Accounting timesheet template for CPAs: Examples, best practices, and compliance tips

An accounting timesheet is a detailed record of the time CPAs and accountants spend on clients, projects, and tasks. Unlike generic payroll timesheets, accounting timesheets are crucial for billing accuracy, tracking billable vs. non-billable hours, and maintaining compliance.

This article provides a free, downloadable accounting timesheet template and guidance to improve your firm’s profitability and efficiency. It’s tailored for:

CPAs running small-to-mid-sized firms (1–25 employees)
CPAs working with government entities or contractors
Partners and firm owners focused on profitability and compliance

What is an accounting timesheet?

An accounting timesheet is a structured record of hours CPAs and accountants spend on client work, matters, or internal firm projects. Its function goes well beyond simply tracking employee payroll, as it links directly to the firm’s invoicing accuracy, adherence to standards, and financial health.

While general employee timesheets serve HR, CPA timesheets capture granular data like billing increments and matter numbers. This detail is vital for accurate invoicing and meeting stringent compliance requirements.

Here’s how a well-maintained accounting timesheet supports firm performance:

Billing accuracy: Reduces write-offs and improves invoicing, ensuring compensation for all work.
WIP accounting: Tracks in-progress work, clarifying your firm’s cash flow.
Utilization rate tracking: Measures staff efficiency and profitability by monitoring billable hours.
Compliance: Helps adhere to PCI billing guidelines and other regulatory requirements.

Free accounting timesheet template for CPAs

We’ve created a free, downloadable accounting timesheet template specifically for CPAs. However, a template’s value largely depends on the data entered. The rest of this article will guide you on how to use it effectively.

Our free template includes:

Client and project codes: Helps you understand profitability and allocate resources effectively.
Task description for billing: Quick task notes support billing accuracy and client transparency. Example: “Reviewed Q2 tax filings with client X; prepared adjustments for IRS compliance” is more descriptive than “client meeting.”
Billable vs. non-billable hours: Essential for accurate utilization tracking and audit purposes.
Legal billing increments: Accommodates common industry standards, such as 6- or 15-minute billing increments.

You can customize the template for weekly, biweekly, or monthly reporting to align with your billing cycle.

Fill out the form to download your free CPA timesheet template and start improving billing accuracy today.

The template is a great starting point, but real value comes from recorded details. Next, we’ll explore key elements for an effective CPA timesheet.

Key elements of an effective CPA timesheet

The following elements make timesheets a powerful tool for CPAs:

Client and project codes

Tracking time by client or project codes is fundamental to understanding your firm’s profitability. These codes enable job costing, assigning costs to specific jobs or projects. Analyzing time and resources spent on each helps identify the most and least profitable clients/projects. This data-driven insight informs decisions on pricing, resource allocation, and client relationships.

For more, see these project best practices.

Billable vs. non-billable hours

The distinction between billable hours and non-billable hours is crucial for measuring your firm’s financial health. Billable hours are client-related tasks charged to the client (e.g., tax returns, audits). Non-billable hours include administrative tasks, business development, or internal training. Accurate tracking of both allows calculation of your firm’s utilization rate—the percentage of total work hours that are billable. A higher utilization generally indicates greater profitability.

Task descriptions for billing

Detailed task descriptions are essential for transparency, client trust, and compliance. A vague entry like “Client meeting” offers little value. A detailed description, such as “Reviewed Q2 tax filings with client X; prepared adjustments for IRS compliance,” clearly communicates the work performed and justifies the billed amount. This level of detail is invaluable during audits, providing a clear record.

For more tips, see time management for CPAs.

Approvals and sign-offs

Requiring partner or manager approval for timesheets is part of an effective internal control process. This ensures accuracy and compliance with regulations like DCAA and PCI billing standards before invoicing. It also prevents errors leading to billing disputes or audit issues. Ultimately, an approval workflow adds accountability and reinforces accurate timekeeping.

Best practices for accounting timekeeping

Understanding timesheet elements is the first step; applying best practices is the next. Follow these processes to improve billing accuracy, compliance, and staff efficiency.

