Time tracking tools are useful for recording hours worked, but they only solve part of the problem. PSA software goes much further by linking those hours to projects, resources, and profitability.
With basic time tracking, firms can see how much time employees spend on tasks. This helps with payroll and simple billing, but it leaves major gaps. Managers still need to reconcile hours with project budgets, create invoices manually, and guess at utilization rates. The result is often extra admin work and very limited visibility.
PSA software includes time tracking but integrates it directly with project management and financial data. Logged hours automatically connect to rate cards, billing models, and budgets. This means invoices are generated with accurate details, and managers can see whether a project is still profitable as it unfolds. Utilization rates, billable vs non-billable hours, and revenue per resource are all available in real time.
Another difference is scope. Time tracking tools focus on individuals, while PSA looks at the entire business. Managers can see not just how many hours were logged, but also whether resources are overloaded, whether clients are profitable, and whether future demand can be met.
Example: An agency using time tracking alone may know designers logged 120 hours last week. A PSA system, however, shows that 90 of those hours were billable, margins on two projects are at risk, and another campaign cannot start until more capacity is freed.
In short, time tracking tools measure effort, while PSA software measures impact. That‘s why growing service firms upgrade from basic time tracking to Birdview PSA, a complete PSA system.
| Aspect | Time tracking tools | PSA software |
| Focus | Recording hours worked | Linking hours to projects, resources, and profitability |
| Use case | Payroll, basic billing | Project budgets, invoicing, utilization, profitability |
| Scope | Individual effort | Business-wide impact |
| Visibility | Hours per task | Billable vs non-billable, margins, capacity, revenue per resource |
| Admin load | Manual reconciliation and invoicing | Automated, connected to financials and projects |
