{"id":12901,"date":"2024-09-12T12:30:00","date_gmt":"2024-09-12T10:30:00","guid":{"rendered":"https:\/\/beebole.com\/blog\/?p=12901"},"modified":"2025-12-17T11:38:30","modified_gmt":"2025-12-17T10:38:30","slug":"manage-billable-and-non-billable-hours","status":"publish","type":"post","link":"https:\/\/beebole.com\/blog\/manage-billable-and-non-billable-hours","title":{"rendered":"The ultimate balancing act for project success: Billable vs non-billable hours"},"content":{"rendered":"\n<p>Achieving the perfect balance between billable and non-billable hours is both an art and a science. Both operations and finance leaders need to understand what makes their organization profitable, and a big piece of that is <strong>knowing how many billable and non-billable hours to plan for.<\/strong> If you\u2019d like to prioritize your company\u2019s financial health, have happier clients, and smooth out operations, you\u2019ll want to understand how best to strike this balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"billable-vs-non-billable-definition\">Billable vs. non-billable hours defined<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What are billable hours?<\/h3>\n\n\n\n<p>Billable hours is <strong>the time spent on tasks and activities that are directly charged to clients. <\/strong>These hours are directly related to client deliverables and are businesses\u2019 primary source of revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Definition of non-billable hours<\/h3>\n\n\n\n<p><strong>Any work that doesn\u2019t directly generate revenue or isn\u2019t related to client deliverables<\/strong> is classified as <a href=\"https:\/\/beebole.com\/blog\/how-to-manage-non-billable-hours\/\">non-billable hours<\/a>. Non-billable work includes administrative tasks, internal meetings, and training and development.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are the main differences between billable and non-billable hours?<\/h3>\n\n\n\n<p>The differences between billable and non-billable hours can be pared down to the following three factors. As you\u2019ll see, one simply can\u2019t exist without the other.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Revenue generation:<\/strong> Billable hours directly <a href=\"https:\/\/www.mckinsey.com\/capabilities\/strategy-and-corporate-finance\/our-insights\/the-ten-rules-of-growth\" target=\"_blank\" rel=\"noopener\">generate revenue<\/a>, while non-billable hours indirectly affect revenue. Employees working on a client project can charge for those hours. Those same employees might\u2019ve also spent 20 hours in the past month attending a special training session. Those hours aren\u2019t billable, but the session did help the employees feel more motivated and prepared for client work.<\/li>\n\n\n\n<li><strong>Client-related vs. internal focus:<\/strong> Billable hours are client-centric while non-billable hours revolve around internal tasks and operations. A designer working on UX for a big client will likely log both billable and non-billable hours. The time she spends creating wireframes, testing, and documenting her proposal is all client-focused and billable. But that work couldn\u2019t be done without the internal tasks like making sure the right tools are in place, coordinating with other departments, and everyday administrative tasks.<\/li>\n\n\n\n<li><strong>Impact on profitability:<\/strong> Billable hours directly impact profitability and financial performance, while non-billable hours have an indirect <a href=\"https:\/\/beebole.com\/blog\/how-to-calculate-project-profitability\/\">impact on profitability<\/a>. Using the designer example from above, she bills hours on everything related to her client, but the hours she spends preparing herself for that work (think: employee training, tool testing, general research, team building exercises, and administrative upkeep) helps her accomplish her client work. In other words, time spent on non-billable tasks helps facilitate billable hours.