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Key Takeaways

  • Automated time tracking and billing workflows significantly reduce invoice generation time and administrative overhead
  • Proper time tracking implementation significantly reduces billing discrepancies and improves invoice accuracy
  • Daily time entry significantly improves accuracy and reduces unbilled time compared to weekly logging
  • Professional services companies can achieve rapid ROI through reduced revenue leakage and improved billing cycles
  • 91% of employees report frustration with workplace technology—modern time tracking solves a key pain point

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Understanding the Basics of NetSuite Time Tracking

NetSuite Time Tracking is a native ERP module that captures employee hours worked against projects, tasks, or support cases. The system classifies entries as billable or non-billable, routes them through approval hierarchies, and can feed approved time into invoicing and payroll when the proper billing features are enabled, reducing duplicate data entry.

Understanding what NetSuite is and its core capabilities helps contextualize why the time tracking module works so effectively. Unlike standalone time tracking apps that require constant syncing, NetSuite's native approach means your time data lives in the same database as your projects, customers, and financials.

Why Accurate Time Tracking Matters

The financial impact of poor time tracking extends far beyond administrative headaches:

  • Revenue leakage: Firms lose substantial billable hours annually to poor tracking processes
  • Cash flow delays: Manual consolidation adds 2-3 weeks to invoice cycles
  • Project margin blindness: Without real-time data, budget overruns go undetected until it's too late
  • Compliance risk: Incomplete audit trails create exposure during client reviews

Core NetSuite Features for Time Management

The platform provides essential capabilities for comprehensive time management:

  • Weekly timesheet interface with project-task selection
  • Billable vs. non-billable classification at line level
  • Multi-level approval workflows with modification rights
  • Direct integration with project billing and payroll
  • Mobile time entry via NetSuite mobile app
  • Time threshold validation preventing entry errors
  • Custom field support for service types, locations, and notes

Logging Employee Hours in NetSuite

Getting time into the system correctly is the foundation of everything that follows. NetSuite offers multiple entry methods to accommodate different work styles and situations.

Manual Time Entry Process

The primary method for most users involves the weekly timesheet interface:

  1. Navigate to Transactions > Employees > Track Time
  2. Select the customer or project from the dropdown
  3. Choose the relevant task (if project has tasks defined)
  4. Enter hours per day across the week
  5. Mark as billable when applicable
  6. Add memo describing work performed
  7. Submit for approval

For employees who prefer entering time daily, the single-entry form provides a streamlined alternative. This approach improves accuracy since details are fresh, addressing the common problem where weekly "catch-up" time entry produces significant accuracy loss.

Using the Employee Center for Time Logging

Employees with Employee Center access can log time without navigating the full NetSuite interface:

  • Access the Employee Center portal directly
  • View personal timesheet dashboard
  • Enter time against assigned projects
  • Track submission and approval status
  • Review historical entries and corrections

For organizations struggling with user adoption, consider downloading the NetSuite keyboard shortcuts to help employees work more efficiently within the platform.

Mobile Time Entry Options

Field employees and consultants benefit from mobile access:

  • Native NetSuite mobile app supports time entry
  • Offline capability varies by implementation
  • Sync occurs when connectivity returns
  • Geo-tagging available with SuitePeople Workforce Management

Setting Up Time Tracking Preferences and Permissions

Proper configuration determines whether your time tracking system becomes a valuable business tool or a source of frustration. Understanding NetSuite Roles and Permissions is critical before enabling the feature.

Enabling the Time Tracking Feature

The initial setup requires administrator access:

  1. Navigate to Setup > Company > Enable Features
  2. Select the Employees subtab
  3. Check the "Time Tracking" box
  4. Optionally enable "Weekly Timesheets" for enhanced views
  5. Consider "Time Tracking for CRM" if tracking against cases
  6. Save changes

Configuring Key Preferences

Under Setup > Accounting > Preferences > Accounting Preferences, the Time & Expenses subtab contains critical settings:

  • Billable by Default: Auto-marks time as billable when customer selected—use cautiously
  • Require Approval: Enables workflow routing before time posts
  • Auto-round time entries: Sets intervals (15min, 30min, etc.)
  • Allow rate overrides: Permits users to modify billing rates
  • Copy time memos to invoices: Includes work descriptions on client bills
  • Time thresholds: Sets min/max daily/weekly hours to prevent errors

Administering Employee Permissions

Each employee needs proper access configured on their employee record:

  • Enable "Give Access" to allow NetSuite login
  • Assign role with "Track Time" permission
  • Set supervisor field for approval routing
  • Define default work calendar for threshold validation
  • Configure billing class or default hourly rate

For complex permission structures, a NetSuite implementation partner can help design role hierarchies that balance security with usability.

