Billable-hour tracking is most useful when it answers two questions: what work did the client receive, and how was the charge calculated? A timer can capture duration, but the project, task, date, rate, and description give that duration business meaning.
Set the billing rules before work begins. Define which activities are billable, the smallest billing increment, any rate differences, and whether the client must approve timesheets. Consistent rules make entries easier to review and invoices easier to explain.
Define what counts as billable time
Billable time is work a client has agreed to pay for under the engagement. It may include production, meetings, research, revisions, or travel, but the answer depends on the contract rather than a universal list.
Write a simple billing policy for each project. Separate included work from overhead, set limits for revisions or meetings, and document any activity that requires advance approval before it can be charged.
- Confirm covered services in writing
- Record the agreed hourly rate
- Define billing increments and rounding
- Identify work requiring prior approval
Record time with useful context
Start a timer when you begin a focused task, or make a manual entry at a natural checkpoint. Choose one method for each workflow so that the same activity is not captured twice.
A useful entry names the outcome, not just the tool used. Replace “design work” with a description such as “revised homepage wireframe after client review” so the client can connect time to progress.
- Assign every entry to one project
- Use a specific task description
- Capture start, stop, and duration
- Add a note for unusual work
Review billable hours every day
A daily review catches missing entries while the work is still easy to remember. Look for overlapping timers, long unexplained blocks, entries on the wrong project, and notes that would confuse someone outside the team.
Compare the running total with the estimate or project cap. When hours are approaching a limit, tell the client before continuing and document any approved change to scope, budget, or schedule.
- Close open or duplicate timers
- Correct project and task assignments
- Check progress against the budget
- Preserve approved time records
Prepare hours for invoicing
Before invoicing, group approved entries by service, phase, or role according to the agreement. Calculate each line from the accepted hours and rate, then check that the detailed record equals the invoice total.
Show enough detail for the client to verify the charge without exposing internal notes. Include the service period, description, hours, rate, line total, payment terms, and a timesheet attachment when the engagement requires one.
- Approve entries before billing
- Reconcile hours with invoice lines
- State the covered service period
- Keep the underlying time record
Frequently asked questions
Questions about how to track billable hours
What information should a billable time entry include?
Include the date, client, project, task, duration, and a short description of the result. Add the applicable rate or billing category when rates vary.
Should billable hours be rounded?
Use the increment agreed with the client and apply it consistently. Avoid introducing a rounding rule after the work has already been completed.
When should a client receive a timesheet?
Send one when the contract requires it or when detailed support will help the client review the invoice. The invoice should still summarize the charge clearly.