GuideJanuary 2026 • 3 min read

Why small businesses fail at time tracking (and how to fix it)

67% of professional services revenue depends on tracked billable hours. Yet most small businesses lose 10-15% of billable work because of these common mistakes.

The Leaky Bucket Problem

A consultancy with $500K annual revenue that fails to track 15% of billable time is leaving $75,000 on the table every year. That's often the difference between profit and loss.

The 7 time tracking mistakes

1

Relying on Memory

"I'll log my time at the end of the day/week." Spoiler: you won't.Studies show people forget 50% of task details within 24 hours.

Fix: Use real-time tracking with a one-click timer that runs while you work. BBos keeps your timer visible across all pages.

2

Too Much Friction

If tracking time requires opening a separate app, finding the right project, filling out forms... employees won't do it consistently.

Fix: Time tracking should be integrated into daily workflow. Start timers from task boards, client records, or with keyboard shortcuts.

3

Not Tracking Non-Billable Work

Meetings, admin, emails, internal projects—if you don't track non-billable time, you can't optimize it or factor it into pricing.

Fix: Track everything. Use categories to separate billable vs. internal. This data reveals where time actually goes.

4

No Connection to Invoicing

Tracked time in Toggl doesn't automatically appear in QuickBooks invoices. Someone has to manually transfer it—and things get missed.

Fix: Use a platform where time entries flow directly into invoices. BBos generates invoices from approved time with one click.

5

Missing Mobile Time for Field Workers

Field teams, site visits, client meetings—work happens outside the office. If your tracking is desktop-only, you're missing hours.

Fix: Mobile time tracking with GPS location verification. Prove work happened where it should.

6

No Manager Oversight

Without approvals and oversight, time entries can be inflated, misdirected, or simply forgotten. Trust but verify.

Fix: Implement timesheet approvals where managers review and approve weekly submissions. Optional screenshot monitoring for sensitive projects.

7

Ignoring the Data

You track time but never analyze it. Which clients are profitable? Which tasks take longer than estimated? Where does unbilled time go?

Fix: Use time reports to analyze utilization, project profitability, and team productivity. Data should drive decisions.

The ROI of proper time tracking

+15%

Average increase in billable hour capture

4 hrs/week

Saved on timesheet admin per manager

30%

Faster invoicing with integrated time

Fix your time tracking today

BBos includes time tracking, invoicing, and reporting—all connected.

No credit card required • Full access to all features • Cancel anytime