WHAT IS IT?
Measures the rate you are actually getting when all working hours are included in the calculation of revenue divided by hours.
WHY IS IT IMPORTANT?
Effective billing rate is a great metric for evaluating your profits. Understanding this metric will allow you to identify if you are efficient enough with your time or if you need to raise your rates.
HOW DO YOU CALCULATE IT?
Effective Billing Rate = Total Revenue in a Given Period / Total Hours Worked in a Given Period
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ABOUT OMEGA ACCOUNTING
Omega Accounting Solutions is an accounting and data firm that empowers small businesses to make informed business decisions through the production of accurate and timely books that yield insightful and actionable reports. The Irvine, Calif., firm founded by Jay Woods in 2007 works with CFOs, controllers, accountants and software developers to collect, integrate, analyze and present essential data that allow for healthy corporate operation and growth. In 2016, Omega launched a Business Intelligence Division to provide firms with customized programs, KPIs and continuously refreshed dashboards that allow them to connect data silos and take advantage of real-time opportunities in the marketplace. Read more about Omega Accounting