What Happens When There Are No Timesheets For Billing?
No matter how important timesheets are, they don't fit well in some organizations' cultures. Also, some organizations have timesheet systems but don't use the timesheet data for billing.?
As I write this, our company is assisting our client, who has 4000 people, in implementing digitized billing without timesheets, among other things.??
Therefore, let us understand how billing occurs when there are no timesheets. In this edition of 'PSA Insights’, I shall describe how such organizations calculate their T&M project invoices, what problems they face, and how Kytes offers a solution.
T&M billing without timesheets
Typically, a client partner or account manager calculates the billable amount every month. Say there is a project with a hundred resources. The account manager manually maintains the resource data in Excel sheets and tracks each person's allocation percentage, leaves, and other details. They perform calculations in Excel and send the billing information to the customer for approval. They must obtain the latest and most precise data about leave, allocation changes, and costs-to-company.?
The above process is time-consuming and prone to errors. The current method obscures the billing losses due to employee leave and is opaque about the proportion of non-billable hours. It also creates invisible pre-bill DSOs.
Kytes provides an elegant solution.
Say a project has ten people allocated to it. Kytes calculates the billing amount based on their allocation percentage. For example, if a person is allocated 50% to a project, Kytes considers 4 hours of billing for that person's work and applies correct bill rates from its repository. Kytes can also use leave data to adjust the billing amount. Since Kytes integrates your payroll, leave, and project management, it has all the information needed for billing.
Kytes provides a project set-up in which you can enter hourly or monthly bill rates and customers' policies related to leave. Kytes tags resources with applicable bill rates and tracks their allocations dynamically.
Your account manager can review billing amounts calculated by Kytes and make adjustments for employees' non-billable hours. Your account manager uses the Kytes interface and automated workflows for review and adjustments.
The benefits of Kytes in T&M project billing
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About timesheets
I previously argued the importance of a reliable timesheet system using PSA software. If employees see the benefits of filling out their timesheets regularly, they will do so. Their organizations also benefit by plugging revenue losses, earning customers' trust, and ensuring compliance with labour regulations.?
Read the two-part series?
starting with The Secret Sauce of Project Profitability?
Kytes recognizes and respects your organization's culture. Kytes is flexible.
Some organizations don't use timesheets. That's a fact. Kytes simulates employee timesheets by leveraging your client partner's intimate knowledge of day-to-day work and insights gained from it. Kytes provides all the advantages of digitizing your projects and billing.
Upgradation path
By bringing in the advantages of digitization of project deliveries and billing without being held back due to a lack of timesheets, Kytes lets you scale and grow. When you decide to implement timesheets, Kytes is ready to take on the job. You can use Kytes for dry runs and shift to timesheet-based billing calculations when ready.
To conclude, Kytes is flexible. It respects your organizational culture. You save manual efforts, errors, and delays. You avoid invisible pre-bill DSOs and improve cash flow.?
You scale up, grow, and achieve more with Kytes.
Please get in touch with us at [email protected] for more information and a demo.
CXO Relationship Manager
11 个月thank you so much for sharing. it's useful information.
??Business Coach for Software Founders | Scaling Expert | Award-Winning in Strategy, Team Development & Profit Growth??
11 个月nice one