{"id":7132,"date":"2020-06-09T22:17:12","date_gmt":"2020-06-09T20:17:12","guid":{"rendered":"https:\/\/clockify.me\/blog\/?p=7132"},"modified":"2026-04-30T02:00:00","modified_gmt":"2026-04-30T00:00:00","slug":"billable-and-non-billable-hours","status":"publish","type":"post","link":"https:\/\/clockify.me\/blog\/business\/billable-and-non-billable-hours\/","title":{"rendered":"How To Track Non-Billable vs. Billable Hours (+ Definitions &#038; Examples)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Billable hours keep the lights on. But your team\u2019s schedule will always include time for internal tasks, which aren\u2019t chargeable. So, finding the <strong>sweet<\/strong> <strong>spot<\/strong> <strong>between<\/strong> <strong>billable<\/strong> <strong>and<\/strong> <strong>admin<\/strong> <strong>work<\/strong> is critical.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve prepared a full guide to billable vs. non-billable hours \u2014 complete with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Definitions,<\/li>\n\n\n\n<li>Industry examples, and<\/li>\n\n\n\n<li>Tracking tips.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"600\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples.webp\" alt=\"How To Track Non-Billable vs. Billable Hours (+ Definitions &amp; Examples) - cover\" class=\"wp-image-37664\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples-600x300.webp 600w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples-1110x555.webp 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples-768x384.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Clockify-cover_How-To-Track-Non-Billable-vs.-Billable-Hours-Definitions-Examples-18x9.webp 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div>\n\n\n<h2 id=\"what-are-billable-hours-and-non-billable-hours\" class=\"wp-block-heading\">What are billable hours and non-billable hours?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Billable hours (meaning direct client service time) are your team\u2019s work hours that can be invoiced.<\/strong> Service professionals, like IT specialists and lawyers, use billable hours to ensure fair pay and <a href=\"https:\/\/clockify.me\/blog\/business\/how-to-bill-a-client\/\">accurate invoicing<\/a>. Typical examples include phone calls with clients or sending them project updates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Non-billable hours are the hours your team spends on office tasks that don\u2019t raise money \u2014 like employee training or team meetings.<\/strong> However, they\u2019re crucial for smooth business operation and growth. Non-billable time can drain your wallet if not managed properly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Several industries rely on <a href=\"https:\/\/clockify.me\/how-to-calculate-billable-hours\">billable and non-billable hours<\/a> for clean invoicing, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Law,<\/li>\n\n\n\n<li>IT,<\/li>\n\n\n\n<li>Marketing,<\/li>\n\n\n\n<li>Consulting,&nbsp;<\/li>\n\n\n\n<li>Public relations, etc.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Regardless of industry, you should always accrue enough billable hours to cover non-billables and make a profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See billable vs. non-billable hours at a glance in this comparison table:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th><strong>Billable<\/strong> <strong>hours<\/strong><\/th><th><strong>Non-billable<\/strong> <strong>hours<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Definition<\/td><td>Billable hours are spent on client-specific work and bring profits.<\/td><td>Non-billable hours are used for admin tasks and counted as overhead.<\/td><\/tr><tr><td>Who pays for it<\/td><td>Client<\/td><td>Business owner<\/td><\/tr><tr><td>Examples<\/td><td>&#8211; Holding project\/case consultations with clients<br><br>&#8211; Doing research for a specific project\/case<br><br>&#8211; Correcting your work based on client feedback<br><br>&#8211; Creating project\/case status reports for clients<br><br>&#8211; Traveling to sites or suppliers on behalf of clients<\/td><td>&#8211; Reading a book for professional development<br><br>&#8211; Pitching to potential clients<br><br>&#8211; Upgrading your project management tool<br><br>&#8211; Recruiting and onboarding new hires<br><br>&#8211; Marketing your services on social media<\/td><\/tr><tr><td>Industry notes<\/td><td>Billable hours help you send clear, spot-on invoices.<\/td><td>Non-revenue activities support company success and growth.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-background wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>Billable hours vs. actual hours:<\/strong> Billable hours make up part of your work hours (or actual hours) that you can bill clients for. Actual hours represent total hours worked, billable or not. So, billable time is your main source of income, while actual hours show your full workload and productivity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next up, we\u2019re sharing practical tips on how to decrease unbilled work.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To learn more about accurate billing and the best invoicing tools, read this:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/project-billing-invoicing-guide\/\">Project Billing: Guide to Accurate and Efficient Invoicing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/blog\/productivity\/free-invoicing-apps\/\">10 Best Free Invoicing Software for Error-Free Accounting<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 id=\"how-can-you-reduce-non-billable-hours\" class=\"wp-block-heading\">How can you reduce non-billable hours?