TECHNICAL NOTES · ACCOUNTS AND FINANCE

Units or minutes? How time is recorded

Whether time is recorded in six-minute units or in actual minutes looks like a configuration setting. It is a decision about billing, client relationships and management information, and it is hard to change once years of history have been recorded one way.

Where the differences show

  • Billing: a two-minute email becomes six minutes in units. Clients increasingly question that, and some corporate clients set their own billing increments.
  • Productivity: units overstate short tasks, so utilisation reports built on them flatter some work and hide the true cost of other work.
  • Fixed fees: if you price on value, actual minutes give a truer picture of what a matter really cost.

The decisions inside the decision

  • Is rounding applied to each entry, or to a day's total on a matter?
  • Can rules differ by client or matter type, to meet billing guidelines?
  • Are both the actual time and the billed units kept, so you can bill one way and analyse the other?

What to ask, and what to see

  1. Record a four-minute call under unit rules and under actual-minute rules, and show both on the matter and the bill.
  2. Show a client-specific billing increment.
  3. Show how a report distinguishes recorded time from billed units.

Technical notes: small decisions, big consequences

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