Depending on what kind of business you run, you might find yourself in a situation where your business is required to bill by the hour. The legal industry, for example, is well known for using billable hours to a large degree. It is also quite common to bill clients per hour in the service sector. In general, the term “billable hour” refers to time spent on a specific client matter, and general administrative operations, etc. are not considered billable hours.
With Archdesk, you can calculate all your work hours and billable hours in a simple, intuitive way through a tool that facilitates the process. The way it works isn’t too different from the standard work calculation procedure which follows these steps:
- Creating a blank time log to keep track of each client that will be taking up your billable hours. This can be anything as simple as a sheet of paper or an electronic file. Keep track of each client’s data and the services they’re expecting.
- Tracking the time – of when you started, when each billable hour took place, as well as when you’re done with a client. The time needs to be accurately tracked, as it’s the very basis of the billing in the case of billable hours.
- Determining the frequency of accounting billable hours – some business do it on a weekly basis, while others do it once a month. It’s usually wise to set up this period to coincide with the frequency in which you send your invoices to clients, for clarity’s sake.
- Providing you with an accessible database to calculate your billable time in a clear, user-friendly log. It goes without saying that a clear record of each client can vastly reduce the stress and hassle connected with calculating the hours. When the time comes to send out invoices, you’ll be glad you ran a log.
- Calculating the final result based on your current billable rate. Usually, this involves a process of multiplication and other mathematical equations which you’ll have to handle on your own, unless you’re utilising a piece of ERP software to do it for you!
Billable hours may seem rather complex and cumbersome to calculate, but with the above steps in mind, they should be easy to handle. You can make your life even easier by utilising a piece of ERP software such as the one provided by Archdesk, in order to get the best grasp on all things related to working hours.