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Best Time Tracking Software for Small Businesses

Best Time Tracking Software for Small Businesses

By Mary P.Mary P. Verified by Saskia H.Saskia H. Last updated: February 5, 2025 (0)
Table of contents

For all the joys of running a small business, there are inevitably some challenges to overcome. In those early startup stages, resources are tight. Time, staff, budget – you’re working with limited stock, so it’s essential to streamline operations so that nothing is wasted.

One surefire way to effectively manage deadlines, expenditures, and employee working hours is to invest in time tracking software for small businesses. In fact, the industry is overflowing with modern technology that does far more than just track working time.

Best Time Tracking Software for Small Businesses

With task and project management capabilities, payroll integration, and reporting analytics, small businesses can optimize all their workflows.

This guide explores the core features you need, the best solutions, and some top tips for introducing your team to employee time tracking platforms.

Best time tracking software for small businesses of 2025

Editors' choice
Hubstaff logo
Editor's rating:
(4.5)
Simple, multi-platform time tracker
Straightforward online account manager
Variety of settings for admins
Time off request option
B&M
Homebase logo
Editor's rating:
(4)
Customizable scheduling
Employee shift preferences
Compliance tracking
Advanced reports
Agencies
Clockify logo
Editor's rating:
(4.5)
Free version
Kiosk mode
Several advanced features
Built-in project manager
Nonprofits
ClickTime logo
Editor's rating:
(4.5)
Detailed reports
Mobile app
API access
Intuitive admin panel
Construction
ClockShark logo
Editor's rating:
(4.5)
Accurate
GPS integration
Device support
Real-time data capture
Hubstaff
Editors' choice: Hubstaff
Editor's rating:
Reviews
  • Simple, multi-platform time tracker
  • Straightforward online account manager
  • Variety of settings for admins
  • Time off request option
  • GPS-based tracking in mobile appFree trial and money-back guarantee
  • Bumpy data syncing between trackers
  • Primitive, Chrome-only browser extension
  • Limitations in Free and Basic plans
Starting price: $4.08/mo Visit Hubstaff
Screenshots
Offers
Up to 18% off on Hubstaff annual plans
10% discount in Hubstaff's referral program
Homebase
B&M: Homebase
Editor's rating:
Reviews
  • Real-time collaboration
  • Comprehensive employee management tools
  • 20+ integrations
  • Flexible time tracking options
  • Handy add-ons
  • Limited tools for field management
  • Irreversible deletion of data
  • Location tracking lacks full shift monitoring
Starting price: $20/business/mo Visit Homebase
Video overview
Video thumbnail
Clockify
Agencies: Clockify
Editor's rating:
Reviews
  • Free version
  • Kiosk mode
  • Several advanced features
  • Built-in project manager
  • Intuitive
  • No refunds
  • Lack of job site features
  • No built-in payroll
Starting price: $3.99/user/mo
Screenshots
Offers
20% Off Clockify
Free Time Tracking Software With Clockify
7-Day Free Trial of Clockify
Clockify Free Demo
ClickTime
Nonprofits: ClickTime
Editor's rating:
Reviews
  • Detailed reports
  • Mobile app
  • API access
  • Intuitive admin panel
  • Responsive customer support
  • No free version
  • Limited customization
ClockShark
Construction: ClockShark
Editor's rating:
Reviews
  • Accurate
  • GPS integration
  • Device support
  • Real-time data capture
  • Competitive price
  • GPS can be unreliable
  • Limited integration options

Why time tracking software is essential for small businesses

In any business, problems related to time wastage, inaccurate billing, and staff accountability will always rear their head at some point. In a small company, however, the consequences can be far more damaging, especially if resources are limited.

These problems can be reduced for small businesses through the benefits of time tracking software:

  1. Payroll accuracy: One of the core features of this software is time logging. With employees clocking in and out directly on the platform – whether working in-office, from home, or in the field – no one is over- or underpaid.
  2. Improved productivity: By tracking the time for each task, team members can analyze and enhance their efficiency and identify weak areas.
  3. Remote team supervision: Time tracking really comes into its own with remote teams. Prioritizing transparency, managers can keep an eye on team members via activity and productivity monitoring.
  4. Streamlined project management: Managers and employees can organize workloads by project, task, or client – all within one platform. It’s never been easier to stick to budgets and schedules.

