Realization Rate
Realization rate measures how much recorded billable value is actually billed or collected.
How does realization rate apply in practice?
Firms use realization to find leakage between time capture, invoice review, and payment collection.
What do people often misunderstand about realization rate?
- High utilization does not guarantee high realization.
- Realization can fall because of vague narratives, poor scoping, or partner write-downs.
Frequently Asked Questions
What is Realization Rate?
Realization rate measures how much recorded billable value is actually billed or collected.
Why does realization rate matter?
Firms use realization to find leakage between time capture, invoice review, and payment collection.
What terms are related to Realization Rate?
billable-hours, utilization-rate, wip