What are billable hours?
Billable hours are the hours you charge your client for the work you performed for them. Professional service firms such as accounting, marketing agencies, bio-tech, staffing & recruiting, HR & PEO, legal, IT, management consulting, and engineering companies commonly track and bill their clients by the hour, or in smaller time-based increments.
Accurately tracking billable hours is very important to both your business and your customers. Accurately tracking non-billable hours is also important to your business. Both impact project costs and as a result impact project profitability. The Project Management Institute dives deeper into both in this great time attendance management article.
Accuracy in billable time often depends on an employee’s timeliness in capturing or inputting the billable services or budgeted time into a timesheet. If employees inadvertently under-report billable hours, your projects experience revenue leakage and profitability will suffer.
The digital transformation of project accounting in part, brought automation to timesheets. Artificial Intelligence (AI) takes this automation to a new level, with AI assisted timesheets and the accurate capture of billable hours – down to the billable moment. Employees can record their time on their favorite mobile device, often as soon as they complete their work and can receive deadline and error alerts.