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-manage-billable-hours-asking-right-questions\">How to manage billable hours with the right questions<\/h2>\n\n\n\n<p>Depending on your role and department, you\u2019ll have a unique stake in billable and non-billable hours. Here are a few questions you might want to ask yourself as you analyze your organization&#8217;s hours breakdown and how it fits into your company&#8217;s overall <a href=\"https:\/\/beebole.com\/blog\/project-management-triangle-is-dead\/\">project management strategy<\/a>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How many billable hours does my organization need to remain profitable? <\/li>\n\n\n\n<li>How many non-billable hours should we plan for? <\/li>\n\n\n\n<li>How can I optimize the balance of billable vs. non-billable hours? <\/li>\n\n\n\n<li>Are my clients happy with our services? <\/li>\n\n\n\n<li>Are we losing or retaining clients? <\/li>\n\n\n\n<li>Which employees are responsible for the most billable hours, and is there any way to maximize that? <\/li>\n\n\n\n<li>Are any employees working too much overtime? <\/li>\n\n\n\n<li>Are any employees at risk of burning out? <\/li>\n\n\n\n<li>How can we limit project scope creep?<\/li>\n<\/ul>\n\n\n\n<p>Billable hours management spans across various roles and departments, so a holistic approach is best. <strong>Strive for a balanced approach that crosses department lines and leaves communication lines open.<\/strong><\/p>\n\n\n\n<div\n    class=\"montserrat-font my-5 mx-auto p-4 p-lg-5 position-relative bbl_customer_story_blurb\"\n>\n  <svg\n    class=\"bk-svg-top position-absolute w-100\"\n    fill=\"none\"\n    height=\"114\"\n    viewBox=\"0 0 724 114\"\n    width=\"724\"\n    xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n    <path d=\"M-18.2595 85.4232C15.6765 58.6399 103.632 22.1092 183.964 90.253C284.38 175.433 358.663 -39.1831 421.703 17.5374C484.743 74.2578 573.058 -90.3762 669.372 0.952557C746.423 74.0156 852.42 -37.4955 895.787 -102.384\" stroke=\"#F9F8FD\" stroke-width=\"7\"\/>\n  <\/svg>\n\n  <svg\n    class=\"bk-svg-bottom position-absolute w-100\"\n    fill=\"none\"\n    height=\"113\"\n    viewBox=\"0 0 724 113\"\n    width=\"724\"\n    xmlns=\"http:\/\/www.w3.org\/2000\/svg\"\n  >\n    <path d=\"M899.19 176.521C864.862 150.242 776.377 115.015 697.059 184.338C597.913 270.991 520.468 57.496 458.273 115.141C396.077 172.787 305.34 9.47523 210.386 102.217C134.422 176.41 26.7898 66.4765 -17.5308 2.23568\" stroke=\"#F9F8FD\" stroke-width=\"7\"\/>\n  <\/svg>\n\n  <div class=\"position-relative\">\n    \n    <div class=\"bbl-csb-text\">\n      <p data-start=\"263\" data-end=\"586\">For organizations juggling dozens of client projects at once, even a small imbalance between billable and non-billable hours can ripple into missed budgets, strained resources, and lower profitability. <strong>Rancho BioSciences<\/strong>, with 130+ employees and more than 100 projects running simultaneously, knows this better than most.<\/p>\n<p data-start=\"588\" data-end=\"794\">Thanks to Beebole, they now:<\/p>\n<p data-start=\"796\" data-end=\"1059\">\ud83d\ude80 Understand how billable vs. non-billable hours affect project margins<br data-start=\"855\" data-end=\"858\" \/>\ud83d\ude80 Plan resources with a full picture of billable vs. non-billable time<br data-start=\"929\" data-end=\"932\" \/>\ud83d\ude80 Prevent cost overruns and keep projects financially healthy<br data-start=\"994\" data-end=\"997\" \/>\ud83d\ude80 Confidently align project planning with business strategy<\/p>\n    <\/div>\n\n          <a class=\"bbl-csb-link\" href=\"https:\/\/beebole.com\/blog\/how-to-avoid-project-cost-overruns\/\">\n        Read the case study\n        <svg width=\"16\" height=\"16\" viewBox=\"0 0 16 16\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path d=\"M2 8H14\" stroke=\"#464646\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n          <path d=\"M8 2L14 8L8 14\" stroke=\"#464646\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n        <\/svg>\n      <\/a>\n      <\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"project-time-tracking-for-billable-vs-non-billable-hours\">Project time tracking tools take the