Billable hours can be defined as the amount of time a business may spend on their projects & charge their clients accordingly, on the basis of an agreed-upon hourly rate. Businesses, agencies, entrepreneurs & even freelancers have adopted the billable-hours model to charge their clients for the services provided. To summarise, in order to charge by the billable hour, workers need to track the amount of time they spend on each client’s projects every day.
To feasibly charge their clients, any business would need to undergo the following stages:
- Coming up with an Hourly Rate: Before the tracking of billable hours start, the hourly rate needs to be determined, in order for businesses to charge the clients for the work done. Start with setting a target for the annual salary you’d like to earn & do some research to make sure your target salary is in line with what the competition is charging its customers. Once you have a salary in mind, divide it by the number of working hours in a year. Upon determining the hourly rate, you may wish to raise it slightly to offset the amount of time you’ll spend working on non-billable tasks, like administrative work and client pitches.
- Determining an invoicing cycle: The next step is to determine an invoicing cycle, that is, how frequently the client is going to be invoiced. An invoicing Cycle could be weekly, monthly, or annually.
- Keeping track of time: Using timesheets to record your work hours, according to the project, will help you keep your accounting on track.
- Creating a detailed & accurate invoice: A detailed invoice, mentioning each service provided along with your hourly rate, will make it clear for the client to comprehend the precise value they would be getting for their money.
However, undertaking these tasks & making sure that each stage is completed flawlessly, may turn out to be a monumental task.
Enter xTimesheet. xTimesheet has all the tools to help you manage your billing hours effortlessly. From tracking work hours to managing administrative expenses & generating invoices, xTimesheet has your business covered on all fronts. xTimesheet is suitable for businesses of all scale- Be it small or medium-scale firms, large-scale corporations, or budding entrepreneurs & freelancers, anyone can benefit from what xTimesheet has to offer.
Join for free, with up to 5 members, on www.xtimesheet.com or download the xTimesheet app on Google Play Store or Apple App Store.