Guide
What is a timesheet
And how an agency uses logged hours to bill correctly and find out which clients are profitable.
A timesheet, in one sentence
A timesheet is the record of how much time each person spent on each client, project and task over a period — usually a week.
In businesses that sell time, such as agencies, consultancies and firms, it's the basis for billing hours, checking whether a project stayed on budget and working out what each client really earned.
The term is also known as time logging, hour tracking or project time records.
What it's for
What a timesheet answers in an agency
What to bill
Billable hours per client become an invoice, an activity report or the argument to renegotiate a fee that has become too small.
What each client earns
A client's revenue divided by the total hours they consumed gives the effective hourly rate. It's the number that separates a good client from one that only looks good.
What to quote next time
With the real hours of similar projects on record, a proposal stops being a guess and has a basis.
Where the time is going
Internal meetings, rework and out-of-scope requests show up in the record. Without it, those hours vanish and keep costing money.
What a timesheet line needs
- Date
- Person
- Client
- Project
- Task or activity
- Duration in hours
- Billable or non-billable
- Short description of the work
Free template
Timesheet template for agencies
The template below has the columns that matter and a filled-in example of one person over three days. Download the spreadsheet, open it in Excel or Google Sheets and use one line per activity.
| Date | Client | Project | Activity | Hours | Billable |
|---|---|---|---|---|---|
| Sep 22 | Golden Wheat Bakery | Social media — September | Post creation | 3.5 | Yes |
| Sep 22 | Internal | Agency operations | Planning meeting | 1 | No |
| Sep 23 | Bright Smile Clinic | Company website | Layout adjustments | 4 | Yes |
| Sep 23 | Bright Smile Clinic | Company website | Out-of-scope rework | 2 | No |
| Sep 24 | Target Builders | Launch campaign | Media planning | 5 | Yes |
In this extract: 15.5 hours, of which 12.5 billable (81%). The out-of-scope rework wasn't billed — and it's exactly the kind of hour that disappears when nobody logs it.
How to fill it in
A timesheet that doesn't become paperwork
1. Log it now, not on Friday
A timesheet filled in from memory at the end of the week is an estimate dressed up as data. Logging in the moment — or at the latest at the end of the day — is what makes the number reliable.
2. One line per activity, not per minute
The goal is to know where the time went, not to audit every break. Blocks of half an hour or more are usually enough.
3. Mark billable when you log
Deciding later what was billable turns into an argument. With the rule agreed per project, the flag becomes almost automatic.
4. Close the week
Review, correct and lock the period. A number that keeps changing after closing is no use for invoicing or comparison.
Spreadsheet or system
When the spreadsheet stops coping
For one or two people, a spreadsheet works. It starts to struggle when the team grows and the hours need to become decisions — and that's when a project time tracking system starts paying for itself.
- Someone consolidates several people's spreadsheets every week
- Hours arrive late and nobody trusts the total
- Nobody can say which client earns the least per hour
- The hour budget overruns and you only find out at the end of the project
Questions
Questions about timesheets
What is a timesheet?
It's the record of how much time each person spent on each client, project and task over a period, usually a week. It's used to bill hours, track project budgets and work out what each client earns.
What's the difference between a timesheet and a time clock?
A time clock records when people start and finish work, to meet labour law. A timesheet records which project the time went into, for management and billing. A business may need both, and one doesn't replace the other.
Can a timesheet be used to control working hours?
No. Working-hours control has its own rules — in Brazil, those of the labour code and Ordinance 671 — and is done through time clock records. A timesheet is a project management tool and shouldn't be used as evidence of working hours.
How often should a timesheet be filled in?
Ideally as the activity happens, with a timer, or at the latest at the end of the day. Closing, with review and a period lock, is usually weekly.
What are billable hours?
They're the hours that can be charged to a client. Internal meetings, prospecting and out-of-scope rework aren't billable, but they still cost money — which is why a timesheet separates the two.
Is there a free timesheet template?
Yes. This page has a spreadsheet template (CSV) with date, client, project, activity, hours and billable columns, which opens in Excel and Google Sheets, with no sign-up.
From the spreadsheet to each client's hourly rate
30 days on the most complete plan, no credit card.