Time Tracking

Project Timesheet Template

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timesheet-project
Company Details
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Bill To (Customer Information)
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Items
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Invoice Details
Invoice number, dates, notes, and totals for this template.
Subtotal:$29,852.00
Total:$29,852.00
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What Is a Project Timesheet?

A project timesheet is a specialized time-tracking document designed for organizations and professionals who need to allocate working hours to specific client engagements, internal projects, or cost centers. Unlike a standard employee timesheet that tracks total hours for payroll purposes, a project timesheet creates a direct link between time spent and the project or task that consumed it.

The project timesheet is the backbone of time-and-materials billing. When a client agrees to pay for work at an hourly rate, the hours logged on the project timesheet become the basis for invoicing. If you do not track time at the project level, you cannot bill accurately, cannot prove to the client what you worked on, and cannot analyze whether the engagement was profitable.

For internal projects, project timesheets provide the visibility needed to manage budgets, allocate resources, and assess performance. When you know exactly how many hours each phase of a project consumed, you can create better estimates for future engagements and identify process improvements that reduce costs.

Core Components of a Project Timesheet

Project and Task Identification

The project identifier is the most critical field on a project timesheet. Each timesheet row or entry must clearly state which project the time relates to. This is typically done through a project code — a unique identifier assigned when the project is initiated. The project code should be consistent across all team members working on the same engagement to ensure time can be aggregated correctly.

Beyond the project code, a task or phase field helps break down time further. Software development projects, for example, might track time separately for discovery, design, development, testing, and deployment. Marketing projects might track strategy, creative production, media buying, and reporting separately. This granularity allows project managers to identify which phases are consuming the most time and where adjustments may be needed.

Billable vs. Non-Billable Classification

Distinguishing billable from non-billable time is essential for accurate client invoicing and internal profitability analysis. Billable time includes any work that falls within the agreed project scope and can be charged to the client. Non-billable time includes work outside the agreed scope, internal administrative tasks, proposal writing, and time spent on tasks that were not part of the original estimate.

Many project timesheet templates include separate columns or rows for billable and non-billable time, making it easy to generate reports showing total billable hours per project, per client, and per team member. This data feeds directly into utilization metrics that firms use to assess productivity and set performance targets.

Time Allocation by Team Member

When multiple team members work on the same project, the project timesheet must capture each person's contributions individually. This is important for internal cost accounting (knowing how much labor cost was incurred per project), for client transparency (showing the client exactly who worked on their account), and for internal fairness (ensuring work is distributed equitably across the team).

Individual time allocation also enables activity-based costing and skills-based project planning. When you can see that senior consultants consistently exceed estimates on certain task types while junior staff take longer on others, you can refine your project planning and staffing decisions.

Notes and Descriptions

A project timesheet that captures only hours and project codes provides limited value. Including a short description field for each time entry — even just one or two sentences — transforms the timesheet into a meaningful project record. Notes explain what was accomplished, why certain hours were higher than expected, or what decisions were made during a meeting. For clients reviewing invoices, these notes provide context that justifies the hours charged.

Best practices for timesheet notes include describing deliverables completed (not just tasks started), noting any blockers or scope changes that affected the time spent, referencing specific deliverables by name or document title where applicable, and avoiding vague entries like "work on project" or "meeting" without elaboration.

Industry Applications

Software Development and IT

Software projects benefit enormously from detailed project timesheets because development work is inherently difficult to estimate. Tracking time by feature, bug fix, or development phase provides the data needed to improve future sprint planning, identify technical debt that is consuming excessive maintenance time, and justify scope changes to clients when requirements evolve.

Agile and Scrum teams often track time against user stories or backlog items rather than calendar hours. In these cases, the project timesheet can be adapted to capture story points completed or sprint goals achieved alongside or instead of traditional hour tracking.

Marketing and Creative Agencies

Creative agencies face unique time-tracking challenges because a significant portion of creative work is inherently difficult to time-box. A designer working on a brand identity may spend two hours on one concept before discarding it and starting over — yet both the discarded concept and the final work represent valid project time. Project timesheets for creative work should include descriptive notes that capture what was accomplished, not just how long it took.

Marketing agencies also need to track time across multiple channels and campaign phases. A project timesheet structured with separate rows or columns for strategy, creative production, content development, media buying, and analytics provides the granular data needed to optimize campaign performance and justify media spend allocations to clients.

Government and Grant-Funded Projects

Organizations receiving government funding often face strict requirements for documenting time allocated to specific grants or contracts. Project timesheets for grant-funded work typically require more formal approval workflows, clearer linkage between time entries and specific grant deliverables, and segregation of grant-funded time from other organizational activities. Many federal and state grants require timesheet certifications that attest to the accuracy of time recorded and its direct relationship to grant-funded activities.

