Term
Billable vs Non-Billable Time
Definition
This feature allows you to separate the time you spend on tasks that can be invoiced to clients (billable) from the time spent on internal activities like admin work that cannot be billed (non-billable). It is vital for managing project profitability and accurate invoicing.
Where you’ll find it
In the Business platform, you can find this functionality typically under the time tracking or project management sections. These features are available across various plans, ensuring that every business can utilize them according to their subscription level.
Common use cases
- Project Management: Helps track and charge for client-specific tasks, ensuring every billable hour is accounted for.
- Financial Reporting: Facilitates accurate financial records by clearly stating what time was spent on revenue-generating activities versus overheads.
- Employee Monitoring: Assists in understanding how employees distribute their time between billable and non-billable activities.
Things to watch out for
- Accuracy is key: Mislabeling time can lead to billing errors and impact client trust and business revenue.
- Consistency: Different team members might categorize similar tasks differently. Standardizing what’s considered billable versus non-billable across the team is crucial.
- Training required: New users may initially struggle with categorizing time effectively. Training and regular practice help.
Related terms
- Time Tracking
- Invoicing
- Project Management
- Client Billing
- Productivity Analysis