Billable Hours
Billable hours are hours worked that can be charged to a client.
Billable hours are time spent on client work that the contract allows you to invoice — as opposed to admin, marketing, or training time. Firms track utilisation (billable hours as a share of total hours) as a key performance metric. Accurate time tracking is the foundation: unbilled hours are lost revenue.
Example
A lawyer logs 6.5 billable hours of case work out of an 8-hour day.
Related terms
Frequently asked questions
What counts as a billable hour?
Any time spent on the client's matter that the engagement terms allow you to charge — research, meetings, drafting, travel in some cases. Check the contract: some clients exclude travel or cap certain activities.
How small a time unit should I bill in?
Common increments are 6 minutes (a tenth of an hour) or 15 minutes. Smaller increments are fairer to the client; the contract or your policy should state the rule.
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