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I know that Omni Focus is all the better for concentrating on project/ task management but I would like to introduce some sort of time logging aspect to some of my workflow so that I can improve my reporting to my boss. How do people currently record their time and is there someway (Applescript?) that they link this to OF?
What are you reporting? Project status? Time sheet? Situation management?

What does your boss need the report for? You will have a happier boos if your reporting makes his reporting more effecive (or at least easier).
For simple time tracking, I use minuteur completely separate from OnmiFocus.
If you're running Leopard, take a look at TimeLog 4. It doesn't interact with OmniFocus, but it does track what application you have open and its combination of timers and nags (if you are not logging something) makes it pretty easy to use to keep track of what you do. It uses an iCal calendar (or calendars) to store its data, so you can either show your boss a calendar with your time logged on it, or export the data to a number of formats. If you're self-employed or you have different categories of billable hours at work, you can enter your base rate for different kinds of tasks, and you can add other costs as appropriate, and TimeLog will calculate the value of the work you've done and help you generate invoices.

TimeLog 3 (for Panther) will do a lot of that but it has some annoying bugs, such as quitting and relaunching iCal every time you record a new entry.
OmniOutliner Pro (don't know about the other version of OO) allows you capture duration related info, and offers intuitive summary calcs to boot. Not free, but highly recommended as it exports in several boss friendly formats including Excel and Word.
I'm a big fan of Billings. It's a great time-tracking / invoicing solution.

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