Accountants Utilisation Rate Formula
Learn how monthly accountant utilisation is calculated from scheduled hours, absences and recorded billable time.
Monthly utilisation estimates the share of an accountant's available working time that was recorded as billable client work. It helps put billable hours in context by adjusting scheduled hours for leave, sickness, training and other absences.
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Monthly utilisation rate
Where:
Divide billable client-work hours by working hours available after absences, then multiply by 100 to express the result as a percentage.
Variables Explained
| Variable | What It Means | Unit |
|---|---|---|
| workingDays - Working days in month | Scheduled working days before absences are removed. | days |
| hoursPerDay - Working hours per day | Standard scheduled hours in a normal working day. | hours |
| scheduledHours - Scheduled monthly hours | Total planned work time before absences. | hours |
| absenceHours - Absence hours | Leave, sickness, training or other unavailable time removed from scheduled hours. | hours |
| availableHours - Available monthly hours | Scheduled hours remaining after absence hours are deducted. | hours |
| billableHours - Billable hours recorded | Client-work hours recorded as billable or chargeable under the firm's time-recording rules. | hours |
| targetUtilisationRate - Target utilisation rate | The planning target used for comparison. | percent |
Step-by-Step Calculation
Calculate scheduled hours
Multiply the number of scheduled days by standard daily hours.
scheduledHours = workingDays * hoursPerDay
Calculate available hours
Deduct absence hours from scheduled hours, without allowing available hours to fall below zero.
availableHours = max(0, scheduledHours - absenceHours)
Calculate utilisation
Express recorded billable hours as a percentage of available hours. A valid utilisation result requires available hours above zero.
utilisationRate = billableHours / max(0.01, availableHours) * 100
Calculate non-billable available hours
This is available time not recorded as billable.
nonBillableHours = max(0, availableHours - billableHours)
Calculate target billable hours
Convert the target percentage into the billable hours needed for the month.
targetBillableHours = availableHours * targetUtilisationRate / 100
Compare with the target
A positive figure is above target, while a negative figure is below it.
hoursFromTarget = billableHours - targetBillableHours
Example: accountant with one day of leave
Scheduled hours
21 * 7.5
157.5 hours
Available hours
157.5 - 7.5
150 hours
Utilisation rate
110 / 150 * 100
73.3%
Non-billable available hours
150 - 110
40 hours
Target billable hours
150 * 75 / 100
112.5 hours
Difference from target
110 - 112.5
-2.5 hours
Final Result
Monthly utilisation is 73.3%, based on 110 billable hours out of 150 available hours. The result is 2.5 billable hours below the 75% target.
Assumptions
- ✓Utilisation is billable hours divided by available hours after recorded absences.
- ✓Working days and daily hours reflect the individual's actual scheduled pattern for the month.
- ✓Billable hours are recorded consistently using the same time-recording definitions throughout the period.
- ✓The selected target is a planning benchmark, not a universal standard.
Limitations
- !The calculation does not assess the quality, profitability or recoverability of billed work.
- !It does not distinguish between recorded, invoiced, written-off or collected time.
- !Overtime may create utilisation above 100% if it is included in billable hours but not scheduled hours.
- !A monthly percentage can be affected by timing of work and timesheet completion.
Common Mistakes to Avoid
Using calendar days rather than scheduled working days.
Leaving annual leave, sickness or training inside available hours.
Mixing billable hours with all client-contact time when the firm treats them differently.
Comparing people with different roles or work patterns using the same target without context.
Treating non-billable hours as unproductive without considering administration, supervision and development work.
Related Formulas
Frequently Asked Questions
What is the formula for monthly accountant utilisation?
Monthly utilisation equals billable hours divided by available hours after absences, multiplied by 100.
How are available hours calculated?
Available hours equal scheduled working days multiplied by daily hours, minus absence hours, with a minimum of zero.
How do I calculate billable hours needed to hit a target?
Multiply available hours by the target utilisation percentage divided by 100.
Can an accountant's utilisation exceed 100%?
Yes. It can happen when billable overtime is recorded but scheduled hours do not include that overtime, or where source data uses different definitions.
Should training be deducted as absence hours?
If training makes the person unavailable for billable client work and your reporting approach excludes it from capacity, enter it as absence hours.
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