{"id":24599,"date":"2023-01-20T12:00:23","date_gmt":"2023-01-20T11:00:23","guid":{"rendered":"https:\/\/timingapp.com\/blog\/?p=24599"},"modified":"2025-08-26T12:28:00","modified_gmt":"2025-08-26T10:28:00","slug":"billable-hours","status":"publish","type":"post","link":"https:\/\/timingapp.com\/blog\/billable-hours\/","title":{"rendered":"Billable Hours and Non-billable Hours: How Time Tracking Tools Can Help You Find Balance"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-25634\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours-770x515.jpg\" alt=\"\" width=\"770\" height=\"515\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours-770x515.jpg 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours-300x200.jpg 300w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours-1540x1029.jpg 1540w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours-1536x1027.jpg 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/billable-hours-and-non-billable-hours.jpg 2048w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<p>Allocating your time correctly is a freelancing necessity, and that means understanding and knowing how to manage your <strong>billable hours and non-billable hours<\/strong>. More than that, you need to be able to find the right balance between the two.<\/p>\n<p>Billable hours are important, they\u2019re the money generators. But they\u2019re often only possible because you\u2019ve spent non-billable time working on marketing your business and refining your sales pitch. Non-billable hours, however, don\u2019t earn you any direct income. So while they\u2019re often critical to your business growth, it can be hard to tell whether they\u2019re worthwhile and to what extent.<\/p>\n<p>Figuring out how to make your <strong>billable and non-billable time<\/strong> work for you can be tricky, but it\u2019s not impossible. And getting it right can help to maximize your productivity, remove inefficiencies in your business, and boost your bottom line. We\u2019re here to show you how.<\/p>\n<p><!--more--><\/p>\n<h2 class=\"no-toc\">Table of Contents<\/h2>\n<p id=\"toc\">TOC<\/p>\n<h2>Firstly, what are billable hours and non-billable hours?<\/h2>\n<p>Heard the terms bandied about but not quite sure what they mean? Let\u2019s define them upfront.<\/p>\n<h3>Billable hours<\/h3>\n<p>Billable hours are the hours you work that are directly related to your projects. They refer to the core activities of your business. As the name suggests, they\u2019re the hours that you bill, or invoice, to your clients once some or all of the work is complete. They might include:<\/p>\n<ul>\n<li>Conducting research and gathering background context<\/li>\n<li>Drawing up project plans and timelines<\/li>\n<li>Performing the work you\u2019ve been hired to do<\/li>\n<li>Attending meetings and interviews<\/li>\n<li>Implementing changes that your client has requested<\/li>\n<\/ul>\n<p>If you\u2019re a web developer, your billable hours would include the time you spend planning, designing, and coding a website. If you\u2019re an accountant, you would invoice for the time it takes to analyze a client\u2019s financial affairs, <a href=\"https:\/\/financial-cents.com\/resources\/articles\/financial-audit-checklist\/\" target=\"_blank\" rel=\"noopener\">audit their finances<\/a> and accounts, and make recommendations.<\/p>\n<h3>Non-billable hours<\/h3>\n<p>Non-billable hours refers to the time you spend on work-related tasks that you can\u2019t bill to your clients. They\u2019re still work, but it wouldn\u2019t be appropriate to include these hours as line items on an invoice. They include:<\/p>\n<ul>\n<li>Developing proposals and pitches<\/li>\n<li>Marketing your business in person or online<\/li>\n<li>Taking training courses or attending events to improve your skills or knowledge<\/li>\n<li>Quoting, invoicing, processing payments, and other administrative tasks<\/li>\n<li>Fixing errors you made that the client isn\u2019t responsible for<\/li>\n<li>Working beyond the scope of the project<\/li>\n<\/ul>\n<p>In most cases, these hours are well spent. You could walk out of a non-billable networking event with potential new clients, and a well-curated pitch could land you a major contract. But you can\u2019t always prioritize non-billable work over the work that\u2019s actually helping you put money in the bank. There needs to be a balance.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-25636\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/what-are-billable-hours-770x433.jpg\" alt=\"\" width=\"770\" height=\"433\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/what-are-billable-hours-770x433.jpg 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/what-are-billable-hours-1536x864.jpg 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/what-are-billable-hours.jpg 1540w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<p>(Remember, there also needs to be a balance between the hours you work and the hours you don\u2019t work. Today, <a href=\"https:\/\/timingapp.com\/blog\/burned-out-improve-work-life-balance-timing\/\">work-life balance<\/a> matters more than ever. A 2022 <a href=\"https:\/\/www.apa.org\/monitor\/2022\/01\/special-burnout-stress\">report by the American Psychological Association<\/a> revealed that 79% of respondents said they\u2019d recently experienced work-related stress. Some 32% reported emotional exhaustion, 36% cognitive weariness, and 44% physical fatigue. Your billable and non-billable hours only apply to your working time \u2014 you need to have time off, too.)