Time Tracking Standard Operating Procedure
Accurate time capture for billing, project management, and resource optimization
Service Pillar: Cross-Pillar (All Services)
Service Category: Operations & Finance
Engagement Type: All Engagements
Related Pricing: See Pricing & Positioning
Service Overview
Purpose
Establish consistent, accurate time tracking practices that support accurate client billing, project budget management, resource planning, and engagement profitability analysis across all SBK service engagements.
Target Personas
| Persona |
Primary Pain Point |
Value Case |
| Solo IT Director |
Needs budget predictability |
Transparent time and cost reporting |
| CFO/Controller |
Requires invoice accuracy |
Detailed, verifiable time records |
| CTO/VP Engineering |
Wants progress visibility |
Time vs. deliverable correlation |
| Healthcare Admin |
Audit documentation needs |
Comprehensive time documentation |
| Managing Partner |
Cost control requirements |
Budget adherence tracking |
Business Justification
Time Tracking Framework
Tracking Requirements by Engagement Type
┌─────────────────────────────────────────────────────────────────┐
│ TIME TRACKING MATRIX │
├─────────────────────────────────────────────────────────────────┤
│ │
│ FIXED-FEE PROJECTS │
│ ├── Track: All billable hours │
│ ├── Purpose: Budget management, profitability │
│ ├── Granularity: Task-level (0.25 hour minimum) │
│ └── Reporting: Internal only (not client-facing) │
│ │
│ TIME & MATERIALS PROJECTS │
│ ├── Track: All billable + non-billable hours │
│ ├── Purpose: Client billing, budget tracking │
│ ├── Granularity: Task-level (0.25 hour minimum) │
│ └── Reporting: Client invoice detail required │
│ │
│ RETAINER ENGAGEMENTS │
│ ├── Track: Hours against retainer allocation │
│ ├── Purpose: Utilization, overage/carryover │
│ ├── Granularity: Activity-level (0.25 hour minimum) │
│ └── Reporting: Monthly summary to client │
│ │
│ MANAGED SERVICES │
│ ├── Track: Ticket-based time for analysis │
│ ├── Purpose: SLA tracking, resource planning │
│ ├── Granularity: Ticket-level │
│ └── Reporting: Internal metrics (not client billing) │
│ │
│ INTERNAL / NON-BILLABLE │
│ ├── Track: All time by category │
│ ├── Purpose: Utilization, capacity planning │
│ ├── Granularity: Category-level (0.5 hour minimum) │
│ └── Reporting: Internal management │
│ │
└─────────────────────────────────────────────────────────────────┘
Time Entry Timing Requirements
| Requirement |
Standard |
Deadline |
| Daily entry |
Recommended |
End of each day |
| Weekly completion |
Required |
Friday 5:00 PM |
| Weekly submission |
Required |
Friday 6:00 PM |
| Monthly close |
Required |
2nd business day |
| Corrections |
Allowed |
Within billing period |
Time Entry Standards
Required Fields
| Field |
Description |
Example |
| Client |
Client name from system |
"Acme Healthcare" |
| Project |
Engagement/project code |
"ACME-HIPAA-2026" |
| Task |
Specific activity code |
"Gap Analysis" |
| Hours |
Time in decimal hours |
2.50 |
| Date |
Work date |
2026-02-06 |
| Description |
Work performed |
"Interviewed IT Director re: access controls" |
| Billable |
Yes/No |
Yes |
Task Code Structure
Project Code Format: [CLIENT]-[SERVICE]-[YEAR]
Example: ACME-HIPAA-2026
Task Codes by Phase:
├── DISCOVERY — Initial discovery and kickoff
├── ASSESSMENT — Assessment and analysis work
├── DOCUMENTATION — Report writing and documentation
├── REVIEW — Internal and client review cycles
├── DELIVERY — Presentation and delivery
├── ADMIN — Administrative and coordination
└── TRAVEL — Travel time (if billable)
Activity Categories by Service Pillar
| Pillar |
Activity Codes |
| PROTECT |
RISK-ASSESS, GAP-ANALYSIS, PENTEST, POLICY-DEV, TRAINING, INCIDENT |
| PLAN |
STRATEGY, ROADMAP, BUDGET-OPT, VENDOR-SELECT, DUE-DILIGENCE, ADVISORY |
| OPERATE |
SOC-OPS, EDR-MGMT, VULN-MGMT, HELPDESK, NETWORK-OPS, CLOUD-OPS |
| INNOVATE |
CLOUD-MIGRATE, AUTOMATION, AI-IMPL, DIGITAL-WP |
Non-Billable Categories
| Code |
Description |
Examples |
INTERNAL-ADMIN |
Internal administration |
Team meetings, training |
INTERNAL-BD |
Business development |
Proposals, prospecting |
INTERNAL-MARKETING |
Marketing activities |
Content creation, events |
INTERNAL-TRAINING |
Professional development |
Certifications, courses |
INTERNAL-MGMT |
Management activities |
Reviews, planning |
PTO |
Paid time off |
Vacation, sick, holiday |
Time Entry Guidelines
Entry Quality Standards
## Good Time Entry Example
Client: Acme Healthcare
Project: ACME-HIPAA-2026
Task: GAP-ANALYSIS
Date: 2026-02-06
Hours: 3.25
Billable: Yes
Description: Conducted on-site interviews with IT Director and HR Manager
regarding access control procedures. Reviewed current identity management
system configuration. Identified 4 potential gaps in user provisioning
process. Documented findings in working papers.
