What Is Hourly Billing?

Hourly billing is the concept of billing for a service by the hour. Hourly billing forgoes a fixed cost and is instead dependent on how long a service lasts for the final payment. As an example, if your business is working on a project for a client, you may charge them using the amount of time it takes your team to deliver the project.

What are the advantages of hourly billing for business projects?

The main advantage of hourly billing for business projects is that it results in fairer pricing for both parties.

Throughout the project lifecycle, your team may encounter performance bottlenecks that could cost your business a lot with a fixed-price contract. On the other hand, you could overcharge your clients with a fixed price contract. Both of these are issues that you won’t encounter with hourly billing.

How can you keep track of billable time for hourly billing?

The best way to keep track of billable time is with a high-quality time tracker like WebWork. While you can track billable time manually, using a dedicated time tracking application is a much better experience. Apps like WebWork allow you to set billable rates and get accurate payroll calculations.

What’s the difference between hourly billing and hourly rate?

While hourly billing is the act of charging for a service by the hour, an hourly rate is simply the rate that you charge for every hour of a service.