<\/p>\n<h2 class=\"whitespace-normal break-words\">Billable vs Non-billable hours: Quick reference guide<\/h2>\n<p class=\"whitespace-normal break-words\">Understanding what qualifies as billable versus non-billable time can be nuanced and often depends on your industry, client agreements, and specific circumstances. Use this comprehensive comparison table as a quick reference guide when categorizing your activities.<\/p>\n<table class=\"bg-bg-100 min-w-full border-separate border-spacing-0 text-sm leading-[1.88888] whitespace-normal\">\n<thead class=\"border-b-border-100\/50 border-b-[0.5px] text-left\">\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<th class=\"text-text-000 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Activity Type<\/th>\n<th class=\"text-text-000 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Billable Hours \u2713<\/th>\n<th class=\"text-text-000 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Non-Billable Hours \u2717<\/th>\n<th class=\"text-text-000 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Core Project Work<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Research, analysis, writing, coding, designing<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Direct client deliverables<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Client Communication<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Scheduled meetings, project calls, status updates<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Networking events, cold outreach<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Must be project-specific<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Revisions &amp; Feedback<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Client-requested changes, implementing feedback<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Fixing your own errors, unsolicited improvements<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Only bill for requested changes<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Travel Time<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Travel to client meetings (if agreed)<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Commuting to co-working space, personal errands<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Depends on client agreement<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Administrative Tasks<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Project-specific invoicing, client file organization<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">General bookkeeping, tax preparation, business setup<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Must be client-specific<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Learning &amp; Development<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Client-required training, learning new tools for project<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">General skill development, conference attendance<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Only if directly project-related<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Proposal &amp; Pitching<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Detailed project proposals (for established clients)<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Initial pitches, speculative work, RFP responses<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Varies by relationship<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Technical Setup<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Setting up project-specific tools\/accounts<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">General software updates, personal system maintenance<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Must benefit the specific project<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Documentation<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Project reports, deliverable documentation<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Internal process documentation, general templates<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Client-focused documentation only<\/td>\n<\/tr>\n<tr class=\"[tbody&gt;&amp;]:odd:bg-bg-500\/10\">\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\"><strong>Waiting Time<\/strong><\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Waiting for client feedback (if contracted)<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Waiting for your own processes, delayed personal tasks<\/td>\n<td class=\"border-t-border-100\/50 [&amp;:not(:first-child)]:-x-[hsla(var(--border-100) \/ 0.5)] border-t-[0.5px] px-2 [&amp;:not(:first-child)]:border-l-[0.5px]\">Depends on contract terms<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p class=\"whitespace-normal break-words\">Some activities don&#8217;t fit neatly into either category. Consider these factors when making decisions:<\/p>\n<ul class=\"[&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc space-y-1.5 pl-7\">\n<li class=\"whitespace-normal break-words\"><strong>Contract Terms<\/strong>: What does your agreement specify about scope and billable activities?<\/li>\n<li class=\"whitespace-normal break-words\"><strong>Client Benefit<\/strong>: Does the activity directly benefit the client&#8217;s project?<\/li>\n<li class=\"whitespace-normal break-words\"><strong>Industry Standards<\/strong>: What&#8217;s typical practice in your field?<\/li>\n<li class=\"whitespace-normal break-words\"><strong>Transparency<\/strong>: Would you feel comfortable explaining this charge to your client?