Work, pay & shifts
What Counts as Nonbillable Time
Every hour that isn’t billed goes somewhere. Knowing where — admin, training, sales, internal work — is what turns a utilization number into something you can act on. This guide lists the usual kinds of nonbillable time, the cases that could go either way, and how to record them without turning timesheets into a second job.
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Common kinds of nonbillable time
| Kind | Examples |
|---|---|
| Admin | Timesheets, invoicing, email that isn’t about client work, expenses, scheduling |
| Training & internal | Courses, certifications, team meetings, internal tools and process work |
| Sales & business development | Proposals, pitches, networking, scoping calls with prospects |
| Other | Waiting between assignments, unassigned time, firm-wide events |
Gray areas
- Travel: often billable when it is for a client and the contract allows it, sometimes at a reduced rate.
- Fixing your own mistakes: usually not billed, even if it is client work.
- Proposals for an existing client: sometimes billable as part of the engagement, usually not.
- Internal meetings about a client project: billable at some firms, not at others.
- Training a client requires: often billable if the client asked for it.
Decide these once, write them down, and apply them the same way, or utilization numbers stop being comparable.
A week, broken down
| Time | Hours | Share of 40 available |
|---|---|---|
| Billable | 28 | 70% |
| Admin | 4 | 10% |
| Training & internal | 3 | 7.5% |
| Sales & business development | 2 | 5% |
| Not recorded | 3 | 7.5% |
The 3 unrecorded hours are the most useful line: unaccounted-for time is usually where the easiest improvements are.
Tracking without overdoing it
- Use a handful of nonbillable categories, not dozens.
- Record time daily, in 15- or 30-minute blocks.
- Review the breakdown monthly, not hour by hour.
- Treat sales and training time as investments with their own goals, not as leakage.
Nonbillable Time FAQ
- Is travel time billable?
- It depends on the contract. Many firms bill client travel, sometimes at a reduced rate; commuting to your usual workplace is not billable.
- Are internal meetings billable?
- Meetings about the firm are not. Meetings about a client’s work sometimes are — follow your firm’s rule.
- Should I record nonbillable time at all?
- If you want your utilization number to explain anything, yes. Without it you know how much time wasn’t billed but not why.
- Is time spent on proposals billable?
- Usually not — it is sales time. Some long-running clients pay for scoping work as part of an engagement.
- How much nonbillable time is normal?
- It depends on the role. Someone who also sells or manages will have much more than someone who only delivers client work.
Related guides
- Utilization RateWhat the billable utilization rate measures, why the choice of available hours changes the answer, and how utilization differs from realization and collected revenue.
- Utilization vs ProductivityWhy a high billable utilization rate isn’t the same as productivity: a worked comparison, the costs of running at capacity, and better measures to read alongside utilization.
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Jump into Billable Utilization Calculator when you are ready to process your files.
