{"id":13073,"date":"2025-01-23T11:00:00","date_gmt":"2025-01-23T10:00:00","guid":{"rendered":"https:\/\/beebole.com\/blog\/?p=13073"},"modified":"2026-08-14T16:37:46","modified_gmt":"2026-08-14T14:37:46","slug":"how-to-manage-non-billable-hours","status":"publish","type":"post","link":"https:\/\/beebole.com\/blog\/how-to-manage-non-billable-hours","title":{"rendered":"Non-billable hours: Strategic investment or hidden cost?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When it comes to non-billable hours, businesses can totally reframe how they approach them. Rather than a knee-jerk reaction of directly trying to reduce non-billable hours, reframing your mindset to how <a href=\"https:\/\/beebole.com\/blog\/manage-billable-and-non-billable-hours\/\">best to manage non-billable hours<\/a> can actually give you the upper hand.<\/p>\n\n\n<div  class=\"position-relative bbl-summarize-w-ai-block\">\n    <div class=\"bbl-swa-inner \">\n        <div class=\"bbl-swa-inner-top\">\n                            <div class=\"bbl-swa-title\">\n                    TL;DR: What you&#8217;ll learn                <\/div>\n            \n                            <div class=\"bbl-swa-quote montserrat-font\">\n                    <p class=\"font-claude-response-body break-words whitespace-normal\" dir=\"ltr\"><strong>TL;DR: What you&#8217;ll learn<br \/>\n<\/strong>Stop thinking about non-billable hours as wasted time. If managed well, they&#8217;re a strategic investment. But if they&#8217;re managed poorly, they&#8217;re a hidden drain on margins. Today we&#8217;ll cover:<\/p>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3 print:block print:space-y-1\" dir=\"ltr\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Investment vs. cost<\/strong>: Why the goal isn&#8217;t cutting non-billable hours, but understanding which ones drive long-term value<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>The hidden costs of poor tracking<\/strong>: How unmanaged non-billable time quietly erodes margins, budgets, and cash flow<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>The core challenges<\/strong>: What makes non-billable work hard to categorize, track, and justify across teams<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>A 5-step framework<\/strong>: Practical steps for turning non-billable time into a measurable, strategic asset<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\"><strong>Where Beebole fits in<\/strong>: How flexible billing rates, real-time budget tracking, and custom reports make managing non-billable hours easier to see and act on<\/li>\n<\/ul>\n                <\/div>\n                    <\/div>\n\n        <div class=\"bbl-swa-actions d-flex justify-content-between\">\n                                                <div\n                        class=\"bbl-swa-actions-label montserrat-font bbl-wider-label\"\n                    >Evaluate your non-billable time:<\/div>\n                            \n            <div class=\"bbl-swa-logos-outer d-flex\">\n                                <div class=\"bbl-swa-logos\">\n                                            <a\n            class=\"bbl-summarize-w-chatgpt\"\n            href=\"https:\/\/chat.openai.com\/?q=Please%20read%20https:\/\/beebole.com\/blog\/how-to-manage-non-billable-hours.%20Based%20only%20on%20the%20information%20in%20this%20article%20and%20Beebole,%20explain%20the%20most%20valuable%20insights%20I%20can%20gain%20by%20accurately%20tracking%20billable%20and%20non-billable%20hours.%20For%20each%20insight,%20describe%20what%20it%20tells%20me%20about%20my%20team%20or%20business,%20why%20it%20matters,%20and%20one%20practical%20action%20I%20could%20take%20based%20on%20that%20information.%20Stick%20to%20only%20what%20this%20article%20says%20and%20what%20it%20explains%20about%20Beebole.%20Do%20not%20use%20outside%20information,%20assumptions,%20or%20generic%20best%20practices.%20Present%20each%20insight%20and%20action%20clearly%20and%20concisely.