Everhour gives teams structured time tracking, while billable percentage shows how much work turns into client revenue.
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Billable percentage answers one practical question: out of all tracked working time, how much can you charge to a client or project? The basic formula is billable hours divided by total tracked hours, multiplied by 100. A week with 30 billable hours and 40 total tracked hours produces a 75% billable percentage.
Use the result as a management signal, not a moral score. Sales calls, estimates, training, hiring, admin, and internal meetings can be necessary non-billable work. The percentage becomes useful when the same categories stay consistent from week to week, because you can compare people, projects, and periods without mixing different definitions.
A usable time record needs the date, person, client, project, task, billable status, hours, and any note needed to explain the work. Client-facing teams should avoid one large weekly block labeled "client work," because that hides scope changes, unpaid support, and tasks that belong on different invoices.
For U.S. employees covered by the FLSA minimum wage or overtime provisions, employer records must include hours worked each workday and total hours worked each workweek. The FLSA requires covered employers to keep accurate records for non-exempt workers but does not require a specific timekeeping form or system. Billing categories can sit beside those records, but they do not replace wage-and-hour recordkeeping.
A single ideal billable percentage does not exist across every role. Client delivery staff usually carry a higher target than managers, owners, sales staff, or employees who split time between client work and internal operations. Set the target from the role's actual job design: expected client delivery, required meetings, internal support, and administrative duties.
The mistake is setting a target before defining total hours. Paid time not worked, time off, internal training, and unassigned admin can distort the denominator if teams handle them differently. Keep one rule for what enters total tracked hours, then review the billable percentage by person, project, and client so the number explains capacity instead of pressuring people to relabel time.
A free weekly total is enough when you need a quick utilization check, a rough invoice review, or a one-person snapshot. It works best when the categories are simple and the same person who tracks the time also reviews the result.
A managed workflow becomes necessary when multiple people track time across clients, projects, and tasks. Everhour Team Management supports that move with weekly capacity, project assignments, team groups, approval workflow, lock rules, admin time correction, and team-wide time policy defaults, so billable percentage comes from reviewed records instead of 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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Divide billable hours by total tracked hours, then multiply by 100. For example, 32 billable hours divided by 40 total tracked hours equals 80%. Keep the same definition of total tracked hours each week, or the percentage will change because of categorization rather than actual workload.
Billable hours are hours tied to client work that can be charged under the contract, statement of work, or billing policy. Common examples include project delivery, client-approved support, implementation, design, development, consulting, and client meetings. Internal admin, proposals, hiring, training, and company meetings usually stay non-billable unless a client agreement says otherwise.
Managers should have a target that matches their role. A delivery employee who spends most of the week on client tasks can carry a higher billable target than a manager who reviews work, staffs projects, handles client escalations, and supports internal operations. One target across different roles usually produces misleading comparisons.
Billable percentage can support billing and utilization review, but it is not a substitute for required time records. For employees covered by the FLSA minimum wage or overtime provisions, employer records must include hours worked each workday and total hours worked each workweek. Covered non-exempt employees must receive overtime pay for hours worked over 40 in a workweek.
The most common mistake is mixing tracking rules. One person logs only client work, another logs all working time, and a third adds internal work without categories. The resulting percentages look comparable, but they measure different denominators. Require every entry to carry the same core fields and a clear billable or non-billable status.
Everhour Team Management lets teams set weekly capacity, assign people to projects, group team members, approve submitted time, lock reviewed periods, and correct entries as an admin. Those controls make billable percentage easier to review because tracked hours follow the same workflow before reporting or billing.
Use Everhour Team Management to standardize capacity, approvals, project assignments, and locked time periods, so billable percentage comes from reviewed team records instead of manual cleanup.
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