# Realization rate

A term used when buying accounting or bookkeeping practice.

What a practice actually collects against the standard rate for the hours it worked.

Two practices with identical billings can be very different businesses, because one writes off a fifth of its time before the invoice goes out and calls it client service. The write-down usually sits with a small number of long-standing clients the owner will not reprice. Ask for realization by client and by partner, and treat the worst decile as the first thing a new owner has to decide about.

Part of: Buying an Accounting or Bookkeeping Practice (https://searchspheresource.com/guides/buying-an-accounting-or-bookkeeping-practice)

Source: https://searchspheresource.com/guides/buying-an-accounting-or-bookkeeping-practice/terms/realization-rate
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt