Accountants Revenue Target (Hourly) Calculator FAQ

It estimates the annual invoiced revenue, monthly and weekly revenue benchmarks, annual billable hours and average hourly billing rate needed to meet the entered targets.

It can be used by solo accountants, principals and accounting practice managers planning service revenue and chargeable capacity.

No. It is a practice-wide average target. Individual fees can vary by scope, complexity, risk, value and estimated delivery time.

Yes. It provides annual, monthly and billable-week benchmarks that can be used as part of a planning process.

Include recurring operating costs such as staff, software, insurance, office costs, professional subscriptions, marketing and other business expenses.

Owner compensation funds the owner's planned pay, while target profit is an amount the practice aims to retain after compensation and overheads.

Include expected costs if they are relevant to the planning period, or consider a separate contingency if their timing is uncertain.

No. It estimates practice revenue requirements and does not calculate personal taxes or provide tax advice.

A billable hour is time that can be charged to a client. It normally excludes internal administration, training, sales activity, leave and unpaid work.

Using fewer weeks can reflect holidays, public holidays, training, administrative time and periods when client work is unavailable or reduced.

It is the average invoiced revenue needed for each billable hour across the practice to achieve the entered annual targets.

Yes. Use it as a benchmark for checking whether a fixed fee is likely to generate enough revenue for the expected delivery time.

It is the percentage of invoiced fees expected to be collected after allowing for discounts, credit notes, write-offs and bad debts.

Review recent invoicing and cash collection history, then use a cautious estimate that reflects expected payment and write-off patterns.

A lower collection rate increases the invoiced revenue target and the required average hourly rate, assuming the other inputs stay the same.

Review it at least annually and when there are material changes in staffing, overheads, pricing, client demand, capacity or collections.

Use it as an average invoicing benchmark, while recognising that workload and billing can be seasonal.

It is an average target for each billable week and can help compare planned client work with required invoicing.

Review the underlying assumptions, including billable capacity, overheads, collection performance, service mix and desired profit. A result is a prompt for planning, not a prescribed price.