<\/li>\n<\/ul>\n<p class=\"whitespace-normal break-words\">Remember that consistency is key. Whatever standards you set, apply them uniformly across all clients to maintain professional credibility and fair billing practices.<\/p>\n<h2>How many billable hours vs non-billable hours should you work?<\/h2>\n<p>Fortunately, someone\u2019s done the math here. It\u2019s called the <a href=\"https:\/\/blueprintstogreenbacks.com\/utilization-rate\/\">utilization rate<\/a> and it can be calculated in either dollar or hour terms:<\/p>\n<pre>Utilization rate = Direct labor ($) \/ Total labor ($)\u00a0\r\n                   Billable hours \/ Workday hours\r\n<\/pre>\n<p>Ideally, your utilization rate should lie between 60 and 80%. That means that up to 80% of your time should account for billable work (for many, this can be a pretty tough target to meet). The remaining 20% or so can, and even should be, non-billable time.<\/p>\n<h2>How to keep track of billable hours vs. actual hours<\/h2>\n<p>Having a goal to aim for is useful, but how do you actually know how many billable hours you\u2019re working?<\/p>\n<p>Do you simply guess? Try and remember how long a similar project took you to do in the past and <a href=\"https:\/\/spp.co\/blog\/client-invoicing\/\" target=\"_blank\" rel=\"noopener\">quote and invoice accordingly<\/a>? That\u2019s certainly one way of doing things, but it\u2019s probably not the best. You could well end up underestimating your time and short-changing yourself.<\/p>\n<p>A more accurate way would be to track your time using a <a href=\"https:\/\/timingapp.com\/blog\/mac-time-tracking-apps\/\">time tracking app<\/a>. A dedicated piece of software running in the background will give you a more reliable indication of how long a task has taken than your memory or a manual Excel spreadsheet. And with reliable information on hand, you can guarantee that your quotes and invoices are fair both to your clients and to you.<\/p>\n<h2>Why you should track your non-billable hours, too<\/h2>\n<p>We don\u2019t mean to imply that your time tracking app should only monitor your <em>billable<\/em> work, however. On the contrary, it\u2019s a good idea to keep an eye on where your non-billable time is going, too. Why? Because:<\/p>\n<ul>\n<li>You can learn the real value of your time. If you charge a client $50 an hour for work, but it took four hours of non-billable preparation to earn that amount, then your hourly rate is really closer to $10 an hour. This might be worthwhile initially, but it isn\u2019t sustainable in the long term.<\/li>\n<li>You can spot which clients are taking up more non-billable time than they should. This information can help you renegotiate your contract, or even encourage you to step away from certain clients and invest in those that are more profitable.<\/li>\n<li>You can identify repetitive and time-consuming tasks, and find a way to automate them using the right software.<\/li>\n<\/ul>\n<h2>How to reduce the non-billable hours of your actual hours<\/h2>\n<p><a href=\"https:\/\/timingapp.com\/blog\/bill-time-accurately\/\">Keeping your billable hours high<\/a> involves keeping your non-billable hours low \u2014 at least, as low as you can without eliminating the important and necessary work that this time can hold. Here are a few billable hours best practices to help you drop your non-billable hours or, better yet, incorporate them into your billable time.<\/p>\n<h3>1. Decide what\u2019s billable and what\u2019s not<\/h3>\n<p>The difference between billable vs non-billable time isn\u2019t always clear cut. Does driving to a client meeting count as billable time, for example? What about a brief phone call? And what happens if a client cancels a scheduled meeting? Do you charge them for the time you could have spent doing something else?<\/p>\n<p>Unfortunately, there\u2019s no universal answer here. <a href=\"https:\/\/timingapp.com\/blog\/fixed-price-vs-time-and-material-how-to-charge-clients\/\">What you charge<\/a> \u2014 and what you charge <em>for<\/em> \u2014 is up to you. Be guided by what feels ethical and authentic, what your clients will accept, and what the norm is in your industry. Lawyers and consultants are notorious for charging for every minute they spend on a project, and some businesses add a flat admin fee to every invoice. This isn\u2019t to say you should mirror these approaches, but be conscious that you\u2019re not letting billable time slip away from you.<\/p>\n<p>If you are going to charge for canceled meetings, however, make sure that you communicate this clearly to your clients upfront, and that it\u2019s outlined in your contract. Unexpected costs can sour even established relationships.<\/p>\n<h3>2. Use automatic time tracking software<\/h3>\n<p>We\u2019ve mentioned this one before, but we\u2019ll say it again. Tracking your time is one of the best ways of keeping a firm handle on your billable hours, <em>and<\/em> helping you to see how much time you\u2019re spending on work you\u2019re not getting paid for.<\/p>\n<p>Those late-night emails, that \u201cit will only take a minute\u201d task \u2014 they add up. Potentially to hours\u2019 worth of work. Without automated software, it\u2019s impossible to know exactly where every minute is going. Tools like <a href=\"https:\/\/timingapp.com\/\">Timing<\/a> help you capture every detail, including which app, website or document you were using, and for how long. Simply allocate them to your projects or clients, and refer to your reports when you\u2019re ready to invoice.