If your business sells services, employee time is one of your most valuable resources. But not every hour is billable. Employees may spend time working directly for clients, attending meetings, handling administrative tasks, training, or working on internal projects. Understanding the difference between these hours can help you make better business decisions
What Are Billable Hours?
Billable hours are time spent performing work that can be charged to a client.
Examples include:
- Consulting
- Development
- Design
- Client meetings
- Project work
- Customer support
What Are Non-Billable Hours?
Non-billable hours are activities that aren’t directly charged to a client.
These might include:
- Internal meetings
- Training
- Administration
- Business development
- Internal projects
Non-billable time isn’t necessarily bad. Every business needs some of it. The problem is not knowing how much you’re actually spending.
Why Track Both?
Imagine an employee works 40 hours:
28 hours — Client work
6 hours — Internal projects
4 hours — Meetings
2 hours — Training
Now you have a much clearer picture of how that employee’s capacity was used. This can help managers plan workloads, improve project estimates, and identify opportunities to improve efficiency.
Connect Time With Revenue
Tracking billable hours becomes even more valuable when you compare them with revenue. You may discover that certain clients or projects consume significantly more time than others. That information can influence pricing, staffing, and project strategy.
Vluxeo provides time keeping alongside project management, reporting, budget monitoring, and other business management tools.
Want better visibility into where your team’s time goes? Explore Vluxeo.