How to record billable hours

Billable records need rates, approvals, and clear task notes. Everhour captures time before invoice math starts.

How many billable hoursdid you actually work?

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

$
80%

Industry average is 75–80%

Monthly revenue
Billable hours136h
Utilization rate85%
Revenue gap to target$0

Everhour does it all — track, budget, report & invoice

The calculator gives you the number — Everhour takes it from there.

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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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Works with your favorite tool:
Everhour — Time Tracking
Time Entries
01:24:00
00:31:00
01:07:00

No more budget surprises

Set a budget, assign rates, and get alerted before you're over.

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Everhour — Budgeting
Acme Web Project
1
50% of budget used
$2,500.00of $5,000.00
$2,500.00 remaining
75%
Actual costRemaining cost

Measurement

Track your budget through time or costs

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Everhour — Reports

Your invoice is ready!

Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.

  • Billable hours straight into the invoice
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  • Invoicing dashboard with status
Everhour — Invoices
Your Company LLChello@yourcompany.com
INVOICE
Invoice #1042
Group by:
DescriptionHoursRateAmount
Website Redesign14h$150/h$2,100.00
Brand Guidelines7h$150/h$1,050.00
Marketing Strategy3.5h$150/h$525.00
Total Due$3,675.00
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Billable time records and totals

What this calculation answers

Recording billable hours answers a practical billing question: which worked hours can be charged to the client, at what rate, and for which deliverable or task. The result is not just a time total. It is a defensible billing subtotal in U.S. dollars, separated from internal, administrative, discounted, or written-off time.

A complete record usually includes the date, client, project or matter, task description, worker, billable status, hours, rate, and approval status. If the work is taxable, the tax input is jurisdiction-specific because the United States has no federal VAT/GST or national sales-tax rate for billed professional time.

Build the record first

Start with the smallest unit you need to defend later: a task-level entry with a short description. "Client call" is weak. "Client call to review Q2 reporting changes" gives the approver and client enough context. Mark the entry billable or non-billable before totals are calculated, because mixing the two inflates invoices and hides the cost of internal work.

Rates belong on the same record or in a linked rate table. For U.S. lawyers, ABA Model Rule 1.5 requires the scope of representation and the basis or rate of fees and expenses to be communicated in writing for new client-lawyer relationships, subject to the rule's limited low-cost exception. That written basis should match the rate used in the calculation.

Apply rates and rounding

The core formula is billable hours multiplied by the applicable billable rate, after any billing-increment rounding and before taxes, discounts, write-downs, or collections. If you use 0.1-hour increments, a 7-minute entry rounds according to the policy in the client agreement. If you use quarter-hour increments, the same entry can produce a larger billable amount.

For example, a client planning project has 19 approved strategy hours at $155 per hour and 12 approved revision hours at $125 per hour. Strategy time equals $2,945, revision time equals $1,500, and the pre-tax billable subtotal equals $4,445. If 5 internal admin hours were also worked, those hours stay outside the billable subtotal but still matter for utilization and profitability.

Calculator versus managed workflow

A one-off calculation is enough when you have a small set of approved entries, one client rate, no disputed time, and no need to reuse the record. It gives you the invoice subtotal quickly, especially when you only need to check a draft invoice or compare two rate scenarios.

A managed workflow is better when people log time daily, submit timesheets for approval, lock closed periods, and hand billable totals to invoicing or payroll review. Everhour Time Tracking supports timers and manual entries against tasks and projects, including tracking inside supported project tools, so recorded hours feed approvals, reports, budgets, invoices, and payroll review instead of living only in a spreadsheet.

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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Frequently Asked Questions

What information should each billable time entry include?

Each entry should show the date, client, project or matter, task description, worker, billable status, hours, rate, and approval status. Add enough detail to explain the business purpose of the work. The entry should also show whether time was rounded and which billing increment or client policy controlled that rounding.

How do you keep non-billable hours out of the invoice?

Mark non-billable work before calculating the invoice subtotal. Internal meetings, training, admin work, rejected time, and written-off time should remain visible for utilization and cost review, but they should not multiply by the client billable rate. The mistake is deleting those hours, because deletion hides the true effort behind the project.

Should billable hours be recorded as worked time or rounded time?

Record the worked time first, then apply the billing increment required by the client agreement or internal policy. This preserves the source record and makes the invoice calculation easier to review. If only rounded time is stored, you lose the difference between actual effort and billed time, which affects realization and effective billing rate.

Does U.S. tax change the billable-hours total?

It changes the invoice total only when the service is taxable in the relevant state or local jurisdiction. The United States has no federal VAT/GST or single national sales-tax rate for billed professional time. Use a jurisdiction-specific tax input when tax applies, and keep the pre-tax billable subtotal separate from the tax line.

When does payment timing matter for recorded billable hours?

Payment timing matters after the invoice is issued, not while hours are being recorded. 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 receivables calculation, not a billable-hours input.

How does Everhour Time Tracking help record billable hours?

Everhour Time Tracking captures task and project hours through live timers or manual entries, including inside supported tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, and Basecamp. Admins can use approvals, locked periods, reminders, and timer rules before hours feed timesheets, reporting, budgets, invoicing, or payroll review.

How does Everhour support billable versus non-billable reporting?

Everhour supports billable and non-billable time through project billing status, task-level non-billable controls, and reports with columns for Billable Time, Non-Billable Time, Billable Amount, and Cost. Admins can review totals by member or task while financial data stays restricted by role.

Turn recorded time into invoices

Track approved task hours, separate billable from non-billable work, and send cleaner totals into billing. Everhour gives teams a durable record behind every client invoice.

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