From Jobsite to Invoice: Using Time Tracking Software to Speed Up Construction Billing

Construction companies face a persistent challenge that quietly drains their profitability: 

“the massive gap between completing work and getting paid for it.”

While crews are hammering, welding, and building in the field, a slow-moving administrative process often creates weeks or months of delay before that work translates into cash in the bank.

Consider this sobering reality. The average construction payment cycle stretches to 57 days, with some contractors waiting as long as 94 days to collect payment. That is more than three times the standard 30-day business payment cycle. This inconvenience is a financial crisis that forces 40% of subcontractors to keep half their profits in reserve just to cover cash flow gaps. When 29% of contractors report that overdue invoices directly stall project progress, we’re looking at a systemic problem that demands a systematic solution.

The Hidden Costs of Manual Time Tracking

To understand why billing moves so slowly in construction, we need to trace the journey from jobsite work to invoice generation. The problem begins the moment a worker clocks in for the day.

The statistics reveal just how broken this system has become. Studies show that crews using paper-based timesheets need to correct 80% of the timecards they receive. These seem to be minor clerical errors, but they can trigger wage audits, FLSA violations, and billing disputes.

But the problem extends beyond accuracy. The manual process creates a fundamental disconnect between field operations and back-office billing. While general contractors expect payments within 30 days of submitting pay applications, subcontractors actually wait an average of 56 days for payment. 

• 72% of subcontractors now wait longer than 30 days (up from 49% in 2022).
• 73% report paying for supplies out of pocket due to late invoices.
• 43% lack sufficient working capital to handle delays.

The financial strain is palpable. Some firms have resorted to “picking and choosing” which invoices to pay first, creating a cascade of payment delays throughout the construction supply chain.

From Jobsite to Invoice: How Time Tracking Software Bridges the Gap

As a solution to the aforementioned problems, construction time tracking software creates a smooth digital bridge from jobsite work to invoice generation. Instead of the fragmented, error-prone manual process, this digital solution creates an integrated workflow that captures, validates, and processes time data in real-time.

Let’s walk through how this transformation works in practice.

Companies that have made this transition report remarkable improvements. Businesses using automated time tracking systems have eliminated over $666,000 per year in lost productivity by removing manual timecard processing.

Key Features That Accelerate Billing

Understanding the specific features that drive faster billing helps illuminate why digital time tracking creates such dramatic improvements over manual methods.

GPS-Enabled Clock-Ins

GPS-enabled clock-ins serve as the foundation of accurate time tracking. When workers clock in, the system automatically captures their location, preventing time theft and providing indisputable proof that work was performed on-site. An advanced system also lets workers attach photos or GPS evidence to their timesheets, giving both contractors and clients clear proof of work performed on-site. The location verification also eliminates “buddy punching”, the practice of one worker clocking in for another who isn’t actually present.

Mobile Timesheets

Mobile timesheet capabilities transform how field teams interact with time tracking. Workers and supervisors can log hours, add notes, and make corrections in real-time, ensuring that time data is captured when details are most accurate. This real-time logging prevents the common problem of lost or forgotten hours that occurs when teams rely on end-of-day or end-of-week reporting.

Overtime & Compliance Controls

Automated overtime and compliance controls protect companies from costly violations while ensuring accurate billing. The system can be configured with specific overtime rules, automatically flagging when workers approach overtime thresholds. Given that Department of Labor audits can recover thousands of dollars per case, these automated compliance features provide significant risk reduction.

Crew-Level Approvals

Instead of one person manually reconciling all crews’ timecards, supervisors can review and approve their team’s hours through an intuitive mobile interface. This distributed approval process catches errors while details are fresh and reduces bottlenecks that slow down the billing process.

Accounting/Payroll Integrations

Accounting integrations eliminate the data entry step that traditionally created delays and errors. When time tracking systems sync directly with accounting software, approved hours automatically become available for invoice generation. This integration can slash invoice preparation time because labor data automatically flows into the billing system, complete with proper job codes and billing rates.

The cumulative impact of these features is substantial. Automating timekeeping reduces payroll mismatches, dramatically cutting down on late corrections and payment delays. When implemented comprehensively, these digital tools can transform weeks of invoicing lag into days or even hours.

Real-World Applications in Construction

To fully appreciate the impact of digital time tracking software, it’s helpful to examine how these systems work in specific construction scenarios that teams encounter every day.

Subcontractor Billing

Consider a plumbing subcontractor working on multiple commercial projects simultaneously. With traditional paper timesheets, tracking which hours belong to which project often involves guesswork and approximation. Workers might forget to note when they switched from one job to another, or supervisors might make assumptions about time allocation when reviewing weekly timecards.

Digital time tracking eliminates this ambiguity. Workers can switch between project codes with a simple tap on their mobile device, creating precise records of time spent on each job. When it comes time to bill the general contractor, the subcontractor has detailed, GPS-verified records showing exactly when work was performed and where. This precision not only speeds up invoice processing but also reduces disputes that can delay payment.

Progress Billing (milestones)

Progress billing for milestone-based contracts benefits significantly from granular time tracking. Many construction contracts tie payment to the completion of specific milestones or phases of work. With traditional tracking methods, determining how much labor has been invested in reaching a particular milestone often requires estimates and approximations that can lead to disputes.

