Everhour tracks billable and non-billable time clearly, so you can measure which hours actually become client revenue.
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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One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
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Measurement
Track your budget through time or costs
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Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
This calculation shows how many approved hours can be billed, what those hours are worth, and where revenue is lost before invoicing. It answers practical questions such as whether a project needs better scope control, cleaner time capture, fewer write-downs, or a different rate structure.
For service businesses, the useful output is more than one total. Track billable hours, billed hours, write-downs, collected amount, and effective billing rate separately. Billable hours are eligible for invoicing. Billed hours are what you actually invoice. Collected revenue is what the client actually pays.
The basic formula is billable hours × billable rate = billable amount. When a project has multiple rates, calculate each rate group separately, then add the subtotals. If entries are rounded, apply the billing increment required by the client agreement or firm policy before multiplying by the rate.
For example, a client process review includes 28 approved strategy hours at $155 per hour and 19 approved documentation hours at $125 per hour. The strategy work equals $4,340, the documentation work equals $2,375, and the billable subtotal equals $6,715 before write-downs, discounts, taxes, expenses, or collection issues.
The fastest way to increase billable hours is to identify the constraint. If people perform client work but forget to log it, improve capture. If logged work is written down, fix scoping, task codes, or client expectations. If utilization is low, remove internal work from schedules before asking for more client output.
Use four metrics together. Utilization shows billable hours divided by available work hours. Realization shows billed value compared with standard billable value. Collection shows paid amount compared with invoiced amount. Effective billing rate shows collected or billed revenue divided by total worked hours, which exposes low-value work that a raw billable-hour count hides.
In the United States, billable-hour totals are normally denominated in U.S. dollars. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Tax treatment is state and local, so add a jurisdiction-specific tax input only when the service is taxable.
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. For private clients, the payment deadline comes from the contract, engagement letter, invoice terms, or applicable state law.
A one-off calculation is enough when you are checking a single invoice, estimating a project, or comparing two rate scenarios. It gives a clean answer when the inputs are already approved: billable hours, rate, rounding rule, write-downs, taxes, and invoice terms.
A managed workflow is necessary when people log time continuously, mark entries billable or non-billable, route timesheets for approval, and hand totals to invoicing. Everhour supports project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and admin reports for 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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G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
Start by measuring billable hours against total worked hours for the same period. If the team worked 800 hours and only 520 were billable, the billable utilization rate is 65%. That number tells you whether the problem is low client workload, too much internal work, poor time capture, or excessive non-billable support.
A write-down removes time or value before the invoice reaches the client. If 50 billable hours are approved but only 44 hours are invoiced, the extra 6 hours do not increase billed revenue. Track write-downs by project, task type, and approver so the same work is not repeatedly removed without a pricing or scope change.
Use effective billing rate to decide. Divide billed revenue by total worked hours, not just billable hours. If utilization is high but revenue is still low, a rate change or pricing change matters more than more hours. If utilization is low, schedule mix and non-billable workload are the first problems to fix.
The common mistake is reconstructing time at the end of the week. Delayed entry usually misses short calls, review work, client messages, and quick revisions. Those small entries become meaningful when multiplied across a month. Capture time when the work happens, then review whether each entry is billable under the client agreement.
No federal VAT/GST applies to billed professional time in the United States, and there is no single national sales-tax rate. State and local rules decide whether a service is taxable and at what rate. Calculate the billable-hours subtotal first, then add any required jurisdiction-specific tax as a separate invoice calculation.
Everhour lets admins set project billing status, mark specific tasks as non-billable inside billable projects, use custom task rates, and apply member-rate exceptions. Reports can show billable time, non-billable time, billable amount, and cost, so teams can see which hours are eligible for invoicing.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices while excluding non-billable work. Invoice data can be grouped by project, task, person, date, or another available breakdown, then exported to QuickBooks Online, Xero, or FreshBooks as drafts.
Track approved client work, separate non-billable tasks, and review billable amounts before invoicing. Everhour gives teams a clearer path from logged time to billable revenue.
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