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In this video tutorial, Nikhil explains how freelance consultants and consulting agencies can bill customers based on billable hours, emphasizing the importance of automating certain tasks to reduce workload. He suggests using Zoho invoice, a free software, to track billable hours and provide timesheets to customers efficiently, minimizing payment delays. Nikhil demonstrates setting up a new organization in Zoho invoice without GST registration and currently using spreadsheets for invoicing.