Everhour tracks billable and non-billable time separately, so client totals stay clear before invoices, reports, and reviews.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
Working hours in the period
Admin, meetings, internal work
Industry average is 75–80%
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This calculation answers three practical questions: which hours should be charged to the client, which hours should stay internal, and what the work is worth after that split. Billable hours usually include approved client delivery, review, implementation, consulting, support, or legal work tied to a rate. Non-billable hours usually include internal meetings, training, proposal work, admin cleanup, and rework the client should not pay for.
The split matters because billable time, billed time, and worked time are not the same metric. Billable time is eligible for an invoice. Billed time is what actually reaches the invoice after approvals or write-downs. Worked time includes both billable and non-billable effort. A clean calculation keeps those labels separate instead of hiding internal effort inside the client total.
A client kickoff meeting can be billable when it is part of paid discovery, but non-billable when it is a sales call before the agreement starts. Drafting a client report is usually billable; rewriting the internal proposal template is not. Troubleshooting a client-approved implementation issue can be billable, while fixing an internal handoff mistake may be non-billable if the policy or contract excludes it.
The decision point is whether the time advances paid client work under the agreed scope, rate, and billing rules. Do not classify time by activity name alone. "Research" can be billable client analysis or non-billable internal learning. "Meetings" can be paid strategy sessions or unpaid staff planning. The useful examples are the ones tied to the contract, project status, approval path, and invoice treatment.
Start with each billable line: billable hours × billing rate = billable amount. Add the billable amounts, then keep non-billable hours outside the invoice total. For example, a client onboarding project has 24 approved consulting hours at $175 per hour and 12 approved training hours at $95 per hour. The billable amounts are $4,200 and $1,140, so the invoiceable labor total is $5,340 before any jurisdiction-specific tax input.
If the same project also includes 8 non-billable proposal hours and 4 non-billable internal admin hours, total work time is 48 hours. The effective billing rate across all work is $111.25 per hour, calculated as $5,340 divided by 48 hours. That number does not change the invoice; it shows whether non-billable effort is reducing the project's economic yield.
A one-off calculation is enough when you have a short list of approved entries, one or two rates, and a clear decision on which hours are billable. It is also enough for checking a draft invoice, estimating the effect of non-billable support time, or explaining why the invoice total differs from total hours worked. Keep tax separate because the United States has no federal VAT/GST or national sales-tax rate for billed professional time.
A managed workflow is better when several people log time, rates vary by project or person, or approvals decide what reaches the invoice. Everhour supports billable and non-billable time through project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and admin reports with billable time, non-billable time, billable amount, and cost.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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An hour is billable when it is chargeable to the client under the project scope, fee agreement, billing policy, or contract. An hour is non-billable when it should remain internal, even if someone worked on the same client relationship. The label should follow the agreed billing treatment, not the task name alone.
Yes. A planning meeting can be billable when the client pays for strategy work, and non-billable when it is an internal staffing meeting. A training session can be billable client enablement or non-billable employee development. The project agreement, approval status, and invoice rules decide the classification.
No. A write-down reduces the amount billed after time was recorded as billable. Non-billable time was never intended to be charged to the client. Keeping write-downs separate preserves two different signals: how much approved client work was performed and how much of that work was removed before invoicing.
Calculate labor first in U.S. dollars, then apply any jurisdiction-specific tax input only when the service is taxable. The United States has no federal VAT/GST or single national sales-tax rate. State and local rules control tax treatment, and professional services may be taxed differently by location.
The most common mistake is using total worked hours as invoiceable hours. If a project has 36 billable hours and 12 non-billable internal hours, only the 36 billable hours belong in the labor charge. The full 48 hours still matters for utilization, staffing review, and effective-rate analysis.
Everhour lets admins set project billing status, mark specific tasks non-billable inside billable projects, use custom task rates, and create member-rate exceptions. Reports can show billable time, non-billable time, billable amount, and cost, so invoice review does not require rebuilding the split manually.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices while excluding non-billable work. Users can select uninvoiced time, preview the breakdown, group invoice lines by project, task, person, or date, and mark included time as invoiced.
Track client-ready hours, exclude internal work, and review billable amounts before invoicing. Everhour keeps the billable/non-billable split visible from time entry to billing.
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