Time, Utilization & Profitability
Overhead
Definition
Ongoing costs not tied to any specific client project: rent, software subscriptions, internet, insurance, accounting, management salaries. Overhead exists whether you have zero clients or twenty.
Why It Matters
Most freelancers ignore overhead when pricing, making margins look better on paper than reality. Allocating overhead per project separates real profitability tracking from wishful thinking.
Related Terms
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