Standardize billing increments: Adopt a standard for billing increments, such as 6- or 15-minute intervals. This consistency, often guided by ABA billing standards, avoids client disputes and ensures transparency.
Encourage real-time entry: Logging time as tasks are completed is more accurate than reconstructing your week later. Real-time entry improves utilization rate accuracy and client invoicing.
Train staff on detailed yet efficient task descriptions: Provide clear guidelines and examples for task descriptions. Standardization reduces confusion during invoicing and audits.
Use integrations to sync timesheets with billing software: Integrating timekeeping with billing software reduces manual entry and minimizes errors. Our integration partner, Bill4Time, is an excellent example.

While these best practices enhance timekeeping efficiency, CPAs must also consider compliance requirements that directly impact billing and audits.

Compliance considerations for CPA timesheets

For CPAs, accurate timekeeping isn’t just about billing—it’s about meeting professional standards, avoiding penalties, and maintaining client trust. Here are three key compliance areas where timesheets are critical.

DCAA-compliant timesheets

For firms with government contractors, a DCAA-compliant timesheet is essential. The Defense Contract Audit Agency (DCAA) has strict timekeeping requirements to prevent fraud and ensure proper use of taxpayer money. Key requirements include real-time entry, supervisor approvals, and a clear audit trail.

While not all CPAs deal with DCAA, firms handling government contracts must comply with these stricter rules. Many small- to mid-sized CPA firms handle contracts requiring DCAA standards.

For more details, see best practice for government compliance.

Scope creep and WIP accounting

Scope creep—work expanding beyond the original agreement—is a common challenge for CPA firms. Timesheets are your first defense. Tracking hours against budget identifies scope creep early.

This ties to WIP (work in progress) accounting, which reflects work performed but not yet billed, preventing revenue leakage. Strong compliance protects firms from penalties and improves billing accuracy, directly impacting overall profitability.

FLSA requirements for CPAs

The Fair Labor Standards Act (FLSA) requires employers to maintain accurate records of hours worked for non-exempt employees. This includes daily and weekly hours, regular hourly rate, and overtime earnings. For CPA firms with employees, timesheets are essential for FLSA compliance.

Non-compliance can lead to penalties, disputes, and lawsuits. An FLSA-compliant timesheet entry should capture start and end times, and overtime.

Complement timesheets with accounting, billing, and payment software

Templates are a good first step, but as your firm grows, you’ll need more efficient ways to connect time tracking with billing and payments. This is where accountant billing software and payments for accountants become vital. 8am™ CPACharge is designed to complement your timesheet process and help your firm get paid faster.

Pairing timesheets with CPACharge ensures that tracked hours seamlessly convert into invoices and client payments. This integration improves cash flow, reduces write-offs, and streamlines your entire billing process. Timesheets capture hours; CPACharge ensures those hours translate into accurate invoices and secure payments.

Start with the free CPA timesheet template today, then explore CPACharge’s billing and payment tools. Schedule a demo or sign up to streamline your firm’s billing and payments.

CPA Timesheet FAQs

Here are common questions CPAs have about timesheets.

What is a timesheet in accounting?

A timesheet in accounting is a detailed record of the time a CPA or accountant spends on tasks, clients, and projects. It’s a critical tool for billing accuracy, tracking profitability, and maintaining compliance.

Can timesheets differentiate billable vs. non-billable hours?

Yes. A well-designed timesheet allows categorization of time as billable (e.g., preparing client tax returns) or non-billable (e.g., internal training). This distinction is essential for calculating utilization rates and profitability.

How often should CPAs submit timesheets?

For the greatest accuracy, CPAs should record time daily. At a minimum, timesheets should be submitted weekly. Real-time or frequent entry reduces errors and improves utilization tracking.

What makes a timesheet DCAA compliant?

A DCAA-compliant timesheet must meet strict requirements: real-time recording of all hours, detailed task descriptions, and daily supervisor approval. The system must also have a clear audit trail of all changes.

How can timesheet data improve firm profitability?

Timesheet data directly feeds into key metrics like job costing and staff utilization rates. This leads to more precise and timely invoicing, which improves cash flow and strengthens client trust, driving overall firm profitability.