Differenciate Billable from Non-Billable Hours
It is fundamental to distinguish and measure these types of hours. While billable hours generate revenue for your business, non-billable hours are still important to keep the business running smoothly. However, although both are relevant, it is necessary to calculate and balance them out appropriately in order to create an adequate fee structure.
With TrackingTime you can easily identify which are the clients your team spends more non-billable hours than convenient (excessive phone calls, meetings, e-mails and so on). So for this specific client’s next project you’ll be able to calculate better fees by factoring in those non-billable hours properly. Find out which clients yields a revenue stream that exceeds the company’s costs and which don’t.
Reducing Non-Billable Hours
You will find that administrative tasks are responsible for the vast majority of these hours. And, of course, that’s when TrackingTime comes into play. Automatic time tracking and instant billing will drastically cut he hours allocated to calculate invoices and manage payments.
In addition, specifying which tasks are billable and which are not will help you make more informed choices on how time is allocated. Knowing how much time per month you and your team are spending on meetings, answering e-mails and taking phone calls, is the first step to improve overall efficiency and productivity.
Balance for Success
Of course, non-billable hours represent the time your team dedicates to their relationship with your client. And are as important and necessary as the hours you can actually include in the bill. The key is to mantain a certain balance between them so that your projects are both profitable and successful.
Accurate Billing Reports
TrackingTime allows you to generate accurate reports for billing and invoicing. Being able to differenciate the hours you can actually bill the client from the ones you can’t provides you an efficient solution for adminstrative work. Accurate reports are not only useful for billing your clients, they are also a handful tool for in-depth analysis to improve your team’s productivity.
Why calculating billable hours is important
Keeping track of billable hours isn’t just for creating invoices for clients. In addition, it is crucial to evaluate the efficiency and profitability of projects, clients, and the organization as a whole.
The record of billable and non-billable hours also affects key performance indicators, such as time investment, actual billable hourly rate, and more. On a company level as well as on an individual client level, this is applicable.
Using a time tracker allows you to keep track of your working hours online. It simplifies the process of billing your clients and provides information to support your invoicing. If you are offering services where keeping accurate records of billable hours is essential, then these tools can be ideal for you.