Tracking Billable Hours Using The Billable Feature

Billable Hours

But whether you’re doing a rebrand, consulting on a product launch, or designing a new logo for a client, there are trends over time that indicate how long a project typically takes. And if you know how long a project or job will take , then you know how much it will cost. At the end of the day, we need to change our mindset about non-billable time.

Billable Hours

Finally, tracking non-billable time gives you a more accurate picture of upcoming capacity. When managers and project leads understand that they can’t book employees at a 100% utilization rate, they’re less likely to burn out their teams.

In some salaried jobs, you get paid for all of your hours worked, regardless of what you are going but billable hours are a little different. Once you know how many hours you need to bill for, calculating how much you are owed is pretty straightforward. You simply multiply your number of billable hours by your hourly rate. For example, say your hourly rate is $100 an hour, and you have done 10 hours of work this week on a project. You might find that a particular type of project would be better billed at a fixed price to better reflect the overall work and effort put in by your team. Still, many organizations and firms today utilize billable hours in measuring revenue that comes directly from clients. Tracking and automating billable hours also enhances project profit because billing clients would be more accurate.

Field + Office Best Practices

You’ll enter that total for projected annual billable hours into the labor calculator to help calculate your direct labor cost. Below is a complete guide on how your company can enhance billable hours. We’ll help you fully comprehend what billable and non-billable hours are, including the best practices to increase the billable time. Try to track your time spent on non-billable tasks in addition to billable tasks.

The interface is polished, fast, fluid and intuitive, and the amount of features available are pretty amazing. It will be my project management software for the foreseeable future, and the only one I recommend to clients and colleagues. Additionally, a customer may also pay more money for a more experienced worker rather than a new employee when they may end up with the same quality of service. Again, this is an instance where the rate can be disproportionate to the quality. When working as a freelancer, the product does not always necessarily reflect the number of hours put into a project. Often, there is a level of research done to construct meaningful and practical creations.

Business owners love this blog because our advice is actionable and easy to implement. First and foremost, you can’t bill your clients for putting your bills together. Start your 30-day free trial today to see how you can put these seven tips into practice with TimeSolv. Oftentimes, the first discrepancy on time missing comes when a partner is reviewing draft bills.

Billable Hours

She’ll export this report as an Excel spreadsheet – Exporting Reports. Then she can create an invoice for the customer, Zaibatsu, and send it to them. There are several steps to this process, from setting up accounts and permissions to running reports, so take a look below to see how it’s all done. All invoices need your name, your email address, the name of your business, your business address and your phone number. This includes our live chat feature provided by Intercom and basic page analytics without any tracking data. As a business, you’re responsible for your staff, and that means covering days off and their salary, regardless if their time was marked as billable or not. For agencies, consultants, and contractors, this can be a major headache.

Ways To Make The Legal Department More Effective And Agile

Employee rate, used when the time is tracked by a specific user (eg. writer, designer). How to set up a clock-in clock-out system at work Need a good clock-in clock-out system so people coming to work can check in and out? Think about your branding strategy and overall company performance. As a business owner, you can organize a quick all-hands meeting every week. This would be a terrific opportunity to discuss your branding strategy, plan your future moves, and exchange your ideas on how to achieve better results. But, you can talk about potential problems within the company and try to solve them. It’s a great way to avoid letting work hours go uncompensated.

Billable Hours

But if you can’t prove you’re doing it — or worse, if you’re not doing it at all because you’re on an impossible quest to achieve 100% billability — the work you do will stagnate. Clients will become dissatisfied, and you’ll lose business, all because you neglected non-billable efforts. Engaged employees are likely to help improve your company overall. However, the activities they’ll participate in to grow your company over time are likely non-billable.

Calculate Your Total Hours

Record your billable hours by project, so you know what client you’ll invoice for the work you’re completing. It will also help you track how much time you’re spending on each client’s project per billing cycle. Once you have your hourly rate set, choose the invoicing schedule you’ll follow.

  • But, there’s also a certain weakness of a utilization rate system, especially applicable to consulting businesses.
  • It would seem more helpful to call your non-billable hours time investments, of course.
  • You can use spreadsheets to do so, but you might end up throwing in more non-billable hours.
  • Your hourly rate can be increased with future projects if you’re consistently exceeding expectations.

A billable hours chart is an attorney billable hours template. It is a simple table to help you quickly calculate how many increments of an hour to charge, based on how long you worked. When tracking billable hours manually with a billable hours chart, most lawyers adhere to 1/10th of an hour (aka six-minute) increments. But knowing how to keep track of billable time can be a tricky business. As such, maximizing efficiency and productivity is essential. To make sure you don’t overlook any of your billable hours, track them in real time.


This is not only because giving away hours and over-servicing clients costs your organization a great deal. It’s also because as a for-hire organization, word of mouth is everything, and you don’t want to put yourself in a position where the client is giving you bad reviews.

