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This guide shows how project time tracking software helps teams reduce lost billable hours, control budgets, and improve productivity. It covers top tools like Timesheet 365, Toggl, Hubstaff, Harvest, ClickUp, Asana, and Clockify, each suited for different needs.
It also highlights key habits—like task-level tracking and regular reviews—to get real results. Better time tracking leads to higher profits, fewer overruns, and more reliable project delivery.
The right project management and time tracking software changes all of that — instantly. This guide breaks down the tools that actually work in 2026, with a clear, honest comparison so you can choose fast and start recovering those lost hours today.
The Silent Budget Killer Your Team Ignores Every Week
Here is the uncomfortable truth: almost half of all teams have no idea where their hours are going.
According to a 2025 survey by Resource Guru of 2,000 UK desk workers, 46% of teams use no timesheet software at all and 41% of project managers fall into that same group. That means the people responsible for keeping projects on time and on budget are making decisions based on guesswork, not data.
The result? Three things happen to every team that skips time tracking:
- Billable hours slip away unrecorded and clients never pay for them
- Projects exceed budget before anyone notices the warning signs
- Team members burn out because no one can see who is overloaded
This gap between knowing it matters and doing something about it is exactly where projects fail. The tools in this guide close to that gap.
Stop Losing Billable Hours Today
What Is Project Management and Time Tracking Software?
Think of it as your team’s command center. Instead of scattered tools, missed updates, and manual hour logs, you get one clear dashboard that shows:
- Who is working on what — right now
- Which tasks are on track and which are falling behind
- How many billable vs. non-billable hours your team logs each week
- Where your budget stands at any moment — not just at project end
The best tools do not just log hours. They turn raw time data into decisions smarter estimates, tighter margins, and happier clients who trust you because you always deliver on time.
Top Tools for Project Management and Time Tracking
1. Timesheet 365 — Built for Microsoft 365 Teams
Best for: Teams already using Microsoft 365 who need seamless time tracking inside the tools they use every day.
Timesheet 365 is purpose-built for Microsoft 365 environments. It plugs directly into Teams, Outlook, and SharePoint which means your team never needs to switch apps to log hours. Time tracking happens where work already happens.
What Timesheet 365 offers:
- Native integration with Microsoft Teams, Outlook, and SharePoint
- One-click time entry directly inside your daily Microsoft workflow
- Project budget tracking with real-time spend visibility
- Automated timesheet reminders so no hours go unlogged
- Billable vs. non-billable hour separation with client-ready reports
- Manager approval workflows built into the dashboard
- Compliance-ready audit trail for regulated industries
Also check our : G2 User recent testimonial
Why it stands out: Most tools force your team to learn a new platform. Timesheet 365 works inside the tools your team already opens every morning — which means faster adoption, cleaner data, and less time wasted on onboarding.
If your organization runs on Microsoft 365, this is the most frictionless path to accurate project time tracking available today.
See Timesheet 365 in Action
2. Toggl Track — Simple Timer, Solid Reports
Best for: Freelancers and small teams who want lightweight time tracking without complex project management.
Toggl Track does one thing very well: it makes time tracking easy enough that your team will actually do it. One-click timers, calendar sync, and browser extensions remove almost all friction from the logging process.
- One-click timers available on web, desktop, mobile, and browser extensions
- Calendar sync — meeting events can be converted into time entries
- Profitability reports by client, project, or team member
- Integrations with Asana, Jira, and 100+ other tools
Watch-out: Toggl Track is strong on time tracking but light on project management. It lacks native payroll, invoicing, and advanced budget alerting — you will need separate tools for those.
3. Hubstaff — Time-Tracking First, Project Management Second
Best for: Remote and distributed teams who need time at the core of their workflow, not as an add-on.
Hubstaff is built around time data. Everything else task management, reporting, payroll flows from the hours your team logs. That is a different philosophy from most project tools, and for remote teams it works extremely well.
- Real-time timers with task-level precision
- Automated invoicing and payroll via PayPal, Wise, and Deel
- Budget alerts sent automatically when a project nears its spending limit
- 20+ reports covering project performance and team utilization
Watch-out: Hubstaff’s project management features are functional but not as rich as dedicated PM tools. Teams needing advanced Gantt charts or portfolio views may need supplemental tools.
Also Read: 20 Best Time Tracking Software 2026
4. Harvest — Clean, Simple Billing and Invoicing
Best for: Freelancers and services teams focused on accurate billing and getting paid fast.
Harvest is polished and focused. It does not try to be everything — it tracks hours, generates invoices, and connects to accounting tools. For teams where billing accuracy is the top priority, it is a strong choice.
- Simple time entry with one-click timers
- Automatic invoice generation from logged billable hours
- Budget tracking with email alerts when projects approach limits
- Expense tracking to capture every reimbursable cost
Watch-out: Harvest has no native payroll and limited advanced project management features. It is best used alongside a dedicated PM platform if you need full workflow management.
5. ClickUp — All-in-One Workspace with Time Tracking
Best for: Teams that want a single platform for task management, collaboration, and time tracking.
ClickUp packs in a huge range of features Kanban boards, Gantt charts, goals, docs, and time tracking all in one product. It is highly customizable and appeals to teams that want one platform for everything.
- Native time tracking available on the Business plan ($12/user/month)
- Gantt and workload views for resource planning
- 1,000+ integrations including Slack, Zoom, and Google Drive
Watch-out: Native time tracking is locked behind the Business plan. On lower tiers, you will need a third-party tracker. The platform’s breadth can also overwhelm smaller teams.
