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This may be a dumb question but is it really correct to say it "lowers" utilization as opposed to "it does not increase" your utilization? For example if the work day is 8 hours and you have 6 chargeable hours then your utilization is 75%. If you have 6 changeable hours and 3 travel hours then your utilization is still 75% because you still worked 6 out of a possible 8 hours. The fact you logged 9 hours means you should have 1 hour "over standard" but i don't think the travel time would decrease your utilization below 75%. What am i missing?
Yes. Similar to pto. At least for kpmg.
Yeah that sucks. Make a case for yourself. Or just charge the time and hope no one catches it.
That time is evaluated as part of "round table" discussions or whatever they are now. It's looked at separately from other authorized project codes and does get weighed into the review.
You don't charge travel time? Our travel time is chargeable.
Travel during business hours should be chargeable. Book a hotel. 3 hours is too much.
Because if you charge 8 hours client work a day you're 100%. If you charge 8 hours client work and 3 hours travel for a total of 11 hours a day, you're 72% utilized
Yeah your hours over standard increases but your utilization is actually lowered
We charge to a travel code that gives us credit for the full billable time but only charges the client 25% of our bill rates. It's a win-win.
Don't charge it and hope no one notices - charging hours you didn't work is a felony.
Ok, because my utilization is 56% and I traveled 3 hours everyday for work fruiting busy season.
Depends how you charged your time. If to a travel code, yeah, lowers util.
I mean if you still have your hourly goal met for the week shouldn't matter that much but make sure your pml knows
I charge it to an authorized project travel code.
PWC 2, I thought it would be total charged hours divided by total hours (chargeable, authorized, holiday, and vacation time)
Within normal business hours, hours should be chargeable (if applicable). PwC 2 is correct though, travel does not "decrease" utilization, it just doesn't increase it. Utilization is something along (total chargeable hours / (standard hours of 40 hr/wk - holiday hours))
So the denominator will be a fixed number around 2000-2100,and the numerator will just be your chargeable hours
Can't you bill to the client as travel time
I travel 1.5 hours each way. I live in a rural area so the closest hotel is still 45 minutes away.
Just to confirm, i calculated my utilization manually for the period May 1-15. My calc matches the report sent out by leadership, so just to confirm, it's your total chargeable hours divided by total standard work hours in that period. The denominator is NOT the total hours you charged. For example using one day as an example, if you charge 8 hours to clients you will be 100% utilized. If you charge 8 hours to clients and 3 hours to G&A you're still 100% utilized because the denominator is 8 hours for a standard work day, not the 11 hours you charged. Logically this makes sense because otherwise you'd be penalized for working more hours. An easy way to verify this for yourselves in Mobile T&E is to go into your time sheet, add up all your chargeable hours, and then divide by the total number of hours listed in the "total" column since that number is the total amount of potential client hours you could have worked assuming you worked every hour of a normal 8 hour work day within the period.