Instead of manually calculating or using a chart to determine time increments, Clio lets you pre-set rates and automatically round time entries to the increment. This way, you are more accurate without spending time and energy manually calculating or referring to a billable hours chart. Track your billable time accurately—and in real time, if possible. If you track your hours as you go, you’re less likely to lose out on hours that you forget about when tracking at the end of the day . How many billable hours you aim for will depend on your industry and professional position.

New To Scenario Planning? Here’s A Starter’s Guide

Before you start tracking your billable hours, you first have to determine the hourly rate you’ll charge clients for your work. Do some research and make sure your target salary is in line with what other businesses offering similar services earn. Once you have a salary in mind, divide it by the number of working hours in a year, which is 2,080 hours for a full-time job. Once you have that hourly rate, you may wish to raise it slightly to offset the amount of time you’ll spend working on non-billable tasks, like administrative work and client pitches. This varies from industry to, for example architects have a number of different ways to bill for their time. Billable hours are the amount of time spent working on business projects that can be charged to a client according to an agreed upon hourly rate.

  • Intuit Inc. does not have any responsibility for updating or revising any information presented herein.
  • Besides, this article explained the importance of tracking both billable and non-billable hours.
  • There have been a few numbers bandied about concerning non-billable hours and the poor comparison to billable hours (if you’re counting non-billable hours) as a bad thing.
  • The best way to do this is to start a timer when you begin and end.
  • Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published.

Calculate the total hours for each customer and send out a professional and accurate invoice. Here’s a step-by-step guide for accurately tracking billable hours that will help you increase your profits and maximize your billable time. Law firms set their lawyers billable hours targets, and these are also used to assess bonuses — these targets can range from 1700 to 2300 hours a year. Every law firm will use billable hours as a measure of charge for their legal services. ClickTime’s time tracking software makes it easy for employees to track time throughout the workday, giving you a full picture of their workloads. Automated reminders and approvals done at the click of a button reduce the amount of time managers will spend sifting through timesheets or tracking down employees with incomplete timesheets.


As a freelancer, you are solely responsible for the money you make and this should be at the forefront of your mind. Many freelancers can be hesitant in getting the most out of their You can doubt whether or not a task is billable and not include it if you’re unsure. Here we take a look at how to get the most out of your hours worked.

  • Next, you must determine when you will send invoices to bill clients for the work you completed.
  • Alternatively, you may be a writer who only ever has one job at a time.
  • With automatic monitoring of billable and non-billable hours, you’ll ensure you have more control over your tasks and resources.
  • Trying to chase up your payments can take up a lot of time which is why you should agree on a billing cycle.

In injury cases, these often include doctors, accident reconstructionists, and safety experts. If documents must be delivered by courier, these fees are charged to the client. Spend 30 minutes responding to an inquiry from a potential client. Respond to client questions for 15 minutes about the follow-up email. How to cope with working long hours 15 survival tips on how to cope with working long hours ⁠— from how to stay healthy and avoid burnout to how to deliver quality work….

Your employee utilization rate is the percent of time that any employee or department is billable. Executives and other members of the leadership team will have a lower utilization rate than a junior-level employee who is grinding out client work every day. Tracking employee time can tell you what the difference between those rates should be. Billable Hours are the hours of work you can bill directly to a specific client. Working on a client’s projects, communicating with them, and revising your work for them could all be considered billable activities.

To avoid difficulties arising, include detailed descriptions in your invoices that show just how these hours of work benefitted the client. Tracking work hours helps you as a PM to know how much time your team uses. You can delegate tasks before your team burns out because you will be able to tell if they are under too much pressure. You will also know when your employees are spending more time on non-billable hours than billable, and can then address the issue. You can create more accurate invoices by tracking the time you worked for your clients. You won’t overcharge for your services if you know exactly how much time each case requires. As a result, you will gain your client’s trust, which will enable you to attract more potential customers in the future.

Making Money For Your Company?

You won’t get paid directly for it, but the non-billable effort you put in now will help you increase profits and grow your business over time. When you only get paid for your billable time, you might wonder why you should even track non-billable hours at all. 💡Another way to calculate billable hours is by using Clockify. This way, you need to mark all your billable and non-billable activities.

Whatever the case, registering time and keeping track of billable hours is paramount if you want to know what to expect from your projects in terms of timing and budgeting. Depending on the industry, project, and collaboration details, you might have to either include only billable hours in your tracking sheets or both, billable and non-billable ones .

Another way to increase your billable hours is to track time that does not go toward the billable hours. For example, track how often you complete administrative tasks. Over time, these hours add up and take away from your billable hours. A more efficient alternative to this is relying on automatic or digital invoicing services. Companies track billable hours to ensure the time spent on a project or task can be justified.

Upgrade your account to get job costing features that let you track time against a project’s expected number of hours. Use retrospective reports to inform your decisions and craft more accurate estimates.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>