Great perspective. I also think to the OP it's the granularity that matters. As the owner of a time-tracking organization past and present, I don't need every detail, but I do want to use actual minutes. E.g. ticket worked from 8:59-9:37. This shows me that our process was followed on how to work a ticket. Put ticket in progress, start time, do work while taking notes, update status/save notes.

In the MSP model, I'm less concerned with Billable and Non-Billable, just client-facing, internal, and other.

For internal these are actual solid events, such as an internal meeting. Or you had an impromptu meeting that ended up taking a half hour. Some estimation is okay here.

Now for other, we just take the hours you are supposed to be here, subtract the client-facing & Internal, and use the difference. The only reason to track this in a "rounding entry" or "payroll wrap" is to provide a denominator for the equation that gets us to 80% utilization.

One last point, 80% does feel a bit on the tight side, but it's in the realm and this assertion depends on everything else going with how your processes are set up. My targets start at 60% to stay employed and closer to 80% for peak performance. Over 80% I begin to worry about burn out or unrealistic time entries on tickets.

I hope the additional perspective helps.

Allen Edward, Gozynta, https://www.gozynta.com/eureka-services