Hourly based revenue (variable fees)
Time Analytics is set to calculate income based on the hours logged for a client multiplied by the billing rate.
The billing rate is set up for each team member in the Team Setup.
When a team member logs time for a client or a project, a billing rate field will appear. The field automatically shows the billing rate set up for the employee during the Team Setup.
However, for specific projects, the employee can change their billing rate when logging time dedicated to that specific project.
Time Analytics multiplies every logged hour by the billing rates to calculate the income. Said income is allocated per client, project, task, and employee. You can track this calculation in the Reporting section.
Keep in mind that you might want to invoice a fee different than the one in Time Analytics. If that happens, you can conduct billing rate adjustments through the Timesheets section or the Timer.
Time Analytics doesn’t offer automatic fixed fees tracking.
However, if you want to enter fixed fees manually, you can do it in the following way:
Have the one invoicing person or other person working with the specific client enter the fixed fees for the client based on the invoices or contracts.
The team member will add a new entry to My Timers and choose the client to allocate the fee to.
If you you want to allocate for example $1000 fixed fee: input 00:06 in tracker and 10.000 in billing rate box which results in 1000 of allocated fees. (The assumption is 6 min is needed for invoice preparation and dispatch)
Accordingly, fixed fees won’t be allocated to employees, but will be tracked per client and project.
The costs of performed services are calculated on the basis of hourly cost rates.
In the first step, you need to determine and enter the hourly cost rate for each team member in the Team section.
After that Time Analytics automatically multiples the tracked hours per team member by the determined cost rate and allocates total costs to the projects, clients, and tasks.
As a result, you get full reports indicating the costs per project, task, client, and team member.
Profit is simply calculated as revenue minus cost.
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