Billable

Relating to or being work, time, or expenses that can be charged to a client or customer. It signifies activities and resources directly attributable to a project or service for which a financial invoice can be issued. The core concept emphasizes the direct link between performed tasks, incurred costs, and the potential for financial compensation from the recipient of the service. This is crucial in professional service industries, where profitability hinges on accurately tracking and invoicing billable hours or expenses.

Billable meaning with examples

• The consultant carefully logged all billable hours spent on the project to ensure accurate invoicing. This was so they could get reimbursed for their time. Tracking hours directly impacted their income, and this created a complete picture of their work efforts. They reviewed these hours to look for efficiencies. This practice is standard across the industry.
• During the audit, it was discovered that several expenses categorized as billable were not properly documented, causing issues for the project manager. This lack of documentation jeopardized the reimbursement for those incurred costs. The project team had to address this lack of records. Detailed record keeping proved to be a critical requirement.
• The project manager meticulously scrutinized all team members' time sheets to identify non-billable versus billable activities. This helped ensure that the company could issue appropriate invoices. The review and approval process determined the scope of the fees being charged. A detailed plan allowed them to allocate resources, helping to optimize time.
• The software company's business model relies heavily on offering billable technical support contracts. Offering ongoing customer service is a core strategy for a company's continued revenue. These contracts include clearly specified terms for support. The company's pricing structure directly reflects the value to its clients.