\"\n            rel=\"nofollow noopener noreferrer\" target=\"_blank\"\n        >\n            <svg width=\"28\" height=\"26\" viewBox=\"0 0 28 26\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <mask id=\"mask0_1578_5676\" style=\"mask-type:luminance\" maskUnits=\"userSpaceOnUse\" x=\"0\" y=\"0\" width=\"28\" height=\"26\">\n                    <path d=\"M27.1171 0H0.882935V26H27.1171V0Z\" fill=\"white\"\/>\n                <\/mask>\n                <g mask=\"url(#mask0_1578_5676)\">\n                    <path d=\"M10.9449 9.46396V6.99394C10.9449 6.78592 11.023 6.62986 11.2049 6.52598L16.171 3.66598C16.847 3.276 17.6531 3.09409 18.4849 3.09409C21.6049 3.09409 23.581 5.51214 23.581 8.08603C23.581 8.26799 23.581 8.47602 23.555 8.68404L18.4069 5.66798C18.095 5.48608 17.7828 5.48608 17.4709 5.66798L10.9449 9.46396ZM22.5409 19.084V13.1819C22.5409 12.8178 22.3848 12.5578 22.0729 12.3759L15.5469 8.57989L17.6789 7.35781C17.8609 7.25393 18.0169 7.25393 18.1989 7.35781L23.165 10.2178C24.5951 11.0499 25.557 12.8178 25.557 14.5337C25.557 16.5097 24.3871 18.3297 22.5409 19.0838V19.084ZM9.41092 13.8841L7.27892 12.6361C7.09702 12.5323 7.01893 12.3761 7.01893 12.1681V6.44817C7.01893 3.66625 9.15093 1.5601 12.037 1.5601C13.1291 1.5601 14.1429 1.92419 15.0011 2.57416L9.87915 5.53826C9.56725 5.72016 9.41119 5.98015 9.41119 6.34429V13.8843L9.41092 13.8841ZM14 16.536L10.9449 14.82V11.1802L14 9.46423L17.0548 11.1802V14.82L14 16.536ZM15.963 24.4401C14.8709 24.4401 13.8571 24.076 12.9989 23.4261L18.1208 20.462C18.4328 20.2801 18.5888 20.0201 18.5888 19.6559V12.1159L20.7469 13.3639C20.9288 13.4677 21.0069 13.6238 21.0069 13.8319V19.5518C21.0069 22.3337 18.8488 24.4399 15.963 24.4399V24.4401ZM9.8009 18.6421L4.83475 15.7822C3.40464 14.95 2.44277 13.1822 2.44277 11.4662C2.44277 9.46423 3.63879 7.67025 5.48467 6.91618V12.8442C5.48467 13.2082 5.64079 13.4682 5.95269 13.6502L12.4528 17.4201L10.3208 18.6421C10.1389 18.746 9.98281 18.746 9.8009 18.6421ZM9.51507 22.9061C6.57704 22.9061 4.41898 20.6961 4.41898 17.9661C4.41898 17.7581 4.44504 17.55 4.47089 17.342L9.59288 20.3061C9.90478 20.4881 10.217 20.4881 10.5289 20.3061L17.0548 16.5363V19.0063C17.0548 19.2143 16.9768 19.3704 16.7948 19.4742L11.8288 22.3342C11.1527 22.7242 10.3467 22.9061 9.51479 22.9061H9.51507ZM15.963 26C19.109 26 21.7349 23.7641 22.3331 20.8C25.2451 20.0459 27.1171 17.3159 27.1171 14.534C27.1171 12.7139 26.3372 10.946 24.9331 9.67198C25.0631 9.12594 25.1411 8.57989 25.1411 8.03412C25.1411 4.31617 22.1251 1.53399 18.641 1.53399C17.9392 1.53399 17.2631 1.63786 16.5871 1.87201C15.4169 0.727951 13.8049 0 12.037 0C8.89099 0 6.26513 2.23587 5.66691 5.19997C2.75494 5.95404 0.882935 8.68404 0.882935 11.466C0.882935 13.2861 1.66285 15.0539 3.0669 16.328C2.9369 16.874 2.85887 17.4201 2.85887 17.9659C2.85887 21.6838 5.87493 24.466 9.35895 24.466C10.0608 24.466 10.7369 24.3621 11.4129 24.1279C12.5828 25.272 14.1948 26 15.963 26Z\" fill=\"#313358\"\/>\n                <\/g>\n            <\/svg>\n        <\/a>\n                                                                    <a\n            class=\"bbl-summarize-w-perplexity\"\n            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href=\"https:\/\/www.google.com\/search?aep=11&#038;udm=50&#038;q=Please%20read%20https:\/\/beebole.com\/blog\/how-to-manage-non-billable-hours.%20Based%20only%20on%20the%20information%20in%20this%20article%20and%20Beebole,%20explain%20the%20most%20valuable%20insights%20I%20can%20gain%20by%20accurately%20tracking%20billable%20and%20non-billable%20hours.%20For%20each%20insight,%20describe%20what%20it%20tells%20me%20about%20my%20team%20or%20business,%20why%20it%20matters,%20and%20one%20practical%20action%20I%20could%20take%20based%20on%20that%20information.%20Stick%20to%20only%20what%20this%20article%20says%20and%20what%20it%20explains%20about%20Beebole.%20Do%20not%20use%20outside%20information,%20assumptions,%20or%20generic%20best%20practices.%20Present%20each%20insight%20and%20action%20clearly%20and%20concisely.\"\n            rel=\"nofollow noopener noreferrer\" target=\"_blank\"\n        >\n            <svg width=\"29\" height=\"29\" viewBox=\"0 0 29 29\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <path d=\"M28.8828 14.4703C21.1362 14.9372 14.9348 21.1362 14.4691 28.8828H14.4125C13.9456 21.1362 7.74541 14.9372 0 14.4703V14.4137C7.74661 13.9456 13.9456 7.74661 14.4125 0H14.4691C14.936 7.74661 21.1362 13.9456 28.8828 14.4137V14.4703Z\" fill=\"#262C54\"\/>\n            <\/svg>\n        <\/a>\n                                                                    <a\n            class=\"bbl-summarize-w-grok\"\n            href=\"https:\/\/x.com\/i\/grok?q=Please%20read%20https:\/\/beebole.com\/blog\/how-to-manage-non-billable-hours.%20Based%20only%20on%20the%20information%20in%20this%20article%20and%20Beebole,%20explain%20the%20most%20valuable%20insights%20I%20can%20gain%20by%20accurately%20tracking%20billable%20and%20non-billable%20hours.%20For%20each%20insight,%20describe%20what%20it%20tells%20me%20about%20my%20team%20or%20business,%20why%20it%20matters,%20and%20one%20practical%20action%20I%20could%20take%20based%20on%20that%20information.