Everhour Reporting connects billable time to revenue, utilization, and billing reports, while your target comes from capacity math.
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A billable hours target answers how much approved client work you need to record over a day, week, month, or year to support a revenue goal. The target is not just a workload number. It connects expected billable hours, the billing rate, available working time, write-downs, and collection reality into one planning figure you can compare with actual performance.
For a solo professional, the target shows whether the planned rate and available client hours support the desired revenue. For a firm, it shows whether team capacity is aligned with client demand. A good target is specific to the role, billing model, and non-billable load; administrative time, business development, internal meetings, and write-downs all reduce the hours that turn into billed value.
Start with the cleanest formula: required billable hours = target billable revenue / average billable rate. If the goal is $216,000 in billable value and the average rate is $180 per hour, the required annual target is 1,200 billable hours. Spread across 48 working weeks, that equals 25 billable hours per week.
Then compare that weekly target with total working capacity. If the person works 40 hours per week, 25 billable hours equals 62.5% billable utilization. That comparison matters because a target that looks reasonable as an annual number can become unrealistic when the role carries heavy non-billable responsibilities. The math should show both the revenue target and the weekly behavior needed to reach it.
Billable hours are approved client-facing hours. Billed hours are the hours or value actually placed on the invoice after write-downs. Collected value is the amount the client pays. Utilization measures billable time against total working time, while realization measures billed value against billable value. A strong target separates those metrics instead of treating every recorded hour as revenue.
This distinction prevents a common mistake: setting a target from gross revenue alone. If 1,200 billable hours are recorded but 10% of the value is written down before invoicing, the billed value is lower than the billable value. If the client then pays late or partially, collection is lower again. The target should be reviewed against realization and collection, not only against time entries.
A one-off calculation is enough when you are testing a target, pricing a new service, or checking whether a monthly quota matches an annual revenue plan. Use the result as a planning number, then adjust it for planned vacation, holidays, known non-billable work, and expected write-downs before using it as a performance standard.
A managed workflow is better once multiple people, rates, matters, approvals, and invoices are involved. At that point, you need continuous time capture, billable and non-billable separation, approval status, reporting by person or project, and an invoicing handoff. Everhour Reporting supports that workflow with customizable columns, grouping, filters, exports, and scheduled report delivery.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Divide the target billable revenue by the expected average billable rate. If the revenue goal is $216,000 and the average rate is $180 per hour, the annual target is 1,200 billable hours. Divide that by working weeks or months to turn the annual figure into a usable weekly or monthly target.
A realistic target fits the person's available work time after non-billable duties. Compare the target with total working capacity, then convert it into a utilization percentage. A 25-hour weekly billable target inside a 40-hour week requires 62.5% billable utilization before write-downs, collections, or unpaid time affect results.
Realization shows whether approved billable value becomes billed value. If time is written down before invoicing, the person may hit the billable hours target while the invoice falls short of the revenue plan. Reviewing realization keeps the target tied to billing outcomes instead of only recorded effort.
The target should usually be calculated before tax because it measures time and professional fees. The United States has no federal VAT/GST or single national sales-tax rate for billed professional time. When a service is taxable, use the state and local jurisdiction-specific tax input after calculating the fee subtotal.
For U.S. lawyers, ABA Model Rule 1.5 requires the scope of representation and the basis or rate of fees and expenses to be communicated in writing for new client-lawyer relationships, subject to the rule's limited low-cost exception. The target calculation does not replace written fee communication.
Everhour Reporting lets admins build reports with columns such as billable time, non-billable time, billable amount, cost, project, client, and member. Reports can be grouped, filtered, exported, or scheduled by email so target progress is reviewed without rebuilding spreadsheets.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices while excluding non-billable work. Users can select uninvoiced time, preview the breakdown, generate an invoice, and keep invoice status visible after export to supported accounting tools.
Track billable targets against actual work with Everhour Reporting. Group time by client, project, or member, schedule recurring reports, and keep target reviews tied to billable performance.
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