Time tracking for business owners: save time and avoid mistakes

Time tracking for business owners isn’t just useful for gaining insight into hours worked; it’s also crucial for tax benefits and efficient bookkeeping. Yet many business owners find it difficult to keep track of this consistently and accurately. In this article, you’ll learn why time tracking is important and how you can easily automate it.

The importance of time tracking

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Accurate time tracking for entrepreneurs is essential for:

Tax benefits: consider the self-employed tax allowance, for which you must be able to demonstrate a minimum of 1,225 hours per year
Invoicing: ensure your clients only pay for hours actually worked
Efficiency: insight into how you spend your time helps you plan better and work more productively
Financial overview: detailed time tracking helps you keep control of your costs and revenues
Transparency: clients and customers can rely on a clear account of hours worked

Common mistakes in time tracking

Many entrepreneurs make mistakes in their time tracking, such as:

Forgetting to track hours, meaning important working time is not recorded
Manual administration, which is error-prone and time-consuming
Failing to distinguish between billable and non-billable hours
Inaccurate data entry, which can lead to disputes with clients or the tax authorities

The solution: automatic time tracking

With a digital tool such as TrackJack, time tracking becomes simple and accurate for business owners. You no longer need to keep track of anything manually. The benefits:

Automatic tracking: no more manual input required
Overviews and reports: immediate insight into your hours worked
Integration with invoicing: save time when creating invoices, for example via the link with Rompslomp
Cloud storage: access your time tracking anytime, anywhere
Less administrative burden: more time to focus on your work

Time tracking and the tax authorities

As an entrepreneur, you need a minimum of 1,225 hours per year to qualify for the self-employed tax deduction. The Tax and Customs Administration may ask for proof. A comprehensive timesheet is your only safeguard. Without a clear overview, you run the risk of having your tax benefit refused.

TrackJack automatically records when you’re driving for work, combined with your time records. This means you always have a complete and reliable overview. Read more about TrackJack’s fully comprehensive time tracking.

Frequently asked questions about time tracking for business owners

How many hours do I need to record per year for the self-employed tax allowance?

You must demonstrate that you have spent at least 1,225 hours per year on your business. This applies to the Tax and Customs Administration’s hours criterion. Always ensure you have a comprehensive record as proof.

Do I also need to record travel time?

Yes, travel time for business journeys counts as hours worked. With TrackJack, you can combine journey tracking and time tracking in a single system.

Can I also export my hours for my accountant?

Yes. TrackJack exports reports as PDFs or Excel files, ready for your accountant or tax return. Read more about exporting journey logs.

How long do I need to keep my time records?

The statutory retention period is 7 years. TrackJack stores your data automatically. Read more about the retention period for your records.

Want to keep track of your hours automatically and without errors?
With TrackJack, you can record your hours and journeys automatically, always clearly visible and ready for the tax authorities or your accountant.

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