Modern time tracking systems allow contractors to tag hours directly to specific milestones or phases. When a milestone is reached, the system can instantly generate reports showing exactly how much labor was invested in that phase, complete with timestamps and location verification. This documentation supports progress billing submissions and provides clients with transparent, verifiable records of work performed.

Cost-Plus Contracts

Cost-plus contracts present another scenario where accurate time tracking directly impacts billing speed and accuracy. In these cases, contractors bill clients for actual costs plus a predetermined fee or percentage. The key to successful cost-plus billing is maintaining detailed, accurate records of all labor hours and associated costs.

Digital time tracking creates the detailed audit trail that cost-plus contracts require. Every hour is captured with precise timestamps, location verification, and project coding. When combined with equipment and material tracking, this data provides the comprehensive cost documentation that clients need to approve invoices quickly. The transparency and accuracy of digital records often lead to faster approval cycles and fewer billing disputes.

The Financial Impact of Faster Billing

Faster billing means optimized cash flow, and it directly improves your bottom line. Here’s how:

Cash Flow Gets Better

Cash flow improvements represent the most immediate and measurable benefit. In an industry where the Construction Financial Management Association reports that 61% of small businesses struggle with cash flow, and 82% of failed companies cite cash issues as the primary cause, every day of receivables matters tremendously. When companies can reduce their days sales outstanding (DSO) from the industry average of 94 days toward the standard 30-day business cycle, they free up massive amounts of working capital.

Better cash flow also means you can negotiate better deals with suppliers, avoid expensive loans, and bid more competitively on new projects.

Lower Bid Prices, Same Profits

The numbers tell a compelling story. Studies show that contractors add as much as 10% to their bids just to buffer against late payments. When you get paid faster, you don’t need this extra padding. You can bid lower prices and still make the same profit, giving you a big advantage over competitors who are still dealing with slow payments.

Fewer Billing Disputes

Dispute reduction provides another significant financial benefit that’s often overlooked. Construction is notorious for “he said, she said” disagreements over hours worked. But, GPS timestamps and photos make it nearly impossible for customers to argue about when or where work was done. When invoices include precise timestamps and location data, clients rarely pushback on billing accuracy. This means fewer billing disputes, faster approvals, and less time spent on paperwork. Your office staff can focus on growing the business instead of fighting over invoices.

Less Administrative Work

Digital time tracking eliminates hours of manual work each week. Some companies have been able to eliminate entire positions that were previously needed just to process paper timecards. This frees up money and people for more important work like finding new customers and managing projects.

How Arrivy Transforms Construction Time Tracking

Generic time-tracking tools offer basic features but often fall short for construction. Complex construction workflows require specialized functionality, and Arrivy is built for those needs. It’s time tracking ties GPS-verified clock-ins, photos, and job notes directly to QuickBooks-ready billing, and provides the following specialized features to close the gap between jobsite work and accurate, timely invoicing.

Time Reports

The platform’s Time Reports functionality provides the granular insights construction managers need to understand how time is being allocated across projects and activities. Unlike simple clock-in/clock-out systems, Arrivy tracks individual team members’ hours across multiple factors, including task time, travel time, and total time spent. This level of detail is crucial for construction companies that need to bill accurately for different types of work and understand the true cost of project completion.

Team Time Sheet

Team Time Sheet capabilities go beyond simple time tracking to provide the detailed categorization construction companies need for accurate billing and compliance reporting. The system automatically logs time spent on different activities, categorizing work into travel time, active work time, and non-work periods like breaks or lunches. This categorization is essential for construction companies that need to bill clients accurately for different types of time and maintain compliance with labor regulations.

Team Utilization Chart

The Team Utilization Chart transforms raw time data into actionable business intelligence. The horizontal stacked bar chart displays time spent by each team member, segmented into task and travel time, helping construction managers identify productivity trends and optimize crew allocation. This visualization makes it easy to spot team members who might need additional training or support, or to identify projects that are consuming more travel time than anticipated.

Status-Based Time Tracking

Status-based time tracking integration addresses one of construction’s unique challenges: “the need to track time across multiple project phases and milestones.” Arrivy allows time tracking to be tied to specific status changes, such as “Moving to Storage” or “Installation Complete,” automatically capturing elapsed time and relevant details like mileage. This automated approach ensures that time is captured accurately without requiring workers to remember to manually log status changes.

Integration with Scheduling

Integration with scheduling capabilities creates a seamless connection between project planning and time tracking. Tasks can be rescheduled directly from the calendar view, with time adjustments automatically reflected in reports. This integration ensures that schedule changes are immediately reflected in time tracking and billing systems, preventing discrepancies that can cause billing disputes.

Live tracking capabilities allow customers and project schedulers to monitor real-time progress, including travel and task durations. This transparency builds client confidence and can accelerate approval processes for both progress updates and invoice submissions.

Implementing a Speed-to-Cash Solution

Digital time tracking and automated billing cut billing cycles, reduce disputes, and trim administrative costs. Slow payments added $273 billion to construction costs in 2023, so closing the jobsite to invoice gap directly improves cash flow. Replace manual timesheets, enforce GPS-verified clock-ins, and auto-generate invoices to bill work within days, not weeks. Arrivy combines field time, photos, and GPS into QuickBooks-ready invoices so you collect faster and keep audits simple.