Accountants Revenue Target (Daily) Calculator
Calculate the daily revenue, hourly billing target, and average client work needed to reach your annual accounting practice revenue goal.
Overview
This Accountants Revenue Target (Daily) Calculator helps accounting firms and sole practitioners turn an annual revenue goal into a daily billing target. Enter your target revenue, expected billable days, billable hours, and typical client fee to estimate the revenue and client work needed each day.
How it works
The calculator divides your annual revenue target by your expected billable days to find the daily revenue target. It then divides that daily target by billable hours to estimate the hourly revenue required. Finally, it divides daily revenue by the average client fee to estimate how many jobs or engagements are needed per day. These are average targets, so actual daily revenue can vary across busy and quiet periods.
How to use this calculator
- 1Enter the annual revenue your practice aims to generate before sales taxes.
- 2Estimate the number of days each year that can realistically be used for billable client work.
- 3Add your average billable hours available on each billable day.
- 4Enter the typical fee for a client job or engagement.
- 5Review the daily, hourly, weekly, and client-job targets.
Example Calculation
Annual revenue target
$300,000
Billable days per year
220
Billable hours per day
6
Average client fee
$500
Working days per week
5
Daily revenue target
$1,364
A $300,000 annual target across 220 billable days requires about $1,364 per billable day, or $227 per billable hour. At an average fee of $500, that is about 2.7 client jobs per day.
Frequently asked questions
What is a daily revenue target for an accountant?
It is the average amount of revenue an accountant or accounting practice needs to bill or generate on each billable day to work toward an annual revenue goal.
How many billable days should an accounting practice use?
Use the days realistically available for chargeable client work after allowing for weekends, holidays, leave, training, business development, administration, and other non-billable work.
Should I use billed revenue or cash collected?
For pricing and capacity planning, billed revenue is often useful. If cash flow is the focus, use a target based on expected collections and allow for payment delays or unpaid invoices.
How does the average client fee affect the result?
A higher average client fee lowers the number of jobs needed per day, while a lower average fee means more client work is needed to reach the same daily revenue target.
Does the calculator include practice expenses or profit?
No. It calculates a revenue target. To plan for profit, set the annual revenue target high enough to cover expected operating costs, owner pay, taxes, and desired profit.
Why is my hourly revenue target higher than my hourly rate?
The target may need to cover non-billable time, discounts, write-offs, overheads, and work that cannot be charged separately. Compare it with your actual realization and collection rates.
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Assumptions and warnings
Assumptions
- Revenue targets are shown before sales taxes, refunds, write-offs, and bad debts.
- Billable days are days on which client work can generate revenue; holidays, training, administration, and leave should normally be excluded.
- The average client fee is assumed to be representative of the mix of work completed during the year.
- Results are planning estimates and do not account for changes in pricing, demand, capacity, or collection timing.
Warnings
- This calculator provides a business planning estimate only and is not financial or professional advice.
- Review actual billed and collected revenue regularly, as invoices may be paid later than the work is completed.