3 Mar 2020 3 min read

How To Easily Calculate Work Hours & Billable Hours In Your Company?


How can a Project Management Software help you calculate working hours and assigning them to the correct projects as an expense?

Depending on what kind of business you run, you might find yourself in a situation where your business is required to bill by the hour. The legal industry, for example, is well known for using billable hours to a large degree. It is also quite common to bill clients per hour in the service sector. In general, the term “billable hour” refers to time spent on a specific client matter, and general administrative operations, etc. are not considered billable hours.

With Archdesk, you can calculate all your work hours and billable hours in a simple, intuitive way through the tool that facilitates the process. The way it works isn’t too different from the standard work calculation procedure which follows these steps:


Creating a time log to keep track of each client that will be taking up your billable hours. Keep track of each client’s data and the services they’re expecting. Archdesk allows you to create a Schedule of Works and assign tasks to people in advance. This will be set up per project, so you can easily track the progress of your project throughout time.


Tracking the time – of when the action has started, when each billable hour took place, as well as when you’re done with a client/project. The time needs to be accurately tracked, as it’s the very basis of the billing in the case of billable hours. Archdesk gives you the possibility to clock in/out from the place you work (onsite or at your desk) and register the time you work to a specific task inside a project. All data, once approved, can be visualized in the system as expense connected to that project.


Determining the frequency of accounting billable hours – some businesses do it on a weekly basis, while others do it once a month. It’s usually wise to set up this period to coincide with the frequency in which you send your invoices to clients, for clarity’s sake. Proper management software gives you the opportunity to download reports on the Timesheets (per employee or as a batch). It also allows you to extract all the data you need to pass on to your accountant to regulate the payments of your employees or subcontractors.


Providing you with an accessible database to calculate your billable time in a clear, user-friendly log. It goes without saying that a clear record of each client can vastly reduce the stress and hassle connected with calculating the hours. When the time comes to send out invoices, you’ll be glad you ran a log. Be it full time, part-time or overtime; be it a regular employee, subcontractor or apprentice - Archdesk can help you extract the data you need in no time!


Calculating the final result based on your current billable rate. Usually, this involves a process of multiplication and other mathematical equations that you’ll have to handle on your own unless you’re utilizing a piece of PM software to do it for you! Archdesk allows you to store the data connected to the remuneration of each person so that when they clock in/out the system will automatically calculate how much money their job is worth. That sum, once approved by Project Manager, will translate into the Project Financial Dashboard as Labour Expense.

Billable hours may seem rather complex and cumbersome to calculate, but with the above steps in mind, they should be easy to handle. You can make your life even easier by utilizing a piece of software fit for your needs, in order to get the best grasp on all things related to working hours.

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2024-05-18 10:23:48