Best Practices for Time Approval Workflows

Approval workflows determine how quickly time moves from entry to invoice. The right design balances oversight with efficiency. Learning how to create workflows opens possibilities beyond basic approval routing.

Basic Approval Structure

The standard approach works well for smaller organizations:

  • Time entries can route to the employee's supervisor automatically when time approvals are enabled and the supervisor field is configured
  • Supervisor sees pending approvals in "Approve Time" queue
  • One-click approve/reject with optional notes
  • Approved time becomes available for billing

Multi-Level Approval Design

Larger organizations or those with compliance requirements need additional layers:

  1. First Level: Direct supervisor reviews for accuracy
  2. Second Level: Project manager validates against budget
  3. Third Level: Finance approves high-value entries

Configure conditions to route only exceptional cases through additional levels. For example, route specific projects, departments, or manually flagged entries to secondary approvers.

Automating Approval Notifications

Effective workflows include automated alerts:

  • Email notifications when time awaits approval
  • Reminders for entries pending beyond threshold days
  • Escalation alerts when bottlenecks form
  • Confirmation messages upon final approval

The goal is reducing the time between entry and approval. For organizations looking to maximize their system, NetSuite automation capabilities extend well beyond time tracking.

Billing Recorded Hours to Customers in NetSuite

Converting approved time into invoices represents the moment value flows from your system to your bank account. NetSuite provides multiple billing approaches depending on your business model.

Time and Materials Billing

The most common model for professional services:

  1. Navigate to Billing > Sales > Create Invoices
  2. Select customer from dropdown
  3. Go to Billable Time subtab
  4. Click "Mark All" or select specific entries
  5. Review billing rates (auto-populated from configuration)
  6. Adjust descriptions or rates as needed
  7. Save invoice

Managing Billing Rates

Rate configuration happens at multiple levels:

  • Employee Level: Default rate on employee record
  • Billing Class Level: Rates by role (Partner, Manager, Analyst)
  • Project Level: Customer-specific negotiated rates
  • Service Item Level: Rates by type of work

Using billing classes instead of employee-specific rates simplifies maintenance. When someone gets promoted, update one billing class record instead of dozens of employee records.

Handling Billable vs. Non-Billable Time

Proper classification prevents both overbilling (damaging client relationships) and underbilling (leaving money on the table):

  • Billable: Direct client work, travel time, deliverable creation
  • Non-billable - Sales: Demos, proposals, prospecting
  • Non-billable - Admin: Internal meetings, training, admin
  • Non-billable - Bench: Unallocated time between projects

For firms serving complex clients, a quick consultation through the 30-minute NetSuite fix can resolve billing configuration challenges rapidly.

Reporting and Analytics for Employee Hours

Data without analysis provides limited value. NetSuite's reporting capabilities transform time tracking data into actionable insights using saved searches and custom reports.

Essential Time Tracking Reports

Build these foundational reports for ongoing visibility:

  • Utilization by Employee: Billable hours / Total hours worked
  • Project Actuals vs. Budget: Real-time burn rate monitoring
  • Unbilled Time Aging: Approved time awaiting invoicing
  • Timesheet Compliance: Employees submitting late or incomplete
  • Revenue by Service Type: Which work generates most value

Creating Custom Utilization Dashboards

For organizations targeting specific utilization rates (commonly 70-80% for professional services), custom dashboards provide real-time visibility:

  • Configure KPI scorecards showing current vs. target utilization
  • Add trend graphs showing weekly/monthly patterns
  • Include department-level breakdowns
  • Display individual employee standings

Analyzing Project Profitability

Connect time tracking data to financial outcomes:

  • Calculate effective hourly rate (revenue / hours worked)
  • Compare budgeted margins to actual margins
  • Identify scope creep through hours variance
  • Track write-offs and their causes

Integrating Time Tracking with Project Management

For service companies using NetSuite, the power of time tracking multiplies when connected to project management capabilities.

Linking Time to Project Tasks

Structured project-task hierarchies enable meaningful analysis:

  • Create projects with defined phases (Discovery, Design, Development, Testing)
  • Assign employees as project resources
  • Set task-level budgets for granular tracking
  • Monitor actual vs. planned at each phase

Resource Allocation Insights

Time tracking data informs future planning:

  • Identify which project types consume more hours than estimated
  • Recognize employees consistently over/under budget
  • Spot capacity constraints before they impact delivery
  • Forecast future resource needs based on historical patterns

Budget Tracking Integration

Real-time visibility prevents project overruns:

  • Configure budget alerts at 75%, 90%, and 100% thresholds
  • Enable project manager notifications when burn rate accelerates
  • Create management dashboards showing portfolio status
  • Link time actuals to revenue recognition schedules

Common Time Tracking Challenges and Solutions in NetSuite

Even well-implemented systems encounter issues. Understanding common problems accelerates resolution.