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can cut non-billable time by following the 3 steps below.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>#1:<\/strong> <strong>Cap<\/strong> <strong>non-billable<\/strong> <strong>hours<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As president of a public relations firm, <a href=\"https:\/\/www.linkedin.com\/in\/ryanarnold\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ryan Arnold<\/a> ensures that unbilled work stays within a set limit to maintain consistent workloads:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Ryan-Arnold.webp\" alt=\"Ryan Arnold\" class=\"wp-image-37670\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Ryan-Arnold.webp 500w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Ryan-Arnold-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Ryan-Arnold-12x12.webp 12w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThis keeps internal work from expanding. I also treat a portion of non-billable time as structured pro bono, which we match intentionally rather than letting it accumulate informally.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>#2:<\/strong> <strong>Outsource<\/strong> <strong>non-critical<\/strong> <strong>tasks<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Owner of a digital marketing agency, <a href=\"https:\/\/www.linkedin.com\/in\/jordanstevensdigitalmarketing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jordan Stevens<\/a>, says you should distinguish essential from non-essential tasks. Then, outsource the latter. He shares his approach in more detail:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens.webp\" alt=\"Jordan Stevens\" class=\"wp-image-37668\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens.webp 800w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-12x12.webp 12w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThe things that only I can do are sales and strategy work. I will often hire someone to help with design work or website updates as those aren&#8217;t critical for me.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>#3:<\/strong> <strong>Automate<\/strong> <strong>repetitive<\/strong> <strong>work<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Complete routine tasks faster with <a href=\"https:\/\/clockify.me\/blog\/apps-tools\/best-team-management-software\/\">team management apps<\/a> and ready-made spreadsheets. Owner of a web design agency, <a href=\"https:\/\/www.linkedin.com\/in\/leon-durski\/\" target=\"_blank\" rel=\"noreferrer noopener\">Leon Durski<\/a>, uses software to identify good leads:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski.webp\" alt=\"Leon Durski\" class=\"wp-image-37669\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski.webp 800w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Leon-Durski-12x12.webp 12w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cWe built a simple tool that checks if a potential client&#8217;s website is outdated, slow, or missing basic technical standards. That tells us in minutes whether this is a real opportunity or someone browsing.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, automation frees up room for billables by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Shifting<\/strong> focus to project-related tasks,<\/li>\n\n\n\n<li><strong>Streamlining<\/strong> client invoices, and<\/li>\n\n\n\n<li><strong>Reducing<\/strong> stress and burnout among employees.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Time trackers like Clockify by CAKE.com also log billable and non-billable hours for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\n<div class=\"banner banner-light clockify-gradient-templates\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Billable Hours Tracker<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Mark team hours as billable and pull rich billability reports. Get started with Clockify today!<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up FREE<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/industry\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/templates@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/templates.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"why-should-you-track-non-billable-hours\" class=\"wp-block-heading\">Why should you track non-billable hours?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To balance your team\u2019s schedule, you need to see exactly how their time is spent \u2014 billable or not. To get these insights, have your employees track time with apps like <a href=\"https:\/\/clockify.me\/\">Clockify<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s list the main reasons why logging non-billable hours is vital for you and your clients.<\/p>\n\n\n\n<h3 id=\"1-track-non-billable-hours-to-understand-project-and-employee-profitability\" class=\"wp-block-heading\">#1: Track non-billable hours to understand project and employee profitability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking non-billable hours helps you pinpoint low-performing projects and employees. From there, you can make informed decisions to boost revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Time analysis shows you employees with a high number of non-billables. Some workers may even be underbooked or overwhelmed with projects. You may also spot the most draining <a href=\"https:\/\/clockify.me\/time-spent-on-recurring-tasks\">recurring tasks<\/a>. Then, reorganize your staff\u2019s workloads.