Tracking Non-Chargeable Items In Timesheets

Tracking Timesheet Activities

 

Tracking activities that are non-chargeable is important. It’s a misconception that timesheets are purely for chargeable time, to ensure invoicing correctly for the work completed. Whilst this certainly is beneficial, there is also great value in tracking non-chargeable time. Whether that is time spent pitching, conducting internal admin or other internal matters. This can help your business increase in profitability and survive tough economic climates. Also, to help your business get a true insight into the amount of work put into clients and any associated costs.

Good evidence for restructure

Restructuring a business can be a powerful move, providing new offerings to clients. Additionally, used as a process to transition into a multi-discipline agency. Unfortunately, it can also become a necessity after a loss of work or unpredictable climate. Whilst we hope the worst case doesn’t hold true, having records or profit by job title or department, as well as utilisation metrics can show scenarios where perhaps there is a surplus of specific roles. You can examine which clients require more attention, and whether this returns appropriate profit. It will become possible to spot thinly stretched departments, teams or job titles. By tracking activities you can quickly spot if clients require a surplus of non-chargeable time.

Tempora timesheet report screenshot

In the example report above, we can see quickly how many hours your staff members or departments are pushing out and which ones are billable or non-billable. As well as this, the staff and department utilisation, how many hours are bringing in revenue to the business. Naturally, some roles will have a higher billable time output than others (HR for example), but this information can still help to determine whether a re-assignment of priorities would benefit the team. In Tempora, it is possible to break this down ever further. You can look at which clients (or activities) time was spent on. Similarly, how much it cost the business and the revenue generated.

Which clients are you putting hours into, for little return

On a similar vein. A business may be putting time and effort into a client for little or diminishing results. Whilst boasting a large client collection can be desirable, there may be a time that you need to agree new rates or reduce the workload. Perhaps there was a retainer for a year, but with rising overheads that is no longer returning the margin required.

Tempora Timesheet Software Profit screenshot

The report above shows a quick overview of all hours put into a client. In addition to this, the cost of hiring the staff to complete the work and the total billable revenue (using agreed rates). These types of reports will allow you to quickly identify your biggest (or lowest) revenue streams. The report below shows the same information but comparing cost of work completed against any income from the client. Depending on which practice of measuring profit and loss for your business you follow, it is important to ensure you encapsulate all time spent on client matters. Regardless of whether you charge that time or not.

Tracking Activities to show profit margin

In Tempora, there are reports that can break this down further. It is possible to input a desired margin and the system will collate all time and costs from the timesheet to show the total invoice value needed for the desired margin.

Tracking Activities for Accurate Predictions

Knowing the full amount of time spent will help make more informed predictions going forward. It will become easy to spot if budgeting is consistently over or under. Allowing you to make more accurate upfront quotes for time and cost when pitching for work.

As mentioned earlier, getting a true encapsulation of the amount of work put into the whole project, from pitch to completion, can help identify areas that aren’t always considered. It becomes easy to  identify areas of business in which take slightly longer than predicted, using past data to check whether they are regularly taking longer than budget.

 

Tempora Timesheet Software Budget report

If you'd like to see any of these reports in action. Have a chat about how best to take your business reporting to the next level, why not drop us a call? We also have a similar blog, on how to check whether your clients are profitable.

 

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