Billable hours calculator for agencies

Tracking billable hours efficiently is crucial for agencies and consultancies. Whether you're billing clients hourly or managing a team of consultants, the Weekly Billable Hours Calculator simplifies the process by automating calculations and providing real-time totals. Here's a quick guide on how to use the calculator for your agency or consultancy.

What are billable hours?

Billable hours are the hours that a professional such as an agency or a consultant works and can charge a client for. These hours are logged and invoices issued to the client according to an agreed rate, usually a fee-for-service.

For instance, an agency that spends three hours building a marketing campaign will bill $600 to the client if his fee is $200 per hour.

On the other hand, there are non-billable hours that are worked on various engagements that do not directly earn revenue. Examples of these would we are meetings, training sessions and administration work.

How to use the billable hour calculator?

1. Select your start date and currency

Start by choosing your preferred start date and currency. The calculator makes it easy to track your work week by allowing you to set the starting date (usually a Monday). It also supports multiple currencies, including USD, EUR, and GBP, to ensure that all values are displayed in the correct currency for your business.

How to set it up:

• Set your start date: Select your desired start date (typically a Monday) from the date picker. The calculator will automatically adjust all the days of the week to reflect the correct dates.
• Choose your currency: Use the currency dropdown to select your preferred option (USD, EUR, GBP, etc.). The tool will instantly update all displayed values with the correct currency symbol (e.g., $ for USD, € for EUR).

This makes it easy to manage projects in different currencies and ensure your billing is on track from the start of each week.

2. Enter your hourly rate

Next, input the hourly rate that you charge your clients or the rate you pay your consultants. This is the core of the calculator, as it allows the tool to compute the total billable value for each consultant or project.

How to enter your hourly rate:

• Find the "Hourly Rate" input field and enter your rate (e.g., $100 per hour).

The calculator will use this rate to calculate the billable value for each consultant's daily hours.

3. Log billable hours for each day

For each consultant or team member, you’ll track their billable hours across the week (Monday to Sunday). You can input the hours worked for each day, and the calculator will automatically calculate how much you should charge for their time.

The calculator will automatically multiply the entered hours by the hourly rate to show the billable value for each day.

4. View billable amount per day

Once hours are entered, the calculator will display the corresponding billable value for each day. You’ll see the total hours worked and the earnings for each consultant, updating in real-time.

Example:

• If a consultant worked 6 hours on Monday and your hourly rate is $100, the billable value for Monday will be displayed as $600.

The tool also sums up the total billable hours and total value for the week, making it easy to track your team’s cumulative earnings.

5. Track total billable hours and value

At the bottom of the tool, you'll see the total billable hours for the week as well as the total billable value. These totals are updated automatically as you enter hours each day. This saves you from manual calculations and ensures accuracy.

How to check totals:

• The total billable hours will add up as you enter hours for each day.
• The total billable value will display the sum of all calculated earnings for the week.

The weekly billable hours calculator is an essential tool for agencies and consultancies looking to streamline their billing process. By entering the hourly rate and daily hours worked, you can instantly calculate and track billable hours for your team, helping you keep invoicing accurate and efficient. With real-time updates, total billable values, and currency flexibility, this tool ensures your agency or consultancy runs smoothly and profitably.

Track billable hours and amounts automatically using Bonsai

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Bonsai is an essential tool for project management that offers a streamlined function for time tracking and calculating billable hours. Utilizing a simple yet efficient billable hours calculator, it allows for accurate invoicing based on your billable rate or hourly rate. This reliable time tracking system can further distinguish between billable time and non-billable hours, ensuring that total billable hours and the total billable amount are accurate.

This platform also aids in enhancing billable utilization and can even function as a digital time card. Within the project management spectrum, Bonsai could be a tangible solution for those seeking exactitude and effectiveness.

How to use Bonsai for tracking billable hours

Bonsai is an efficient tool for keeping track of billable hours, ensuring accurate invoicing for the time you spent on your clients' projects. It provides a time tracking system which automatically records the time you spent working on various tasks. This feature also calculates the total billable hours for each project, accounting for non-billable hours as well.

1. Set up your project and hourly rate

Start by creating your project and setting your hourly rate. You can also set different billable rates for individual team members if you’re working with a team.

How to do this:

• Log into your Bonsai account and go to the Projects section.
• Create a new project or select an existing one.
• Set your hourly rate in the Billing section.
• If you have a team, you can assign specific billable rates to each team member in the Team Members section, ensuring accurate tracking and billing per person.

This ensures that all logged hours are calculated based on the correct rate for you and your team.

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2. Log your billable hours

As you work, track your time directly in Bonsai using the built-in time tracker or manually log hours.

How to do this:

• In the Time Tracking tab within your project, click Start Timer to begin tracking.
• Alternatively, you can Manually Add Time by specifying the number of hours worked and the task performed.

Each time you log hours, Bonsai will automatically calculate the corresponding amount based on your hourly rate.

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3. Review and adjust your hours

Bonsai allows you to easily adjust or edit your logged hours to ensure accuracy.

How to do this:

• Go to your Time Entries section within the project.
• If you need to make any adjustments, click on the entry to edit or delete it.

Bonsai will automatically update the total billable hours and the amount based on your changes.

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4. Get instant reports on time tracked

Before moving to invoicing, check out Bonsai's time tracking insights to get a detailed overview of your billable hours.

How to do this:

• Navigate to the Insights or Time Tracking tab in your project.
• Bonsai will give you a breakdown of how your time was spent, including the total billable hours and the specific tasks associated with them.
• This overview helps you track your progress and make any necessary adjustments before invoicing.

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5. Generate your invoices

Once you’ve reviewed your tracked hours, you can generate an invoice for your client based on the logged time.

How to do this:

• Go to the Invoicing section of your project.
• Select Create Invoice, and Bonsai will automatically populate it with your tracked hours and total amount based on your hourly rate.
• Customize the invoice with any additional items or services, and send it directly to your client.

FAQ

Why should I track billable hours?

‍Tracking billable hours ensures you get paid accurately for your work. It also helps you understand how much time you spend on client-related tasks and improve productivity and pricing strategies.

What is the difference between billable and non-billable hours?

‍Billable hours are client-focused tasks that you can charge for, like consulting or project work. Non-billable hours include activities like internal meetings, admin tasks, or training that are not directly chargeable.

How do I calculate my hourly rate?

‍To calculate your hourly rate, divide your desired annual income by the number of billable hours you expect to work in a year. Don’t forget to factor in taxes, expenses, and any downtime when determining this rate.

Who needs a billable hour calculator?

Billable hour calculators come in handy for lawyers, consultants, freelancers or agencies looking to track their earnings, plan their workload, and ensure accurate billing for services rendered.

How can I track my billable hours accurately?

One of the most effective and widely used techniques is to use a time tracking software to log tasks as you work. It'll help you organize time entries by client or project, and simplify billing and reporting.

Is time spent on client communication considered as billable hours?

Yes, as long as all discussions are related to the client’s engagement and project work and are aligned with the agreed terms of billing. Make sure to discuss with clients beforehand for clearer understanding.

How do I avoid underestimating my billable hours?

Split tasks into smaller components and allocate time for each task. Frequently encourage your team to review their logs to ensure that all the chargeable work is included. Setting reminders will also help in ensuring no entries are missed.

How to work out the issue if a client does not agree with the hours I bill on my timesheet?

Provide detailed time logs and descriptions of the tasks performed. In this case, having all billable time logged on a tool will save you tons of time. Transparency and regular updates during the project can help avoid disputes and maintain trust.