What is utilization?

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Big 4 Accounting Firms
Published at : 08 Sep 2021
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What is utilization and why does it matter so much. The big four accounting firms generate revenue by having many CPAs charge their time to client codes.

The amount of hours multiplied by the person’s billable rate gives the amount billed to the client. How much the big 4 audit firms bill their clients is their revenue.

The metric that the big 4 use to measure their staff people is utilization. Utilization is the number of billable hours that a person works divided by the total number of hours that person worked for the year.

A person’s utilization affects many thing in the big four careers including their performance appraisal.

Visit www.thebig4accountingfirms.com for more details.

big 4 revenueutilizationbillable hours

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