TLDR (Summary)
The best time tracking software for agencies is Plutio ($19/month).
Agencies billing by the hour need time tracking that connects to retainer allocations, shows project margin, and flows directly to invoicing. Plutio tracks time at the task level while showing real-time retainer usage and letting one-click invoice generation from logged hours.
Research shows proper time tracking increases billable hour capture by 20-30%. Connected time tracking eliminates the friction between logging hours and billing clients.
What is time tracking software for agencies?
time tracking software for agencies is software that logs billable hours across multiple clients and projects while connecting to retainer management, margin analysis, and invoicing.
The distinction matters: basic time tracking logs hours, agency time tracking connects those hours to client accounts, project budgets, retainer allocations, and billing. The operational context transforms raw time data into billable revenue.
What agency time tracking actually does
Core functions include logging hours against specific tasks and projects, attributing time to client accounts, tracking against retainer allocations or project budgets, showing team utilization and capacity, and letting invoice generation directly from logged time entries.
Stopwatch apps vs agency time tracking
Basic timers like time tracking software or standard stopwatch apps log what you worked on. Agency time tracking adds the business context: which client, which project, against what budget, billable or non-billable, and ready for invoicing. The difference is between knowing you worked 8 hours and knowing you have 8 billable hours ready to invoice to Client X for Project Y.
What makes agency time tracking different
Agencies run multiple clients with different billing arrangements: some on retainers, some project-based, some hourly. Time tracking must handle all models while providing visibility into which accounts are profitable and which consume more resources than they generate.
When time tracking connects to retainers, projects, and invoicing, every logged hour has a clear path to revenue. No hours slip through cracks between tracking and billing.
Why you need time tracking software
Agencies who grow beyond a handful of active clients face a compounding problem: every new client adds admin work that does not scale, and time-to-invoice conversion is where that admin tends to pile up.
Lead tracking, quoting, project management, payment follow-ups, and clients communication multiply with each engagement. Without a system that connects these functions, details fall through cracks, time-tracking tasks accumulate during busy campaigns phases, and Spending evenings catching up on admin instead of resting or doing agency work.
The unbilled hours problem
According to industry research, a significant portion of work hours goes to admin. For agencies specifically, that means 10-15 hours per week spent on non-billable tasks: unbilled hours, inaccurate estimates, extra work, and responding to clients questions.
At typical agency rates, those 10 hours of admin represent $750/week of potential billable time. That's over $3,000/month in opportunity cost, not counting the mental energy spent on context switching between agency work and administrative tasks.
The fragmentation problem
You stack 4-7 disconnected tools: project tools, creative suites, reporting platforms, and email for client communication. Each tool handles one function, but none share data automatically.
Automated reports create daily friction: logging into multiple platforms to piece together a client's history, copying details from one system to another, manually cross-referencing entries with project scope, and hoping that the terms you quoted match what you're actually delivering. The cognitive overhead adds up, and the risk of errors increases with every manual handoff.
The inaccurate estimates epidemic
Inaccurate estimates affects nearly every agencie at some point. According to research, 50-70% experience late payments, with the average invoice paid over a week late.
The issue compounds because agencies often work on multiple campaigns with different schedules. Manual tracking across spreadsheets or disconnected tools leads to missed tasks, forgotten follow-ups, and opportunities left on the table.
The scaling tipping point
You hit a threshold around 8-12 active clients where the manual approach breaks down. At this point, you're either spending more time on admin than agency work, or you're dropping balls. Tasks go out late, follow-ups get missed, and you start turning down good work because you can't imagine adding more complexity to an already chaotic system.
Connected time tracking software absorbs the admin work that would otherwise scale linearly with each new client. Plutio handles routine time-tracking tasks, tracking, and follow-ups automatically, leaving agencies to focus on the work that actually generates revenue.
Time tracking features agencies need
The essential time tracking features for agencies handle multi-client logging while connecting to retainers, budgets, and billing systems.