%20Stick%20to%20only%20what%20this%20article%20says%20and%20what%20it%20explains%20about%20Beebole.%20Do%20not%20use%20outside%20information,%20assumptions,%20or%20generic%20best%20practices.%20Present%20each%20insight%20and%20action%20clearly%20and%20concisely.\"\n            rel=\"nofollow noopener noreferrer\" target=\"_blank\"\n        >\n            <svg width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n    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viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <path d=\"M7.66688 21.2213L13.3509 18.0321L13.4465 17.7551L13.3509 17.601H13.074L12.124 17.5425L8.87626 17.4547L6.05958 17.3376L3.33068 17.1913L2.64407 17.045L2.00037 16.1965L2.06669 15.7733L2.64407 15.3851L3.47112 15.4573L5.29884 15.5821L8.0414 15.7713L10.031 15.8883L12.9784 16.1946H13.4465L13.5128 16.0054L13.3529 15.8883L13.2281 15.7713L10.3899 13.848L7.31772 11.8155L5.70847 10.6451L4.8385 10.0521L4.39961 9.4962L4.2104 8.28292L5.0004 7.41295L6.06153 7.48512L6.33266 7.5573L7.40745 8.38435L9.70331 10.1614L12.7014 12.3694L13.1403 12.7342L13.3158 12.6094L13.3373 12.5216L13.1403 12.1919L11.5096 9.24457L9.76963 6.24649L8.99524 5.00395L8.79043 4.25882C8.71826 3.95257 8.66559 3.69509 8.66559 3.38105L9.56482 2.15997L10.0622 2.00002L11.2618 2.15997L11.7671 2.59885L12.5122 4.30368L13.7196 6.98772L15.5922 10.6373L16.1403 11.7199L16.4329 12.7225L16.5421 13.0287H16.7313V12.8532L16.8854 10.7973L17.1702 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28.5575L21.0149 26.2383L19.3101 23.6264L17.9349 21.2857L17.7671 21.3813L16.9557 30.1219L16.5753 30.5686L15.6975 30.9041L14.9661 30.3482L14.5779 29.449L14.9661 27.672L15.4342 25.3527L15.8146 23.5094L16.1579 21.2193L16.3627 20.4586L16.349 20.4079L16.1813 20.4294L14.455 22.7993L11.8295 26.3475L9.75208 28.5712L9.25467 28.7682L8.39251 28.3215L8.47248 27.5237L8.95428 26.8137L11.8295 23.1563L13.5636 20.8897L14.6832 19.5808L14.6754 19.3916H14.6091L6.97246 24.3501L5.61289 24.5256L5.02771 23.9775L5.09988 23.0783L5.37687 22.7857L7.67273 21.2057L7.66493 21.2135L7.66688 21.2213Z\" fill=\"#262C54\"\/>\n            <\/svg>\n        <\/a>\n                                                            <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<h2 id=\"non-billable-hours-definition\" class=\"wp-block-heading\">Non-billable hours: Strategic investment<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your clients expect to be billed only for the quality work that your company does that delivers the requested services and\/or generates value on their behalf. Technically speaking, everything else falls into the realm of non-billable work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, <strong>non-billable work<\/strong> refers to the tasks and activities performed by employees that cannot be charged to a client. These activities are essential for the functioning and growth of the business but do not generate direct revenue. Some of these activities include the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Administrative tasks (e.g., scheduling, paperwork) <\/li>\n\n\n\n<li>Internal meetings <\/li>\n\n\n\n<li>Training and professional development <\/li>\n\n\n\n<li>Marketing your business <\/li>\n\n\n\n<li>Research and development (if not directly billable to a client)<\/li>\n\n\n\n<li>Maintenance and upkeep of office or equipment <\/li>\n\n\n\n<li>Networking<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Non-billable hours<\/strong> are classified as the time employees spend on non-billable work. This term measures the duration spent on activities that do not directly produce revenue. For instance, you can\u2019t bill your clients for things like training your employees, marketing your business, or networking. So, how can that non-billable time be considered a strategic investment if you can\u2019t get any direct revenue from it?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a couple of things. First, some of those non-billable hours are necessary to run your business. You can\u2019t bill your clients for the time one of your employees is spending making photocopies and organizing files in your organization. However, this is something that is part of running your business, and you still have to pay your employees for the time they spend doing that kind of work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, some of that non-billable time can be managed as an investment towards the future. If you understand that some portion of non-billable work will contribute to the long-term growth and success of the company, it\u2019s easy to see just how necessary it is. For example, <a href=\"https:\/\/beebole.com\/blog\/reskilling-finance-teams-business-intelligence\/\">training your finance employees on AI and data analytics<\/a> can be seen as an investment if your company plans to automate certain procedures to maximize insights and promote better decision-making.