Add fees or taxes to the client’s invoice.Multiply total billable hours by billing rate.Track every billable hour on a timesheet.The standard process for calculating billable hours looks something like this. Liaising with new clients or client development.Networking, law school, or training events.Working on any aspect of a client’s project.If you’re working on non-client specific tasks, it’s non-billable. In simple terms, if you’re working for a client who is paying you by the hour, it’s billable. But with such busy work calendars, how can we differentiate between our billable and non-billable hours effectively? So, we know how important it is to keep track of our billable hours. What is the difference between billable and non-billable hours? Billable hours are, as a result, extremely lucrative for firms. The bill, in most cases, must therefore be paid by the client themself. They are designed to ensure financial compensation for any time spent on individual client cases. For lawyers, consultants, accountants, and other professionals with billable work, these payments do not apply to other work tasks done for the firm to which they are professionally affiliated.īillable hours apply only to clients. In other words, they are the hours that you bill clients for and they pay directly. Billable hours: The true meaningīillable hours are those hours worked that require compensation. Failing to meet the quota could spell trouble. Within the legal profession, for example, attorneys are required to complete a set number of billable hours each week. Only a select few industries actually have requirements for billable hours. Building contractors and freelancers, for example, could be said to work something akin to billable hours on a daily basis.īut this is not exactly the same thing. The term, “billable hours” can sometimes cause confusion because people in many different professions charge for their work through invoicing.
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