Accounting practice Billable Utilization
Utilization = billable hours / available hours × 100
Gather time sheets, engagement scopes and invoice ageing. Include professional hours, software, and review. The starting figures are examples. Replace them with your own records.
Formula and worked example
Utilization = billable hours / available hours × 100
| Input | Example |
|---|---|
| Billable hours | 110 |
| Available paid hours | 160 |
| Calculated result | 68.75 % |
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.
Does full utilization leave time for admin?
A target must allow necessary nonbillable work. Counting every paid hour as saleable often overstates capacity.
Use consistent periods and decide whether leave is excluded from available hours.
What if this input changes?
If billable hours rises by 10%, this example changes by 6.875 %. 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.