Should Freelancers Track Their Time?

Today’s edition of Wishful Working is a 3 minute read.

Although this newsletter is already short at 3 minutes’ read time, here’s the 10-second TL;DR:

Yes, freelancers should track their time.

It’s one of those things that isn’t strictly essential, but in my experience, it can be very beneficial.

Here are five reasons why I track mine:

1. It makes estimating easier

If I know how long it takes me to write a blog post of a particular length and scope, it’s easier for me to estimate how long it’ll take me to write a similar post (and how much to charge for it).

2. It helps me understand my true hourly rate

I usually don’t bill hourly. My preferred way to be paid is per project — a predetermined flat fee based on the length and scope of a project. However, even this type of work has a true hourly rate that is calculated by taking the total amount paid divided by the total hours spent on the project.

I use a project management tool that actually does this calculation for me — it’s one of the many, many things I love about Moxie. I can easily compare the true hourly rate of different clients to see where I’m making efficiency gains, where I might need to raise my rates, and where I should consider transitioning away from a client I’ve outgrown.

This particular client doesn’t pay the highest project rates, but their briefs are clear, and the assignments are short and easy to write. If I was only looking at the project rates, I might question whether it’s worth it, but my true hourly rate tells a different story.

3. It shows me where I’m spending my time

Balance is incredibly important to me, so I like to keep track of how many hours I work each week and each month, as well as how I’m splitting my time — client work versus admin time versus personal projects like Wishful Working.

This particular week in August 2023 was split roughly like this:

• Client work: 10 hours

• Admin: 1.5 hours

• Wishful Working: 10 hours

4. I ❤️ data

I just do. And you never know how it will come in handy. For example, I recently spoke with a friend who is planning to launch her own newsletter, and I was able to share that I spent around 30 hours on “launch prep” for this newsletter before hitting publish on the first edition. This insight, along with a breakdown of the tasks that made up those 30 hours, hopefully helps her as she works on her newsletter.

5. It’s a habit from Before™

When I worked at a marketing agency, we tracked our time because clients were paying an hourly rate for our services. Each task on my to-do list was timed to facilitate billing, estimating, and project management. As a freelancer, even though I don’t typically charge hourly for my services, I find time tracking is useful for all of the above reasons (and probably more that I’m forgetting).

How to Track Your Time

Basically, you just need to choose a tracking tool and use it. 😂 A kitchen timer or even *gasp* a clock will suffice. There are also a number of time tracking apps and websites. I use Moxie, but I would also recommend Toggl.

I should emphasize — you could never track a single second of your time and still be a successful freelancer. If it works for you like it works for me, great. If not, do your own thing.

See you next week,

Kara