Time, Utilization & Profitability

Non-Billable Hours

Definition

Time spent on work that can't be charged to a client — internal meetings, business development, proposals, admin, training, tool maintenance. Every agency has them; the goal isn't elimination but minimization and proper accounting.

Why It Matters

If you price projects based on billable hours alone and ignore non-billable overhead, your real profit margin is much lower than you think.

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