Sample Scenario

> Scenario: A web development agency is building a custom e-commerce platform for a retail client under a time-and-materials agreement with a $75/hour developer rate and a $150/hour senior architect rate. The project is divided into four phases: discovery, design, development, and deployment. Using a project timesheet template, the team logs time daily with project phase and task codes. During month one, the agency records 340 total hours: 60 hours in discovery (all billable), 90 hours in design (85 billable, 5 non-billable internal reviews), and 190 hours in development (all billable). The client receives an invoice for 325 billable hours totaling $24,375. The non-billable hours are tracked separately for internal analysis, revealing that internal review processes consume more time than estimated — a finding that leads to a process improvement initiative.

Related Templates

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What to Include

  • Contractor or employee name, and the client name and project being billed
  • Billing period (start and end dates) and the date the timesheet was submitted
  • Daily entries: date, description of tasks performed, and hours worked per task or per day
  • Hourly billing rate, calculated subtotals per entry, and total hours and total amount due for the billing period
  • Approval signature line or field for the client or manager to confirm and authorize the hours before payment is processed

When to Use

  • Billing hourly clients — including consultants, lawyers, accountants, designers, developers, and marketing professionals — with a transparent breakdown of time spent
  • Documenting time worked on a retainer engagement to show clients exactly what their monthly retainer payment covers
  • Tracking billable versus non-billable hours for project profitability analysis, capacity planning, or tax deduction purposes
  • Complying with client or agency requirements to submit approved time records before invoices are accepted and payment is processed

Pro Tips

  • Log your hours daily, not weekly — end-of-week time reconstructions are rarely accurate and produce inconsistencies that undermine client trust
  • Write descriptive task entries such as 'Strategy call with client — Q3 planning, 1.5 hrs' rather than vague entries like 'consulting' — detailed entries justify your billing and reduce client questions
  • Attach the client-approved timesheet directly to your invoice so clients can instantly see exactly what they're being charged for without requesting documentation separately
  • Track time in 6- or 15-minute increments rather than rounding to the nearest hour — it's fairer to clients on short tasks and more accurate for your own profitability tracking

Frequently Asked Questions

Everything you need to know about timesheet-services timesheets

What is a timesheet and who uses one?
A timesheet is a record of the time spent by a worker on specific tasks, projects, or clients during a defined period. They are used by anyone who bills clients by the hour or needs to account for their time: freelancers, consultants, lawyers, accountants, designers, developers, contractors, and marketing professionals. Staffing agencies use timesheets to verify hours before paying contractors and billing clients. Small businesses use them for internal labor cost tracking, payroll processing, and project budget management. A timesheet translates hours worked into a billable document that supports your invoice and gives clients a transparent breakdown of how their money was spent.
What's the difference between a timesheet and an invoice?
A timesheet records the detail of time worked — dates, tasks, hours, and rates. It's a supporting document. An invoice is the formal payment request that summarizes what you're owed. For hourly billing workflows, the timesheet comes first: you record your hours as you work, then use the timesheet data to generate your invoice at the end of the billing period. Many clients require you to submit an approved timesheet before they will process payment on your invoice — the timesheet is their verification that the billed hours are legitimate. Attaching the approved timesheet to your invoice eliminates the most common cause of invoice disputes: questions about what was billed.
How should I handle a client who disputes hours on my timesheet?
Stay calm and professional — disputes over hours are common and resolvable. Start by reviewing the disputed entries yourself: could any descriptions be misread? Are there entries that could appear duplicated? Then present your supporting evidence: calendar entries, email timestamps, project management tool logs, or meeting records that corroborate the time claimed. If specific task descriptions were vague, acknowledge that and offer clearer descriptions going forward. If the dispute is legitimate (you did accidentally double-enter something), correct it promptly and thank the client for catching it. If the hours are accurate and supported, stand your ground politely with documentation. Preventing disputes is easier than resolving them — detailed daily entries are your best protection.
Are timesheets required for tax purposes?
Timesheets are not required by the IRS for most self-employed individuals billing hourly clients. However, they serve as useful supporting documentation for your income records and are essential if you claim home office, vehicle, or project-specific deductions tied to client work. For employees, the Fair Labor Standards Act (FLSA) requires employers to keep accurate records of hours worked for non-exempt employees — timesheets are the most common way to satisfy this requirement. If you are audited and claim deductions based on work performed for specific clients, timesheet records strengthen your documentation. Retaining timesheets for 3–7 years is consistent with IRS record-keeping recommendations for business records.
What's the best way to track time for accurate timesheets?
The most reliable method is a dedicated time-tracking app that lets you start and stop a timer as you switch tasks throughout the day. Popular tools include Toggl, Harvest, Clockify, and FreshBooks Time Tracking. These apps let you log hours by client and project, generate detailed timesheet reports, and often integrate directly with invoicing software. If you prefer a manual approach, keep a simple daily log in a notes app or spreadsheet and fill it in at the end of each work session. The single most important habit regardless of method: log your time on the same day you work. Next-day and end-of-week reconstructions introduce inaccuracy that erodes the credibility of your timesheet.
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