Time tracking is a chore and it’s distrustful. There I said it.
This sentiment is not uncommon among teams when companies want to implement this system. Especially when it comes to small teams where limited members do a lot of heavy work, because there, tracking time for every task seems like an additional step that can be avoided.
But…here’s the thing. If implemented correctly, time tracking software for small business is one of the most useful tools out there, that will literally help you make lost money. That’s right.
With a small team that does everything, there is no accuracy of how much time you spend on a client project, and that runs a risk of undercharging. Or you are more likely to burn out your team, if you have no insights into their work patterns.
In this article, I will give you a complete breakdown of what to consider before choosing a time tracking app for your small business, how to choose one that works for you, and the top tools available today specifically for small teams.
What to consider before choosing a time tracking software?
Before we jump into which time tracking tools is the best choice for small business, let’s see what to even consider before choosing a tool.
Most tools have a complex list of features you might not even need. So, knowing what to look for can save you a lot of time and energy on complexity you might not even need. Let’s get to it.
At its core, a time-tracking tool should feel invisible, like something that works in the background without getting in your way. If it feels like another task to manage, people won’t use it consistently, and then what’s the point?
Here are some considerations for choosing a time-tracking software for small businesses:
1. Does it fit into how you already work?
You don’t want tools for time tracking that force you to change everything just to fit their system.
If your team lives in Slack, a tool with Slack integration makes sense. If you use a project management tool like 5day.io, the same logic applies. The best tool is the one that blends in, not stands out.
2. How much tracking do you really need?
Do you want to track billable hours down to the minute, or do you just need a general sense of where your team’s time is going?
Overcomplicating this can lead to tracking fatigue and your team will either fake their logs or stop tracking altogether.
3. What’s the easiest way for your team to log time?
If your team works on the field, a mobile time tracking app might be essential for you. If they’re in an office, maybe automatic time tracking works better, where they can just start the clock and let it run in the background. Make sure your tool matches your team’s everyday workflow.
4. Does it guilt-trip people?
This is a big one. Some time tracking software are built to micromanage rather than support productivity. If your team feels like they’re constantly being watched or judged based on their tracked hours, they’ll find ways to game the system, leading to worse data, not better productivity.
Choosing a tool that genuinely supports their everyday work and makes everyone individually productive can help you achieve brilliant business results.
5. Will it grow with you? A.k.a. is it scalable?
What works for a 5-person team might not work when you scale to 50. If you plan to grow, make sure the time management software you choose has features you can gradually adopt, like analytics, or payroll integration, without feeling pressured to adopt them from day one.
6. How painful is switching later?
No one thinks about leaving a tool when they sign up, but it matters. Some tools lock you in with proprietary formats that make exporting data a nightmare. Check if you can easily move your data elsewhere if you ever outgrow the tool.
Types of time tracking tools for small businesses
Time tracking should be simple and easy to adapt for small teams. In this section, I have not considered complex tools that provide HR compliances or complex resource management, as these are not the most relevant features for a freelancer or small business.
Here, I have given a breakdown of the four types of time tracking app for small business that actually make sense for compact teams:
1. Standalone time tracking tools
These are the best time tracking apps for small businesses if they want to focus solely on time tracking, without extra features like invoicing or resource management. Users can start/stop timers or manually log hours.
Top tools: Toggl Track, Clockify, 5day.io
💡 Great for small teams who need a quick, frictionless way to track hours without overcomplicating things.
2. Automated time tracking tools
These tools automatically log time based on app usage or AI-based tracking. They’re helpful for reducing the hassle of manual logging, especially for teams working on multiple projects throughout the day.
Top tools: RescueTime, and Timely
💡 Perfect for small teams that need exceptionally high context switching divided across projects who want insights on time usage.
3. Timesheet management tools
Instead of just time tracking, these tools let employees submit weekly or daily timesheets. They also include approval workflows to keep things organized.
Top tools: Clockify, QuickBooks Time, Jibble, 5day.io
💡 Ideal for teams that don’t need second-by-second tracking but want structured timesheet reporting.
4. Timesheet management tools with project and task tracking
These tools combine time tracking with basic project management features like task tracking and analytics. They’re useful for agencies, consultants, or service-based teams to plan their projects, execute tasks, get progress analytics and track time, all in one place.
