Project Time Tracking: From Excel to Professional Tools

Jul 28, 2025 by Alexander Huber

Excel is the starting point for project time tracking in many companies. It is flexible, immediately available, and almost everyone can use it. What works at the beginning reaches its limits over time: larger teams, more projects, more complex billing, and the need for meaningful reports make Excel confusing and error‑prone.

A professional time tracking system can make a decisive difference. It reduces manual work, prevents data chaos, and provides reliable evaluations at any time. To make the switch successful, you need planning and structure. This guide shows you how to master the transition step by step.

1. Analyze the current situation

Before you think about tools, you should know exactly how your current time tracking works and where the weak points are.

Inventory questions

• What data do you currently record? (projects, activities, customers, budgets, hourly rates)
• Who records the data and at what frequency?
• What reports and evaluations are required?
• Are there legal requirements to consider (e.g., working time regulations, GDPR)?

2. Define requirements and goals

The choice of the right system depends on your goals. Define in advance what you want to achieve.

• Efficiency: fewer manual entries, less duplicate work
• Transparency: real‑time overview of project progress and team utilization
• Accuracy: minimize typos and formula errors
• Integration: connect to accounting, project management, or CRM
• Scalability: reliable for larger teams and complex projects

3. Prepare master data

Clean master data is the foundation for any functioning time tracking.

This includes:

• Customers
• Projects
• Activities
• Hourly rates and budgets

Consider where this data should come from in the future:

• Manual maintenance directly in the new system
• Import from Excel
• Automated transfer from other programs (e.g., ERP or CRM)

4. Configure attendance and work time tracking

A modern time tracking system like time cockpit can do more than store project time. To use it optimally, define key parameters:

• Work time models (full‑time, part‑time, flexitime)
• Absence rules (vacation, sick leave, compensatory time)
• Holiday calendars for different locations
• Access rights and roles for different groups
• Passive booking locks to freeze data after a set period
• Working time checks and notifications for rule violations

5. Decide on usage scenarios

Clarify whether the new system will be used only for project time tracking or also for attendance time tracking.

• Project only: focus on billable work and project documentation.
• Project and attendance: combine work time records, break rules, and project work.

Regardless of the variant, clear communication to employees is essential. Define when and how time must be recorded.

6. Use automation options

Many modern systems offer automatic time tracking, for example via background tracking or integrations with other applications.

Benefits:

• More precise data
• Less effort to record time
• Better traceability

Automation should be introduced transparently so employees understand it is about making work easier, not about surveillance.

7. Integrate project billing

If you want to bill directly based on recorded time, define a clear billing concept in advance.

• Will billing happen in the time tracking system or an external program?
• Which data will be transferred (booked time, hourly rates, project costs)?
• At what point will bookings be locked for billing?

8. Tailor the system and set up reports

Every company has specific needs. Determine what customization is necessary.

• Extend the data model with specific fields
• Custom dashboards for project leads, management, or accounting
• Automated reports for customers or internal analysis

9. Plan integrations

A professional time tracking system should fit seamlessly into your software landscape.

Common integrations:

• Project management tools (Jira, Asana, Trello)
• Accounting systems
• HR software for absence management
• Ticket and support systems

10. Define roles and permissions

Permission management ensures data security and clear responsibilities.

Typical roles:

• Administrators for system and user settings
• Project leads for project‑related data
• Employees with access to their own time entries

11. Migrate data from Excel

Migrating existing data is often the most critical step in the transition.

Recommended approach:

1. Clean data (duplicates, typos, incomplete entries)
2. Test import with a small dataset
3. Full migration of relevant data (projects, customers, activities, historical bookings, absences)
4. Review and approval by responsible stakeholders

Conclusion

Switching from Excel to a professional project time tracking system like time cockpit is more than changing software. It is an opportunity to simplify processes, eliminate sources of error, and make informed decisions based on reliable data.

With a careful inventory, clear goals, prepared master data, and a structured migration, you lay the foundation for time tracking that works today and grows with your future needs.