guesswork out of billable vs. non-billable hours<\/h2>\n\n\n\n<p>With a <a class=\"highlighted-link bbl-link-hs bbl-link-hs-v-1\" href=\"https:\/\/beebole.com\/project-time-tracking\/\"><span>project time tracking tool like Beebole<svg width=\"17\" height=\"18\" viewBox=\"0 0 17 18\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M11.25 0.875H15.625C15.7908 0.875 15.9497 0.940848 16.0669 1.05806C16.1842 1.17527 16.25 1.33424 16.25 1.5V5.875C16.25 6.04076 16.1842 6.19973 16.0669 6.31694C15.9497 6.43415 15.7908 6.5 15.625 6.5C15.4592 6.5 15.3003 6.43415 15.1831 6.31694C15.0658 6.19973 15 6.04076 15 5.875V3.00833L4.81667 13.1917C4.69819 13.3021 4.54148 13.3622 4.37956 13.3593C4.21765 13.3565 4.06316 13.2909 3.94865 13.1764C3.83414 13.0618 3.76854 12.9074 3.76569 12.7454C3.76283 12.5835 3.82293 12.4268 3.93333 12.3083L14.1167 2.125H11.25C11.0842 2.125 10.9253 2.05915 10.8081 1.94194C10.6908 1.82473 10.625 1.66576 10.625 1.5C10.625 1.33424 10.6908 1.17527 10.8081 1.05806C10.9253 0.940848 11.0842 0.875 11.25 0.875ZM2.5 4.625C2.16848 4.625 1.85054 4.7567 1.61612 4.99112C1.3817 5.22554 1.25 5.54348 1.25 5.875V14.625C1.25 14.9565 1.3817 15.2745 1.61612 15.5089C1.85054 15.7433 2.16848 15.875 2.5 15.875H11.25C11.5815 15.875 11.8995 15.7433 12.1339 15.5089C12.3683 15.2745 12.5 14.9565 12.5 14.625V7.75C12.5 7.58424 12.5658 7.42527 12.6831 7.30806C12.8003 7.19085 12.9592 7.125 13.125 7.125C13.2908 7.125 13.4497 7.19085 13.5669 7.30806C13.6842 7.42527 13.75 7.58424 13.75 7.75V14.625C13.75 15.288 13.4866 15.9239 13.0178 16.3928C12.5489 16.8616 11.913 17.125 11.25 17.125H2.5C1.83696 17.125 1.20107 16.8616 0.732233 16.3928C0.263392 15.9239 0 15.288 0 14.625V5.875C0 5.21196 0.263392 4.57607 0.732233 4.10723C1.20107 3.63839 1.83696 3.375 2.5 3.375H9.375C9.54076 3.375 9.69973 3.44085 9.81694 3.55806C9.93415 3.67527 10 3.83424 10 4C10 4.16576 9.93415 4.32473 9.81694 4.44194C9.69973 4.55915 9.54076 4.625 9.375 4.625H2.5Z\"\/><\/svg><\/span><\/a>, team managers can easily generate a billable vs. non-billable hour breakdown report. With this data in hand, stakeholders can confidently make the moves to maximize profit and increase their team\u2019s productivity.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/beebole.com\/project-time-tracking\/\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"440\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-hours-and-utilization-rate-700x440.png\" alt=\"Beebole makes understanding your billable vs. non-billable hours a breeze, and it also calculates the billable utilization percentage.\" class=\"wp-image-12924 highlighted-link bbl-link-hs bbl-link-hs-v-1\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-hours-and-utilization-rate-700x440.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-hours-and-utilization-rate-768x482.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-hours-and-utilization-rate-1536x965.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-hours-and-utilization-rate.png 1689w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><figcaption class=\"wp-element-caption\">Beebole provides a clear <a href=\"https:\/\/beebole.com\/help\/reporting\/#data-available-in-the-reports-module\">breakdown of billable vs. non-billable hours<\/a>, as well as the billable utilization percentage.<\/figcaption><\/figure>\n\n\n\n    <div class=\"bbl-testimonials set_testimonials-block\">\n            <\/div>\n\n\n\n    <div class=\"bbl-testimonials set_testimonials-block\">\n                    <div class=\"item\">\n                <div class=\"item-text\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;\\&quot;As a manager, we use Beebole to capture and report time for over 150 projects. We monitor billable and non-billable project time logged by a team member. We use reports to evaluate how to increase our billable project time. We also use Beebole to view who is under- and over- utilized throughout the year. Beebole reporting has become an integral part of resource discussions with upper management. Overall, Beebole is easy to use by both an individual team member and those needing to extract data for management reports.