6. Asana — Strong Task Management, Limited Native Tracking
Best for: Project managers and cross-functional teams who prioritize task clarity and team visibility.
Asana is one of the most structured task management platforms available. Its workload view helps managers spot over-allocation before it becomes burnout. Time tracking, however, is limited to the Advanced plan.
- Native time tracking on Advanced plan only ($31/user/month)
- Workload view to balance task assignments across team members
- Timeline view to catch scheduling conflicts early
Watch-out: At $31 per user per month for native time tracking, Asana is one of the pricier options in this category. Many teams pair a lower Asana tier with a standalone tracker to manage costs.
7. Clockify — Best Free Option for Budget-Conscious Teams
Best for: Startups and small teams who need reliable time tracking at zero cost.
Clockify offers unlimited users and unlimited projects on its free plan — which is genuinely rare in this market. It is a solid starting point before teams graduate to a more robust platform.
- Unlimited users and projects on the free plan
- Billable vs. non-billable hour tracking
- Timesheet approval workflow for managers
- Integrations with Asana, Trello, Jira, and 80+ tools
Watch-out: Clockify focuses on time tracking, not project management. You will not get built-in Gantt charts, workload balancing, or payroll from this tool alone.
Side-by-Side Comparison: Which Tool Has What You Need?
| Tool | Native Time Tracking | Project Management Depth | Key Integrations |
| Timesheet 365 | Yes | Moderate (PM + time focus) | Microsoft Teams, Outlook, SharePoint |
| Toggl Track | Yes | Light PM | Asana, Jira, 100+ tools |
| Hubstaff | Yes (core feature) | Moderate | PayPal, Wise, Deel, 30+ tools |
| Harvest | Yes | Light PM | QuickBooks, Xero, Asana |
| ClickUp | Yes (Business plan) | Strong PM suite | Slack, Zoom, Google Drive |
| Asana | Yes (Advanced plan) | Strong PM suite | Slack, Zoom, 200+ apps |
| Clockify | Yes (Free plan) | Light PM | Asana, Trello, Jira |
5 Habits That Make Time Tracking Software Actually Work
The best tool in the world fails if your team does not use it well. These five habits turn software into real, measurable results.
- Track time at the task level, not just the project level.
Knowing a project took 40 hours is useful. Knowing that 18 of those hours went to client feedback rounds is the insight that changes how you scope and price future work.
- Compare planned vs. actual hours every week.
This single habit catches budget overruns early — when you still have time to fix them. Most top tools make this comparison automatic.
- Separate billable and non-billable hours from day one.
Not every hour earns revenue. Tracking both types reveals your real profitability — not just how busy your team is.
- Set budget alerts before a project starts — not after.
Real-time alerts are only valuable if they fire early enough to act. Configure spending thresholds at kickoff, not midway through.
- Review time reports monthly, not just at project close.
Monthly reviews reveal patterns: which clients always run long, which team members are stretched, where your most profitable work actually comes from. That data shapes every future bid.
Conclusion: Every Untracked Hour Is Revenue You Will Never Recover
The tools are not the hard part. The hard part is starting. Every week you run projects without accurate time data is another week of budget leaks, under-billing, and missed growth.
The teams winning in 2026 are not necessarily the fastest or the most talented. They are the ones who replaced gut instinct with data — who know exactly where every hour goes and can prove it to clients.
If your team runs on Microsoft 365, Timesheet 365 is the fastest path to that clarity. No new platforms to learn. No heavy onboarding. Just clean time data flowing from the tools your team already uses every day.
The question is not whether you need better time tracking. You already know the answer to that. The question is how much longer you will wait.
Frequently Asked Questions
What is project management and time tracking software?
It is a digital platform that helps teams plan tasks, assign work, log hours, and measure progress in one place. It replaces manual timesheets and guesswork with real-time data that improves billing accuracy, budget control, and team productivity.
What is the best project time tracking software for Microsoft 365 teams?
Timesheet 365 is purpose-built for Microsoft 365 environments. It integrates natively with Teams, Outlook, and SharePoint, so your team tracks time inside the apps they already use — no new platform to adopt, no data silos to manage.
Do I need separate software if I already use a project management tool?
It depends on your plan. Many platforms only include native time tracking on expensive higher tiers. A dedicated tracker that integrates with your existing PM tool often gives better functionality at a lower total cost.
How does time tracking software improve team productivity?
It makes work visible. When managers can see logged hours at the task level, they spot bottlenecks, balance workloads, and prevent burnout before it hits. Comparing planned vs. actual hours each week also sharpens future project estimates significantly.
What is the difference between billable and non-billable hours?
Billable hours are work you can charge a client for directly. Non-billable hours cover internal meetings, admin, and overhead. Tracking both separately gives you the real picture of profitability — and helps you reprice or restructure work that consistently loses money.
Is time tracking software good for small teams and freelancers?
Absolutely. Freelancers often see the fastest ROI because every unlogged hour is direct revenue lost. Lightweight tools like Clockify or Harvest are strong starting points, while Timesheet 365 is ideal for freelancers and small teams embedded in Microsoft 365.
Can time tracking software help with client invoicing?
Yes — and this is one of the most impactful features for service businesses. Tools like Timesheet 365 and Harvest automatically generate invoices from tracked hours at your set billing rates, reducing manual work, cutting errors, and speeding up payment cycles.
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