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, if your law firm decides to support one of your senior associates in his efforts to join the National Bar Association with the idea that he gains prominence and brings more referrals to the firm, that too can be managed as a strategic investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In such contexts, non-billable time becomes a strategic investment because it offers real value to the company. Of course, you have to measure and monitor the return on investment of those non-billable hours and see if they are effectively improving and bringing more business to your organization.<\/p>\n\n\n\n<div\n    class=\"montserrat-font my-5 mx-auto p-4 p-lg-5 bbl_customer_story_blurb\"\n  style=\"background-image:url('https:\/\/beebole.com\/blog\/wp-content\/themes\/sage\/public\/images\/block-csb-bk.18ecf3.png')\"\n>\n  <div class=\"position-relative\">\n    \n    <div class=\"bbl-csb-text\">\n      <p data-start=\"146\" data-end=\"473\">UK technology firm <strong>Cloud Perspective <\/strong>has mastered this. They use Beebole to track both billable and non-billable hours across multiple clients and projects. By going beyond a simple billable\/non-billable split and adding a <strong data-start=\"379\" data-end=\"432\">\u201ccredit\u201d category for strategic non-billable work<\/strong>, they gained the visibility needed to:<\/p>\n<p data-start=\"475\" data-end=\"870\">\ud83d\ude80 Identify how much time was spent on revenue-generating vs. internal growth activities<br data-start=\"563\" data-end=\"566\" \/>\ud83d\ude80 Treat certain non-billable hours as investments instead of wasted cost<br data-start=\"679\" data-end=\"682\" \/>\ud83d\ude80 Analyze productivity at both the individual and company level through customizable dashboards and exports<\/p>\n<p data-start=\"475\" data-end=\"870\"><em>\u201cIt is particularly useful to be able to log time as both billable and non-billable \u2013 and indeed one of the features that we have recently started using is the ability to have custom picklists. We have one for Billable, Non-billable, and Credit.<\/em>\u201d \u2013 Miranda Pocock, Founder &amp; CTO, Cloud Perspective<\/p>\n    <\/div>\n\n          <a\n        class=\"d-inline-block bbl-csb-link mt-2\"\n        href=\"https:\/\/beebole.com\/blog\/tracking-projects-cloud-perspective\/\"\n              >\n        Read the case study\n        <svg width=\"14\" height=\"14\" viewBox=\"0 0 14 14\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path d=\"M5.25 10.5L8.75 7L5.25 3.5\" stroke=\"#424240\" stroke-width=\"1.16667\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n        <\/svg>\n      <\/a>\n      <\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Needless to say, the money that you are investing in covering the non-billable hours associated with the training of your finance team or the efforts carried out by your senior associate should be considered a strategic investment in your company because of the potential value they can generate for your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the case of the lawyer, \u201cthe non-billable time expended by the associate becomes <a href=\"https:\/\/www.edge.ai\/2019\/03\/qualified-non-billable-time\/\" target=\"_blank\" rel=\"noopener\">qualified non-billable time (QNBT)<\/a>. It is not merely discretionary time, nor is it perceived to be something that can be conjured at will, but rather it is something that has been vetted and will be measured against a set of objectives,\u201d explains Gerry Riskin, founder at Edge International, a global consultancy specializing in the legal and other professional services\u2019 sectors.<\/p>\n\n\n\n<h2 id=\"hidden-costs-of-non-billable-hours\" class=\"wp-block-heading\">Non-billable hours: Hidden costs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Non-billable hours are essential for the functioning and growth of the business. Furthermore, when they provide value to the company\u2019s own growth, they can be managed as strategic investments. That said, non-billable hours can also become hidden costs when they meet the following two conditions:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>They are part of inefficient processes and\/or don\u2019t provide any value to the company. <\/li>\n\n\n\n<li>They aren\u2019t properly managed or accounted for.