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-25638 aligncenter\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/identify-billable-hours-with-time-tracking-770x459.png\" alt=\"Timing screenshot\" width=\"770\" height=\"459\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/identify-billable-hours-with-time-tracking-770x459.png 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/identify-billable-hours-with-time-tracking-1540x918.png 1540w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/identify-billable-hours-with-time-tracking-1536x915.png 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/identify-billable-hours-with-time-tracking-2048x1220.png 2048w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<h3>3. How to track billable hours automatically on macOS<\/h3>\n<p>For Mac users, Timing takes <a href=\"https:\/\/timingapp.com\/automatic-time-tracking\">automatic time tracking<\/a> a step further. Instead of relying on manual timers, it runs quietly in the background on your Mac, capturing every app, website, and document you work on. The result is a precise record of your day without the burden of starting and stopping timers. This is invaluable for freelancers, consultants, and anyone billing by the hour.<\/p>\n<p>Timing monitors your work across the tools you already use, from design software like <a href=\"https:\/\/timingapp.com\/adobe-photoshop-time-tracking\">Photoshop<\/a> and <a href=\"https:\/\/timingapp.com\/sketch-time-tracking\">Sketch<\/a> to development environments such as <a href=\"https:\/\/timingapp.com\/xcode-time-tracking\">Xcode<\/a> and <a href=\"https:\/\/timingapp.com\/visual-studio-code-time-tracking\">VS Code<\/a>. It also tracks browser activity, down to the individual sites and web apps tied to your client work. <a href=\"https:\/\/timingapp.com\/help\/rules\">Rules<\/a> make it easy to automatically assign activities to the right project or client, for example, logging time spent in a specific <a href=\"https:\/\/timingapp.com\/slack-time-tracking\">Slack<\/a> workspace or within certain folders directly to the correct account.<\/p>\n<p>It also <a href=\"https:\/\/timingapp.com\/help\/calendar\">integrates with your calendar<\/a> to automatically log meetings as billable hours, and with Apple\u2019s Screen Time to capture calls and conversations on your iPhone. These integrations ensure client-facing work doesn\u2019t slip through the cracks.<\/p>\n<p>When it\u2019s time to invoice, Timing generates detailed, timestamped reports that show exactly how time was spent. These reports give you the documentation needed for accurate billing and client transparency. And <a href=\"https:\/\/timingapp.com\/help\/teams\">for teams<\/a>, Timing offers shared project tracking with individual privacy preserved. Administrators can review aggregated project time for billing, while each member maintains control over their personal data.<\/p>\n<h3>4. Manually add what you can\u2019t track automatically<\/h3>\n<p>Work doesn\u2019t stick to office hours anymore, nor to a single device. An after-hours phone call with a client still counts as billable time, even though you\u2019re not in front of your laptop. So does an on-site visit, or some to-ing and fro-ing over Slack.<\/p>\n<p>Don\u2019t let these minutes and hours that you could be billing for disappear into your non-billable tally.<\/p>\n<p>Use <a href=\"https:\/\/timingapp.com\/help\/screen-time\">Timing\u2019s Screen Time integration<\/a> feature, for example, to import your iPhone and iPad usage directly from Screen Time. This helps you spot every billable phone call, WhatsApp message, or email you send on the run. Between this feature and Timing\u2019s <a href=\"https:\/\/timingapp.com\/help\/web\">web app<\/a>, you can always have an overview of the time you spend away from your desk.<\/p>\n<p>You can also add entries manually to your time tracking tool. If you do, be as detailed as you can in how you categorize them. This will not only help you keep your reports accurate, but will also give you a useful indication of how much billable time you spend elsewhere, such as attending in-person meetings. (Timing will prompt you for details on what you\u2019ve been up to when you return to your desk so that nothing gets missed.)<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-25640\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/record-all-billable-hours-770x459.png\" alt=\"manually logging billable hours with Timing\" width=\"770\" height=\"459\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/record-all-billable-hours-770x459.png 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/record-all-billable-hours-1536x916.png 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/record-all-billable-hours.png 1540w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<h3>5. Make your time tracking work for you<\/h3>\n<p>You want time tracking software that works for you \u2014 it can\u2019t be yet another task that eats up your non-billable time. Establishing rules so that you don\u2019t have to categorize every project manually can help to optimize this process.<\/p>\n<p>Maybe there\u2019s a particular programme that you only use for one client: set up a rule that says that auto categorizes all work in Hootsuite for the one client whose social media you manage. Or get more specific, and assign anytime you spend on a particular website for the client you provide advertising services to.