Utilization, bill rates, leverage, margin.
2 AI translations · Business ConsultingUniversal Overlay
You track engagement economics: planned vs. actual hours, bill rate realization, leverage ratio, scope creep, and margin. At the practice level: aggregate utilization, realization, and margin by partner.
You manage project-level accounting: tracking WIP (work in progress), managing billing milestones for fixed-fee engagements, recognizing revenue per ASC 606 (percentage of completion for most consulting engagements), and managing unbilled receivables. T&M engagements bill monthly; fixed-fee engagements require completion estimates. The tension between aggressive revenue recognition (to hit quarterly targets) and conservative accounting (to avoid reversals) is constant.