What are Billable Hours?
Billable hours are the hours of work that can be directly charged to a client. They usually include project-related tasks like writing, coding, designing, research, or attending client meetings. The key point is that billable hours are tied to delivering value to the client and are included in the invoice.
In agencies, consultancies, and similar service-based businesses, billable hours are the main way revenue is generated. They are often compared to non-billable hours, which cover internal tasks such as administration, training, or business development. While those activities are necessary, they cannot be billed to clients, which makes efficient use of billable time critical for profitability.
Tracking billable hours accurately helps teams stay transparent with clients, avoid disputes, and understand how resources are being used. Many companies rely on time tracking tools to record hours, measure project profitability, and forecast workloads. Clear definitions of what counts as billable prevent confusion and set expectations early, making collaboration smoother for both the team and the client.
