Billable vs. Non-Billable Time

Managing the balance between billable and non-billable time is critical for the health of your integration business. Time Assign helps you track utilization metrics accurately without artificially inflating client invoices with unbillable hours.

Understanding the Difference

• Billable Time: Time directly generating revenue from a client (e.g., Programming, Site Commissioning, Panel Wiring).
• Non-Billable Time: Time necessary for business operations or employee development but not directly chargeable to a client (e.g., Shop Cleanup, Internal Training, Administrative Meetings).

Categorizing Your Time

1. Direct Project Work (Billable)

This is the standard work you do against a project's line items. Whether it is remote software development (like writing a sequence of operations) or physical on-site commissioning (like verifying safety relays), if it moves the client's project forward, it usually lands here.

2. Internal Operations (Non-Billable)

You must track your time even when not working on a client project. Use internal projects or overhead categories to log:

• Shop Time: Organizing the panel shop, taking inventory, or general maintenance.
• Internal Training: Taking a Rockwell or Siemens certification course, or cross-training with a senior engineer.
• Administrative: Filling out expenses, attending company all-hands meetings, or HR tasks.

3. Unbillable Troubleshooting (Project-Specific)

Occasionally, you will spend time on a project that the client cannot be billed for. This might happen if:

• You are fixing a bug in your own code that should have been caught during internal FAT (Factory Acceptance Testing).
• You are stuck troubleshooting an internal network issue that isn't the client's responsibility.
• A physical component arrived dead-on-arrival and you spent three hours dealing with the RMA process.

How to log this: You must still log this time against the specific project, but label it as Non-Billable.

• Why? It ensures your personal utilization stays accurate (you were working), but protects the client invoice from bloating. It also provides management with valuable data on how much time is being lost to rework or vendor issues.

Remote vs. Physical Implications

Be extremely careful logging unbillable troubleshooting during physical on-site commissioning. Non-billable time on-site still often incurs billable travel and per diems. Ensure you separate the non-billable technical troubleshooting from the definitively billable travel time unless specific warranty agreements say otherwise. Remote software rework is usually straightforward non-billable time, but on-site scenarios are nuanced.