\\&quot;&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4545,&quot;3&quot;:{&quot;1&quot;:5,&quot;2&quot;:&quot;m\/d&quot;,&quot;3&quot;:1},&quot;9&quot;:0,&quot;10&quot;:0,&quot;11&quot;:4,&quot;15&quot;:&quot;arial,sans,sans-serif&quot;}\">As a manager, we use Beebole to capture and report time for over 150 projects. We monitor billable and non-billable project time logged by a team member. We use reports to evaluate how to increase our billable project time. We also use Beebole to view who is under- and over- utilized throughout the year. Beebole reporting has become an integral part of resource discussions with upper management. Overall, Beebole is easy to use by both an individual team member and those needing to extract data for management reports.<\/span><\/div>\n                <div class=\"item-author\">\n                    Edward M.                                            ,                         <span class=\"position-company\">\n                            Manager                                                             at                                                         RR Donnelley                        <\/span>\n                                    <\/div>\n            <\/div>\n                    <div class=\"item\">\n                <div class=\"item-text\">I do a lot of things at work, and I do them fast. Seconds matter. Beebole is crisp and responsive. I&#8217;m never waiting around for it to load or process. I&#8217;m never wasting time trying to figure out it. I can be in and out in seconds because it does its job efficiently and intuitively.<\/div>\n                <div class=\"item-author\">\n                    Avery C.                                            ,                         <span class=\"position-company\">\n                            Principal consultant                                                             at                                                         Covalence                        <\/span>\n                                    <\/div>\n            <\/div>\n                    <div class=\"item\">\n                <div class=\"item-text\">I love Beebole. Honestly, I look forward to using it. It\u2019s so fast and simple, and the support is fantastic\u2014Miguel is wonderful. The app itself is very convenient once you get the hang of it. I love the colors on the time cards\u2014they really make it cheerful compared to just gray.<\/div>\n                <div class=\"item-author\">\n                    Kika D.                                            ,                         <span class=\"position-company\">\n                            Administrator                                                             at                                                         Skytop Consulting                        <\/span>\n                                    <\/div>\n            <\/div>\n            <\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-billable-utilization\">What is billable utilization?<\/h2>\n\n\n\n<p>The utilization rate formula is defined as <strong>Billable Utilization %<\/strong> = (Number of Billable Hours \/ Number of Available Hours) X 100% This formula measures the percentage of available hours that employees spend generating revenue with their work. <em><a href=\"https:\/\/beebole.com\/blog\/finance-controller-kpis\/\">Click here for more important KPIs that finance controllers should understand<\/a>.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/beebole.com\/employee-timesheet-reports\/\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"440\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-vs-non-billable-hours-breakdown-700x440.png\" alt=\"Beebole offers customizable reporting that shows billable vs. non-billable hours.\" class=\"wp-image-12925 highlighted-link bbl-link-hs bbl-link-hs-v-1\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-vs-non-billable-hours-breakdown-700x440.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-vs-non-billable-hours-breakdown-768x482.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-vs-non-billable-hours-breakdown-1536x965.