The Ultimate Guide to Project Time & Expense for Billing - How to improve time and expense data capture and processing - PACIFIC TIMESHEET

Sep 12, 2026

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Practical guide to improving how employee project time and expense data is captured, processed, approved, and prepared for client invoicing. Explains billable versus non-billable time categories for exempt and non-exempt employees, including pay code structures for regular, overtime, and multiple overtime levels, and how bill rates convert hours to invoice amounts. Covers billable client expenses such as travel and entertainment, per diem types, and mileage, with currency handling for recording and invoicing across currencies.

LanguageEnglish

CategoryInvoices

FormatPDF

Pages19

Reading Time7 min

AccessFree to download

Definitions

What is Project time and expense tracking for billing?

Client Project Time that is Billable

Client Project Expenses that are billable

The Problems with Manual Time and Expense Tracking

Paper Time & Expense Sheets

Excel Time and Expense Sheets

Building Your Own Project Time & Expense Software

In-House Development: Thirteen Built-in Problems

How to evaluate Project Time & Expense Tracking Software Vendors

Considerations When Buying Software

Pacific Timesheet

Project Time Expense Billing THE ULTIMATE GUIDE TO PROJECT TIME & EXPENSE FOR BILLING How to improve time and expense data capture and processing PACIFIC TIMESHEET. The Ultimate Guide to Project Time & Expense for Billing - PACIFIC TIMESHEET Table of Contents Definitions What is Project time and expense tracking for billing? .............................................3 Client Project Time that is Billable ............................................................................................... 3 Client Project Expenses that are billable .....................................................................................4 The Problems with Manual Time and Expense Tracking ................................................................6 Paper Time & Expense Sheets ...................................................................................................... 6 Excel Time and Expense Sheets ...................................................................................................7 Building Your Own Project Time & Expense Software ....................................................................8 In-House Development: Thirteen Built-in Problems ...................................................................9 How to evaluate Project Time & Expense Tracking Software Vendors ........................................12 Considerations When Buying Software ..................................................................................... 12 Pacific Timesheet ................................................................................................................................ 19 2 Pacific Timesheet ▪ 866-416-2061 ▪ [sales@pacifictimesheet.com](sales@pacifictimesheet.com) The Ultimate Guide to Project Time & Expense for Billing - PACIFIC TIMESHEET Definitions WHAT IS PROJECT TIME AND EXPENSE TRACKING FOR BILLING? Project time and expense tracking is a managed process that captures, processes, approves and prepares employee-related time and expense data for invoicing clients each billing cycle. Categories of time and expense data can be: Client Project Time that is Billable Client project time that is billable is separate and apart from non-billable hours such as leave time, or non-billable administrative time spent such as proposals. Client project time is coded with whatever notes and details are necessary for project managers, or to comply with client questions about their projects. For exempt salaried employees, all client project hours must be tracked. For time and materials project contracts, all exempt employee hours will be billable using predefined bill rates set according to the client project and perhaps the employee’s role on that project. When a salaried employee’s hours exceed preset monthly limits or the project’s budgeted hours, these hours might be categorized as non-billable, but will remain part of the project’s cost. For non-exempt employees, all client project time must always be tracked first using standard pay codes with the following pay rates such as: • Regular Time (typically 1.0 times a base employee pay rate) • Overtime (1 .5 times a base employee pay rate) • Double Time (2 .0 times a base employee pay rate) • Triple Time (3 .0 times a base employee pay rate) Non-exempt billable hours are calculated second using preset project bill rates which can be set using a mark-up of the employee’s pay rate, or certain predefined client project rates. These rates can also be differentiated by the employee or the employee’s role on the project. In one 3 Pacific Timesheet ▪ 866-416-2061 ▪ [sales@pacifictimesheet.com](sales@pacifictimesheet.com) The Ultimate Guide to Project Time & Expense for Billing - PACIFIC TIMESHEET example, an hourly employee who is a researcher on a client project in Virginia, has a base pay rate of $40.00 per hour. His regular time pay rate would be 1.0 times his base pay rate, meanin

FAQs

What does project time and expense tracking for billing include?

It is a managed process that captures, processes, approves, and prepares employee-related time and expense data for invoicing clients each billing cycle.

How is billable client project time handled for exempt and non-exempt employees?

Exempt salaried employees must have all client project hours tracked, while non-exempt employees must track all client project time using standard pay codes first.

Which types of expenses are considered billable for client invoices?

Travel and Entertainment expenses, per diem expenses (with variations like meals and incidental expenses or lodging plus M&IE), and mileage are identified as billable when incurred for project work.

Sep 12, 2026

Upload by Sage