Time is money, especially in a service-based business, but not all hours are created equal. Some generate revenue (billable hours), while others support business operations without direct compensation (non-billable hours). The challenge? Striking the right balance between the two to boost profitability.

If you’re spending too much time on non-billable tasks, your revenue suffers. But ignoring non-billable activities like business development, training, or client relationship management can stunt long-term growth.

That’s why accurate time tracking is essential. It helps businesses measure productivity, optimize workflows, and ensure every minute is used efficiently.

In this guide, we’ll break down the difference between billable and non-billable hours, explain how to track them effectively, and share strategies to maximize profitability.

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