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There are many options. It depends on specifics... on the exact needs for you...
I use Harvest with the people I work with. It's a paid service, but it does the job and allows us all to track our hours on a single item/project. To us harvest it's really helpful since we are a group of people. Might be a bit too much if you it's just you and don't need to have multiple people tracking their progress. I find Harvest beneficial when working with a group of people on projects of considerable size, like 100+ hours.
For my freelance stuff I use Billings. It's very simple. You install it on your machine, track your time right here as you work, you can organize your projects/jobs, it automatically stopped the timer if you are away from the computer, you can produce invoices with it and keep track of who owes you $, you can add expenses, etc... And there's a little app for your iphone so you can still track time if you are away from the computer. Like you could have a meeting and you could turn on the timer on your iphone and stop it once you are done with your meeting.
I've also used Freshbooks for someone else, but it just blows.