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Billable Hours

Track and Manage Billable Hours Efficiently and boost Productivity.

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What Are Billable Hours?

Billable hours are the time professionals work on tasks for clients that they charge for. We meticulously track these hours and then invoice them to the client. We consider only the time directly dedicated to a client’s project as “billable,” unlike internal administrative tasks or breaks.

Billable hours represent the cornerstone of a consultant’s service. It’s the time allocated to client-specific tasks and becomes the foundation for invoicing. During these hours, it perform various tasks. These tasks include working with clients, conducting research, writing reports, and participating in virtual meetings to discuss client needs.

The Significance of Billable Hours

Billable hours dictate the revenue stream for consultants and consultancy firms. Their importance isn’t merely monetary but spans several dimensions:

Transparency and Trust: Precise logging of billable hours fosters trust. When clients see a detailed breakdown of services, it reinforces their decision to invest in a consultant’s expertise.

Performance Metrics: Billable hours serve as a key performance indicator. By analyzing billable versus non-billable hours, firms can pinpoint areas of inefficiency.

Resource Allocation: Proper tracking ensures resources are allocated effectively, leading to optimized project delivery.

Significance of Billable Hours

Methodologies for Calculating Billable Hours

Formulaic Approach:

Total Hours Worked – Non-Billable Hours = Billable Hours


Suppose a consultant logs in 45 hours in a week, with 7 hours assigned to administrative tasks. The billable hours equate to 38 hours.

However, it’s not always this straightforward. Consultants often juggle multiple clients, each with varying rates and agreements. This necessitates a more nuanced approach, often employing specialized software solutions.

The Contrast: Billable vs Non-Billable Hours

Grasping the distinction between these is pivotal:

  • Billable Hours: Direct client tasks, research, meetings, and any activity within the contract scope.
  • Non-Billable Hours: Internal meetings, training sessions, general administrative tasks, and downtime.

A comprehensive breakdown can be gleaned from this insightful KEBS whitepaper.

Aspect Billable Hours Non-Billable Hours
Definition Hours worked that are charged to a client. Hours worked that are not charged to a client.
Examples – Direct client work
– Meetings with clients
– Writing proposals (if agreed upon)
– Administrative tasks
– Training
– Internal meetings
Purpose To generate revenue for the business. Often necessary for the functioning of a business but do not directly generate revenue.
Billing These hours are invoiced to the client. These hours are absorbed by the business and are not charged to any client.
Tracking Importance Essential to ensure accurate billing and profit assessment. Important for assessing operational efficiency and overall company costs.
Impact on Profit Directly contributes to the company’s revenue. Does not contribute to revenue, but can impact overall profitability if not managed properly.

Technological Innovations and Solutions in Tracking Billable Hours

With the digital age, manual logs have become archaic. Platforms like KEBS offer sophisticated tools for accurate tracking:

  • Automation: Automate time tracking to reduce human error.
  • Integration: Seamlessly integrate with other operational tools like project management software.
  • Analytics: Real-time insights to gauge performance and profitability, a concept expanded upon here.

Solutions in Tracking Billable Hours. Several issues plague traditional billable hours tracking:

  • Inaccuracy: Manual entries are prone to errors. Using a dedicated time-tracking module eliminates such discrepancies.
  • Transparency Issues: Ambiguity in billable hours can strain client relations. Adopting an efficient billing system fosters trust.
  • Integration Woes: Juggling multiple tools for different tasks is cumbersome. Platforms like KEBS offer an all-in-one solution, ensuring smooth workflows.

Track Billable Hours better

KEBS isn’t just a PSA tool; it’s a comprehensive solution. From resource management to financial management, everything under one roof. Enhance client relationships with transparent, precise invoicing. Through automation, consultants focus on what truly matters – delivering value.

In the consultancy realm, optimizing billable hours is a blend of precision, transparency, and efficiency. With KEBS’s comprehensive platform, consultants are well-equipped to navigate the complexities of billable hours.

KEBS Time Tracking

Ready to transform your consultancy’s approach to billable hours? Reach out to KEBS or experience their platform firsthand with a demo.

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