Time billing is the total time one spends handling work-related or business projects whereby the clients are charged depending on the stipulated rate per hour. Agencies, companies, entrepreneurs, and freelancers alike often use the billable time to charge for the services rendered to their clients. However, charging using billable hours, workers are required to monitor the amount of time spent on the client’s projects daily.
Understanding Billable Hours
Oftentimes, billable time is considered as the time taken to work on tasks and projects that relate directly to your client’s needs. Various organizations have varied client-related responsibilities, hence varying billable time. However, there are work obligations for startups and freelancers to consider billable. These include project planning, meeting attendance, conducting research, creating project timelines, among others.
Applying the best time billing software comes in handy in this case because it helps businesses monitor the precise time spent on projects. The data collected from the software is utilized as the basis for billing the client. Companies that don’t use this tool often undervalue their work which is a disadvantage. If you are not yet acquainted with time billing software, this article entails more information about it.
Why is it needed?
Institutions offering legal services, creative agencies, and freelancers often apply billable hours as a standard charging process. Some companies track the billable time using timesheets, which is okay. However, this procedure is tiring and time-consuming since one has to collect everyone’s timesheets to calculate the total time which takes a lot of time. When it comes to this, time billing software is the best solution here.
Other companies using Excel spreadsheets to manage their billable hours are likely to make numerous mistakes. These mistakes lead to inaccurate invoices sent to the clients and usually portray a lack of professionalism. In this instance, time billing software is essential as it ensures you quickly and precisely bills your client while maintaining great proficiency.
Tracking and Managing Time
While using other methods to bill clients delivers results, the process is time-consuming and often causes plenty of inaccurate results. With time billing software, you can save on time spent on manual data entry. Additionally, all your team’s data can be found and billed in a single central system. As a result, turning the data into invoices happens effortlessly with a few clicks.
To ensure you track your time more efficiently, then you need to incorporate time billing software. Not only does this tool provide efficient results, but also using it is fast and easy.
How to Track your Time Better
To get better results, you need to identify the types of tasks termed billable hours. Doing this makes it easy to distinguish billable time from the actual time. You can also set a varying hourly price for different tasks, users, or projects. Doing this enables the automatic compilation of accurate invoices using time billing software. You can use the following steps to track your time effectively.
- Put up projects and record your time against each project
- Use tasks to record time after every activity
- Form a company profile for every project
- If you want automated data flow, avoid using spreadsheets and use time billing tool instead
Time billing software possesses a plethora of benefits. For starters, it delivers accurate and comprehensive time tracking. What’s more, you can quickly generate invoices given the pre-designed PDF templates. Additionally, it generates and sends automated email reminders for unsettled bills to clients. The best thing about the tool is that you can provide a detailed report on your team’s work and access your records anywhere and anytime. With all these benefits, the time billing tool is the ideal solution for making your work manageable.