Separating client-chargeable work from internal time is the calculation; Everhour turns that split into reports and billing records.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
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This calculation answers two questions at once: how much client-chargeable work is ready to bill, and how much total work stayed outside the invoice. Billable time is time you intend to charge to a client under the project, matter, retainer, or contract terms. Non-billable time is still real work, but it is excluded from the client subtotal.
The split matters before invoicing, during profitability review, and when comparing planned work with actual work. If you only total billable time, you lose the internal cost of meetings, training, admin, rework, or client service that cannot be charged. If you only total worked time, you overstate the amount that should appear on an invoice.
Start by assigning every time entry to billable or non-billable before any rate is applied. The decision comes from the client agreement, project billing setup, task type, and approved write-downs. A discovery call may be billable on one engagement and non-billable on another, so the label must come from the billing rule for that specific work.
Common mistakes happen when teams multiply all approved hours by a rate and remove excluded work later. That produces a client subtotal that is harder to audit. A cleaner workflow is: approve the hours, mark billable status, apply the correct billable rate only to chargeable entries, then keep non-billable hours in reporting for utilization and margin review.
The core formula is billable hours multiplied by the applicable billable rate, after entries are rounded according to the billing increment. Non-billable hours do not enter the invoice subtotal, but they still belong in the total-work view. If a U.S. service is taxable, add the correct state or local tax input separately because the United States has no federal VAT/GST or single national sales-tax rate.
For example, a client operations project has 29 approved implementation hours at $160 per hour and 10 approved review hours at $120 per hour. The billable subtotal is $4,640 plus $1,200, or $5,840. Another 15 internal coordination hours are non-billable, so total worked time is 54 hours, while only 39 hours feed the client subtotal.
A one-off calculation is enough when you have a short list of approved entries, one or two rates, and no later handoff. It gives you the subtotal to check before an invoice, a quote review, or a client conversation. It is not enough when multiple people, projects, billing statuses, approvals, or write-downs change the same total.
A managed workflow is better when billable status needs to survive beyond the spreadsheet. Everhour Reporting can group time by project, task, member, client, billable time, non-billable time, billable amount, cost, and other columns, then export or schedule reports. That gives finance and project leads the same record before invoicing or margin review.
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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Use the client agreement, project billing setup, approved scope, and task type. Time is billable when the client can be charged for it under those terms. Time is non-billable when it supports the work but should not be invoiced, such as internal coordination, training, admin, or excluded rework.
Yes. Non-billable time should stay in the report because it shows the true labor used to deliver the work. Removing it hides cost, lowers the quality of utilization analysis, and makes margin review weaker. Keep it excluded from the invoice subtotal, but visible in internal reporting.
Billable value equals billable hours multiplied by the applicable billable rate. Total effort equals billable hours plus non-billable hours. Keeping both figures prevents a common mistake: treating the invoice subtotal as the full labor cost of the project.
There is no federal VAT/GST or single national sales-tax rate in the United States. Sales tax treatment is state and local, and some services are not taxed. If the service is taxable in the relevant jurisdiction, add that jurisdiction-specific tax input after calculating the USD billable subtotal.
Billable hours are approved chargeable time. Billed hours are what finally appears on the invoice after rounding, discounts, write-downs, fixed-fee limits, or client adjustments. A project can have 39 billable hours but a lower billed amount if part of the value is reduced before invoicing.
Everhour Reporting lets admins build reports with columns for billable time, non-billable time, billable amount, cost, member, task, project, and client. Reports can be grouped, filtered, exported as CSV, Excel/XLSX, or PDF, and scheduled for email delivery.
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.
Track billable status, group the results, and send clean reports to finance or clients. Everhour keeps billable and non-billable time visible for better billing decisions.
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