Skip to main content
Track non-billable hours

How to track non-billable hours without invoicing

Claudette Albers-Reid avatar
Written by Claudette Albers-Reid
Updated over a week ago

Updated 17th January 2024

If you only track billable time, you’re only tracking part your work. While timesheets are important for recording immediate revenue, tracking non-billable hours helps teams become more efficient, effective and profitable.

What are non-billable hours?

Non-billable hours represent everything you do at work that can’t be billed to a client. They can be costs absorbed by your business that enable it to function and continue, as well as project-specific expenses. Common examples of non-billable time include:

  • Bids, proposals and pitches for new business

  • All-hands company meetings

  • Staff development and training

  • Networking and conference appearances

  • Entertaining clients

  • Business development, strategy and research

  • Operational admin (time tracking, invoicing, expensing, bookkeeping, managing company finances).

The advantages of tracking non-billable time:

  • Remove expensive inefficiencies such as admin and redundant meetings.

  • Improve profitability

  • Find more billable hours

  • Protect development time

  • Get more quality from time.

How to track non-billable hours?

In your contract or contract template, click the Add line button to create a Fixed contract line and name it for example, Non-billable and set the Amount and Budget fields to 0:

By setting the Amount field to 0, you are indicating that the Used hours value will not be invoiced. The example above, shows that € 400,00 worth of hours has been logged but will not be invoiced.

This method of tracking non-billable hours, can be applied to any activity in your project including tasks.

Did this answer your question?