Tracking billable hours as a freelancer is crucial for several reasons:
Income Management: It helps you know exactly how much you're earning. This makes it easier to budget and plan your finances.
Fair Pricing: It ensures you charge clients accurately for the work you've done, preventing undercharging or overcharging.
Project Efficiency: You can identify which tasks take up the most time so you can optimize your workflow and improve productivity.
Client Transparency: Providing detailed invoices based on tracked hours builds trust with clients as they see a clear breakdown of where their money is going.
Legal Protection: In case of payment disputes or conflicts, having a record of billable hours can serve as evidence of the work completed.
Tax Deductions: Accurate time tracking helps you claim legitimate deductions on your taxes.
Goal Setting: Tracking hours can help you set realistic goals and benchmarks for your freelance career.