Billable Hours Done Right: The Agency Playbook
A practical guide for turning tracked time into client-ready billing—track, review, approve, invoice—with fewer disputes and clearer transparency.
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A Clean Billing Workflow
Track → Review → Approve → Invoice. Keep each step distinct so nothing slips and clients see a clear trail.
Track
Team logs time to projects with clear descriptions. Mark entries as billable or non-billable from the start.
Review
PM or account lead reviews time before locking: fix vague descriptions, correct project/task, flag non-billable.
Approve / Lock
Once approved, lock the period. Locked time can't be edited—audit trail stays clean and clients trust the numbers.
Invoice
Generate invoices from approved time. Line items tie back to time entries; client portal shows the same breakdown.
Billable vs non-billable
Define categories up front (e.g. client work = billable; internal meetings, training = non-billable). Tag every entry so reports and invoices only pull what you intend to bill.
Common Failure Modes (and How to Avoid Them)
These patterns kill trust and create disputes. Fix them early.
Over- or under-tracking
Rounding up "to be safe" or forgetting to log real work both backfire. Set a minimum increment (e.g. 15 min), use timers where possible, and review totals weekly so estimates don't drift.
Vague descriptions
"General work" or "meeting" gives clients no visibility. Require task or deliverable references (e.g. "Homepage copy round 2," "Kickoff call – Project X"). Client-facing reports should tell a clear story.
Late approvals
If review happens after the invoice is sent, you're fixing history. Set a weekly cutoff: e.g. "Review and lock by Friday for the prior week." Invoicing then runs on locked data only.
No locking before invoice
Editing time after it's billed creates discrepancies and erodes trust. Use approval/lock so that once a period is approved, it's immutable. Reduces disputes and keeps the audit trail clean.
Simple Weekly Checklist
Run this every week so billing stays on track.
- 1Review all time for the previous week: missing entries, wrong project, vague descriptions.
- 2Confirm billable vs non-billable tags; correct any misclassified time.
- 3Approve and lock the prior week so it's ready for invoicing.
- 4Generate or queue client reports/invoices from locked time only.
- 5Share report or client portal link so clients see the same breakdown you're billing—transparency reduces disputes.
Sample Report Layouts & Invoice Line Items
Give clients a clear view of what you're billing and why.
Report layout (by project)
| Project / Task | Hours |
|---|---|
| Website redesign – Design | 12.5 |
| Website redesign – Copy | 6.0 |
| Website redesign – PM | 4.0 |
| Total | 22.5 |
Group by project and optionally by task. Include description or deliverable so the client can match to work done.
Report layout (by person)
| Team member | Hours |
|---|---|
| Jane (Design) | 12.5 |
| Mike (Copy) | 6.0 |
| Sarah (PM) | 4.0 |
| Total | 22.5 |
Use when the client wants to see who worked and how much. Combine with project view if needed.
Invoice line-item examples
| Description | Hours | Rate | Amount |
|---|---|---|---|
| Design – Website redesign (Jan 6–12) | 12.5 | $120 | $1,500 |
| Copy – Website redesign (Jan 6–12) | 6.0 | $100 | $600 |
| Project management – Website redesign (Jan 6–12) | 4.0 | $125 | $500 |
| Total | $2,600 | ||
Tie each line to a project/task and date range. Clients can reconcile against the same report they see in the portal.
Track, Report, and Invoice in One Place
Billable vs non-billable, approvals, locking, and client-ready reports—built for agencies.
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