Top tools: 5day.io
💡 Great for teams who need visibility on where time is spent across projects without the additional cost of buying or complexity of integrating a bunch of different software.
5 Top time tracking software for small businesses
Time tracking software | Best for | Pricing |
5day.io | Combination of project and time tracking requirements | $0 for 5 users, unlimited time tracking capabilities. $8/user/month for complete timesheet management including approvals and reminders. |
Toggl Track | Simple time tracking using start/stop or automated timers | $0 for unlimited time tracking. $9+ for advanced timesheet reports, approvals, and reminders, |
Timely | Automated time tracking with AI | $9 for 5 users and 20 projects with time tracking. $16+ for integration with project management tools and more. |
Clockify | Auto tracker with idle time reminders | $0 for time tracking and auto timers. $3.99+ for features like customized export and more. |
Harvest | Integration with accounting or payment management tools. | $0 for 1 user, time tracking and basic reporting. $11+ for timesheet approvals and more. |
5day.io
5day.io is built with a distraction-free approach, ensuring time tracking doesn’t get in the way of deep work. It combines project and task management making it easy for teams to track time without switching between multiple tools. If you’re looking for a simple, all-in-one solution that doesn’t overcomplicate things, 5day.io is a strong contender.
Pros:
- Balanced blend of features – There is a heavy focus on reducing context switching that comes with extra tools by bringing all essential work tool in one place
- Minimal learning curve – It’s designed for ease of use so every team member can get started quickly
- No hidden price – The tool is free for small teams, and the paid version consists of the entire timesheet module without hidden limits on usage
Cons:
- No invoicing features – The tool does not have a system to manage client invoices currently
Expert Take:
5day.io is a great fit for time tracking for small business. Unlike traditional timesheet tools, it helps teams stay focused on everyday by removing unnecessary complexity and making it a natural extension of how work happens.
Toggl Track
Source: PCMag
Toggl Track is the go-to for simple, flexible time tracking. It has no complicated setups, just a start/stop button that works. It’s perfect for freelancers and teams who want a no-fuss solution to just get basic insights into their time.
Pros:
- Simple tracking – Start a timer with one click, and you’re good to go
- Works anywhere – Desktop, mobile, browser extensions, you can track time from anywhere
- Automated tracking – Tracks the apps you’ve visited and for how long in the background to collect relevant data
Cons:
- Some basic features locked behind a paywall – Some basic features like billable rates, approvals, or reminders require a paid plan
- Takes time to master reporting – While basic tracking is easy, diving into reports and analytics can be a bit overwhelming
Expert Take:
Toggl Track is ideal for teams that want a super flexible system to use as lightly or deeply as they need. While the free plan is limited, if your needs are simple tracking for your own productivity analysis, it can be a great tool.
Timely
Source: Timely
Timely’s biggest strength? Automation. It tracks time in the background and then using AI, it categorizes your apps into different buckets. It’s great for teams that want accurate tracking to the dot to optimize team productivity.
Pros:
- AI-powered tracking – Capture what you work on accurately without any manual input
- Rich integrations – Sync the tool with other apps you use regularly
- Location and idle detection – Useful for teams with remote workers
Cons:
- Subscription cost adds up – It’s a premium tool, and pricing can become steep for growing teams
- Privacy concerns – Some members might be wary about AI tracking all their activities and bucketing them
Expert Take:
Timely is perfect for teams that want to reduce manual tracking and improve accuracy. While the AI-powered tracking is impressive, it works best in environments where structured workflows make it easy to categorize time logs automatically. Additionally, in the wrong hands, it can promote an underlying culture of micromanagement.
Clockify
Source: Clockify
Clockify is one of the best free options out there, making it a favorite for startups and freelancers. It offers solid features, including auto timers and idle time detection, without forcing you into a paid plan.
Pros:
- Feature-rich free plan – Clockify has one of the most generous free versions available
- Idle time detection – The tool catches long time inactivity and prompts the user to log it correctly
- Simple and effective – No hidden features, it does what it says
Cons:
- Dated user interface – The design is clunky and unintuitive compared to newer tools, and can be quite buggy
- Customer support can be slow – Responses aren’t always quick when issues arise, especially if you have a free or basic plan
Expert Take:
Clockify is a solid choice for businesses that need time tracking without extra costs. It’s particularly useful for companies that don’t need deep integration but want a reliable, straightforward tracking tool.
