Billable Hours

Billable hours are the total time spent working on projects or tasks which are chargeable to a customer or client. It is most commonly used in professional service industries like law and consulting.

The work done under billable hours is typically related to a specific client project, which is compensated by the client. Time tracking software is generally used to record these hours for internal time management purposes and to provide clients the details of time spent on their projects and how much they owe.

Businesses that uses billable hours often operate under non-billable hours for day-to-day tasks, like administrative, sales, marketing, or training responsibilities.

Client correspondence, Project research, and Project revisions are the type of work completed under billable hours. Setting an hourly rate, tracking hours spent on client work, totaling the billable hours, adding the fees to the next invoice of client are basic elements of tracking billable hours.

Better evaluation of client projects, more accurate invoicing, insight into profitability and improvement in team management are some benefits of tracking billable hours within a business.

Grouping non-billable work, automating or delegating non-billable tasks, tracking billable hours in real time and noting billing descriptions are best practices for billable hours to make teams more efficient and generate additional income.