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/07\/billable-vs-non-billable-hours-breakdown.png 1689w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><figcaption class=\"wp-element-caption\">A report on billable vs. non-billable hours, just one of the many <a class=\"highlighted-link bbl-link-hs bbl-link-hs-v-1\" href=\"https:\/\/beebole.com\/employee-timesheet-reports\/\"><span>detailed and dynamic reports in Beebole<svg width=\"17\" height=\"18\" viewBox=\"0 0 17 18\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M11.25 0.875H15.625C15.7908 0.875 15.9497 0.940848 16.0669 1.05806C16.1842 1.17527 16.25 1.33424 16.25 1.5V5.875C16.25 6.04076 16.1842 6.19973 16.0669 6.31694C15.9497 6.43415 15.7908 6.5 15.625 6.5C15.4592 6.5 15.3003 6.43415 15.1831 6.31694C15.0658 6.19973 15 6.04076 15 5.875V3.00833L4.81667 13.1917C4.69819 13.3021 4.54148 13.3622 4.37956 13.3593C4.21765 13.3565 4.06316 13.2909 3.94865 13.1764C3.83414 13.0618 3.76854 12.9074 3.76569 12.7454C3.76283 12.5835 3.82293 12.4268 3.93333 12.3083L14.1167 2.125H11.25C11.0842 2.125 10.9253 2.05915 10.8081 1.94194C10.6908 1.82473 10.625 1.66576 10.625 1.5C10.625 1.33424 10.6908 1.17527 10.8081 1.05806C10.9253 0.940848 11.0842 0.875 11.25 0.875ZM2.5 4.625C2.16848 4.625 1.85054 4.7567 1.61612 4.99112C1.3817 5.22554 1.25 5.54348 1.25 5.875V14.625C1.25 14.9565 1.3817 15.2745 1.61612 15.5089C1.85054 15.7433 2.16848 15.875 2.5 15.875H11.25C11.5815 15.875 11.8995 15.7433 12.1339 15.5089C12.3683 15.2745 12.5 14.9565 12.5 14.625V7.75C12.5 7.58424 12.5658 7.42527 12.6831 7.30806C12.8003 7.19085 12.9592 7.125 13.125 7.125C13.2908 7.125 13.4497 7.19085 13.5669 7.30806C13.6842 7.42527 13.75 7.58424 13.75 7.75V14.625C13.75 15.288 13.4866 15.9239 13.0178 16.3928C12.5489 16.8616 11.913 17.125 11.25 17.125H2.5C1.83696 17.125 1.20107 16.8616 0.732233 16.3928C0.263392 15.9239 0 15.288 0 14.625V5.875C0 5.21196 0.263392 4.57607 0.732233 4.10723C1.20107 3.63839 1.83696 3.375 2.5 3.375H9.375C9.54076 3.375 9.69973 3.44085 9.81694 3.55806C9.93415 3.67527 10 3.83424 10 4C10 4.16576 9.93415 4.32473 9.81694 4.44194C9.69973 4.55915 9.54076 4.625 9.375 4.625H2.5Z\"\/><\/svg><\/span><\/a>.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"billable-hours-management-challenges\">The greatest challenges of billable hours management<\/h2>\n\n\n\n<p>If you think of billable vs non-billable hours management as the foundation of a house, think of everything it can support and help flourish. <strong>If you nail your billable hours management, you can likely generate more revenue and maximize profit margins.<\/strong> You\u2019ll also be able to better allocate resources and <a href=\"https:\/\/hbr.org\/2023\/01\/10-ways-to-boost-customer-satisfaction\" target=\"_blank\" rel=\"noopener\">improve customer satisfaction<\/a>. But like anything with high-promised returns,<strong> billable hours management comes with its challenges.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Managing client expectations with transparency<\/h3>\n\n\n\n<p>Clients expect to be charged only for work that directly benefits them. And it\u2019s your job to make sure you communicate that to them. The best way to do this accurately and transparently is to track billable vs. non-billable hours on client projects. <strong>With a tool like Beebole you can provide <a class=\"highlighted-link bbl-link-hs bbl-link-hs-v-1\" href=\"https:\/\/beebole.com\/employee-timesheet-reports\/\"><span>detailed reports<svg width=\"17\" height=\"18\" viewBox=\"0 0 17 18\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M11.25 0.875H15.625C15.7908 0.875 15.9497 0.940848 16.0669 1.05806C16.1842 1.17527 16.25 1.33424 16.25 1.5V5.875C16.25 6.04076 16.1842 6.19973 16.0669 6.31694C15.9497 6.43415 15.7908 6.5 15.625 6.5C15.4592 6.5 15.3003 6.43415 15.1831 6.31694C15.0658 6.19973 15 6.04076 15 5.875V3.00833L4.81667 13.1917C4.69819 13.3021 4.54148 13.3622 4.37956 13.3593C4.21765 13.3565 4.06316 13.2909 3.94865 13.1764C3.83414 13.0618 3.76854 12.9074 3.76569 12.7454C3.76283 12.5835 3.82293 12.4268 3.93333 12.3083L14.1167 2.125H11.25C11.0842 2.125 