Hour calculation is the fundamental process of tracking and billing for your work time. For freelancers, it directly translates effort into income.
What is Hour calculation?
Hour calculation is the method of measuring and recording the time you spend on client work. It's the basis for creating invoices when you charge by the hour. Essentially, it's how you quantify your labor for billing purposes.
Why is this important?
Accurate hour calculation is crucial for fair compensation. It ensures you get paid for all the work you do. It also helps you estimate project timelines and set realistic rates for future clients.
How does it work?
You track time spent on specific tasks, often using a timer or app. You then multiply your total billable hours by your agreed hourly rate. The result is the amount you invoice your client for that period.
Pros and cons
The main pros are simplicity and fairness, as you're paid for actual work. Key cons include the 'earning ceiling' of your available hours and potential disputes over what constitutes billable time versus administrative tasks.
Conclusion
Mastering hour calculation is essential for any freelancer charging by the hour. It protects your income and builds trust through transparency. Consistent and accurate tracking is the foundation of a sustainable freelance practice.
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