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Accounting practice Delivery Backlog: worked example

Translate confirmed work into a simple backlog duration.

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Accounting practice / engagement economics
Answer

With the illustrative inputs below, the result is 5 weeks.

Try this with your own numbers

Formula and worked example

Backlog weeks = outstanding sales / weekly completion capacity

Example figures
InputExample
Confirmed outstanding sales60
Completed sales per week12
Calculated result5 weeks

Choose reliable inputs

Account for delivery time, review work and when you expect to be paid for each engagement. For this accounting practice calculation, use time sheets, engagement scopes and invoice ageing and a consistent definition of one engagement.

  • Professional hours: include the portion belonging to this engagement or reporting period, and record where the value came from.
  • Software: include the portion belonging to this engagement or reporting period, and record where the value came from.
  • Review: include the portion belonging to this engagement or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Is this an exact promise date?

No. It is an average workload ratio. Actual completion depends on sequencing, resources, and job duration.

Assumes comparable job sizes and no new bookings; priority and scheduling constraints are excluded.

Compare a different assumption

What if this input changes?

If confirmed outstanding sales rises by 10%, this example changes by 0.5 weeks. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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