Poor management of billable hours can affect the profitability of your projects and the satisfaction of your customers.
Identifying and avoiding the most common mistakes is essential to optimizing your performance and building trust with your customers.
Distinguish between billable and non-billable hours
Confusion between billable and non-billable hours is a frequent error.
For example, including time spent in internal meetings in the hours billed can damage your credibility with customers. Make sure you clearly define the tasks eligible for invoicing at the outset of the project.
No precise time tracking
Failure to track working time in detail often leads to errors in quotations or inaccurate invoicing. Use time management tools to record every task performed, with a clear distinction between billable and non-billable hours.
Underestimation of time required
Underestimating the hours required for a project is a common problem. It can reduce your margins or create tensions with the customer. Analyze similar projects in the past to adjust your estimates and build in margins for unforeseen circumstances.
Neglecting customer communication
Invoicing hours without explaining the reasons for doing so can lead to misunderstandings and conflicts. Regular communication on the progress of work and the hours invoiced reinforces transparency and customer confidence.
Our tips for avoiding these mistakes
- Formalize billable tasks: specify in your contracts which tasks will be billed for, and at what rate.
- Automate tracking: adopt a resource management tool like Teambook for accurate, reliable time tracking.
- Train your teams: make your staff aware of the importance of rigorous follow-up and the distinction between billable and non-billable hours.
By avoiding these common mistakes, you can improve the profitability of your projects and enhance your professionalism.
Integrate Teambook to avoid mistakes
Avoid mistakes with Teambook
One of the most effective ways of minimizing errors in the management of billable hours is to use a solution like Teambook.
This tool helps to structure time tracking by clearly distinguishing billable hours from internal activities. It also offers detailed reports, enabling you to quickly detect discrepancies or underestimated tasks.
By integrating Teambook into your process, you ensure transparent, reliable management, while building trust with your customers.