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, you\u2019ll learn which projects and clients require the lowest number of non-billable hours. For instance, employees log more non-billable time for a client who regularly delays their feedback on projects. That\u2019s a costly client.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Based on tracking data, you can predict inefficiencies and prioritize high-paying clients\/projects.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speed up routine tasks with our interactive templates \u2014 free download in Excel, Word, and PDF:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/timesheet-templates\">Free Printable Timesheet Templates<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/schedule-templates\">Free Schedule Templates<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/invoice-templates\">Free Invoice Templates for Freelancers<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"2-track-non-billable-hours-to-boost-long-term-revenue\" class=\"wp-block-heading\">#2: Track non-billable hours to boost long-term revenue<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Use non-billable hours to boost your company\u2019s revenue and service quality in the long run. To simplify, uncharged work can improve profitability in 2 ways:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Review<\/strong> <strong>company<\/strong> <strong>performance<\/strong> \u2014 Organize short team meetings regularly. Discuss your brand strategy, plan future moves, and exchange ideas to improve results. Make sure to address internal issues.<\/li>\n\n\n\n<li><strong>Support employee growth<\/strong> \u2014 Have your employees spend a few hours per week on skill development. More adept workers means faster output and happier clients.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Your <a href=\"https:\/\/clockify.me\/features\/timer\">time tracker<\/a> will help you assign the optimal amount of time to the tasks above.<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track time for FREE<\/a><\/p>\n\n\n\n<h3 id=\"3-track-non-billable-hours-to-improve-project-planning\" class=\"wp-block-heading\">#3: Track non-billable hours to improve project planning<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Seeing how previous projects were handled can help you plan more successful projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say your team spends more time on internal meetings than raw project work. You\u2019ll need to shorten the meetings or up your service prices. Either way, your project plan must account for that kind of admin overhead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Besides that, any redundant admin tasks should be cut from future plans. This frees up your employees to focus on project-specific activities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With more realistic project plans, your clients\u2019 trust will skyrocket.<\/p>\n\n\n\n<h2 id=\"how-to-track-billable-and-non-billable-hours\" class=\"wp-block-heading\">How to track billable and non-billable hours<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">ExpressVPN reports that <a href=\"https:\/\/www.expressvpn.com\/blog\/uk-workplace-surveillance-trends-2025\/\" target=\"_blank\" rel=\"noreferrer noopener\">85% of UK employers use monitoring tools<\/a> to track staff activity. Time trackers are especially popular with both employers and workers \u2014 offering <a href=\"https:\/\/clockify.me\/blog\/business\/clockify-budget-report\/\">budget insights<\/a> and preventing overwork.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any time tracking tool should let you track billable and non-billable hours without guesswork. So, let\u2019s walk you through the process step by step:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>#1:<\/strong> <strong>Set<\/strong> <strong>up<\/strong> <strong>billable\/non-billable<\/strong> <strong>project<\/strong> <strong>tags<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mark time entries as billable or not. To speed things up, you can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Duplicate time entries,<\/li>\n\n\n\n<li>Bulk-select entries to update them all at once, or&nbsp;<\/li>\n\n\n\n<li>Tag projects as billable so that any tracked time is automatically marked.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"176\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks.webp\" alt=\"Timing billable tasks\" class=\"wp-image-37673\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks-730x107.webp 730w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks-1110x163.webp 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks-768x113.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Timing-billable-tasks-18x3.webp 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Timing billable tasks<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>#2:<\/strong> <strong>Review<\/strong> <strong>reports<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sort your work by billability status to see costs and profits. Then, drill down that data by employee to compare high- and low-performers. Check your report for any duplicate time entries to make sure your billable amounts are right.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"802\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts.webp\" alt=\"Track work hours against billable amounts\" class=\"wp-image-37674\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts-449x300.webp 449w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts-943x630.webp 943w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts-768x513.