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The most common scenario for this to happen is quite simple: Many companies simply don\u2019t track their non-billable time because they don\u2019t see the need for it. If that\u2019s the case and <strong>there\u2019s an inefficient process within your company that you don\u2019t keep track of, you are probably unaware of the cost associated with that process.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the following image, you can see how a company can lose sight of additional costs at the administrative level when it doesn\u2019t manage its non-billable hours:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"394\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/how-non-billable-hours-turn-into-hidden-costs-700x394.png\" alt=\"Non-billable hours can turn into hidden costs\" class=\"wp-image-13076\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/how-non-billable-hours-turn-into-hidden-costs-700x394.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/how-non-billable-hours-turn-into-hidden-costs-768x432.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/how-non-billable-hours-turn-into-hidden-costs-1536x864.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/how-non-billable-hours-turn-into-hidden-costs.png 1600w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If the company manages its non-billable hours, it can easily identify and eventually fix the issue associated with the hourly increase on administrative tasks (from 20 to 40 hours).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Beebole, for example, flags budget overruns while there&#8217;s still time to adjust, and its real-time reporting means financial visibility doesn&#8217;t wait for month-end close.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a8b721799b18&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a8b721799b18\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"438\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/Budget-status-report-flags-budget-overruns-700x438.png\" alt=\"Beebole&#039;s built-in Budget Status report flags budget runs while there&#039;s still time to adjust\" class=\"wp-image-14957\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/Budget-status-report-flags-budget-overruns-700x438.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/Budget-status-report-flags-budget-overruns-768x480.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/Budget-status-report-flags-budget-overruns.png 1147w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Monitor potential budget overruns in real-time in Beebole.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, if the company doesn\u2019t manage its non-billable work, it would be difficult to see the costs generated by potential inefficiencies at the administrative level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following are some of the negative effects that hidden costs can have on a company\u2019s profitability and efficiency:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduced profit margins <\/li>\n\n\n\n<li>Inaccurate financial reporting <\/li>\n\n\n\n<li>Poor budgeting and forecasting <\/li>\n\n\n\n<li>Increased operational costs <\/li>\n\n\n\n<li>Resource misallocation <\/li>\n\n\n\n<li>Strained cash flow <\/li>\n\n\n\n<li>Decreased competitive edge<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Most large companies, however, usually track their overall costs in one way or another, so there\u2019s little \u201chidden\u201d about the cost associated with non-billable hours. In fact, most experts we talked with argue that non-billable hours aren\u2019t considered an investment or hidden cost.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to a senior manager who works for an international financial institution, a larger firm not only has a history of the costs related to meetings, traveling, and training, but can also average out the costs over many clients, so these costs should not be hidden but explicitly estimated and taken into account when deciding on the rates that the clients are charged. \u201cIn that sense, for a bigger firm I don&#8217;t think non-billable hours are either an investment or a hidden cost,\u201d states the senior manager.