Simplifying Time Tracking and Client Billing for CPAs and Accounting Firms
For certified public accountants, time is more than a measure of productivity. It represents professional expertise, client service, and a significant portion of a firm’s revenue.
Whether preparing financial statements, providing tax advice, handling bookkeeping responsibilities, or consulting with business owners, accountants frequently work on multiple client engagements throughout the day.
Keeping accurate records of that work is essential, particularly when clients are billed according to the time spent providing professional services.
TimeBilling by Local Service Rep is a progressive web application (PWA) designed to help independent professionals and small firms organize client work, record billable time, and simplify invoicing without the complexity of larger practice management systems.
Let’s examine how a small CPA firm can use TimeBilling to manage its daily activities and maintain more accurate billing records.
Meet the Business: An Independent CPA Firm
Imagine a small accounting practice called Coastal Accounting & Tax Services. This fictional firm serves individuals, independent contractors, and small businesses.
The practice consists of a CPA who owns the business, another accounting professional who assists with client engagements, and a part-time administrative employee.
The firm provides services including:
- Individual and business tax preparation
- Tax planning and advisory services
- Monthly bookkeeping and accounting support
- Financial statement preparation
- Payroll-related accounting assistance
- Business consulting and financial analysis
- IRS correspondence and tax issue assistance
- General accounting and client advisory services
Some engagements are billed at a fixed fee, while others are billed according to the time spent providing services.
The firm must maintain accurate records of client work, monitor billable hours, and prepare invoices without allowing administrative responsibilities to interfere with professional services.
The Challenges of Time Tracking in a CPA Practice
Working with Multiple Clients Throughout the Day
A typical workday rarely involves completing one client engagement from beginning to end.
A CPA might begin the morning reviewing financial statements for one business, answer a tax question from another client, spend an hour preparing a return, and then participate in a consultation with a prospective customer.
Each activity consumes time, but not every activity belongs to the same client or engagement.
Without a consistent method for recording time, the accountant may have difficulty reconstructing the day’s activities when preparing invoices.
Forgetting Small Amounts of Billable Time
Professional services often involve short activities that are easy to overlook.
A fifteen-minute telephone consultation, a twenty-minute document review, or a brief accounting adjustment may seem insignificant individually.
However, these activities can represent substantial billable time when accumulated across numerous clients.
Consider a CPA who unintentionally overlooks just fifteen minutes of billable work each business day.
Over twenty working days, that represents five hours of professional time.
At an illustrative billing rate of $150 per hour, those five hours represent $750 in potentially unbilled services.
This example is hypothetical, but it demonstrates why accurate time recording matters.
Separating Billable and Nonbillable Activities
Not every hour spent working in an accounting practice is directly billable to a customer.
Administrative responsibilities, internal meetings, continuing education, and general business development activities also consume time.
Understanding how much time is devoted to client work compared with internal activities can help a firm evaluate its operations and make better business decisions.
Preparing Accurate Client Invoices
When time records are scattered across handwritten notes, spreadsheets, calendars, and individual employee records, preparing invoices becomes unnecessarily difficult.
The accountant must determine which activities belong to each client, calculate the time spent, apply the appropriate billing rates, and prepare an understandable invoice.
This process becomes particularly challenging when several employees contribute to the same engagement.
How TimeBilling Fits the CPA Workflow
TimeBilling focuses on the everyday activities associated with recording professional services and billing clients.
For a CPA practice, the basic workflow looks like this:
Client → Engagement → Record Time → Document Services → Review Billable Work → Prepare Invoice → Record Payment
Let’s follow a realistic client engagement to illustrate how an organized time billing process can benefit a small accounting practice.
Step 1: Organizing Client Information
A small business owner named Michael operates a residential construction company and uses Coastal Accounting & Tax Services for accounting support.
Michael’s business requires monthly financial statement reviews, occasional bookkeeping adjustments, and periodic tax planning consultations.
The CPA needs a reliable way to associate professional services with Michael’s business.
TimeBilling provides a client-centered approach to organizing billable work so that recorded services can be associated with the appropriate customer.
Typical client information includes:
- Client or business name
- Contact information
- Relevant billing information
- Professional services provided
- Recorded time associated with client work
Business benefit: Client billing information is organized instead of being scattered across spreadsheets and handwritten records.
Step 2: Recording Time as Work Is Performed
On Tuesday morning, the CPA begins reviewing Michael’s monthly financial statements.
The review takes approximately forty-five minutes.
Later that afternoon, Michael calls with questions about purchasing equipment for his construction business. The consultation lasts twenty minutes.
Rather than waiting until the end of the week to reconstruct these activities, the CPA records the time associated with each service.