10.9253 2.05915 10.8081 1.94194C10.6908 1.82473 10.625 1.66576 10.625 1.5C10.625 1.33424 10.6908 1.17527 10.8081 1.05806C10.9253 0.940848 11.0842 0.875 11.25 0.875ZM2.5 4.625C2.16848 4.625 1.85054 4.7567 1.61612 4.99112C1.3817 5.22554 1.25 5.54348 1.25 5.875V14.625C1.25 14.9565 1.3817 15.2745 1.61612 15.5089C1.85054 15.7433 2.16848 15.875 2.5 15.875H11.25C11.5815 15.875 11.8995 15.7433 12.1339 15.5089C12.3683 15.2745 12.5 14.9565 12.5 14.625V7.75C12.5 7.58424 12.5658 7.42527 12.6831 7.30806C12.8003 7.19085 12.9592 7.125 13.125 7.125C13.2908 7.125 13.4497 7.19085 13.5669 7.30806C13.6842 7.42527 13.75 7.58424 13.75 7.75V14.625C13.75 15.288 13.4866 15.9239 13.0178 16.3928C12.5489 16.8616 11.913 17.125 11.25 17.125H2.5C1.83696 17.125 1.20107 16.8616 0.732233 16.3928C0.263392 15.9239 0 15.288 0 14.625V5.875C0 5.21196 0.263392 4.57607 0.732233 4.10723C1.20107 3.63839 1.83696 3.375 2.5 3.375H9.375C9.54076 3.375 9.69973 3.44085 9.81694 3.55806C9.93415 3.67527 10 3.83424 10 4C10 4.16576 9.93415 4.32473 9.81694 4.44194C9.69973 4.55915 9.54076 4.625 9.375 4.625H2.5Z\"\/><\/svg><\/span><\/a> on billable hours worked broken down by project, task, and sub-task.<\/strong> Reports like this provide peace of mind to the client who can see at a glance what they\u2019re paying for. Satisfied clients generally translate to higher client retention rates and more billable work. Internally speaking, a project time tracking tool can help keep teams accountable for their work, while also giving project managers and upper management a clear snapshot of workloads and productivity levels.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Boosting employee morale and avoiding burnout<\/h3>\n\n\n\n<p>If you don\u2019t focus enough on your billable vs. non-billable hours breakdown, <strong>you might be putting your entire operation at risk.<\/strong> If you don\u2019t properly manage billable hours, you could run into profit loss, unhappy clients, or mishandled projects. Emphasize billable hours too much, and employees might feel demoralized or burnt out.<\/p>\n\n\n\n<p>Remember that non-billable work is just as valuable as billable, and it\u2019s important to acknowledge that. Try to prioritize employee training, team building activities, and day-to-day tasks needed for smooth operations. By doing this, you can show employees that you value their non-billable work just as much as billable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Balancing resources for better allocation<\/h3>\n\n\n\n<p>Your resource allocation also needs to be balanced. If you really want to prove that you value non-billable work, then allocate resources to those tasks, too. Put employees first by actually making time for non-billable work. <\/p>\n\n\n\n<p>As a team leader, it\u2019s your job to balance billable and non-billable hours. That means <strong>you\u2019ll need to juggle upcoming deadlines, projects, and clients, while also making time for non-billable work that supports everyone\u2019s long-term goals.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Budgeting smarter and avoiding project scope creep<\/h3>\n\n\n\n<p>Creating an accurate budget is complex. If you underestimate non-billable work, you risk project delays and budget overruns. On the other hand, if you overestimate billable hours, you run the risk of budget inflation, which could turn away potential customers. Project scope creep is another important factor to consider.<\/p>\n\n\n\n<div  class=\"montserrat-font my-5 mx-auto bbl_definition_snippet\">\n  <div class=\"mb-4\">\n    <div class=\"bbl-ds-item question mb-3\">\n      <h2 class=\"h4 mb-0 mt-0\">What is scope creep?<\/h2>\n    <\/div>\n    <div class=\"bbl-ds-item answer\">\n      <p>When projects stray from the original plan due to new ideas and tasks, this is called scope creep. This usually starts with a small shift, but if the changes continue to build up, they can lead to problems like delayed and over-budget projects.