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aaron Brown, finance expert and columnist at Bloomberg, goes even further by saying that the pay, not the hour, is what really counts as an investment or cost. \u201cIf a company assigned non-billable work to employees\u2014say for professional development or overhead tasks not specific to individual clients\u2014then the cost for that work could be either an investment (professional development) or expense (overhead)\u2014but it\u2019s the pay that\u2019s the investment or expense, not the hours,\u201d argues Brown.<\/p>\n\n\n\n<h2 id=\"non-billable-hours-challenges\" class=\"wp-block-heading\">Challenges in managing non-billable hours<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNon-billable time is often not tracked accurately,\u201d states Riskin. When we asked him about that, he pointed out two fundamental reasons:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Companies don\u2019t understand the value of non-billable hours. <\/li>\n\n\n\n<li>Companies don\u2019t know how to classify non-billable work.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Some companies don\u2019t ask employees to track their non-billable time because they don\u2019t care or they don\u2019t understand it has value, so they are fine with throwing it away. This is also why there is a lot of resistance to investing in non-billable hours in the corporate world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, companies don\u2019t know how to classify non-billable work, and they don\u2019t ask their employees for a bit of discipline as to correctly recording it by category, just as they would with billable time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from these two fundamental problems, and even if they are willing to track non-billable time, companies often don\u2019t have a good tracking system to categorize and manage non-billable hours. This poses a practical problem for many organizations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Last but not least, some companies are afraid to compromise profitability with non-billable hours that don\u2019t generate revenue. This broad misconception not only affects the ability of the company to balance non-billable activities with billable work but also can lead to other issues such as <a href=\"https:\/\/beebole.com\/blog\/cost-absenteeism-presenteeism\/\">employee burnout and low productivity<\/a>.<\/p>\n\n\n\n<h2 id=\"maximize-value-non-billable-hours\" class=\"wp-block-heading\">The #1 tip for maximizing the strategic value of non-billable hours<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to non-billable hours, your focus shouldn\u2019t be on reducing them but rather on maximizing their strategic value. If you want to achieve that, the recipe is simple: <strong>You need to manage your non-billable hours.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the senior manager we talked to, the best way to deal with non-billable hours without compromising the profitability of the organization is by taking them into account. In other words, by managing them effectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But how can businesses track and manage non-billable hours effectively? First, you need to cultivate a culture that values strategic investments in non-billable time. Second, you need a robust <a class=\"highlighted-link bbl-link-hs bbl-link-hs-v-1\" href=\"https:\/\/beebole.com\/project-time-tracking\/\"><span>time tracking and reporting system<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> in place. A system like Beebole gives you a real-time view of planned vs. actual hours, so over-allocation or under-utilization shows up early, not at quarter-end. Third, you need to categorize non-billable work appropriately (just as you do for billable time). Fourth, you need to prioritize non-billable work aligned with your long-term goals. Fifth, you need to track the return on investment of non-billable hours. <a href=\"https:\/\/beebole.com\/help\/documentation\/custom-reports\">Beebole&#8217;s multidimensional reports<\/a>, which are filterable by person, project, task, tag, or date range, make that ROI visible over time instead of guesswork.<\/p>\n\n\n\n<h2 id=\"beebole-manage-non-billable-hours\" class=\"wp-block-heading\">How Beebole can help you manage non-billable hours effectively<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Beebole lets you set billing rates \u2014 hourly, daily, fixed, or non-billable \u2014 at the person, project, or tag level, so you always know the billable vs. non-billable breakdown across your team and clients.