How many billing hours in a year

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Business owners love this blog because our advice is actionable and easy to implement. This is probably the most obvious and the most difficult way to increase your billable hours. Stop goofing off during business hours and you may be amazed to see how much your billable hours increase. Install a browser extension that limits the time you spend on time-sucking sites or completely blocks you from accessing them. Social media sites and even news sites are common culprits to target first.

Clear your workspace of distractions. Here are some industries that commonly bill by the hour:. You can unsubscribe at any time by contacting us at help freshbooks. We use analytics cookies to ensure you get the best experience on our website. You can decline analytics cookies and navigate our website, however cookies must be consented to and enabled prior to using the FreshBooks platform.

To learn about how we use your data, please Read our Privacy Policy. For PSOs, tracking time should be as important as tracking money. Knowing where every minute is being spent allows organizations to make correct decisions to increase billable hours, no matter which billing models are used.

Take, for instance, the following billing models:. Apart from these, there is a common issue plaguing most services firms. Often highly skilled resources are allocated low-effort, non-billable tasks due to a lack of visibility into time. By monitoring even non-billable time, managers can understand which tasks can be reallocated to employees with a lower cost to the company or even outsourced.

For this reason, organizations require managers and supervisors to verify and approve timesheets before they are sent for billing or payroll calculations. However, most PSOs fail at simplifying this process, leading to several issues. Supervisors might end up taking more time to approve timesheets, leading to delays and bottlenecks in billing calculations.

Moreover, if supervisors try to approve timesheets days after they have been submitted, it can be harder to track down the documentation and ensure accuracy of the data. Thankfully, there are several ways to combat the above-mentioned issues and improve your billing and utilization rates.

Here are some best practices that you can implement. To optimize the utilization rates of your employees, the first step should be to get rid of clunky and inefficient time tracking processes. It is essential to have a system that allows employees to access and fill up timesheets easily and quickly.

Employees should find it easy to add information on assigned tasks and allocate the correct amount of time spent. It will also help if you get a system that automatically pre-populates timesheets based on configurable rules to streamline timesheet completion and submission.

Our time tracking software at Replicon has easy-to-use timesheets that are customizable and can be prefilled to automate some of the reporting process. Studies show that utilization rates are directly correlated with the profitability of a professional services organization.

Average utilization rates do vary among different professional services verticals. For IT services, it is 81 percent, while legal and strategy consulting services have a rate of around 75 percent. Irrespective of the actual percentage, it has been determined that firms with higher utilization rates are generally more cost-efficient and profitable.

Therefore, it is essential to know the overall utilization rates as well as the individual rates for each employee. With this in mind, there are tools that lawyers can use to make it faster and easier to calculate and log their hours—like a billable hours chart. By billing in standard time increments and using an attorney billable hours chart, you can spend less time trying to calculate your billable hours manually. This blog post will explore how a billable hours chart can help lawyers better track time for invoicing.

A billable hours chart is an attorney billable hours template. It is a simple table to help you quickly calculate how many increments of an hour to charge, based on how long you worked. Why do lawyers bill in six-minute increments? Billing six minutes at a time is standard practice for practical reasons: Manually billing by the minute or in smaller increments is difficult and time-consuming to track and calculate by hand.

Conversely, billing in larger increments could lead to excessive padding, leading to unhappy clients overpaying for legal services. Six-minute periods are easy to calculate with the help of a billable hours chart, and they allow for reasonable increments without rounding up by too much. To quickly calculate what to charge for portions of an hour worked, use the chart below as a reference.

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