Core time tracking features
- Timer and manual entry: Start/stop timers or enter time after the fact
- Task-level tracking: Log time against specific tasks within projects
- Client attribution: Every entry connects to a client account
- Billable/non-billable: Mark time as billable or internal
- Notes and descriptions: Document what work was performed
- Timesheet views: Daily, weekly, monthly summaries for review
Agency-specific features
- Retainer tracking: Show hours used against monthly allocations in real-time
- Project budget tracking: Monitor time against project estimates
- Team utilization: See billable percentage across team members
- Client margin: Hours versus revenue by client
Platform features that multiply value
- Invoice generation: Create invoices directly from time entries
- Project integration: Time tracking built into task management
- Approval workflows: Manager review before billing
- Mobile apps: Log time from anywhere, including on-site client work
The deciding factor for agencies is billing connection. Time tracking without invoicing integration requires manual transfer that creates friction, errors, and delays.
time tracking software pricing for agencies
time tracking software for agencies typically costs $10-20 per user per month, with per-seat pricing adding up fast as teams grow.
What agencies typically pay for stacked tools
You piece together multiple subscriptions:
- Time tracking: standalone timers ($12/user), time tracking software ($10-20/user), a time tracker (Free-$12/user)
- Project management: a project app.com ($12-24/user), General project management software ($10.99-24.99/user)
- Invoicing: Standard billing software ($17-55/month), accounting software ($30-90/month)
A 15-person agency spends $300-600/month on time tracking plus the tools it needs to connect to.
Plutio pricing (January 2026)
- Core: $19/month - Complete time tracking with project management, CRM, invoicing, and client portals
- Pro: $49/month - Unlimited clients, 30 team contributors, advanced permissions, priority support
- Max: $199/month - Unlimited contributors, advanced reporting, white-label portals
The ROI calculation for agencies
If connected time tracking recovers 10% of previously unbilled hours for a 10-person agency:
- Team billable capacity: 10 people x 30 billable hours/week = 300 hours/week
- Recovered time: 10% x 300 hours = 30 hours/week
- Revenue recovered: 30 hours/week of recovered billable capacity
- Tool cost: $199/month
Time tracking ROI comes from captured billable hours. Even small improvements in logging compliance generate significant revenue recovery.
Why Plutio is the best time tracking software for agencies
Plutio handles time-tracking as part of a complete platform where proposals, contracts, projects, time tracking, and clients communication work together rather than as separate tools that need manual connection.
Complete workflow integration
When a client accepts your proposal, Plutio can automatically create the project, set up the time-tracking schedule based on milestone payments, and prepare the contract for signing. When they sign, setup tasks generate. When you track time on agency work, those hours attach to the project. When a milestone completes, the action triggers. Every step connects to the next without copying data between systems.
White-label everything
Use your own domain (clients.yourstudio.com instead of plutio.com/yourusername). Upload your logo, set your brand colors and typography. Every client-facing touchpoint shows your brand: proposals, contracts, invoices, portals, emails, receipts. clients never see "Plutio" or any indication you're using third-party software. Brand perception matters for agencies because professional appearance affects perceived value and justifies premium pricing.
Unified inbox for all clients communication
When a client messages about a campaign, responds to a proposal, approves work, or asks about billing, the message appears in one inbox. Reply directly without opening email. The conversation history stays attached to that client's record, so months later when they return, you have full context.
Granular permissions
Control exactly who sees what at the level that makes sense for your business. Contractors see only their assigned work. clients see their portal and documents. Neither sees your internal notes, profit margins, or other clients data.
No-code automations
Create rules that trigger actions without your involvement. Common agencies automations include: send reminders before due dates, notify you when a client views a proposal, create follow-up tasks when items are overdue, send welcome emails when contracts are signed. Set up once during initial configuration, runs continuously without attention.
Native integrations for agencies workflows
Connect Stripe and PayPal for payments with no additional configuration. Sync Google Calendar or Outlook for scheduling. Add Zoom links to booked calls automatically. Push financial data to accounting software or Leading bookkeeping tools for accounting. Use Zapier to connect 3,000+ other apps. Plutio handles the core workflow while integrating with specialized tools where deeper functionality is needed.
Everything runs from one app with your branding, your terminology, and your workflow logic. Instead of switching between 5-8 different tools to manage one client, you operate from a single platform designed to handle the complete service business lifecycle.
How to set up time tracking in Plutio
Setting up time tracking in Plutio takes 30-60 minutes for initial configuration, with team members ready to log time immediately after.