Harvest
Source: Harvest
Harvest is more than just time tracking, it’s built for teams that need billing and forecasting. If you have complex projects with extensive client transparency needs, this tool is a great pick.
Pros:
- Invoicing built-in – Easily convert tracked hours into invoices for clients
- Expense tracking – Helps manage both time and financial aspects of projects
- Integrates with accounting tools – Works well with QuickBooks, PayPal, and more
Cons:
- Free plan is very limited – Only supports one user, and 2 projects, with basic reporting which is impractical for small teams
- Higher pricing for advanced features – Need invoicing, approvals, and expense tracking? That’ll all cost extra which can add up quickly
Expert Take:
Harvest is best for businesses that need both time tracking and financial management. It’s an excellent fit for teams that work on government projects or enterprise clients that need a detailed insight into your time, as it turns tracked hours into actionable financial insights without needing extra software.
Why do you need a time tracking tool?
For a small business, time tracking isn’t just about counting hours. It’s about making sure your time is spent where it actually matters.
Whether you’re running a creative agency or a startup, knowing how time is used can help you simplify workflows, bill clients accurately, prevent burnout, and support your team in the best possible way.
Here’s why a small business actually needs time tracking software:
- To get complete visibility on your work without micromanaging your team and enabling them to do their best work
- To bill clients accurately for every minute of hard work done on their project and avoid undercharging
- To prevent burnout as small teams are more likely to do multiple things and you may over assign work to them by accident
- To keep work simple and focused without adding all the extra steps on learning and managing the tool
Tips to implement a time tracking software
Rolling out a time tracking software for a small business is about making sure your team actually uses it without feeling like they’re being micromanaged. So before jumping in to purchase it, it’d help to set the right expectations and make tracking time feel like a natural part of the workflow.
Here’s how to make the transition smoother:
Set the why straight
If your team thinks time tracking is about watching their every move, they’ll resist it. Instead, let them know that it’s a way to improve efficiency, prevent burnout, and track billable hours accurately, especially if your small team constantly works overtime.
Choose a tool that fits your workflow
You don’t need a feature-packed enterprise tool. Depending on your needs, a simple timer, an automated tracker, or a project-based timesheet system will work best. Check out this guide on how to find the best time tracking software for your team to avoid unnecessary complexity.
Make it as easy as possible
If tracking time feels like a chore, people won’t do it. Look for tools with automated tracking to reduce manual effort.
Create a no-pressure culture
Instead of focusing on exact hours, use time tracking as a way to analyze trends and improve processes.
Regularly review and adjust
Check in after a few weeks to see what’s working and what’s frustrating your team. Are they forgetting to track? Are reports useful? Adjust based on real feedback.
The goal is to make time tracking a tool that works for your team, not something they have to work around. Get the setup right, and it’ll help your small business grow without adding unnecessary overhead.
Why is 5day.io a good choice for a time tracking software?
The core thought behind every feature in 5day.io is to make it as distraction free as possible. That means every single feature is made in a way that doesn’t disrupt your workflow or create friction when you are trying to do deep work.
This includes building the most essential features for project, task, and timesheet management to provide a complete system to users.
Here’s what that means in practice:
- No extra clicks or complicated settings as time tracking should feel natural, not like an added task
- Built-in project and task management so instead of juggling multiple tools, everything you need stays in one place
- Timesheets that have simple approvals, clear time reports, submission reminders, and zero unnecessary complexity
If your small team values flow over friction, 5day.io isn’t just another tool, it’s the system that helps you stay productive without distractions.
Want to see 5day.io’s time tracking in action? Sign up today and get a 3-month trial. No credit card needed. Create an account and hop right in.
Frequently Asked Questions
What is the best way to track time on projects?
The best way to track time spent on projects is via a time management software. It helps you categorize billable and non-billable work, submit and approve timesheets, and keep track of every single minute spent on multiple projects, so you can utilize resources better and increase your business profitability.
How do I track my time daily?
The best way to track your time is by using a start/stop or automated timer that does your work for you in the background.
What are the differences between time tracking vs timesheet software?
A time tracking tool is a simple tool that only helps you maintain a record of time spent on tasks. A timesheet software helps you analyze that raw data by categorizing time into various buckets, tracking time off, and generating detailed time reports for you teams.
