Question: What Is Billable Time?

How many billable hours is normal?

Firms “average,” “target” or “minimum” stated billables typically range between 1700 and 2300, although informal networks often quote much higher numbers..

What are billable and non billable hours?

Billable hours include those tasks where an attorney is working on an actual matter for a client. Non-billable hours include tasks that must be done but aren’t directly attached to a matter, such as administrative tasks.

How can we reduce non billable hours?

Automate certain tasks There are some repetitive assignments, such as administration, which can consume a lot of your time and you’ll track them as non-billable hours. In this case, the best solution to lower these non-billable hours is automation.

How much is 1800 billable hours?

To achieve 1,800 billable hours, an associate would work her “regular” hours plus an extra 20 minutes Monday through Friday, or work one Saturday each month from 10:00 a.m. until 5:00 p.m. The first option would give an attorney 1,832 billable hours, with a total of 2,430 hours spent “at work” (AKA: including …

How do you calculate billable hours?

Calculating billable hours is straightforward: you take how much you’ve worked and multiply it by your hourly rate. But, the complications arise when you charge different fees to different clients, or when you have a diverse team doing differently paid work, and you need to factor in all those different rates.

Do you bill for invoicing time?

Depending on how you set up your fees and contracts, you might designate time spent invoicing as administrative work — the cost of doing business. Or you might consider invoicing part of client and project management — and bill for it.

Do you get paid for non billable hours?

Non-billable hours refers to the time you spend at work engaged in non-money making activities. … When you spend time on activities that don’t directly make money, you still need to get compensated for your time. Remember, Everyone else gets paid to work!

What is a good billable percentage?

It differs from agency to agency. Utilization is defined as the amount of billable time can you pull out of the total available time of your employees. Industry standards suggest an overall successful agency staff utilization rate should fall between 85 and 90%.

What is billable rate?

Billable rate is the amount you charge customers for products and services. Essentially, it’s the price. The billable rate determines how much you will make from sales. This is separate from the bills you pay to run your business.

How can I improve my billable hours?

Here are five things you can do to make sure you’re maximizing your billable hours:An Hour’s an Hour, No Matter How Small. … Write Everything Down as You Do It. … Stop Goofing Off. … Be Smart About Describing Your Hours. … Use Your Staff.

Is 2100 billable hours a lot?

Typical associate chargeable hours in mega firms and large firms are 2,000-2,100 per year. However, the typical associate who is “in the hunt” for partnership – an ambitious-prime-time-player – are likely to bill 2,300-2,400 hours per year.

What is non billable time?

Non-billable hours represent everything you do at work that can’t be billed or expensed to a client. They’re costs swallowed by your business that enable it to function and continue. Common examples of non-billable time includes: Bids, proposals and pitches for new business.