Non-Billable Time
What is non-billable time?
Non-billable time is staff time that is not charged to a client, such as internal meetings, training, administration, marketing, and business development. It is a normal part of running a service firm and is tracked alongside billable hours.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that separates billable and non-billable time in the time records, so utilization and margin reflect where hours actually go.
How to manage it
- Track non-billable hours by category so you can see where time goes
- Set a reasonable expectation for each role, since senior staff often carry more non-billable work
- Review the trend monthly with billable utilization
Why it matters for service firms
Too much non-billable time quietly reduces margin, while too little can mean staff are not investing in training or sales. Tracking it makes the trade-off visible.
Frequently asked questions
Is all non-billable time a problem?
No. Some non-billable time, such as training, hiring, and business development, supports future revenue. The goal is to track it, keep it intentional, and make sure it does not crowd out billable work.
How should non-billable time be recorded?
Use dedicated time codes for each category, and ask staff to log them the same way they log client time. Consistent coding allows utilization to be calculated accurately.
Related terms and guides: billable utilization, utilization rate, realization rate, and effective hourly rate.