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Billable hours are the hours you spend on tasks assigned to each project you charge your clients for. An efficient billable hour tracking app is the best way to track the time you spend on each task and project.
Billable hours are the time you spend working on clients’ projects. These are the hours that you get paid for. Non-billable hours are tasks that must be done but aren’t directly linked to that client, such as administrative tasks.
Billable hours are important because they help avoid misunderstandings with clients about who is doing what and for how long. Billing in such a way helps you show which tasks are being done under the scope of which project and, therefore, how much the client should be charged.
Calculating billable hours is pretty straightforward. You can break it down into three simple steps that translate into an easy-to-use formula:
1. First, set a rate for your billable hours
2. Second, track and record the time spent on the client’s project
3. Third, once you have a total number of working hours, multiply that number by your rate and add any additional fees or taxes necessary to your client’s invoice.