Time-tracking should be seamlessly built into existing business processes. Learn how to organize workspace for different types of businesses in actiTIME.
Time and money are the two main factors of success for any business. Inaccuracy that can be negligible for a freelancer turns out into significant losses for a large team, so setting up an efficient cost-tracking procedure is essential. Keeping your time and billing records together provides you with accurate reports and streamlines your accounting. You always can generate detailed invoices for your clients and keep track of projects profitability. Today, we’ll explain how to set up cost tracking in actiTIME – and save your time and efforts.
In control of everything
Managing costs requires the information on both payable and billable amounts at hand – and here’s where actiTIME helps. In actiTIME, you can set up:
- Cost of work rates for your employees;
- Billing rates for work your company’s employees perform.
This allows accounting managers to monitor and manage both revenue and costs. Using one tool to calculate payroll and billable amounts also helps business owners analyze the revenue to cost ratio and optimize workflow to get rid of cost-inefficient activities.
Tracking your employees work cost
Employees wage (such as freelancers or contractors) can be based on hourly rates. In this case you can use Cost of Work report for payroll processing.
For your salaried staff use Time Balance and Overtime reports to track work time they’re actually spending and compare it to scheduled hours. You can use and see their work time balances in their View Time-Track charts.
Automating billing calculations
actiTIME supports calculation of amounts billable to your customers. First, you need to set up billing rates for specific activities (types of work) that your employees perform. Then, associate them with tasks, and actiTIME will automatically calculate amounts billable to your customers for work performed for them. To bill customers, you can also use the built-in invoicing tool to issue invoices with accumulated amounts directly in actiTIME.
Often, there are non-billable activities in the workflow. This applies to internal works, routine tasks, and not customer- or project-specific activities. You can set up both billable and non-billable types of work, and track time to tasks associated with them – this will help avoid complicated calculations.
Overtime is paid at a different rate. You can set up your overtime rates in actiTIME in User Settings, and select the way overtime should be recorded.
Overtime cost of work can be set in users’ profiles, and overtime addition is reflected in the Cost of Work report.
For those who are not entitled to overtime payments, you can disable overtime calculation. Their work time entries will be calculated as regular time.
Tracking the cost of absences
actiTIME allows to calculate the costs of different types of absences such as vacation, sick leave, time off etc. and significantly saves accountants’ time. Later, you’ll be able to see these costs in the Cost of Work report after selecting this option in the report configuration.
Analyzing projects profitability
You can do it in the Profit/ Loss report in actiTIME. Here you see all revenue and expense data for specific customers, projects and/ or tasks and can finetune the detail level you need. To perform detailed analysis, enable representation of overtime and leave time costs, as well as spent time and rates.
This report helps figure out inefficient activities and parts of work, reveal the most expensive parts, and see where there’s room for improvement and optimization.
Managing costs together with timesheet records provides you a very accurate picture of your business two the most valuable resources and facilitates accounting. actiTIME’s custom reports based on your time logs and cost rates are the indispensable tool for business owners, managers, and accountants to streamline the work processes and increase profitability.