<\/p>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p>A skilled project manager takes potential scope creep into account when resource planning and budgeting for new projects. <a href=\"https:\/\/www.forbes.com\/advisor\/business\/scope-creep\/\" target=\"_blank\" rel=\"noopener\">Projects can shift over time<\/a>, but if you\u2019re monitoring them properly and keeping tabs on billable vs. non-billable hours, as well as milestone achievements, it\u2019s easier to catch and pivot before running into budget overrun or incomplete projects.<\/p>\n\n\n\n    <div class=\"bbl-testimonials set_testimonials-block\">\n                    <div class=\"item\">\n                <div class=\"item-text\"><span data-sheets-root=\"1\">Beebole also helps us to control our budget against actuals and monitor our billable rate. The billable rate is key because non-billable activities can quickly create overhead. We know that if our billable rate drops below 65%, we&#8217;re facing significant workload and profitability issues. Conversely, a rate above 75% indicates strong performance.This metric helps us identify inefficiencies &amp; simplify analysis within individual projects and control budget drivers like hours, expenses, and billing values. It guides us in reducing unused resources, ultimately saving costs. It even assists in salary reviews, as we can objectively demonstrate an employee&#8217;s contribution based on their billable rate and time tracking.<\/span><\/div>\n                <div class=\"item-author\">\n                    Dmitri Savitski                                            ,                         <span class=\"position-company\">\n                            Solutions expert                                                             at                                                         InDataLabs                        <\/span>\n                                    <\/div>\n            <\/div>\n            <\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Understanding your labor breakdown with a project time tracking tool<\/h3>\n\n\n\n<p>Understanding the labor breakdown within your organization is the first step in being able to better manage billable hours. Perhaps the best way to do that is with <a href=\"https:\/\/beebole.com\/blog\/best-time-tracking-tools-track-billable-hours\/\">a project time tracking tool with billable hours management features<\/a>. You\u2019ll want a tool that allows for seamless project time tracking, integrates with other tools within your stack, and that can easily be customized to fit your exact needs for both tracking and reporting.<\/p>\n\n\n\n<p>Apart from <a href=\"https:\/\/beebole.com\/blog\/top-time-tracking-apps\/\">choosing the right tool<\/a> for your organization, here are a few other things you should take into account:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How to automate time tracking to streamline the process<\/li>\n\n\n\n<li>How best to establish clear policies and guidelines related to billable and non-billable activities, and when to prioritize one of the other<\/li>\n\n\n\n<li>When and how to leverage time tracking data to pull insightful reports to share with the team, plus how to use internally for strategic planning and decision making<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Implementing the right business pricing models and profitability<\/h3>\n\n\n\n<p>The key to any successful business is its profitability. <strong>Understanding how your organization remains profitable should be a driving factor in everything from the people you hire to the clients you take on and the tools that you use. <\/strong>Of course, this is also where prioritizing billable vs. non-billable hours comes into play.<\/p>\n\n\n\n<p>If this seems like a daunting task, it is. Choosing a pricing model will affect which types of clients you work with, the services and output you\u2019re able to provide, and how much emphasis you can really put on billable and non-billable work.<\/p>\n\n\n\n<p>The first thing you should try to understand is the true cost of both billable and non-billable hours within your organization. True costs include <a href=\"https:\/\/beebole.com\/blog\/how-to-calculate-the-real-cost-of-an-employee\/\">direct labor costs<\/a>, overhead, and the time spent on non-billable activities like administration, training, and internal meetings. Understanding how much time and money your non-billable hours require is the piece of the puzzle that helps you price your services.