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a8b72179a0b8&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a8b72179a0b8\" class=\"wp-block-image aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"506\" height=\"536\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/non-billable-option-at-person-level-in-Beebole.png\" alt=\"Where to set non-billable hours at the person level in Beebole\" class=\"wp-image-14959\" title=\"\"><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">A look at how to set non-billable hours at the person level in Beebole.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Using a tool like Beebole to track your billable and non-billable hours is the first step in effective management of them. Having employees track their billable and non-billable time allows you to then better understand the demands of certain projects and clients, and how those demands relate to overall profits. This type of reporting and analysis can all be done within <a href=\"https:\/\/beebole.com\/help\/documentation\/custom-reports#custom-reports-columns-charts-and-matrix\">Beebole&#8217;s custom reports<\/a>, or you can take your analysis a step further with Beebole&#8217;s native integrations with <a href=\"https:\/\/beebole.com\/integrations\/google-sheets\">Google Sheets<\/a> or <a href=\"https:\/\/beebole.com\/integrations\/excel\">Excel<\/a>.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a8b72179a2f3&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"6a8b72179a2f3\" class=\"wp-block-image aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"438\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on--pointerdown=\"actions.preloadImage\" data-wp-on--pointerenter=\"actions.preloadImageWithDelay\" data-wp-on--pointerleave=\"actions.cancelPreload\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/manage-billable-hours-in-Beebole-700x438.png\" alt=\"A sample report of billable hours per month in Beebole&#039;s report builder\" class=\"wp-image-14958\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/manage-billable-hours-in-Beebole-700x438.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/manage-billable-hours-in-Beebole-768x480.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2026\/08\/manage-billable-hours-in-Beebole.png 1232w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\tdata-wp-bind--aria-label=\"state.thisImage.triggerButtonAriaLabel\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.thisImage.buttonRight\"\n\t\t\tdata-wp-style--top=\"state.thisImage.buttonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Beebole makes<a href=\"https:\/\/beebole.com\/project-financials\"> tracking billable vs. non-billable hours<\/a> both easy to do and to analyze.<\/figcaption><\/figure>\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\">Reduce Hidden Costs by Tracking Non-Billable Time<\/h4>\n                            <p class=\"call_to_action-text\">Beebole takes out the guesswork and helps you protect your bottom line.<\/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 me-lg-4 mb-3 mb-lg-0 bbl_cta_block_demo_btn \" href=\"https:\/\/beebole.com\/sales-call\" id=\"cta_post_13073_article_demo_1\">Book a Call<\/a>\n                                        <a class=\"w-100 w-lg-auto btn btn-primary text-white bbl_cta_block_signup_btn \" href=\"https:\/\/app.beebole.com\/signup\" id=\"cta_post_13073_article_sign_up_1\"><span>Sign Up<\/span><\/a>\n                    <\/div>\n    <\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Furthermore, if you are able to design your talent management strategy around all of this, you will significantly maximize the value of your non-billable hours, which is something that could lead to numerous benefits in terms of employee engagement, productivity, and profitability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As explained by Riskin, when a law firm decides to have an aggressive non-billable budget for a senior associate because he\u2019s very good at attracting work, clients love him, and he is able to keep a high level of satisfaction, the firm knows very well that the senior associate will bring them more prosperity through his ability to attract work than actually billing hours.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cA well-managed firm sees the people in the firm, the talent in the firm as their biggest asset. The talent can be deployed for billable purposes and non-billable purposes. Managed well, they will be deployed appropriately for the appropriate billable work and the appropriate non-billable activities. Manage that well, you could be profitable,\u201d affirms Riskin.