For service businesses, tracking the difference between billable and non-billable hours is essential. PSA software makes this simple by linking every time entry to a specific project and client. When staff log their hours, the system automatically categorizes them as billable or non-billable based on the project setup. This gives managers a clear picture of how much time is generating revenue and how much is being spent on internal work or overhead.
The insights are powerful. Firms can measure utilization rates, spot where too much time is spent on non-billable activities, and adjust their strategies accordingly. For instance, if consultants are spending 30% of their time on admin tasks, leadership might streamline processes or delegate non-core work.
Another strength is that PSA software connects these hours directly to financial reports. This means profitability can be tracked in real time, not just at the end of the month. Managers can see immediately whether projects are on track to deliver healthy margins.
Birdview PSA, for example, highlights billable vs. non-billable work in its dashboards, giving managers an easy way to monitor utilization and protect profitability. The result is smarter use of resources, healthier margins, and fewer blind spots in how staff time is spent.
