Hourly Billing
Hourly billing is a project management and financial methodology where services are charged based on the actual time spent, typically measured in hours. It is commonly used in consulting, freelance work, and professional services to track and invoice for labor. This approach provides transparency in billing but requires accurate time tracking and can lead to variable costs for clients.
Developers should learn hourly billing when working as freelancers, contractors, or in consulting roles to ensure fair compensation for their time and effort. It is particularly useful for projects with uncertain scope, ongoing maintenance, or tasks where deliverables are difficult to estimate upfront, such as debugging, support, or agile development iterations. Understanding this methodology helps in setting rates, managing client expectations, and maintaining profitability.