Manage Billable and Non-billable hours with Clarc
Our latest invoicing features include Billable and Non-billable hours, which simplify the process of creating invoices and tracking billed amounts. They help administrators accurately determine client payments for services rendered, especially for hourly tasks. The updates also introduce various billing methods, invoice automation, and the option to switch between quantity and percentage formats, providing greater control and efficiency in the invoicing process.
Empower your invoicing. Track payments accurately, invoice effortlessly, and streamline operations with Billable and Non-billable hours.
Clarc Team
We are excited to introduce the latest additions to our invoicing features - Billable and Non-billable hours.
When generating monthly invoices, administrators often face challenges in determining the accurate amount a client should pay for the services rendered throughout the month, particularly when tasks are billed hourly. The purpose of distinguishing between billable and non-billable hours is to facilitate the process of creating invoice items and associating them with the correct time entries. This also helps in keeping track of billed amounts and those that are yet to be invoiced.
Here's how it works
Tracking hours
Based on the contract agreement, your project stages can be classified as: Fixed Fee, Hourly Fee, or Non-billable.
Your work hours and expense recorded against these stages will translate into either billable or non-billable items which will be invoiced accordingly to the client.
Setting up your invoice
Clarc Invoice provides several different billing methods to help you work out your invoice items and quantity. Make sure you have set up a Contract Amount for your stages before trying out this feature.
Method 1 - Bill by percentage
After selecting the project stage that you want to bill for. You can choose to enter a percentage rate for the current invoice, or enter a cumulative percentage rate to work out a total charge of the stage so far. You can also directly enter the amount if you know how much you will be billing for and the system will calculate it's percentage rate automatically.
By adding the fixed fee into your invoice item, the system will insert a description of the current percentage rate being charged, as well as the previously billed percentage rate.
Method 2 - Bill by work done
Other than entering a percentage rate, you can select a time frame to find out how much work was done for the stage during a particular period. The system will then work out an estimated amount in this case based on the timesheet and member rate of the selected period. The text will appear in grey, which can be adjusted before adding to the invoice.
When you add the fixed fee to your invoice for a chosen time period, you establish a link between the relevant time entries and the inserted item, making these entries marked as 'Billed'. You can review the entry details by clicking on the clock icon next to your item description.
Method 3 - Bill by hours
The Hourly Billing tab assists you in determining the billable and non-billable hours or expenses for your stages during a selected period. When adding billable hours to the invoice item, the system will automatically use the project Stage Rate as the default unit price. Alternatively, you can choose to use Member Rates.
The Edit Billable & Non-billable hours pop out allows you to view or edit the time entries selected. There are several actions you can take from here:
- Select billable hours or expense and add to current invoice.
- Write off billable hours or expense.
- Move billable hours or expense to a different stage.
- Mark billable hours as 'Billed'. Note that this does not create a link of the time entry with the current invoice.
Time entries that have been billed in a previous invoice will no longer be editable in a new invoice and will appear grey in the pop up. It will also not be editable in your timesheets, unless the entry is removed from the invoice it was linked to.
After adding billable hours into your invoice item, you can review the linked entry details by clicking on the clock icon next to the item description. This drop down also allows you to remove or add back any linked entries.
Additional updates
Quantity and Percentage format
We have introduced a switch under the Quantity column, allowing you to choose between billing in quantity or percentage format. To make the switch, simply click on the small downward arrow next to your quantity figure.
Manage Billable Hours
The manager shows an overview of the total Nonbillable VS Billable hours, as well as Billed VS Unbilled hours for your projects over a selected period.
Here's an example of how the manager could be helpful for monthly billing:
Your admin wants to find out if there's been unbilled hours for the office over July. After applying the custom date rage, the system shows that there are 12.5 unbilled hours for the project 21 Stella Street.
By clicking on the project name, a detailed list of all entries will show up, including both billed and unbilled. The admin can then select all unbilled entries and add them to an invoice draft.
Invoice Automation
Clarc now offers the capability to automate and customize your invoices according to your preferences. The system can generate draft invoices to include billable hours for selected project stages within a chosen period.
Activate the automation in Admin Settings - Invoice Settings. You can also try out this feature by using a test button at the bottom.
Here's what your automated invoice will look like in your draft list. The highlight will be removed as you edit or approve the invoice manually.