For example:
- Financial statement review: 45 minutes
- Equipment purchase consultation: 20 minutes
Total recorded time: 1 hour and 5 minutes.
Recording time promptly helps reduce forgotten activities and provides a more accurate account of the services performed.
Business benefit: Professional time is documented while the work is still fresh in the accountant’s memory.
Step 3: Documenting the Services Provided
Recording the number of hours worked is important, but the description of the work is equally valuable.
A client reviewing an invoice should be able to understand what services were provided.
Instead of recording a vague description such as “Accounting Work,” the CPA can document activities more clearly.
Examples include:
- Reviewed monthly financial statements and identified account discrepancies.
- Consulted with client regarding equipment purchase and potential tax considerations.
- Prepared adjusting journal entries for month-end reporting.
- Reviewed payroll expense classifications.
Clear service descriptions help explain professional charges and provide a useful record of completed work.
Business benefit: Better documentation supports understandable invoices and more consistent client communication.
Step 4: Managing Work Across Multiple Clients
While working on Michael’s accounting records, the CPA also provides services to several other customers.
One client needs assistance with a business tax return. Another requires a bookkeeping review. A third schedules a consultation about estimated tax payments.
Each activity must be associated with the correct client.
This is where an organized time billing application becomes especially valuable.
Rather than maintaining separate handwritten logs for each customer, the firm can organize its time records around client work.
For accountants who frequently move between engagements, consistent time recording helps reduce confusion when billing periods end.
Business benefit: Client work remains organized even when the accountant handles numerous engagements during the same day.
Step 5: Reviewing Billable Time
At the end of the billing period, the CPA reviews the professional services recorded for Michael’s business.
Assume the following activities were completed during the month:
- Monthly financial statement review: 1.5 hours
- Bookkeeping adjustments: 2.0 hours
- Tax planning consultation: 1.0 hour
- Accounting questions and client correspondence: 0.5 hours
Total billable time: 5.0 hours.
At an illustrative hourly rate of $150, the professional services total $750 before any applicable adjustments or additional charges.
These figures are examples and do not represent recommended accounting fees or actual customer billing records.
Having recorded time available for review helps the CPA evaluate the work performed before preparing the invoice.
Business benefit: The firm can review documented services rather than attempting to reconstruct an entire month’s work from memory.
Step 6: Preparing the Client Invoice
After reviewing the recorded time, the CPA prepares an invoice for Michael’s business.
The invoice should clearly communicate the professional services provided and the amount owed.
For example:
- Financial statement review: $225.00
- Bookkeeping adjustments: $300.00
- Tax planning consultation: $150.00
- Client correspondence and accounting assistance: $75.00
Total professional fees: $750.00.
Because the time records were maintained throughout the month, the CPA has the information needed to support the invoice.
This approach helps reduce administrative effort and makes the billing process more consistent.
Business benefit: Recorded time and service descriptions provide a foundation for accurate, understandable client invoices.
Step 7: Maintaining a History of Client Work
Several months later, Michael asks the CPA to review the amount of accounting assistance his business has required during the year.
Organized time records can help the firm understand how much professional effort has been devoted to the client relationship.
This information can also help the CPA evaluate whether an existing billing arrangement remains appropriate.
For example, a client originally requiring occasional bookkeeping assistance may gradually begin requesting more extensive advisory services.
Without accurate time records, the firm may underestimate the amount of work involved.
Business benefit: Historical time records can help support pricing decisions, workload evaluations, and ongoing client relationships.
Why a Progressive Web Application Makes Sense for Accountants
TimeBilling is a progressive web application, commonly called a PWA.
A PWA provides an application-like experience through a modern web browser and can be installed on supported devices without requiring a traditional desktop software installation.
For an independent CPA, this approach offers several practical advantages.
Working from Different Locations
Accountants do not always work from the same desk.
They may meet clients at business locations, work from home, or handle professional responsibilities while traveling.
A web-based application allows accountants to access their time billing system from supported devices when an internet connection is available.
Avoiding Traditional Software Installations
Traditional desktop applications may require local installation, operating system compatibility, and periodic software updates.
A PWA reduces dependence on a particular desktop operating system and provides a convenient way to access the application through a browser.
Keeping Time Recording Convenient
Time tracking is most effective when recording an activity is convenient enough to become part of the daily routine.
For a busy CPA, the ability to access a time billing application without returning to a particular office computer can make consistent recordkeeping more practical.
How TimeBilling Compares with Other Accounting Practice Software
CPA firms have numerous software options for time tracking, client billing, and practice management.
Products such as Karbon, TaxDome, and Canopy provide broader accounting practice management capabilities. Depending on the product and subscription, these may include client portals, document management, workflow automation, tax-related features, and other specialized tools.
