Billable hours: definition, example, and why it matters
Excludes travel (unless agreed), admin, and rework. Trades track billable hours by job to verify hourly-rate quotes versus actual labor. Most service crews aim for 60–75% billable utilization.
Short definition. Time spent on work the customer can be charged for.
Category. Billable hours is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds billable hours into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does billable hours mean?
Excludes travel (unless agreed), admin, and rework. Trades track billable hours by job to verify hourly-rate quotes versus actual labor. Most service crews aim for 60–75% billable utilization.
Related terms
Labor rate — The hourly rate billed for skilled labor — distinct from a tech's actual wage.
Hourly rate — The price a contractor charges per hour of work.
