Time, Utilization & Profitability

Billable Hours

Definition

Hours spent on work you can charge a client for. Excludes internal time like admin, sales calls, team meetings, and professional development. A designer spending 6 hours on client mockups has 6 billable hours; the 2 hours in a team standup are non-billable.

Why It Matters

Most agencies only track 70-85% of their actual billable hours. Every untracked hour is lost revenue.

Related Terms

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