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Business Terms
Billable Hours
Definition
Work time that can be charged directly to a client.
Overview
Billable hours are time spent on client work that's invoiced at your hourly rate. Non-billable time includes admin, marketing, and professional development.
Example
A consultant works 40 hours weekly: 30 billable hours at $150/hour ($4,500) plus 10 hours of admin.
Best Practices
Track time accurately, maximize billable ratio, and price non-billable time into rates.
Common Mistakes to Avoid
Poor time tracking
Under-billing
Not accounting for non-billable time in rates
Frequently Asked Questions
What's a good billable hours ratio?
60-80% is typical for consultants. Higher ratios leave less time for business development.