<\/p>\n<p>In Timing, these types of <a href=\"https:\/\/timingapp.com\/help\/rules\">categorization rules<\/a> are easy to set up. Simply drag an activity to permanently assign it to a task. This will save you hours of categorizing things manually, and makes starting and stopping timers a thing of the past.<\/p>\n<h3>6. Rely on your reports<\/h3>\n<p>Your time tracking reports are valuable tools: they give actionable insight into how you\u2019re spending your time, what you\u2019re billing for, and whether you\u2019re profitable. They also help you identify missed opportunities \u2014 are you neglecting to bill for time that you should be paid for?<\/p>\n<p>Every week or every month (ideally before you invoice), make sure the total amount of working time in your reports equals the total amount of time you billed. Also look for activities and tasks that haven\u2019t been assigned to a project. Can these activities still be billed to a client? If so, add them. If not, try and remember to look through your reports more regularly, asking yourself why you missed them in the first place. Correcting this can help to bump up your billable hours, and ensure you\u2019re paid fairly.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-25642\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/reports-for-accurate-billing-770x459.png\" alt=\"\" width=\"770\" height=\"459\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/reports-for-accurate-billing-770x459.png 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/reports-for-accurate-billing-1540x918.png 1540w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/reports-for-accurate-billing-1536x915.png 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/reports-for-accurate-billing-2048x1220.png 2048w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<h3>7. Optimize your non-billable time<\/h3>\n<p>Once you\u2019ve eliminated as many non-billable hours as possible (either by turning them into <strong><em>billable<\/em> hours<\/strong> or finding ways to avoid them), your next step is to optimize the non-billable time that remains. Look at your non-billable activities, and ask yourself whether you can streamline or automate them.<\/p>\n<p>Creating a template for your proposals would likely make the pitching process quicker, for example, and bookkeeping software can help you to quote, generate invoices, and track payments faster than a manual system. Some solutions simply involve rethinking how you work: you might choose to be really selective about the meetings you accept, especially if you can\u2019t bill for them.<\/p>\n<h3>8. Re-evaluate your rates<\/h3>\n<p>If you\u2019ve reduced your non-billable hours and you\u2019re still feeling like you\u2019re not making what you should, consider raising your rates.<\/p>\n<p>How much should you raise them by? First, look through your time tracking software to determine how much time you spend on billable vs non-billable hours. Then, divide your non-billable hours by your billable hours to determine the percentage you need to make up.<\/p>\n<pre>Price increase = Non-billable hours \/ Billable hours\r\n<\/pre>\n<p>If you\u2019re spending 34 hours a week on billable time, for example, and 6 hours on non-billable work, then 6 divided by 34 is 0.176, or about 18%. Raising your rates by 18% would compensate you for the non-billable time. Take a look at this figure and decide if it\u2019s fair to your clients, or fair to <em>every <\/em>client, before you inform them of your rate increase.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-25644\" src=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/re-evaluate-your-rates-770x514.jpg\" alt=\"\" width=\"770\" height=\"514\" srcset=\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/re-evaluate-your-rates-770x514.jpg 770w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/re-evaluate-your-rates-300x200.jpg 300w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/re-evaluate-your-rates-1536x1024.jpg 1536w, https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2023\/01\/re-evaluate-your-rates.jpg 1540w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<h2>Start tracking your time today<\/h2>\n<p>Keeping a firm grasp on your billable and non-billable hours can help you to be more productive, invoice correctly, and ensure the success of your business.<\/p>\n<p>While there are many ways to find a balance between the two, they all start with knowing exactly where your time is being spent. With that information in hand, you can start to take steps to make sure you\u2019re working as effectively and billing as much as you can.<\/p>\n<p><strong>Ready to bill more hours? Start by taking control of your time with automatic time tracking. <a href=\"https:\/\/timingapp.com\/download\/Timing.dmg\">Download your 30-day free trial<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Allocating your time correctly is a freelancing necessity, and that means understanding and knowing how to manage your billable hours and non-billable hours. More than that, you need to be able to find the right balance between the two. Billable hours are important, they\u2019re the money generators. But they\u2019re often only possible because you\u2019ve spent [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":24601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"billable hours","_yoast_wpseo_title":"Billable Hours and Non-Billable Hours: How to Find Balance","_yoast_wpseo_metadesc":"What are billable hours and non-billable hours? 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