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Track-work-hours-against-billable-amounts-18x12.webp 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Track work hours against billable amounts<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>#3:<\/strong> <strong>Generate<\/strong> <strong>invoices<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Import billable time entries in bulk to create invoices, which <a href=\"https:\/\/clockify.me\/blog\/business\/clockify-client-invoicing\/\">speeds up invoicing<\/a>. Then forward them directly to clients\u2019 emails. Your time tracker will send you a reminder for any overdue invoices.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"802\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping.webp\" alt=\"Download invoices as CSV or PDF files for safekeeping\" class=\"wp-image-37665\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping-449x300.webp 449w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping-943x630.webp 943w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping-768x513.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Download-invoices-as-CSV-or-PDF-files-for-safekeeping-18x12.webp 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Download invoices as CSV or PDF files for safekeeping<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">When tracking time, industries like law tend to use relevant time intervals. Attorney at law <a href=\"https:\/\/www.linkedin.com\/in\/edward-hones\/\" target=\"_blank\" rel=\"noreferrer noopener\">Edward Hones<\/a> explains:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones.webp\" alt=\"Edward Hones\" class=\"wp-image-37666\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones.webp 800w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-12x12.webp 12w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThe 6-minute interval is ideal for billable meetings. 15-minute intervals work well for non-billable research hours. I avoid using anything longer than 30-minute intervals.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-9-16 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"3 reasons to track time if you want to beat the competition\" width=\"422\" height=\"750\" src=\"https:\/\/www.youtube.com\/embed\/rXbi5w-7_-A?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 id=\"how-many-billable-hours-is-average\" class=\"wp-block-heading\">How many billable hours is average?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Clockify\u2019s <a href=\"https:\/\/clockify.me\/time-tracking-statistics\">time tracking data<\/a> of 2,300 US firms shows that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>65.9%<\/strong> of work hours are billable, and<\/li>\n\n\n\n<li><strong>34.1%<\/strong> of work hours are non-billable.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Yet, the average number of billable hours varies per industry. To track profitability, all companies calculate their billable utilization rate \u2014 the percentage of time they can bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To <a href=\"https:\/\/clockify.me\/blog\/business\/utilization-rate\/\">get your utilization rate<\/a>, use this formula:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background wp-block-paragraph\" style=\"background-color:#e1f5fe\">(Total billable hours \/ Total actual hours) x 100 = Billable utilization rate<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s our billable hours chart, with quick insights into industry benchmarks:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Industry<\/strong><\/th><th><strong>How many billable hours in a year<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Law<\/td><td>2,000\u20132,500<\/td><\/tr><tr><td>Consulting<\/td><td>1,664\u20132,080<\/td><\/tr><tr><td>PR<\/td><td>1,200\u20131,600<\/td><\/tr><tr><td>Marketing<\/td><td>circa 1,248<\/td><\/tr><tr><td>IT<\/td><td>circa 1,508<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let\u2019s go over the average utilization rates per industry.<\/p>\n\n\n\n<h3 id=\"utilization-rate-for-legal-professionals\" class=\"wp-block-heading\">Utilization rate for legal professionals<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Legal giants like Big Law require 2,000\u20132,500 billable hours per year. However, studies report starkly lower numbers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clio\u2019s <a href=\"https:\/\/www.clio.com\/uk\/resources\/legal-trends\/2024-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">2024 Legal Trends survey<\/a> of 1,028 US legal professionals found that the average lawyer billable hours are less than 3 per 8-hour workday. That\u2019s a <strong>billable<\/strong> <strong>utilization<\/strong> <strong>rate<\/strong> <strong>of<\/strong> <strong>37%<\/strong>, or up to 720 hours billed per year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, compare that to 2023, when the <a href=\"https:\/\/www.thomsonreuters.com\/en-us\/posts\/legal\/relative-performance-measures-report-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thomson Reuters Institute measured lawyers\u2019 profitability<\/a> and found they averaged 115 hours a month. That\u2019s 1,380 annual billable hours.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But, what percentage of hours should be billable? Attorney at law Edward Hones shares the realistic standards for small law firms:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones.webp\" alt=\"Edward Hones\" class=\"wp-image-37666\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones.webp 800w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Edward-Hones-12x12.webp 12w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cMy personal aim is to get 4\u20136 billable hours per day. This is the maximum we can achieve alongside non-billable hours, without getting overworked.