Billable hours are the hours you spend working directly on client projects that you can charge for. This includes tasks like design work, development, consulting, meetings with clients, and any other activities specified in your contract.
Why Track Billable Hours?
Tracking billable hours is essential for freelancers and agencies because it:
- Ensures accurate invoicing - You bill clients for the exact time spent
- Improves profitability analysis - Understand which clients and projects are most profitable
- Supports project estimation - Historical data helps estimate future projects
- Provides transparency - Clients can see exactly what they're paying for
Billable vs Non-Billable Hours
Not all work time is billable. Understanding the difference is crucial:
Billable Examples
- Client meetings and calls
- Project development or design work
- Research directly related to a project
- Revisions requested by the client
Non-Billable Examples
- Internal team meetings
- Administrative tasks
- Marketing and business development
- Learning and professional development
Best Practices
- Track time as you work - Don't rely on memory at the end of the day
- Use detailed descriptions - Help clients understand the value delivered
- Set clear expectations - Define what is and isn't billable in your contracts
- Review regularly - Analyze your billable ratio to optimize productivity