Your timesheet. It may sound like a boring thing to do, but as a self-employed person, it is very important. Whether you are just starting out in business or have been working for years, it is good to keep track of your hours. Because that way you know exactly how much time you spend on which job. And that is not only useful for the tax authorities, but also for yourself. In this article we will tell you why keeping track of hours is important, how to do it and which tools will help you.
Why is time tracking important?
As an entrepreneur, when you keep a good track of how much time you spend on your business, it gives you:
- Better visibility of your work and what you earn per hour.
- A stronger basis for your quotations and invoices.
- More control over your planning and profits.
- an opportunity for tax breaks.
The Inland Revenue gives benefits to entrepreneurs. For example, you get self-employed deduction if you work 1,225 hours a year on your business. That's about 24 hours per week. Without time records, you can't prove that. And as a result, you might miss out on money.
What counts?
Under the hour criterion, not only paid hours count, but also indirect hours. These include:
- customer calls, making offers, administration.
- keeping your marketing, social media and website up to date.
- network or attend a workshop.
In short: everything you do for your business. In this, it is important that you write everything down properly.
How can you track your hours?
There are all kinds of ways to keep track of your hours. What you choose depends on your preference and type of work.
- Excel or Google Sheets
A simple and inexpensive option. You create your own timesheet or use a template. This is handy for beginners, but you have to fill it in manually. - Accounting software or timesheet tool
Tools such as MoneyMonk are especially for self-employed people. They easily link your hours to projects and invoices. This saves you time and ensures overview. MoneyMonk offers accounting functions in addition to time registration. This type of software is ideal if you want to appear professional. Some accounting packages also have a built-in hours module, so check what you already have first. - App on your phone
Useful on the go or if you want to keep track of something quickly. There are apps that automatically track your time. Just be careful about privacy and whether it works well with your accounts.
What exactly do you need to register?
Make sure you note the following points for each registration:
- The date
- A short, clear description of the activity
- The client or project
- The number of hours worked
- Whether direct or indirect hours are involved
It is most convenient to keep track of this daily. Calculating backwards makes it easier to make mistakes.
Common mistakes
Make sure you don't:
- Keeping only billable hours (yes, administration really does count too)
- Fill in everything only afterwards (you just forget)
- No explanation of the activity (e.g. "administration" without explanation)
Conclusion
Good timekeeping is incredibly valuable. Not only because the Tax Administration considers it important, but also because it helps you work smarter and more efficiently. With the right approach, it does not cost you time, but actually saves you time and money. So choose a method that suits you and make it a daily habit.
Want to know more about the hours criterion? Then read our article: Hours criterion zzp 2025 explained.
