how many billable hours in a month

When tracking billable hours manually with a billable hours chart, most lawyers adhere to 1/10th of an hour (aka six-minute) increments. In numerous industries, companies charge their clients on an hourly basis, for the what are billable hours services they provide. If this applies to your business, it’s vital that you understand how to reduce non-billables. Besides, this article explained the importance of tracking both billable and non-billable hours.

For example, let’s say client X has asked for a multitude of changes to a project where you spent 15 extra non-billable hours for the month. With the billable tasks lined up for the next day, you’ll know just how much time you can allocate to non-billable items. This will help you to spend your work hours productively. If you’re a freelancer or even own a small business, you may want to increase your billable hours to raise profits. Tracking your billable hours by the project will also help you determine your most profitable clients. Then, you can work towards maintaining those relationships, further strengthening them. If you have multiple clients, tracking projects will help you figure out just how much work you do for them for each billing cycle and help you identify where large portions of your time go.


Once you have a salary in mind, divide it by the number of working hours in a year, which is 2,080 hours for a full-time job. Once you have that hourly rate, you may wish to raise it slightly to offset the amount of time you’ll spend working on non-billable tasks, like administrative work and client pitches. This varies from industry to, for example architects have a number of different ways to bill for their time.

how many billable hours in a month

These types of non-billable activities can both boost and harm morale, depending on the number of hours devoted to the tasks and how they make employees feel about their work and the team. Adjust and make changes to see what works best, and make sure to track these non-billables over time.

A Definitive Guide to the Best Legal Research Databases

Tracking your non-billable hours may seem counter-productive, but it’s essential to running an effective business. In such instances, it would be better to automate them to lower the number of non-billable hours. This will help you to remain focused on assignments related to billable projects.

ClickTime’s timesheet solution can speed up your timekeeping process. With multiple ways to track time, employees have easy options to complete timesheets. Managers can reduce time spent following up with employees using timesheet completion reminders. And executives can understand how company time is spent with custom reports. In addition to billing your work at the appropriate rate and letting unprofitable clients go, you can also reduce the amount of non-billable work your team does overall.

What Are Billable Hours? Time Tracking Tips To Get You Paid

When making plans and estimates for the next project, you’ll need to identify the number of employees needed for that project. In addition, having an accurate project plan is what your client will expect, too. As someone who bills hours to clients your job is to make money for the company you work for. Do some simple math and figure out if you’re making enough revenue to cover your salary.

  • Since the utilization rate is various in different businesses, we covered a few examples in this blog post.
  • Many people feel awkward discussing it, everyone has an opinion about it, and no two perspectives are exactly alike.
  • This improved efficiency not only has an impact on your billables, but you’ll also have happier employees who don’t feel like they are wasting time and instead can focus on the work at hand.
  • Be sure to encourage your employees to enter their working hours, too.
  • This includes anything related to the task at hand — from answering a quick phone call to sending out a work email.
  • Then, when November comes around, you realize there are not enough available work hours to be able to meet or exceed their billable hour goal for the year.
  • In this article, we’ll cover everything you need to know about the billable hour model, how to set your billable rate, and how to track and increase the number of billable hours.

Like billable hours, you should also track non-billable hours to ensure that your firm is functioning well. If you spend a few hours every week looking for new prospective clients, there’s really no one who could pay you for that. In this post, I’m going to cover the difference between billable and non-billable hours and how it can help you to improve your estimates and charge what the project is worth. Understand an employee’s contributions—both to individual projects and the overall health and success of the business—by viewing his or her utilization rate and productivity.

However, the practice of using billable hours has also been criticized for a number of reasons. Various forms of technology have been developed to track the billable hours generated by employees. The concept of billable versus non-billable hours is widely used in the legal profession. In fact, many law firms require that their attorneys track their time throughout the work day so that all billable and non-billable times can be accurately recorded.

The most important thing about any business is time – time to complete a project, time to meet a deadline, and time to make sure you get paid for the hours you work. Runn software has easy timesheet tracking and management interfaces to help you and your team record billable and non-billable time.