Everhour captures project hours as work happens, while accurate billing still depends on rates, approvals, and invoice rules.
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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A project billing calculation answers how much a client should be billed for a defined project, phase, task group, or billing period. The core inputs are approved billable hours, the rate attached to each type of work, any write-downs or discounts, billable expenses, and any jurisdiction-specific tax input when the service is taxable.
For U.S. projects, the amount is normally stated in USD. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. State and local tax treatment controls whether a service line is taxable and what rate applies, so tax should be a separate input rather than assumed inside the hourly total.
Start by separating billable time from non-billable work. Then group the billable entries by rate: project rate, person rate, task rate, or phase rate. Multiply each approved hour group by its rate, add the groups together, then apply agreed write-downs, discounts, expenses, and tax in the order required by the client contract or invoice policy.
For example, a client rollout includes 20 approved planning hours at $150 per hour and 16 approved testing hours at $125 per hour. Planning equals $3,000, testing equals $2,000, and the billable labor subtotal is $5,000. If the service is taxable in a Texas locality at the maximum combined 8.25% rate, tax is $412.50 and the invoice total is $5,412.50.
The most common project billing mistake is treating every tracked hour as invoice-ready. Internal meetings, rework, fixed-fee overages, training time, or tasks marked non-billable should stay visible for reporting but excluded from the client charge. The calculation should use approved billable time, not raw worked time.
Tax and payment terms need the same separation. U.S. sales tax is state and local, not federal, and some services are not taxed. 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.
A calculator is enough for a one-off project estimate, a quick invoice check, or a small engagement with one rate and no approval dispute. It gives you the expected subtotal fast when the time entries, rates, expenses, and tax treatment are already known.
A managed workflow is necessary when teams bill from live project work. Everhour Time Tracking captures task and project hours through timers or manual entries, keeps billable status attached to the work, supports approvals and locked periods, and feeds billing, reporting, invoicing, and payroll review without rebuilding totals from scattered notes.
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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You need approved billable hours, the rate for each hour group, billable expenses, write-downs or discounts, and any jurisdiction-specific tax input when the service is taxable. Keep non-billable time in the records for utilization and cost analysis, but exclude it from the client-facing billable subtotal.
Calculate each rate group separately, then add the results. If senior consulting is billed at one rate and implementation work is billed at another, each group gets its own hours times rate calculation. This prevents blended-rate errors and keeps the invoice traceable to the project agreement.
No. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. U.S. tax treatment is state and local, so the invoice needs a jurisdiction-specific tax input when the billed service is taxable.
Exclude non-billable tasks, internal administration, unapproved time, fixed-fee overages that the contract does not allow, and write-downs agreed before invoicing. These hours still matter for profitability, utilization, and staffing analysis, but they should not inflate the client invoice.
Payment terms affect due dates, late-fee handling, and cash-flow timing, not the core labor subtotal. 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.
Everhour Time Tracking lets users log task and project hours with live timers or manual entries, including inside supported tools such as Asana, ClickUp, Jira, GitHub, Monday, Notion, Trello, and others. Admins can use approvals, reminders, locked periods, and timer rules before hours move into billing or payroll review.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices using project, member, or task rates while excluding non-billable work. Invoice lines can be grouped by project, task, person, date, or another available breakdown before export to QuickBooks Online, Xero, or FreshBooks.
Track approved project hours, review billable status, and hand clean totals to invoicing. Everhour keeps billing tied to actual task work from timer to invoice.
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