Accountants Revenue Target (Hourly) Calculator Examples
Worked examples showing how owner pay, overheads, billable hours and collections affect an accounting practice's revenue and hourly targets.
These examples illustrate how different practice models can produce different invoiced revenue targets and blended hourly billing rates. Each result is an estimate based on the stated assumptions.
How to Read Your Results
The annual revenue target is the amount to invoice, not necessarily the amount expected to be collected.
The hourly rate is a blended average across all billable work; individual service prices can be above or below it.
Compare the monthly target with invoicing trends, while allowing for seasonal workload and payment timing.
A lower collection rate increases the invoiced revenue and hourly rate needed for the same cost and profit targets.
Annual billable hours are capacity estimates, so update them if non-chargeable work changes.
Assumptions & Important Notes
- All amounts are annual and expressed as net practice revenue.
- Collection rates include the expected effect of discounts, write-offs and uncollected invoices.
- Billable hours represent client-chargeable time rather than all working time.
- Examples do not include personal taxes, borrowing costs or changes in costs during the year.
Related Examples
Frequently Asked Questions
What is a realistic example of billable hours for an accountant?
It depends on the role, service mix and support available. Start with actual time records where possible and exclude recurring non-chargeable work.
Why might two practices need different hourly rates with similar revenue?
Their overheads, owner compensation targets, profit goals, collection performance and billable capacity may differ.
Can I use an hourly target to price monthly accounting packages?
Yes. Estimate the delivery hours for the package and compare its fee with the blended hourly target.
What happens if I increase billable hours per week?
With all other inputs unchanged, more annual billable hours reduce the average hourly rate required.
Ready to calculate your own result?
Use the live calculator with your own inputs, timing, and preferences.