Accountants Revenue Target (Daily) Formula
Learn how to calculate daily, hourly, weekly, and client-job revenue targets from an annual accounting practice revenue goal.
This calculation turns an annual revenue goal into practical activity targets for an accounting practice. It helps estimate the average revenue required on each billable day, each billable hour, and from client engagements.
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Daily Revenue Target
Where:
Divide the revenue you want for the year by the number of days expected to generate client revenue.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| annualRevenueTarget - Annual revenue target | The practice revenue goal before sales taxes. | currency |
| billableDaysPerYear - Billable days per year | Days available for chargeable client work during the year. | days |
| billableHoursPerDay - Billable hours per day | Average chargeable hours available on each billable day. | hours |
| averageClientFee - Average client fee | Average revenue from one completed engagement or job. | currency |
| workingDaysPerWeek - Working days per week | Normal number of working days used for the weekly target. | days |
Step-by-Step Calculation
Set the annual target
Use the revenue the practice aims to generate over the year, excluding sales taxes.
annualRevenueTarget
Calculate the daily revenue target
Spread the annual target across planned billable days.
annualRevenueTarget / billableDaysPerYear
Calculate the hourly revenue target
Divide the daily target by the hours available for chargeable work.
dailyRevenueTarget / billableHoursPerDay
Estimate client jobs per day
Divide the daily target by the typical fee per completed job or engagement.
dailyRevenueTarget / averageClientFee
Calculate the weekly target
Multiply the daily target by normal working days in a week.
dailyRevenueTarget * workingDaysPerWeek
Example: $300,000 annual accounting practice target
Daily revenue target
$300,000 ÷ 220
$1,363.64 per billable day
Hourly revenue target
$1,363.64 ÷ 6
$227.27 per billable hour
Client jobs per day
$1,363.64 ÷ $500
2.7 jobs per day
Weekly revenue target
$1,363.64 × 5
$6,818.18 per week
Final Result
The practice needs about $1,364 per billable day, $227 per billable hour, and 2.7 average $500 jobs per day.
Assumptions
- ✓Revenue is measured before sales taxes, refunds, write-offs, and bad debts.
- ✓Billable days exclude leave, training, administration, marketing, and other non-chargeable time.
- ✓The average client fee represents the expected mix of completed work.
- ✓Targets are planning estimates rather than guarantees of billings or cash collection.
Limitations
- !Daily billing can vary substantially across deadlines, seasonal work, and client project schedules.
- !An invoice may be issued or paid at a different time from when work is completed.
- !The calculation does not deduct expenses or estimate profit.
- !A single average fee may not reflect a practice with highly varied services.
Common Mistakes to Avoid
Using all calendar workdays instead of realistic billable days.
Treating all working hours as billable hours.
Using a fee that excludes discounts, scope changes, or write-offs.
Confusing billed revenue with cash collected.
Rounding client jobs down when capacity planning requires a higher average.
Related Formulas
Frequently Asked Questions
How is an accountant's daily revenue target calculated?
Divide the annual revenue target by the number of planned billable days in the year.
How do I calculate an hourly revenue target?
Divide the daily revenue target by average billable hours available each day.
How are client jobs needed per day calculated?
Divide daily revenue target by the average revenue from one client job or engagement.
Should revenue targets include sales tax?
This calculator treats the target as revenue before sales taxes, because sales taxes are generally collected on behalf of tax authorities.
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