Unbillable

Unbillable describes work, services, or expenses that cannot be invoiced or charged to a client. This typically applies to activities that are internal, administrative, or not directly attributable to a specific project or deliverable. Time spent on these tasks, though necessary for business operations, doesn't generate direct revenue. The decision of what is unbillable often depends on company policy, client agreements, and the nature of the work performed.

Unbillable meaning with examples

• The project manager meticulously tracked all team members' time, noting the hours dedicated to client projects as billable. However, time spent on internal meetings, training sessions, and administrative tasks were classified as unbillable, demonstrating a clear distinction between revenue-generating and support activities within the firm.
• During a client audit, the accounting firm had to demonstrate how they differentiated between billable and unbillable hours. Time spent on research, proposal writing, and initial client consultations was often considered unbillable until a contract was signed, ensuring clients weren't charged prematurely or for non-contracted services.
• The marketing team understood that developing internal marketing campaigns and participating in company-wide initiatives, although valuable to the firm's overall success, are unbillable endeavors, requiring them to allocate separate time and resource budgets for these tasks, distinct from client deliverables.
• The consultant's time sheet revealed a significant amount of unbillable hours. After reviewing it with their supervisor, they realized some time marked as “research” was directly related to the project, while others were general industry knowledge. The supervisor helped them better understand the specific billable scope and the limitations.