integrates with tools like QuickBooks Online, which is a huge plus. While it’s a fantastic tool for tracking hours, keep in mind that it’s more of a time tracker than a comprehensive billing and payment solution. You’ll likely need to pair it with other software to manage your full billing workflow.
How to Choose the Right Software for Your Firm
Picking the right software can feel like a huge decision, because it is. It’s not just about tracking hours; it’s about finding a tool that fits your workflow, supports your growth, and makes your life easier. Let’s walk through how to evaluate your options so you can feel confident you’re making the best choice for your firm.
Breaking Down the Pricing Models
Software pricing can feel all over the place. You’ll typically see per-user-per-month fees, tiered plans with different feature sets, or even modular pricing where you pay for add-ons. While a low per-user fee might seem appealing, it can get expensive as your team grows. The most important thing is to find a tool that helps you understand and improve your firm’s profitability. Instead of just counting seats, look for a pricing model that aligns with the value you’re getting—like reducing manual work and securing your revenue.
What You Get at Each Price Point
You’ll find a wide spectrum of options, from free tools like Clockify’s basic plan to more robust platforms like Karbon, which starts at $59 per user. Some, like Canopy, offer modular pricing, so you can add on a time and billing feature for an extra fee. While a free or cheap plan can work for basic time tracking, it often lacks the automation needed to handle invoicing, payments, and collections. A platform like Anchor consolidates your entire billing workflow, from interactive proposals to automatic payments, offering a comprehensive solution that goes far beyond just tracking time.
Calculate Your Long-Term Value and ROI
The sticker price is only part of the story. The real question is, what’s the return on your investment? The right software can deliver significant gains. For example, one firm increased its revenue by 10-13% each year just by using its software to set budgets and track progress. Think about the value of closing the gap on revenue leakage. Anchor is designed to bring revenue leakage from over 5% down to under 1%. When you calculate that against your annual revenue, the ROI becomes incredibly clear. It’s not just an expense; it’s an investment in your firm’s financial health.
Watch Out for These Hidden Costs
Be on the lookout for costs that aren’t listed on the pricing page. These can include payment processing fees, charges for integrations, or the cost of your own time spent on manual workarounds because a tool lacks full automation. Before you commit, make sure the software actively helps you make more money, not just track it. Anchor tackles this head-on by offering free ACH transfers and automatically passing credit card fees to your clients by default. This transparency means you can forecast your cash flow with confidence, without worrying about surprise fees eating into your profits.
Factor in Implementation and Training Time
A powerful new tool is useless if it takes months to get up and running. Some complex systems require significant time to set up and train your team on, which is a cost in itself. This is especially true for small- to medium-sized firms where everyone is already wearing multiple hats. You need a solution that’s both powerful and intuitive. Unlike platforms that require a lengthy implementation process, Anchor is designed to be fully implemented in a single afternoon. This means you can start automating your billing and getting paid faster, without the frustrating downtime.
The Payoff: Big Wins from Better Billing Software
Switching to better billing software isn't just about fixing what's broken; it's about unlocking a whole new level of efficiency and profitability for your firm. Think of it less as a simple software update and more as a fundamental upgrade to your business operations. When you automate your billing and collections, you stop spending your valuable time chasing payments and wrestling with spreadsheets. Instead, you gain the clarity and control needed to grow your practice strategically.
The right platform transforms billing from a dreaded administrative chore into a seamless, positive experience for both you and your clients. It’s about getting paid on time, every time, without the awkward follow-ups. It’s about having a crystal-clear view of your financial health at any given moment. From pinpointing your most profitable services to making data-backed decisions for the future, the benefits ripple through every part of your firm, giving you more time and resources to focus on what you do best: serving your clients.
Track Time with Pinpoint Accuracy
Let's be real: manual time tracking is a recipe for lost revenue. A forgotten entry here, a guesstimate there—it all adds up. When your team is trying to recall what they worked on days or even weeks ago, mistakes are inevitable. Time billing software helps your staff record their work hours correctly and consistently, drastically reducing errors. By capturing every billable minute, you ensure your invoices reflect the full value of the work you deliver. This accuracy is the first step to a healthier revenue cycle, building a foundation of trust with clients who know they’re being billed fairly and precisely for your services.
Speed Up Your Billing Cycles
How much time does your team spend manually creating and sending invoices each month? This administrative drag not only eats up valuable hours but also delays your payments. The right software helps you get paid faster by automating the entire invoicing process. Instead of waiting until the end of the month, you can generate and send bills as soon as work is completed or on a recurring schedule. With a platform like Anchor, this goes a step further. Once a client signs your digital proposal, the invoicing schedule is locked in and runs on autopilot, completely eliminating manual entry and shortening your billing cycle from weeks to minutes.