## Poor Time Entry Example (AVOID)
Client: Acme
Project: HIPAA
Task: Work
Date: 2026-02-06
Hours: 3
Description: Client meeting
Issues:
- Vague client reference
- Incomplete project code
- Generic task
- Insufficient description
- Rounded hours
Description Requirements
| Engagement Type |
Description Requirement |
Minimum Content |
| T&M |
Detailed (client-visible) |
Who, what, where, outcomes |
| Fixed Fee |
Moderate (internal tracking) |
Activity and outputs |
| Retainer |
Activity-level |
Service category and action |
| Managed Services |
Ticket reference |
Ticket # and resolution summary |
Rounding Rules
| Time Spent |
Entry |
| 1-15 minutes |
0.25 hours |
| 16-30 minutes |
0.50 hours |
| 31-45 minutes |
0.75 hours |
| 46-60 minutes |
1.00 hours |
Approval and Submission Workflow
Weekly Submission Process
┌─────────────────────────────────────────────────────────────────┐
│ WEEKLY TIME WORKFLOW │
├─────────────────────────────────────────────────────────────────┤
│ │
│ MONDAY - THURSDAY │
│ ├── Enter time daily (recommended) │
│ └── Minimum: Enter before leaving for day │
│ │
│ FRIDAY │
│ ├── Complete all entries by 5:00 PM │
│ ├── Self-review for accuracy and completeness │
│ ├── Submit timesheet by 6:00 PM │
│ └── Flag any budget concerns to Engagement Lead │
│ │
│ FRIDAY EVENING / MONDAY │
│ ├── Manager review of submitted time │
│ ├── Approve or request corrections │
│ └── Escalate budget variances as needed │
│ │
│ MONTHLY CLOSE (2nd Business Day) │
│ ├── All corrections submitted │
│ ├── Manager final approval │
│ └── Finance locks period │
│ │
└─────────────────────────────────────────────────────────────────┘
Approval Matrix
| Time Entry Type |
First Approval |
Second Approval |
| Standard billable |
Engagement Lead |
Auto-approved |
| Over-budget time |
Engagement Lead |
Account Manager |
| Non-billable (client) |
Engagement Lead |
Account Manager |
| Non-billable (internal) |
Direct Manager |
Auto-approved |
| Corrections |
Engagement Lead |
Finance (if billed) |
Budget Management Integration
Budget Tracking
| Level |
Tracked By |
Reporting |
Action Threshold |
| Task |
Consultant |
Real-time |
80% consumed |
| Engagement |
Engagement Lead |
Weekly |
75% consumed |
| Account |
Account Manager |
Weekly |
80% consumed |
| Portfolio |
Practice Lead |
Monthly |
Trend analysis |
Budget Alerts
Budget Alert Levels:
├── 50% Consumed → Informational (no action)
├── 75% Consumed → Review required (assess remaining scope)
├── 90% Consumed → Escalation to Account Manager
├── 100% Consumed → Stop work, client communication required
└── Over Budget → Executive approval for additional work
Time vs. Budget Reporting
## Weekly Budget Status Template
**Engagement**: {{engagement_name}}
**Week Ending**: {{week_end_date}}
| Category | Budget | Actual | Remaining | % Used |
|----------|--------|--------|-----------|--------|
| Discovery | 40 hrs | 38 hrs | 2 hrs | 95% |
| Assessment | 80 hrs | 45 hrs | 35 hrs | 56% |
| Documentation | 40 hrs | 10 hrs | 30 hrs | 25% |
| Review | 20 hrs | 5 hrs | 15 hrs | 25% |
| **Total** | **180 hrs** | **98 hrs** | **82 hrs** | **54%** |
**Status**: On track
**Notes**: Discovery phase slightly over due to additional stakeholder interviews.
Offset expected in documentation phase.