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If you apply that to a 40-hour workweek, you would get a 50\u201375% billable utilization rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\n<div class=\"banner banner-dark clockify-gradient-landing-3\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Team Utilization Tool<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Increase your team's billable hours with advanced reporting. Join Clockify for FREE!<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/learn\/resources\/clockify-utilization-report\/\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-bottom \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-3@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-3.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h3 id=\"utilization-rate-for-consultants\" class=\"wp-block-heading\">Utilization rate for consultants<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Consultants usually aim for 32\u201340 billable hours a week (or 1,664\u20132,080 a year). The <a href=\"https:\/\/forms.workday.com\/content\/dam\/web\/en-us\/documents\/reports\/SPI_2025_Benchmark_Report.pdf?refCamp=7014X000001yvgK\" target=\"_blank\" rel=\"noreferrer noopener\">2025 Professional Services Maturity Benchmark\u2122 Report<\/a> found that the <strong>billable<\/strong> <strong>utilization<\/strong> <strong>rate<\/strong> <strong>stands<\/strong> <strong>at<\/strong> <strong>68.9%<\/strong> for consultants \u2014 below the ideal 75%. The study also listed major industry challenges, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Limited hiring (1.9%)<\/li>\n\n\n\n<li>Reliance on contractors (10.9%)<\/li>\n\n\n\n<li>On-time project delivery (73.4%)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/clockify.me\/blog\/business\/kpi\/\">KPI metrics<\/a> above point to profitability pressures, unstable demand, and flawed project planning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what percentage of hours should you bill for? Partner at a consulting firm, <a href=\"https:\/\/www.linkedin.com\/in\/sethwaite\/\" target=\"_blank\" rel=\"noreferrer noopener\">Seth Waite<\/a>, says they <em>\u201caverage about 28\u201332 billable hours a week.\u201d<\/em> That means their average billable utilization rate is between 70% and 80% per 40-hour workweek.<\/p>\n\n\n\n<h3 id=\"utilization-rate-for-pr-agencies\" class=\"wp-block-heading\">Utilization rate for PR agencies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">PR professionals go for 1,200\u20131,600 billable hours per year. So, teams on a 40-hour schedule reach a <strong>billable<\/strong> <strong>utilization<\/strong> <strong>rate<\/strong> <strong>of<\/strong> <strong>57\u201377%<\/strong>. That\u2019s drastically lower than the ideal 70\u201380% for professional services. Why is that?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Well, the <a href=\"https:\/\/iccopr.com\/wp-content\/uploads\/2025\/03\/2024-2025-ICCO-World-PR-Report.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2024\u20132025 ICCO World PR Report<\/a> covers the biggest concerns for PR agencies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clients\u2019 unwillingness to fund services (37%)<\/li>\n\n\n\n<li>Changing economic conditions (34%)<\/li>\n\n\n\n<li>Meeting profit\/margin goals (26%)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let\u2019s look at the actual percentage of billable hours, based on a real-life example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VP of Strategy &amp; Operations at a PR agency, <a href=\"https:\/\/www.linkedin.com\/in\/sean-wille-sjw100\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sean Wille<\/a>, says their <em>\u201cagency averages 125\u2013135 billable hours per month for <\/em><a href=\"https:\/\/clockify.me\/blog\/business\/full-time-equivalent-fte\/\"><em>full-time team members<\/em><\/a><em> and targets about 75\u201380% of billable time.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sean shows that reaching the ideal utilization rate is doable, but going past it invites risks:&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"1000\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille.webp\" alt=\"Sean Wille\" class=\"wp-image-37671\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille.webp 1000w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Sean-Wille-12x12.webp 12w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cWhen that rate climbs too high, teams stay busy, but the business plateaus. There is less time for growth, less involvement in sales and professional development, and fewer opportunities to build culture.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 id=\"utilization-rate-for-marketing-firms\" class=\"wp-block-heading\">Utilization rate for marketing firms<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In marketing, the <strong>average utilization rate is up to 60%<\/strong>, while the ideal is around 75%<strong>.<\/strong> So, based on a 40-hour workweek, marketing teams average 24 billable hours a week \u2014 or roughly 1,248 billable hours in a year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That said, how many billable hours is realistic? Digital marketing strategist Jordan Stevens shares his thoughts on weekly billable goals:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens.webp\" alt=\"Jordan Stevens\" class=\"wp-image-37668\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens.webp 800w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Jordan-Stevens-12x12.webp 12w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThis depends on your role, but I shoot for 20\/80. So, 4 full days of billable time and 1 day of non-billable time. This allows for time to innovate, learn and <\/em><a href=\"https:\/\/clockify.me\/blog\/managing-tasks\/get-things-done\/\"><em>get any admin work done<\/em><\/a><em>.