billable hours
Time spent on client work that is recorded and charged at an agreed hourly rate.
Definition
Billable hours are the hours an agency logs against a client project and invoices. Time tracking should be specific enough to review: who worked, on what, for how long. Clients can ask for monthly timesheets or a not-to-exceed cap. Billing by hours aligns cost with effort but can reward slowness, which is why many agencies prefer fixed fees or retainers, and clients prefer predictable budgets. Non-billable time includes internal meetings, training and sales. Ask for timesheets with enough detail to understand what was done, and set a monthly alert when time reaches a chosen share of budget.
In a sentence
The invoice listed billable hours by task.
The client set a cap on billable hours per month.
