Everhour turns tracked billable time and expenses into invoices, while the calculation still depends on rates, taxes, and write-downs.
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The total billable amount answers one practical question: how much should be charged for approved client work before the invoice is sent. The core input is billable time multiplied by the applicable billing rate. If the project uses more than one rate, each rate line is calculated separately first, then added together.
The result matters when you quote a client, prepare an invoice, compare expected revenue with actual work, or check whether a fixed budget still makes sense. It is not the same as total hours worked. Internal admin time, training, sales calls, and other non-billable work can affect utilization, but they do not increase the client-facing amount.
Start with approved billable entries only. A common mistake is multiplying every tracked hour by a rate, then trying to remove internal work later. That inflates the amount and hides the difference between utilization and realization. Utilization measures how much work time is billable. Realization measures how much billable value survives discounts, write-downs, or other adjustments.
Keep billed hours separate from billable hours. Billable hours are eligible for charging. Billed hours are what actually appears on the invoice after review. If 45 hours were logged but 3 hours were written down for client courtesy, the billable record should show the original value and the invoice should show the approved billed amount.
Use this structure: `billable hours × billing rate`, calculated per rate line, plus billable expenses, minus approved write-downs, then add any applicable tax. For example, a project has 10 advisory hours at $250 per hour and 12 production hours at $125 per hour. The time subtotal is $4,000. Add $300 in billable expenses for a pre-tax amount of $4,300.
U.S. invoices normally use USD. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Sales tax treatment is state and local, and services may or may not be taxable. If the taxable service uses a 6.25% Texas state sales tax input before any local tax, the tax is $268.75 and the total is $4,568.75.
A one-off calculation is enough when you have a short list of approved hours, one or two rates, and no need to preserve an audit trail. It works for checking a draft invoice, validating a client estimate, or comparing a manual spreadsheet total against a final amount before sending.
A managed workflow is better when entries need approval, non-billable tasks must stay excluded, expenses need to flow into invoices, or invoice status must stay visible after export. Everhour Billing & Invoicing can turn tracked billable time and expenses into invoices, exclude non-billable work, and export invoices to QuickBooks Online, Xero, or FreshBooks.
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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A total billable amount includes approved billable time multiplied by the correct billing rate, plus approved billable expenses and any applicable tax. It excludes non-billable work, internal time, and written-down time that the client will not be charged for. Calculate each rate line separately before combining the totals.
Group the work by rate first. Multiply each group of billable hours by its own rate, then add the line totals. This applies when different people, tasks, phases, or service categories have different client-facing rates. Do not average the rates unless the client agreement explicitly uses a blended rate.
No. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Sales tax is state and local, and taxable services vary by jurisdiction. Use a jurisdiction-specific tax input only when the service is taxable under the applicable state or local rule.
The billed amount can be lower when a manager applies a write-down, discount, fixed-fee cap, or client adjustment before invoicing. Keep the original billable value visible, then record the adjustment separately. That preserves realization reporting and shows whether revenue changed because of pricing, review, or collection.
Payment timing does not change the original billable amount. For federal-agency vendor invoices, Prompt Payment rules generally use the contract date, accepted discount terms, an accelerated-payment rule, or 30 calendar days after receipt of a proper invoice. Late-payment interest is a separate calculation, not part of the base billable total.
Everhour Billing & Invoicing converts tracked billable time and expenses into client invoices. It calculates invoice amounts from rates, time, and billable expenses while excluding non-billable work, then can export invoices to QuickBooks Online, Xero, or FreshBooks with status synced back to Everhour.
Everhour supports billable and non-billable time at the project and task level. Admins can mark specific tasks non-billable inside a billable project, so those entries stay available for reporting but are excluded from billable totals and invoice amounts.
Convert approved billable time and expenses into client invoices without rebuilding totals by hand. Everhour keeps non-billable work excluded and invoice status connected to billing records.
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