Team working at the office

Key features to look for in time tracking software

Many time tracking tools exist, but not all are designed with small businesses in mind. To cover all your bases, look for these key features:

Mobile access 📱

Many work-related tasks can be conducted via a phone or tablet, so your time tracking software must have multi-device compatibility.

Some team members require on-the-go time tracking that isn’t limited by internet access or location restrictions. If you run a field service company, it‘s worth trying out free trials and downloading the apps to check that they function well everywhere.

Pricing flexibility 💵

Of course, cost is a huge factor, especially for small businesses. This software may feel like less of a necessity than other expenses, but it will save you money in the long run with time wastage costs reduced to a minimum.

Integrations 🔗

Always check that your existing platforms are compatible with the time tracking software, especially if you use payroll, accounting, CRM, and project management solutions.

Whichever services you rely on, be it QuickBooks, monday.com, or Paycor, syncing up your systems helps the smooth running of your business.

Usability ⚙️

Ease of use is one of the most important elements to consider. The platform should be intuitive and require little employee training to start using it.

Colleagues using time tracking software

How to choose the right time tracking software for your business

Investing in a platform that isn’t quite right can have significant consequences if you’re on a tight budget, so small businesses, in particular, should always run through this checklist before making a financial decision.

 

How to find the best time tracking software for small businesses

1

Assess your business needs: What do you need this technology for? Depending on your company, you may require comprehensive project management, invoicing, or GPS tracking tools.

2

Research: Make sure to read user and expert reviews to compare products carefully.

3

Consider your budget: Weigh up which features your company needs the most and what you can afford. Time tracking platforms come in all shapes and sizes, so find one that meets your requirements while not charging you for features you don’t need.

Common mistakes to avoid when using time tracking software

For all its benefits, we can’t deny that time tracking technology can be controversial. It’s easy for employees to jump to negative conclusions if its purpose isn’t properly explained.

Woman working on her laptop

To avoid making common mistakes when implementing time tracking software, follow these tips:

  1. Communication: Nobody likes to feel spied on or micromanaged. Whether it’s for time logging field workers to avoid manual tracking or to enhance project management, employers and managers must communicate clearly with the team why they’re being monitored.
  2. Training: For time tracking tools to be effective, everyone needs to be on the same page with how to use them. As part of the onboarding process, provide training on accurately using this software for optimal use.
  3. Analytics: Don’t forget to make the most of the rich data insights these solutions provide. They can come in handy when working out client invoices, reviewing employee workloads, and analyzing team productivity.

Future trends in time tracking software

With the rise of AI, time tracking software will undoubtedly become even more sophisticated and helpful. By detecting patterns in tasks, this technology will be able to suggest time allocation for upcoming projects, further streamlining processes and boosting efficiency.

Innovative time tracking solutions are also likely to become more advanced in automation, reducing time spent manually inputting data and speeding up workflows. Increased integrations will likely become commonplace, helping time tracking software seamlessly connect with all business solutions.

Keyboard with time tracking key

The future of time tracking software is likely to see a shift from this technology being used mostly by remote and hybrid companies, to all kinds of work environments. With this in mind, small businesses should consider implementing these tools to start reaping the rewards of this rapidly evolving software.

Time tracking: a game changer for small businesses

On a surface level, it may seem that time tracking software isn’t crucial to the everyday running of small businesses and is a cost that can be avoided – but this isn’t necessarily true.

Time tracking tools for small businesses are designed to transform payroll processes, enhance team organization and management, and boost productivity. Minimizing risks of over- or under-payment and automating manual processes, the money spent on a subscription is ultimately reinvested in the company in the long run.

The first step is to explore reviews and take advantage of free trials, as this is the best way to get a grasp of which platform is best suited to your small business. Optimized time and team management are right around the corner!

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