It’s about making sure your projects are profitable and the only way to do that is to have an exact idea of how much a project is costing you and whether that figure is smaller than what the invoice the client receives. Paying staff costs money to your business, whether or not you can bill for it. Assuming that the project cost only equals the billable hours will send your business sinking pretty fast. It is on the other hand important for you to know the exact cost of a project.
Tracking non-billable time is not important for your client’s invoice. But it’s just as important to know how much time your team spends on non-billable activities.You can’t just guess, you need to know. After all, underestimating the amount of billable time you spend on a project would damage your business, overestimating might not go down well with the client. Some project management tools like ProWorkflow transfer the billable time you entered automatically in the Invoice and the Detailed Project Report that is sent to the client. Probably the most obvious reason for tracking time is to know exactly how much you should bill your client for the work you did for them.It lets you know if you’re on track with budgets and deadlines and if your team is working at a healthy rate. Knowing how many hours each person spends on a task (whether or not it is billable) is the magical tool to determine if the dollar figure at the end of your project will look green or red. But it’s an important one. As a matter of fact, it’s a lot more important than most people realize, and not just for the reasons you think it is. Tracking time is considered a tedious job by many.
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