Time tracking for accountancy business
Time Analytics software arose from our management’s need to get a custom software solution to track business metrics of our primary business: providing tax, financial and accounting consulting services. Therefore, we believe that our software is an excellent solution for all businesses providing high-level expertise: accounting and auditing firms, finance consulting firms, tax firms and payroll agencies.
How can Time Analytics improve the business of your firm?
This kind of timesheet software for accountants allows you to define KPIs (Key Performance Indicators) for your business, that is, a limited number of quantitative indicators that can help you monitor the current state and further development of your business.
Time Analytics allows you to track key indicators of your financial performance, marketing and commercial performance, as well as productivity indicators for your employees.
This solution enables you to track the elementary KPIs for accounting firm:
- Total hours spent: primary resource of your business is your employees, which can be quantified by their hours spent. This is the basic indicator on which you derive most of the remaining KPIs. Also of great importance is the movement of the total number of working hours, i.e. a comparison with previous periods.
- Time utilization as share of billable hours in total hours
- Revenue per hour spent: what is your realistic hourly rate? Does it meet expectations you had when negotiating a deal with a client?
- Customer engagement cost price (Service Line): you know how much revenue each client brings to you. However, do you know how much each client costs you? As a general rule, 20% of clients make 80% of the profits of each business. Which of your clients are within the aforementioned 20%? Our solution allows you to easily calculate the cost price for each client. The cost of engagement for a client is based on the already set costs of employee earnings and other indirect expenses and is the basis for assessing the client’s profitability. Cost price can also be tracked per hour.
You can also use Time Analytics software to track your marketing and sales goals through the following KPIs:
- Total number of clients: How does your number of clients move from month to month, year after year? You can also group clients, where each group is made up of companies with the same decision-makers about your engagement.
- Average number of service lines per customer: How wide is the scope of services you provide to the client? Is the client even aware of the range of services you can provide?
- Total hours spent on commercial and marketing activities: Do you invest sufficient time in achieving your commercial goals? Is your time spent proportional with your business achievements or do you need to change approach to find new clients?
With Time Analytics software, you can monitor your employees’ productivity indicators:
- Total hours spent per accountant: what is the workload of each of your employees? Does anyone need the help of colleagues and who has enough free time to help him?
- Work activity structure per employee: are your managers engaged in managerial and commercial activities or are they overburdened with executive and routine activities? Is it necessary to hire a person in charge of administrative activities, or should an external agency be hired in order to relieve the rest of your team and make better use of it?
- Overtime: comparing the total planned hours and hours worked it can be determined whether someone has overtime. An insight into the activities of the employee can also conclude whether overtime is justified in the sense that it arose as a result of realistic requirements of the project, or as a consequence of being unproductive.
- Number of employees hired per project (client): did you correctly allocate your team members by client / project? Too many employees on a single project / client may indicate ineffective staffing. Also, if, for example, only one employee is involved in a major project, perhaps the help of other colleagues might be welcome.