Time and Expense is generally divided into two categories: billable and non-billable. 
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Billable time and expenses include all the activities managers and employees may charge the customer for. These can be: hours worked, project-related travels, additional software, etc. 
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Non-billable time and expenses, on the other hand, cannot be included in a bill for a client. They usually are all the additional activities that the company needs to take to ensure the highest quality of the product, i.e. debugging or correcting errors.

They also include costs related to additional processes related to the projects or general operations, i.e. accounting or marketing. 

All types of companies can benefit from monitoring their times and expenses. In theory, keeping a close eye on the scheduled and tracked hours was meant for project-based companies - and they definitely need such solutions. As the time went by, other types of businesses also started to see the advantages of time and expense software: for example, it can help them track holidays and absences, as well as simplify assigning tasks. 

First, the company needs to define its needs related to time and expense tracking. While making the decision, you should take into consideration factors such as: number and status of employees, managed projects and tasks, types of accounting, and more. Time and expense software should allow you to browse all of that information!

After that, try to take a closer look at the features and benefits the tool offers. You should especially pay attention to automated features, as well as any other qualities that support further scalability of your company.

1. The costs and times of tasks, operations and projects are discussed, estimated and entered into the system.
2. The tasks and projects are performed according to the plan. Employees track their progress and hours in the system; all of their reports are visible for their supervisors.
3. Tracked time and expenses are then compared against the estimates. Based on the data, the managers can see what could be improved, and what went as planned.

The simplest way to evaluate time management in an IT company is to calculate the billable capacity for an employee or an entire team.

Ideally, such a capacity should equal the maximum available number of hours in a month; however, that is rarely the case. When 80-90% of capacity is used for billable activities, it is considered to be a good result.
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Expenses, on the other hand, can be evaluated using either a margin or general profit. The higher the metrics, the better a company is doing.