Setting up time tracking and billing for your accounting firm
A step-by-step runbook for implementing time tracking and billing software — from rate configuration to invoice templates to team training.
Contents
- 1.Document your billing models and rate structure
- 2.Configure rate tables and billing codes
- 3.Build your invoice template
- 4.Run a test billing cycle
- 5.Train your team on time capture
- 6.Set up billing review and approval workflow
- 7.The first month
- 8.Disclosure
- 9.How long does billing software setup take?
- 10.Should we migrate historical billing data to the new system?
- 11.What do we do if staff resist time tracking?
- 12.When should we start billing from the new system?
Document your billing models and rate structure
Before touching software, write down every billing model your firm uses: hourly rates by staff level, fixed fees by service type, hybrid arrangements. Include rate exceptions — discounted rates for specific clients, premium rates for rush work. This document becomes your configuration guide.
Configure rate tables and billing codes
Enter your rate structure into the software: standard rates by staff level, service-specific rates, and any client-specific overrides. Set up billing codes that match how you want to categorize work on invoices. Keep billing codes simple — five to ten categories cover most firms. Too many codes make time entry slower.
Build your invoice template
Customize the invoice template with your firm's branding, payment terms, and standard language. Include payment instructions (ACH details, credit card link, check mailing address). Test by generating a sample invoice and reviewing it as a client would — is it clear what is being billed, for what period, and how to pay?
Run a test billing cycle
Pick two or three engagements and run a complete billing cycle: track time for a week, review entries, generate invoices, and process a test payment. Verify that rates apply correctly, time entries flow to invoices without manual re-entry, and the invoice output matches your expectations.
Train your team on time capture
Schedule a one-hour training session focused exclusively on time capture — not the full software, just entering time. Demonstrate the fastest capture methods (timers, keyboard shortcuts, mobile entry). Set the expectation that time is captured within one hour of the work, not at end of day. Practice with two or three sample entries per person.
Set up billing review and approval workflow
Define who reviews time entries before invoicing, who approves write-offs, and who finalizes invoices. Configure permissions so staff can enter time but only managers can approve and send invoices. Schedule a weekly billing review — 30 minutes to review entries and generate invoices for completed work.
The first month
During the first month, review time entries daily rather than weekly. Catch errors and missed entries early while the team is building the habit. After 30 days, switch to weekly review. This front-loaded attention prevents bad habits from forming.
Disclosure
Some links on this page may be referral links. If you choose a tool through one of these links, it may support this site at no extra cost to you. We only include tools we would evaluate ourselves.
How long does billing software setup take?
+Two to three days for initial configuration (rates, templates, billing codes). Add one week for team training and test billing cycles. Full adoption with consistent time entry typically takes 30-45 days.
Should we migrate historical billing data to the new system?
+Migrate outstanding invoices and current-year time entries. Historical data older than one year is rarely worth migrating — export it from the old system as a reference archive. Starting fresh with clean data is usually better than importing messy historical records.
What do we do if staff resist time tracking?
+Resistance usually stems from time tracking feeling punitive rather than productive. Frame it as a tool for accurate billing and fair pricing, not surveillance. Make capture as fast as possible — every extra click increases resistance. Show staff how tracked time leads to more accurate invoices that benefit the firm and their compensation.
When should we start billing from the new system?
+After completing one successful test billing cycle. Do not send the first client invoice from the new system without having tested the full workflow — time capture through invoice delivery through payment processing. One test cycle catches configuration errors before they reach clients.