The formulas
- Billing realization = billed / standard value
- Collection realization = collected / billed
- Overall realization = collected / standard value = billing realization x collection realization
How it works
Standard value is hours charged times standard rates. Billing realization shows how much of that value reached an invoice. Collection realization shows how much of the invoice reached the bank. The product of the two is the share of standard value you were paid.
Run it by engagement, partner, client or service line to see where value leaks, before or after the write-down is approved.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the difference between billing and overall realization?
Billing realization stops at the invoice. Overall realization carries through to cash collected, so it includes write-offs after billing.
Can realization exceed 100 percent?
Yes. Billing above standard value, such as a fixed fee above the value of the hours, gives a ratio above 100 percent.
Which time period should I use?
Use one period and match the three amounts to it. Cash collected in a period often relates to earlier billings, so a longer period gives a steadier collection ratio.
Formulas on this page are the standard definitions.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.