Glossary
What is billable utilization?
Billable utilization is the share of working hours that are billed to clients, usually shown as a percentage for a person, a role or a team. It shows how much of your capacity turns into revenue. It only helps if it's measured for each role, because managers and senior people carry non-billable work.
How to measure it
- Billable hours divided by available working hours, for the same period.
- Available hours that leave out leave and public holidays.
- A target for each role, not one figure for everyone.
- Non-billable time recorded by type, such as sales, admin and training.
Where it misleads
A high figure can hide projects that run over budget, and a low one can be healthy for a manager. Read it beside project margin and the share of approved time that actually gets invoiced.
Where Hourcove will fit
Hourcove will track time, prepare accurate invoices and show project margins, and move your Harvest history with you. It isn't built yet: join the early-access list to be invited as places open.
Questions
Is billable utilization the same as profitability?
No. Utilization measures how much time is billed. Profitability also needs what the time cost and what was charged. A team can be fully utilized and still lose money on a fixed-fee project.