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Assuming Jordan works 8 hours a day, his weekly utilization rate amounts to 80%. So, you\u2019re capable of achieving the optimal billable time, but the target will depend on your company role.<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track utilization in Clockify<\/a><\/p>\n\n\n\n<h3 id=\"utilization-rate-for-it-companies\" class=\"wp-block-heading\">Utilization rate for IT companies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Typically, the <strong>utilization<\/strong> <strong>rate<\/strong> <strong>for IT services hovers<\/strong> <strong>around<\/strong> <strong>72%<\/strong>. For full-time teams, that\u2019s about 29 billable hours in a week or 1,508 billable hours in a year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/assets.kpmg.com\/content\/dam\/kpmgsites\/ie\/pdf\/insights\/consulting\/ie-kpmg-global-tech-report-2026.pdf.coredownload.inline.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2026 KPMG Global Tech Report<\/a> lists some of the biggest growth obstacles \u2014 identified by 2,500 tech executives:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tech debt<\/strong> (quick fixes that need reworking) \u2014 63% of companies delay new initiatives due to the cost of solving tech debt.<\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/blog\/workforce-management\/staff-shortage\/\"><strong>Talent shortages<\/strong><\/a> \u2014 53% of companies lack the necessary skills to carry out modernization plans.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">CEO of a GPS tracking SaaS business, <a href=\"https:\/\/www.linkedin.com\/in\/alex-sarellas\/\" target=\"_blank\" rel=\"noreferrer noopener\">Alex Sarellas<\/a>, says that <em>\u201canywhere between 20\u201340% of company hours is spent on non-billable hours.\u201d <\/em>In other words, his firm\u2019s utilization rate ranges from 60% to 80%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">How does Alex manage to meet the industry standard? In his words, he cuts down on lost time by <em>\u201cassigning clear responsibilities and reducing the number of handoffs.\u201d<\/em><\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Help your team ace time management with our practical resources:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/time-management-calculator\">Free Time Management Calculator<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/time-management-techniques\">30 Effective Time Management Techniques for Work and Life<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 id=\"examples-of-billable-and-non-billable-hours-by-industry\" class=\"wp-block-heading\">Examples of billable and non-billable hours by industry<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s a list of real billable, non-billable, and grey-area tasks, broken down by industry.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Industry<\/strong><\/th><th><strong>Billable<\/strong> <strong>tasks<\/strong><\/th><th><strong>Non-billable<\/strong> <strong>tasks<\/strong><\/th><th><strong>Grey-area tasks<\/strong> (tasks that could go either way)<\/th><\/tr><\/thead><tbody><tr><td>Law<\/td><td>Attending court hearings<\/td><td>Mentoring interns at the law firm<\/td><td>Traveling to court<\/td><\/tr><tr><td>Consultancy<\/td><td>Drafting action plans for clients<\/td><td>Creating a template for client proposals<\/td><td>Holding initial consultations without a contract<\/td><\/tr><tr><td>PR<\/td><td>Pitching clients to media platforms<\/td><td>Giving a client presentation<\/td><td>Redoing press releases<\/td><\/tr><tr><td>Marketing<\/td><td>Setting up ad campaigns<\/td><td>Researching social media trends<\/td><td>Creating multiple versions of a banner add<\/td><\/tr><tr><td>IT<\/td><td>Testing client software<\/td><td>Attending cybersecurity courses<\/td><td>Fixing software bugs after launch<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"create-powerful-invoices-and-bill-clients-with-clockify-by-cake-com\" class=\"wp-block-heading\">Create powerful invoices and bill clients \u2014 with Clockify by CAKE.com<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every leader yearns for the right balance between admin and client work. Satisfy that craving with a simple yet impactful time tracker, like Clockify by CAKE.com.<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Sign up for Clockify FREE<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just track your hours, mark billability, and send instant invoices \u2014 this way, you\u2019ll classify work correctly and justify invoices to clients easily.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"925\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting.webp\" alt=\"Visualize your team\u2019s progress with Clockify\u2019s reporting\" class=\"wp-image-37675\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting-389x300.webp 389w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting-817x630.webp 817w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting-768x592.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/04\/Visualize-your-teams-progress-with-Clockifys-reporting-16x12.webp 16w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Visualize your team\u2019s progress with Clockify\u2019s reporting<\/figcaption><\/figure>\n<\/div>\n\n\n<h2 id=\"faq-about-billable-hours-and-non-billable-hours\" class=\"wp-block-heading\">FAQ about billable hours and non-billable hours<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is where we answer all your burning questions. Learn more nitty-gritty details on billable and non-billable hours.