In our last article we talked about how to calculate cost rates and billable rates. The next set of important questions to answer is:
- How much do I make per project?
- How do I ensure I do not run over budget?
The best way to keep an eye on your revenues and profits is by tracking in real-time what your employees are working on. When they work on billable projects and the billable rate is above the cost rate, then you make a profit. The cost can go up when your team members are booking on internal projects which normally have a cost component only. These could be either billable units such as programmers working on a product that one day can turn into a commercial success, or non-billable units such as HR and admin staff.
When you run a sizeable business, using Excel spreadsheets quickly becomes a NO GO. This is why we developed Cronforce – it gives you real-time overview of how your budget is being spent. But also provides insights into your profitability per project and resource type.
A valuable function of real time tracking of your budgets is that you can immediately spot when you start spending more on a project than intended. This is especially up-to-date nowadays because business is dealing with increasingly thin margins and budgets require particularly strong scrutiny.
The Cronforce.com Team