What is the difference between billable and non-billable hours?

Billable hours are those you invoice to a client for services you’ve completed for them. This can mean anything from working on a named project to corresponding with the client or meeting them face-to-face. Non-billable hours are those you spend doing non-client-related work for your company.

Apart from ensuring accurate invoicing, are there other advantages to tracking billable hours?

Yes. It’s beneficial for the company to be able to monitor employee performance. One downside of charging by the hour is that it can unfairly penalize workers who are more efficient, since they can complete much more work in the same amount of time as a less industrious colleague. Tracking billable hours in conjunction with other workforce management metrics can help management assess who their top performers are.

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Q: What are billable hours?

The term “billable hours” can sometimes cause confusion because people in many different professions charge by the hour for their work through invoicing.