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"394\" src=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/strategies-for-managing-non-billable-hours-700x394.png\" alt=\"Tips for managing non-billable hours\" class=\"wp-image-13077\" title=\"\" srcset=\"https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/strategies-for-managing-non-billable-hours-700x394.png 700w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/strategies-for-managing-non-billable-hours-768x432.png 768w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/strategies-for-managing-non-billable-hours-1536x864.png 1536w, https:\/\/beebole.com\/blog\/wp-content\/uploads\/2024\/09\/strategies-for-managing-non-billable-hours.png 1600w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<h2 id=\"best-practice-managing-billable-hours\" class=\"wp-block-heading\">Managing non-billable hours: A best practice to adopt<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Non-billable hours are as precious as billable hours, and forward-thinking organizations know very well that if you want to run your business smoothly and enjoy sustainable growth, you need to make an effort to manage your non-billable hours.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some organizations have been quite successful in doing this. As Riskin illustrated to us, a very prosperous Chicago law firm has based its success on the following (almost heretical) principle: An hour of non-billable time is more valuable than an hour of billable time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis did not mean that spending eight non-billable hours and no billable hours in a day was considered more valuable for the firm. Not at all. Rather, the firm decided that those who spend ten billable hours and no non-billable hours are depriving the firm of the strong return that it would obtain on having at least one quality non-billable hour from that individual in a day,\u201d states Riskin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Their philosophy was quite simple: \u201cIf you and I come to work and we don\u2019t even have one quality non-billable hour, we are doing ourselves and the firm a great disservice,\u201d explains Riskin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no doubt that avoiding hidden costs is one of the major benefits of managing your non-billable work effectively. However, managing your non-billable hours is more about investing time and resources in activities that provide value to your organization. This is why implementing this process is one of the best practices that your business can adopt today. Is your organization ready to manage non-billable hours?<\/p>\n<div class=\"bbl-post-disclaimer\">The experts who have written or contributed to this article are independent from Beebole, and their contribution doesn't serve as endorsement for our company\/tool or their past\/present organizations, employers, or associates.<\/div>","protected":false},"excerpt":{"rendered":"<p>When it comes to non-billable hours, businesses can totally reframe how they approach them. Rather than a knee-jerk reaction of directly trying to reduce non-billable hours, reframing your mindset to how best to manage non-billable hours can actually give you the upper hand. Non-billable hours: Strategic investment Your clients expect to be billed only for [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":13079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_title":"","rank_math_description":"","footnotes":""},"categories":[4011],"tags":[3980,4000,4004],"class_list":["post-13073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management","tag-reporting","tag-project-management","tag-billable-hours"],"acf":[],"_links":{"self":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/13073","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\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/comments?post=13073"}],"version-history":[{"count":24,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/13073\/revisions"}],"predecessor-version":[{"id":15142,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/posts\/13073\/revisions\/15142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media\/13079"}],"wp:attachment":[{"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/media?parent=13073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/categories?post=13073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beebole.com\/blog\/wp-json\/wp\/v2\/tags?post=13073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}