Non-billable hours refer to the time spent on activities that cannot be charged to a client. This includes administrative tasks, such as attending meetings, training, and other activities that do not directly generate revenue for the company. Non-billable hours also include any time spent on personal activities, such as taking breaks or vacation.
Tracking non-billable hours is important for businesses to understand how much time is being spent on activities that do not generate revenue. This information can help businesses identify areas where they can improve efficiency and reduce costs. Additionally, tracking non-billable hours can help businesses better manage their resources and ensure that employees are spending their time in the most productive way possible.
Time tracking software is an effective way to track non-billable hours. These tools allow businesses to easily monitor employee activity and ensure that all time is accurately tracked. Additionally, many of these tools offer features such as reporting and analytics, which can provide valuable insights into how employees are spending their time.