Step 1: Configure billing rates (15-20 minutes)
Set up rates for your agency:
- Standard rate: Default hourly billing rate
- Role-based rates: Different rates for different team roles
- Client-specific rates: Custom rates for specific client agreements
- Project rates: Override rates for specific projects
Step 2: Set up retainer allocations
For retainer clients, configure monthly hour allocations. Specify rollover rules and overage policies. These settings let real-time retainer tracking as time gets logged.
Step 3: Configure time entry requirements
Decide what information is required for time entries:
- Descriptions: Require notes on work performed?
- Task linking: Require association with specific tasks?
- Billable marking: Default billable or require selection?
Step 4: Train team on logging
Focus training on core workflow: starting timers, stopping with descriptions, editing entries if needed. Emphasize logging in real-time rather than end-of-day reconstruction.
Step 5: Review and refine
After one week, review logged time for consistency and completeness. Address any gaps in logging habits. Refine settings based on actual usage.
Start with simple logging requirements. Add complexity (mandatory descriptions, approval workflows) only after core logging habits are established.
Time tracking templates for agencies
Standardizing time tracking practices keeps consistent data quality and enables meaningful analysis across clients and projects.
Time entry categories
- Client work: Billable work for external clients
- Internal projects: Non-billable agency development work
- Administrative: Meetings, email, planning (often non-billable)
- Business development: Pitches, proposals, networking
- Professional development: Training, learning, conferences
Rate structures
- Standard hourly: Default rate for typical work
- Rush rate: Premium for expedited timelines
- Retainer rate: Discounted rate for committed monthly hours
- Junior/Senior rates: Role-based rate tiers
Description standards
Establish conventions for time entry descriptions:
- Start with action verb (Designed, Developed, Wrote, Researched)
- Specify deliverable or task (homepage mockup, blog post draft)
- Note any relevant context (client call, revision round 2)
Example: "Designed homepage hero section based on approved wireframe"
Consistent description formats make invoices more professional. Clients see clearly what work was performed, reducing billing questions and disputes.
Client visibility into time tracking
Client portals can show time tracking data to clients, providing transparency into how retainer hours are being used and building trust in billing.
What to show clients
Configure client visibility based on relationship and preferences:
- Retainer usage: Hours used versus monthly allocation
- Time entries: Detailed log of work performed
- Project hours: Time spent on specific projects
- Pending charges: Unbilled time awaiting invoicing
Building billing trust
When clients can see time being logged in real-time, billing becomes transparent rather than mysterious. They understand what they're paying for before invoices arrive. Billing disputes decrease significantly.
Retainer management transparency
Retainer clients often worry about hour usage. Portal access lets them monitor their own allocation without needing to request reports. Self-service visibility reduces account manager overhead.
Privacy considerations
Not all internal notes should be client-visible. Configure which time entry fields appear in portals. Keep strategic notes and internal assessments private while sharing work descriptions.
Transparency builds trust. Clients who can see their hours being used appropriately become more confident in the relationship and less likely to question invoices. Long-term client relationships benefit especially from time tracking visibility because the documented history demonstrates consistent value delivery over months and years of engagement, building strong confidence in the ongoing business partnership, relationship, and future productive ongoing client collaboration
How to migrate time tracking to Plutio
Migrating time tracking involves exporting historical data for reference and training the team on new logging workflows. You complete migration in 1-2 weeks.
Step 1: Export historical data
Export time records from current system for reference and analysis. Historical data is useful for margin analysis but doesn't need to import into new system for ongoing operations.
Step 2: Set up Plutio time tracking (30-60 minutes)
Configure rates, retainer allocations, and entry requirements. Set up client accounts and projects if not already done. Time tracking depends on project and client structure.
Step 3: Choose transition date
Select a clean cutoff date, ideally start of a billing period:
- Start of month: For monthly retainer clients
- Start of week: For weekly billing cycles
- Project kickoff: For new project-based work
Step 4: Train team and go live
Brief training session on Plutio time tracking: starting timers, logging entries, adding descriptions. All time after transition date logs in Plutio. Complete any outstanding billing from old system separately.
Step 5: Handle the transition period
Work that spans the transition may need split logging: early hours in old system, later hours in Plutio. Keep clear records during this brief overlap period.
Clean transitions work best. Pick a date, train the team, and commit to new system logging from that point forward. Parallel systems create confusion and data quality issues.