Client Billing Integration
Invoice Data Requirements
| Engagement Type |
Invoice Detail |
Time Data Required |
| Fixed Fee |
Milestone-based |
Internal tracking only |
| T&M |
Detailed hours |
Full descriptions |
| Retainer |
Summary hours |
Category breakdown |
| Managed Services |
Flat fee |
N/A (metrics-based) |
T&M Invoice Template
## Time & Materials Invoice Detail
**Invoice #**: {{invoice_number}}
**Period**: {{billing_period}}
| Date | Consultant | Hours | Description | Rate | Amount |
|------|------------|-------|-------------|------|--------|
| 2/1 | J. Smith | 4.00 | Gap analysis interviews | $250 | $1,000 |
| 2/2 | J. Smith | 3.50 | Control documentation review | $250 | $875 |
| 2/3 | A. Jones | 2.00 | Technical architecture review | $275 | $550 |
**Total Hours**: 9.50
**Total Amount**: $2,425
Retainer Utilization Report
## Monthly Retainer Summary
**Client**: {{client_name}}
**Period**: {{month_year}}
**Retainer Hours**: {{retainer_hours}}
### Utilization Summary
| Category | Hours | % of Retainer |
|----------|-------|---------------|
| Strategic Advisory | 8.0 | 40% |
| Security Consultation | 6.5 | 32% |
| Policy Review | 4.0 | 20% |
| Ad-hoc Support | 1.5 | 8% |
| **Total Used** | **20.0** | **100%** |
### Carryover/Overage
- Prior Month Carryover: 0 hours
- Current Month Overage: 0 hours
- Rollover to Next Month: 0 hours
Quality and Compliance
Time Entry Audit
| Audit Type |
Frequency |
Scope |
Owner |
| Weekly review |
Weekly |
All entries |
Engagement Lead |
| Monthly audit |
Monthly |
Sample 10% |
Finance |
| Quarterly compliance |
Quarterly |
Full review |
Practice Lead |
| Annual audit |
Annual |
Comprehensive |
External/Internal Audit |
Common Issues and Prevention
| Issue |
Prevention |
Detection |
| Missing entries |
Daily entry reminders |
Weekly report review |
| Vague descriptions |
Training, templates |
Manager review |
| Incorrect project codes |
Project code lookup |
System validation |
| Misallocated time |
Budget tracking |
Variance analysis |
| Late submissions |
Deadline automation |
Compliance tracking |
Metrics and Reporting
Time Tracking Metrics
| Metric |
Target |
Measurement |
Frequency |
| On-time submission |
98%+ |
Deadline compliance |
Weekly |
| Entry completeness |
100% |
Required fields filled |
Weekly |
| Description quality |
95%+ |
Audit samples |
Monthly |
| Budget accuracy |
±5% |
Forecast vs. actual |
Per engagement |
| Utilization rate |
75-85% |
Billable/available |
Weekly |
Utilization Calculation
Utilization Rate = Billable Hours / Available Hours × 100
Where:
- Available Hours = 40 hrs/week - PTO - Holidays
- Target Range: 75-85%
Example:
- Billable: 32 hours
- Available: 40 hours
- Utilization: 32/40 = 80% ✓
Time Tracking System Requirements
| Feature |
Requirement |
| Real-time entry |
Mobile and desktop access |
| Project/task hierarchy |
Client → Project → Task → Activity |
| Budget tracking |
Real-time budget consumption |
| Approval workflow |
Multi-level approval support |
| Reporting |
Standard and custom reports |
| Integration |
Billing, PSA, accounting systems |
Integration Points
| System |
Integration |
Data Flow |
| PSA/PM Tool |
Bidirectional |
Projects, tasks, budgets |
| Accounting |
One-way |
Approved time → billing |
| Payroll |
One-way |
Hours → compensation |
| Analytics |
One-way |
Metrics, dashboards |
Integration with Other Procedures
Service-Specific Time Tracking
Available Templates
Evidence Base
Why This Approach Works
| Principle |
Evidence |
Source |
| Real-time tracking improves accuracy |
20-30% more accurate |
Replicon |
| Daily entry reduces revenue leakage |
5-15% recovery |
HBR |
| Budget visibility improves delivery |
40% better outcomes |
Kantata |
| Compliance tracking reduces disputes |
60% fewer billing disputes |
TSIA |
Last Updated: February 2026
Version: 1.0