<\/p>\n\n\n\n<h3 id=\"what-is-the-difference-between-billable-and-non-billable-hours\" class=\"wp-block-heading\">What is the difference between billable and non-billable hours?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The difference is that you can\u2019t charge clients for non-billable time, as it doesn\u2019t involve direct client work.<\/strong> But it\u2019s crucial for maintaining high staff performance. Even your most profitable employees need space for skill development, process refinement, and mental sharpness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To balance out billable and non-billable time, use reliable time trackers like Clockify.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\n<div class=\"banner banner-dark clockify-gradient-default\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Smart Revenue Tracker<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Get live reports on revenue and expenses based on tracked time. Get started with Clockify by CAKE.com \u2014 it's free!<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/time-reporting\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/default@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/default.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h3 id=\"does-non-billable-mean-you-wont-get-paid\" class=\"wp-block-heading\">Does non-billable mean you won\u2019t get paid?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As an employee, you get paid for non-billable work since they\u2019re part of your total work time. The <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/fact-sheets\/22-flsa-hours-worked#:~:text=Fact%20Sheet%20%2322%20of%20the%20Fair%20Labor,rest%20periods%2C%20usually%2020%20minutes%20or%20less\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Labor Standards Act (FLSA)<\/a> requires employers to compensate staff for all hours worked. The only exceptions include lectures, meetings, and training programs IF they meet the following criteria:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>They\u2019re outside office hours,<\/li>\n\n\n\n<li>They\u2019re optional,<\/li>\n\n\n\n<li>They\u2019re not job-related, and<\/li>\n\n\n\n<li>They don\u2019t overlap with any other work.<\/li>\n<\/ol>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Find out more about time tracking compliance in our articles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/flsa-compliance\">Fair Labor Standards Act (FLSA) Regulations<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/blog\/tracking-time\/time-tracking-regulations-worldwide\/\">Worldwide Time Tracking Laws to Follow for a Global Team<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"how-many-billable-hours-are-realistic\" class=\"wp-block-heading\">How many billable hours are realistic?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In general, a realistic goal for billable hours is between 1,700 and 2,000 hours per year. However, these numbers can differ depending on several factors, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business field,<\/li>\n\n\n\n<li>Company role,<\/li>\n\n\n\n<li>Seniority level, etc.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Balancing workloads and preventing burnout also impacts how much paid work actually gets done.<\/p>\n\n\n\n<h3 id=\"what-is-a-good-billable-hours-rate\" class=\"wp-block-heading\">What is a good billable hours rate?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A<\/strong> <strong>good<\/strong> <strong>billable<\/strong> <strong>hours<\/strong> <strong>target<\/strong> <strong>is<\/strong> <strong>around<\/strong> <strong>65\u201375% for most professional services.<\/strong> It should raise your income while covering expenses.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, science predicts a jump in billable hours. In fact, <a href=\"https:\/\/clp.law.harvard.edu\/knowledge-hub\/insights\/the-impact-of-artificial-intelligence-on-law-law-firms-business-models\/\" target=\"_blank\" rel=\"noreferrer noopener\">Harvard Law School\u2019s study on AI adoption at law firms<\/a> found that AI speeds up routine work. This frees up lawyers to take on more client work and boost its quality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Want to see your company\u2019s profitability trends? Use a trusted <a href=\"https:\/\/clockify.me\/time-billing-software\">billable hours tracker<\/a> like Clockify.<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track billable time in Clockify<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spend more time on paid work! Learn about billable hours vs. non-billable hours in our guide \u2014 with definitions, stats, and tracking tips.<\/p>\n","protected":false},"author":11,"featured_media":37667,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-7132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/7132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/comments?post=7132"}],"version-history":[{"count":29,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/7132\/revisions"}],"predecessor-version":[{"id":39087,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/7132\/revisions\/39087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media\/37667"}],"wp:attachment":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media?parent=7132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/categories?post=7132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/tags?post=7132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}