Glossary

Service business glossary

Plain-language definitions of the terms service companies use to run projects, bill clients, hire, and track the money. Written to be clear first and useful whether you are new to the vocabulary or just checking a definition.

Professional services automation

Professional services automation (PSA) is software that runs the core operations of a service business in one system, covering project management, resource and time tracking, billing, and reporting.

Maintenance contract

A maintenance contract is a recurring agreement in which a service provider maintains, supports, or services a client's equipment, software, or systems for a set fee over a defined period.

Utilization rate

Utilization rate is the percentage of an employee's available working hours that are spent on billable client work.

Billable hours

Billable hours are the units of time an employee spends on client work that can be charged to that client.

Retainer billing

Retainer billing is a model where a client pays a recurring fee, usually monthly, to keep a service provider engaged on an ongoing basis.

Recurring invoice

A recurring invoice is a bill generated automatically on a repeating schedule for an ongoing service or subscription, rather than created by hand each time.

Accounts receivable aging

Accounts receivable aging is a report that groups a company's unpaid customer invoices by how long they have been outstanding, usually in brackets such as current, 1 to 30 days, 31 to 60 days, and 61 or more days past due.

Days sales outstanding

Days sales outstanding (DSO) is the average number of days it takes a business to collect payment after making a credit sale.

Statement of work

A statement of work (SOW) is a document that defines the specific work a service provider will deliver to a client, including the scope, deliverables, timeline, and terms.

Time and materials

Time and materials (T&M) is a billing model where a client pays for the actual hours worked at agreed rates, plus the cost of any materials or expenses used.

Applicant tracking system

An applicant tracking system (ATS) is software that helps a company manage its hiring process, from receiving applications to tracking candidates through each stage to a hiring decision.

Project profitability

Project profitability is how much profit a single project generates, calculated as the revenue earned from the project minus all the costs of delivering it.

Run the business behind the vocabulary

Belvak turns proposals, projects, invoices, and recurring contracts into one connected system built for service teams.

See Pricing