<\/p>\n\n\n\n<p>Once your true costs are clear, you can work with your finance team to discuss your pricing model options that best align with your organization and the team\u2019s need to balance billable and non-billable hours.<\/p>\n\n\n\n<p>With a solid understanding of how billable and non-billable hours play into project management and success, you can very clearly communicate the value of both types of hours to help manage client expectations while also reducing conflict and misunderstandings. Transparent communication with clients fosters growth and loyalty, two very big players in the profitability game.<\/p>\n\n\n<div  class=\"mb-4 call_to_action-block\">\n    <div class=\"call_to_action-blockcontent py-5 px-4 text-center border-top border-bottom\">\n                    <h4 class=\"call_to_action-header h2 mt-0\">Maximize your Project Profitability<\/h4>\n                            <p class=\"call_to_action-text\">Beebole can help you understand (and optimize!) your billable and non-billable hours.<\/p>\n                <div class=\"call_to_action-btns btns-wrap d-block d-lg-flex justify-content-center mx-auto\">\n                            <a class=\"w-100 w-lg-auto btn btn-outline-primary text-primary link-light me-lg-4 mb-3 mb-lg-0 bbl_cta_block_demo_btn \" href=\"https:\/\/beebole.com\/talk-sales\/\" id=\"cta_post_12901_article_demo_1\">Book a Call<\/a>\n                                        <a class=\"w-100 w-lg-auto btn btn-primary text-light bbl_cta_block_signup_btn \" href=\"https:\/\/beebole-apps.com\/signup\/\" id=\"cta_post_12901_article_sign_up_1\" target=\"_blank\" rel=\"noopener\">Sign Up<\/a>\n                    <\/div>\n    <\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"balancing-act\">Billable hours management: A balancing act you want to master<\/h2>\n\n\n\n<p>Balancing your billable and non-billable hours is no small feat, but we hope that if you\u2019ve gotten this far, you see just how important this is.<\/p>\n\n\n\n<p>As you strive for project profitability,<strong> the yin and yang of billable vs. non-billable hours is a non-negotiable. <\/strong>Both feed into the overall success of any organization, and one simply can\u2019t exist without the other. By prioritizing transparent project time tracking, cross-departmental communication lines, and a genuine interest and investing in employee well-being, you\u2019ll be well on your way to striking that perfect balance.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Achieving the perfect balance between billable and non-billable hours is both an art and a science. Both operations and finance leaders need to understand what makes their organization profitable, and a big piece of that is knowing how many billable and non-billable hours to plan for. If you\u2019d like to prioritize your company\u2019s financial health, [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":12903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4011],"tags":[1468,4000,4004],"class_list":["post-12901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management","tag-finance","tag-project-management","tag-billable-hours"],"acf":[],"_links":{"self":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/12901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/comments?post=12901"}],"version-history":[{"count":27,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/12901\/revisions"}],"predecessor-version":[{"id":14504,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/12901\/revisions\/14504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media\/12903"}],"wp:attachment":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media?parent=12901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/categories?post=12901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/tags?post=12901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}