Time Entries Not Flowing to Invoices

This frequently reported issue has a simple fix:

  • Cause: "Bill Costs to Customers" feature not enabled
  • Solution: Navigate to Setup > Enable Features > Transactions subtab and check the box
  • Workaround: Manually add time to invoices (not recommended long-term)

Employees Cannot See Projects or Tasks

When dropdown lists appear empty:

  • Cause: Employees not assigned as project resources
  • Solution: Add employee to project team OR disable "Show Projects Only" preference
  • Verification: Use saved search to identify unassigned employee-project combinations

Approval Workflow Not Triggering

Submissions sit in limbo without routing:

  • Cause: Missing supervisor on employee record or approver lacking permission
  • Solution: Populate supervisor field; verify approver has "Approve Time" permission
  • Check: Confirm "Require Approval" preference enabled under Accounting Preferences

Time Threshold Warnings Blocking Submission

Legitimate overtime gets rejected:

  • Cause: Daily/weekly thresholds set too restrictively
  • Solution: Adjust thresholds under Accounting Preferences or enable override option
  • Best Practice: Set thresholds as warnings rather than hard stops

For persistent challenges, preparing for a successful NetSuite implementation includes anticipating these common issues during the planning phase.

When to Get Professional Help

Some scenarios warrant expert assistance:

DIY Appropriate:

  • Basic feature enablement
  • Standard approval routing
  • Simple billing integration
  • Creating basic saved searches

Professional Help Recommended:

  • Multi-level approval workflows
  • Complex billing rate logic
  • Intercompany time tracking
  • Custom SuiteScript development
  • Migration from legacy time tracking systems

Why Anchor Group Is Your Trusted NetSuite Time Tracking Partner

While NetSuite provides powerful time tracking capabilities, maximizing their value requires expertise in configuration, workflow design, and integration. As an Oracle NetSuite Alliance Partner with deep experience in professional services implementations, Anchor Group brings specialized knowledge to your time tracking challenges.

What Sets Anchor Group Apart

Anchor Group's consultants specialize in the exact scenarios professional services firms face:

  • Industry Expertise: More of our clients fall in wholesale distribution and professional services than in any other category
  • Practical Approach: We like to earn our keep—and help you earn yours
  • Proven Results: Recognized as Oracle NetSuite Alliance Partner Spotlight Winner for Retail and SuiteCommerce

Client Success Stories

Real feedback from organizations Anchor Group has helped:

“From my first talks with Terry, I had a good feeling about Anchor Group’s work... Within the first two meetings with Basil and Nate, our team’s morale and hope for the future dramatically improved.”
— Janeen Murray, Marketing Director, Douglas Production Technologies

“Mitch has been super helpful in getting us back on track with NetSuite customizations and the implementation of WIP and routings. He is super knowledgeable, and it didn’t take long for him to pick up on our processes.”
— Tripp Perkins, Manufacturing Client

Getting Started

For organizations ready to optimize their time tracking, Anchor Group offers multiple engagement paths:

Working with local NetSuite consultants who understand your industry means faster implementations and better long-term outcomes.

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Frequently Asked Questions

How do employees log time in NetSuite?

Employees access time entry through Transactions > Employees > Track Time, selecting customers/projects, entering hours per day, and submitting for approval. The Employee Center provides a simplified interface for users who don't need full NetSuite access. Mobile entry is available through the NetSuite mobile app, with varying offline capabilities depending on configuration.

Can NetSuite automate the approval of timesheets?

Yes, NetSuite supports automated approval workflows ranging from simple single-level routing (employee to supervisor) to complex multi-level processes. Conditions can route specific scenarios—like specific projects or departments—through additional approval stages while allowing standard entries to process quickly. Email notifications keep approvers informed of pending items.

How does NetSuite handle different billing rates for employee hours?

NetSuite supports rates at multiple levels: employee-specific rates, billing class rates (by role), project-specific negotiated rates, and service item rates. The system applies rates hierarchically, allowing customer-specific pricing to override defaults. This flexibility accommodates complex pricing structures while maintaining consistency.

What reports are available in NetSuite for time tracking analysis?

Standard reports include timesheet summaries, utilization analysis, and project time summaries. Custom saved searches enable advanced reporting including utilization by employee/department, project actuals vs. budget, unbilled time aging, and revenue by service type. Dashboards can display real-time KPIs for management visibility.

Is it possible to track both billable and non-billable hours in NetSuite?

Absolutely. Each time entry includes a billable checkbox, and organizations can create categories for non-billable work (Sales, Admin, Bench, Training). This classification enables accurate utilization analysis and ensures only appropriate time appears on client invoices. Detailed tracking of non-billable categories often reveals optimization opportunities.

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Disclaimer: This content is for general informational purposes only and may not reflect current updates or your specific configuration—please confirm details with your Anchor Group consultant.

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