Earlier quoted context omitted.
It is a massive drain on morale. Billable hours sure, but tracking non-billable hours is just making management's job my job. I the impact it has is regularly underestimated.
I want to know unbillable time, because coordination overhead and other crap can grow and eat into productive time. We put in sprints and standups (in a small co, With 2n projects) at one point, and tracking made us realize that this ceremony was costing us 15% of our time and maybe giving us 1% utility.
I guess that's what I mean by making it my job. It shouldn't be too difficult in small companies to keep track of how much impact unbillable process has. Attend a standup, how long did it take? Probably takes about that long every time, do some quick math. Ask your developers, do they feel it's worthwhile? No? Scrap it, make it shorter.
I can appreciate the impact of unbillable hours on the bottom line, and the impact of uncaught billable hours as well. But surely a PM can manage that without having to track every minute of the day? Set a guideline for billable hours per week, try to enable people to meet it. Be supportive rather than punitive.