These capabilities can be valuable for accounting firms that need comprehensive practice management systems.
However, not every independent CPA or small accounting practice requires an extensive collection of specialized features.
Software Cost
Software subscriptions represent recurring operating expenses, particularly for independent professionals and small firms.
When comparing time billing applications, accountants should consider the total cost of ownership rather than looking only at an advertised monthly subscription.
Important considerations include:
- Monthly or annual subscription costs
- Charges for additional users
- Required subscription tiers
- Setup and onboarding expenses
- Features included in the base subscription
- Additional fees for integrations or specialized capabilities
For a small CPA practice primarily concerned with recording time and billing clients, a focused application may provide better value than purchasing a comprehensive practice management platform.
Competitor prices and subscription features change over time, so current pricing should always be verified before making a purchasing decision.
Ease of Use
Comprehensive accounting practice management platforms may provide extensive functionality, but that functionality can introduce additional setup, configuration, and administrative requirements.
For an independent CPA, the most important question may be much simpler:
Can I record the work I perform, associate it with the correct client, and prepare an accurate invoice without unnecessary steps?
TimeBilling focuses on the core activities of professional time recording and client billing.
Accountants should evaluate competing applications through hands-on use to determine which system best fits their daily workflow.
Choosing the Right Level of Software
A larger accounting firm managing complex tax workflows, extensive client document exchanges, staff assignments, and regulatory processes may benefit from a comprehensive practice management platform.
An independent CPA or small firm that primarily needs dependable time recording and client billing may prefer a more focused solution.
The goal is not to purchase the software with the longest feature list. It is to select software that supports the firm’s actual requirements without creating unnecessary expense or complexity.
The Value of Accurate Time Records for CPA Firms
Consider the administrative challenges Coastal Accounting & Tax Services faced before establishing a consistent time recording process.
Professional activities were sometimes recorded at the end of the day. Short consultations were occasionally forgotten. Client billing required reviewing calendars, handwritten notes, and individual employee records.
By adopting a more organized approach to time recording and invoicing, the firm can establish a consistent process for documenting professional services.
Potential improvements include:
- More accurate recording of billable time
- Reduced likelihood of forgotten client activities
- Better organization of professional service descriptions
- Clearer separation of work performed for different clients
- More consistent invoice preparation
- Improved visibility into client workload
- Better information for evaluating billing arrangements
- Reduced dependence on handwritten notes and spreadsheets
These are potential operational benefits of maintaining organized time records, not measured results from an actual TimeBilling customer.
A Real CPA’s Perspective on TimeBilling
Although Coastal Accounting & Tax Services is a fictional business used to illustrate a typical accounting workflow, TimeBilling is already being used by a practicing CPA.
One paying TimeBilling subscriber, a CPA, has expressed strong satisfaction with the application and said he wishes he had discovered it years earlier.
That feedback is particularly meaningful because it comes from a professional who understands the daily challenges of recording client time and preparing invoices.
It also reinforces an important principle behind TimeBilling: professional software does not need to be unnecessarily complicated to be useful.
This feedback is presented as an informal customer comment, not as a formal testimonial or independently measured performance claim.
Is TimeBilling Right for Your Accounting Practice?
TimeBilling is worth considering if your practice bills clients for professional services and needs a straightforward way to organize time records and invoicing.
It may be particularly relevant for:
- Independent certified public accountants
- Small accounting firms
- Tax preparation professionals
- Bookkeeping and accounting service providers
- Financial and business consultants
- Professionals who bill clients by the hour
Before choosing any application, consider how your firm currently records client work, reviews billable time, prepares invoices, and maintains historical billing information.
The best application is the one that supports those daily activities reliably and fits your practice’s operational requirements and budget.
Explore TimeBilling by Local Service Rep
Running a successful accounting practice requires professional expertise, dependable client service, and accurate records of the work performed.
TimeBilling is designed to help independent professionals and small firms manage the administrative side of recording time and billing clients.
Whether you are an independent CPA or manage a small accounting practice, TimeBilling offers a focused approach to professional time tracking and client invoicing.
Spend less time reconstructing billable hours and more time serving your clients.
Explore TimeBilling Features & Benefits →
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Note: Coastal Accounting & Tax Services is a fictional business used to illustrate a typical CPA workflow. This case study does not represent an actual customer’s business operations or measured financial results. The separate CPA subscriber feedback is based on an informal customer comment.
Explore Our Software Solutions
Local Service Rep offers practical, affordable software designed to simplify everyday business operations. Explore our solutions:
- ServiceRep – Service business management.
- WorkOrder – Work order and repair management.
- TimeBilling – Time tracking and client billing.
- TimeClock – Employee time tracking.
- DecaVault – Personal information and record management.
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