Billability is the amount of work that can be directly charged to a client. This includes revenue-generating tasks like project work, client meetings, market research, etc. It is a key metric for firms to identify and address revenue leakage, thereby improving profit margins.
By regularly monitoring billability, firms can improve revenue recognition and forecasting. Moreover, it helps them identify productivity gaps, optimize resource allocation, and increase workforce efficiency. Ultimately, this allows firms to boost client satisfaction and enhance ROI.