Take Control of Your Cash Flow
Inconsistent cash flow is one of the biggest stressors for any firm owner. When you’re waiting on clients to pay invoices, it’s impossible to plan with confidence. The key to taking control is making it incredibly easy for clients to pay. Offering simple, online payment options is a proven way to encourage faster payments and stabilize your income. Anchor puts you in the driver’s seat by connecting a client’s payment method upfront when they sign an agreement. Payments are then automatically charged on the due date, so you’re not left waiting and wondering. This transforms your cash flow from a source of anxiety into a predictable asset.
Allocate Your Team's Time Wisely
Do you know which of your services are truly driving your profits? Without clear data, it’s all just guesswork. When you have accurate billing information, you can finally see exactly where your team's time is going and how it translates to revenue. Understanding where your time is spent helps you identify your most profitable services and make smarter decisions about where to focus your firm’s energy. This insight allows you to optimize your service packages, train your team on high-value offerings, and confidently build a more profitable business model, all because you have reliable data to back up your strategy.
Make Smarter Decisions with Real Data
Running a successful firm requires more than just intuition—it requires data. Manual billing processes leave you in the dark, with no easy way to analyze your financial performance. Modern billing software changes that by generating detailed reports that give you the insights needed to make better business choices. With a tool like Anchor, you get a real-time dashboard showing revenue forecasts, payment statuses, and projected cash flow. This clarity empowers you to manage costs effectively, spot opportunities for growth, and plan for the future with confidence, knowing your decisions are based on accurate, up-to-the-minute information.
Get the Most Out of Your New Software
Picking your new time and billing software is a big step, but the real magic happens when you put it to work. Just having the tool isn’t enough; you need a plan to weave it into the fabric of your firm’s daily operations. A thoughtful approach to implementation and workflow design will ensure you get the full value from your investment. Choosing the right automated software can make your operations smoother, improve client relationships, and ultimately help your firm grow. The goal is to move beyond just tracking hours and sending bills to creating a system that supports your firm’s financial health and client satisfaction. Let’s walk through how to make your new software a true game-changer for your practice.
Implement Your New Tool the Smart Way
A clunky onboarding process can kill your team’s enthusiasm for a new tool before they’ve even started using it. Look for software that prioritizes a smooth and speedy setup. While some platforms can take months to fully implement, solutions like Anchor are designed to get you up and running in a single afternoon. A quick implementation means less downtime for your firm and a faster path to seeing a return on your investment. The key is to choose a tool that simplifies, not complicates, your existing processes from day one.
Create Workflows That Actually Work
Once your software is live, it’s time to build workflows that let the technology do the heavy lifting. This is your chance to automate the tedious tasks that used to eat up your day. Good software gives you a clear picture of how projects are doing, client statuses, and your firm's financial situation. With a platform like Anchor, you can automate the entire client lifecycle, from the initial proposal to final payment. When an agreement is signed, the invoicing and payment schedules are automatically set in motion, creating a seamless workflow that eliminates manual entry and ensures you get paid on time, every time.
Set Clear Billing Policies from Day One
Your new software is the perfect opportunity to establish firm, clear billing policies with your clients. Ambiguity around payments can lead to awkward conversations and delayed cash flow. Instead of chasing invoices, you can automate your billing and require upfront payment information. Anchor’s interactive proposals have clients connect a payment method (ACH or credit card) when they sign the agreement. This simple step puts you in control of your collections process, making payments a predictable and stress-free part of the client relationship from the very beginning.
Stop Revenue Leaks for Good
Manual billing is prone to human error, which often leads to revenue leakage—small, unbilled items that add up to significant losses over time. The right software helps your team record their work correctly and allows your firm to create and send bills more precisely. By directly linking your billing to a client’s signed agreement, Anchor ensures that every service is accounted for and every invoice is accurate. This level of automation dramatically reduces revenue leakage, often from over 5% down to less than 1%, protecting your firm’s bottom line.
Keep Your Clients Happy
The billing process is a critical touchpoint in your client relationship, and a clunky experience can leave a bad impression. Offering a simple, transparent, and modern payment process shows clients you value their time. Providing easy online payment options not only improves your cash flow but also enhances the client experience. Anchor transforms billing from a potential point of friction into a positive interaction. The clear, e-commerce-like proposals and automated payments create a professional and seamless experience that builds trust and helps you retain clients for the long haul.
Ready to Build a More Profitable Practice?
