Definition
What are billable hours?
Billable hours are the units of time an employee spends on client work that can be charged to that client. They are logged against a specific project or engagement and become the basis for invoicing on hourly and time-and-materials arrangements. Time spent on internal tasks, admin, or business development is non-billable, because it is not charged to any client.
Billable versus non-billable time
The distinction is simply whether the time can be charged to a client. Both types are real work, but only billable time directly earns revenue.
- Billable: client project work, client meetings, deliverables, and support covered by an agreement
- Non-billable: internal meetings, admin, training, recruiting, proposals, and business development
Why tracking billable hours matters
For firms that bill by the hour or on time-and-materials, billable hours are what get invoiced, so accurate tracking is the difference between charging correctly and leaving money uncaptured. Even on fixed-fee work, logging hours against a project shows the real labor going into delivery, which is essential for judging whether the engagement stays profitable.
Billable hours also feed the utilization rate, which measures how much of the team's available time is spent on chargeable work.
How this works in Belvak
In Belvak, team members log hours against the projects they are assigned to. Those entries show the labor behind each project, let you compare expected against logged time, and feed the cost and margin view so the hours going into a project can be weighed against what was agreed and collected.
FAQ
Frequently asked questions
What is the difference between billable and non-billable hours?
Billable hours are time charged to a client for work covered by an agreement. Non-billable hours are real work that is not charged, such as internal meetings, admin, training, and business development.
Do billable hours matter on fixed-fee projects?
Yes. Even when the price is fixed, logging hours shows the real labor cost of delivery. That is how you tell whether a fixed-fee engagement is staying profitable against the value you agreed.
How do billable hours relate to utilization rate?
Utilization rate divides billable hours by available hours. Billable hours are the numerator, so accurate billable time tracking is what makes the utilization figure meaningful.