What is a billable time?
Billable time refers to the work hours that you can charge to a client, according to your agreement with them. Essentially, these are the hours spent on a client project that you can bill for.
→ For example, if you are a graphic designer and spend 5 hours designing a logo for a client, those 5 hours would be considered billable time.
Some examples of billable time include:
Design and Development: If you are working on a website creation project, the time you spend designing and developing the website is billable. This includes coding, graphic design, content creation, etc.
Client Meetings: Meetings with the client about the project are generally considered billable because they are essential for understanding the client's needs and providing a quality product or service.
Report Writing and Documentation: The time spent writing reports or creating documentation for the client's project can also be billed.
What is a non-billable time?
Non-billable time refers to the time spent on tasks necessary for managing your business but which cannot be directly billed to a client. This may include administrative tasks, professional development, or internal meetings.
→ For example, time spent on business development, staff training, or maintaining office equipment would be considered non-billable. These hours are usually not paid for directly by the client, but they are still important to track to understand the profitability and efficiency of your business.
Some examples of non-billable time include:
Internal Training: If you need to train your team to use a new tool or learn a new skill, this time is generally considered non-billable. It's an investment in your business development, but not something you can directly bill to a client.
General Administration: Time spent on administrative tasks, such as email management, accounting, or filing, is not billable. Although these tasks are essential for the operation of your business, they are not part of the direct work performed for the client.
Business Prospecting: Time spent looking for new clients, networking, or preparing proposals for future clients is generally considered non-billable.
💡 Note that the distinction between billable and non-billable hours can vary depending on your agreement with the client and your business model. It is always recommended to clarify what is billable and what is not in your contract or agreement with the client 🙂