Switching from manual billing to a more streamlined system isn't just about getting new software—it's about fundamentally changing how your firm operates for the better. When you're not bogged down by administrative tasks, you can finally focus on the work that truly matters: serving your clients and growing your business. The right platform doesn't just track time; it creates a stable foundation for profitability by automating the entire client engagement and payment lifecycle.
Imagine a world where proposals are signed in hours, not weeks, and you never have to send a payment reminder again. That’s the power of a modern billing solution. It transforms billing from a dreaded chore into a smooth, professional experience for both you and your clients. By automating repetitive tasks, you eliminate human error, secure your cash flow, and free up valuable time. This shift allows you to move from being a reactive business owner, constantly chasing paperwork, to a proactive leader who can make strategic decisions with confidence. It’s about building a practice that’s not only more profitable but also more sustainable and less stressful to run.
Streamline Your Client Communication
Great client relationships are built on trust and clear communication, especially when it comes to money. Awkward follow-ups about unpaid invoices can strain even the best partnerships. A better billing system removes that friction entirely. With a tool like Anchor, you set clear expectations from the very beginning with interactive proposals that outline the scope and payment terms. Because clients connect their payment method upon signing, the entire payment process becomes transparent and automatic. This turns billing into a positive, predictable touchpoint, allowing you to spend your client conversations discussing strategy and growth, not chasing down checks.
Put Repetitive Tasks on Autopilot
How many hours a week does your team spend creating and sending invoices? Automating these repetitive tasks frees up an incredible amount of time for more valuable work. Instead of getting lost in manual data entry, you can focus on your clients. Anchor automates your entire billing workflow from the moment a proposal is signed. Invoices are generated and payments are collected automatically based on the agreed-upon schedule, with no manual intervention needed. This not only saves time but also eliminates the costly errors that can happen when you’re juggling multiple spreadsheets and client files.
Master Your Cash Flow
Predictable cash flow is the lifeblood of any firm, but it’s hard to achieve when you’re constantly waiting on clients to pay. The right software puts you back in control. By securing payment details upfront, Anchor ensures you get paid on time, every time. This simple step transforms your accounts receivable from a question mark into a reliable forecast. You can see exactly how it works to give you a clear, real-time view of your revenue, helping you make smarter financial decisions. When you can confidently predict your income, you can plan for growth, hiring, and investments without the usual uncertainty.
Free Up Time to Focus on Growth
When you stop spending your days on administrative headaches, you create space to be the strategic leader your firm needs. Using the right billing software can truly improve your firm by giving you back your most valuable resource: time. With your billing and collections running smoothly in the background, you can focus on high-impact activities like client advisory, team development, and business development. Anchor handles the operational grind so you can concentrate on building client relationships and scaling your practice. Ready to see what that looks like for your firm? You can book a demo to explore the possibilities.
Frequently Asked Questions
How is a platform like Anchor different from a standard time tracker? A time tracker is great for one thing: logging hours. But that's where its job ends. A complete billing and collections platform like Anchor handles the entire client financial relationship. It starts with a digital proposal, secures the client's payment method upfront, and then automates every invoice and payment from there. It’s the difference between having a stopwatch and having a fully automated collections department.
I'm a small firm and don't have time for a complicated setup. How long does it take to get started? This is a huge concern, and for good reason. Many complex systems can take weeks or even months to get fully operational. We designed Anchor to be different. You can get your firm fully set up and running in a single afternoon. The goal is to save you time, not create another massive project for you to manage.
What if my clients are hesitant to connect a payment method when they sign the proposal? It's all about how you frame it. Presenting this as part of a modern, seamless, and professional process makes it an easy yes for most clients. It gives them clarity and convenience, as they won't have to worry about remembering to pay invoices later. It also sets a professional tone from day one, establishing that your firm's payment process is as organized and efficient as your accounting work.
Project scopes change all the time. How difficult is it to update an agreement once it's signed? This is where a truly flexible system shines. Instead of creating a whole new contract and going through the signing process again, Anchor lets you make one-click amendments. You can instantly update billing terms, add a service, or adjust the scope in real-time. Your client is notified, and the changes are applied without any friction or administrative delays.
How exactly does automation stop me from losing money to "revenue leakage"? Revenue leakage often happens in the gaps—a forgotten task, an unbilled phone call, or a simple data entry mistake when creating an invoice. Because Anchor ties every bill directly to the signed agreement, those gaps disappear. The system automatically invoices for every service you've agreed upon, exactly when you've agreed to it. It removes human error from the equation, ensuring you get paid for all of the work you do.
