You are Losing Money – Part I – Components building your cost rates

When it comes to budget control management software, you may question, “Why should my company implement a budgeting and cost control tool when my accounting team can perform the same tasks?”

Well, you may have heard that there is difference between financial accounting and business accounting. So let us look at the difference first and then we will delve into what can go wrong.

Financial accounting

Financial accounting is required by regulation or law and follows a strict set of accounting standards that all accountants must apply to the financial records of the organization. In the U.S., accountants adhere to the rules of the accounting principles (GAAP). The rest of the world uses the International Financial Reporting Standards (IFRS) for financial accounting. With the use of established accounting standards regulators, tax authorities and investors have a straightforward basis for comparison in understanding and benchmarking company financial records.

Business accounting (also called managerial accounting) is focused on the needs of the business rather than aligning with external accounting standards. Business managers usually use it to produce a significant amount of projections and models, and is used to help management in decision-making and performance evaluation. Business accounting is not a must and rarely used in smaller organisations but always present in larger ones.

One of the major tasks in business accounting is understanding your cost structure in order to be able to price your good or services.

Fully loaded cost

So, how much does an hour of work in your company cost? Not an easy question to answer as you have different salaries, benefits etc. By definition fully loaded cost should comprise from variable and fixed costs, distributed fairly across resources.

In order to be able to calculate with your financial model you need to gather following information:

  • Employee salary – be it weekly, monthly or yearly
  • Bonus
  • Release costs
  • Social security
  • Health insurance
  • Office costs – mainly rent, office food
  • Equipment costs – lapop, monitor, adapters, desk, chair
  • HR costs – supervesion, evaluations
  • Recruitment costs – how much time it cost to recruit a person e.g. how many hours or fees to recruitment agencies
  • Incidental costs – company events etc.
  • Vacation days
  • Approximate sick days per year for the company

Once you got all this information we can move to calculating your fully loaded cost rate. This is a topic we address in our second article.

The Team

7 Twitter experts who will inspire you to get your small business groove on

It’s the latest roundup of our Twitter Gurus series! In case you’ve forgotten, we already acquainted you with insightful influencers and experts from the project management industry as well as the world of productivity and time management. Our latest blog series instalment dealt with 7 Twitter leaders who will save your business any possible costly mistakes.

While we’re still on the topic of business… a lot of our clients are actually small businesses. That’s why we think it might be a good idea to focus on small biz Twitter personae this time.

Here they are, in their full glory as experts ready to spread some valuable knowledge!

#1 Richard Lorenzen @rlorenzen

Who: Many things at ones, but primarily CEO of Fifth Avenue Brands. Richard lives and breathes entrepreneurship and shares his insight in prestigious media such as the ever-classy Entrepreneur and Huffington Post.

Why: Many of his pieces of advice are invaluable for small businesses out there in the wild. Especially if we’re talking about PR (an area that, we have to say, too many business that are just starting out tend to underestimate). Take this article as a great example of Richard’s guidance.

#2 Matthew Toren @matthewtoren

Who: Matthew is a small business superhero, juggling between entrepreneurship, being an investor and serving as an inspirational influencer. He’s co-founded Young Entrepreneur, Biz Warriors and a myriad of other ventures.

Why: This guy is an information-filled gold mine for any small business owner heading on the entrepreneurial journey. As we’re particularly fond of cloud technology, we loved his piece on cloud-based unified communications for small enterprises.

#3 Sara Davidson @saradavidson

Who: Ladies are killing it in the small biz scene and Sara is a shining example of a successful entrepreneur. Meet Hello Fearless – Sara’s take on a business world led by unstoppable women whose dreams have absolutely no limits!

Why: Sara’s attitude is fantastic and inspirational. Period. What we particularly like are her interviews with successful female business owners. Lots of insights and personal stories to tune in to.

#4 Ivana Taylor @DIYMarketers

Who: Ivana is DIY to the bones and a significant marketing influencer when it comes to small businesses. A mastermind behind DIYMarketers, she always has something valuable to share with biz owners.

Why: We like her style and the fact she cuts to the chase and gives you actionable tips. Not only that, but she goes in-depth in many areas related to running a small enterprise (and businesses as a whole). Like her ‘How to break up with a bad customer’ article. Terrific.

#5 Ramon Ray @ramonray

Who: Ramon embodies what we mean whenever we think of the term ‘small business guru’. He’s a proven expert in all things enterprenurial and is willing to share his experience with biz owners.

Why: Two words. Smart Hustle. Ramon’s Smart Hustle magazine has tons of stuff you’ll do great to utilize and learn from – including interviews with leading professionals. Like, you know, Shark Tank’s Robert Herjavec.

#6 Barry Moltz @barrymoltz

Who: Barry is a blend between a) an author, b) a consultant and c) a speaker, and he manages to do all of these flawlessly. Did we mention he’s also a radio talk host? His specialty seems to lie in getting all those stuck small businesses leave the quicksand they’re sinking in.

Why: Small businesses have it tough. They’re extremely prone to facing difficulties and lacking the power to counter them adequately. Barry’s book titled ‘How to Get Unstuck’ throws 25 ways to battle operational despondency and get back on track with your enterprise. Recommended!

#7 Practical Ecommerce @practicalecomm

Who: Practical Ecommerce is an all-in-one resource for all things ecommerce related. Chances are if you have an online shop or run your own digital business, this Twitter account will become a favorite of yours. Heaps of articles focused on ensuring your ecommerce engine runs smoothly.

Why: Online shops have been swarming the web, yet many fail to make it through. Running an ecommerce venture isn’t as easy as it seems and any entrepreneur can do with a little bit of guidance. Practical Ecommerce lends a hand with fantastic articles, such as this one, focused on product page layouts that simply work.

The Team

7 Leaders that Save us Costly Mistakes with their Wisdom about Life & Business

Each month we introduce you to some influential and thoughtful leaders on Twitter with the last publication being 7 Project Management experts. As a company obsessed with how to control the spend of your hard-earned money and ensure you don’t lose sight of costs, sometimes is good to look at the broader pictureThis is why we won’t talk about project cost management solution or about how to track time efficiently. This time it is going to be about some of the most powerful management influencers as recognised by LinkedIn. Here’s the list of 10 personae who you might not know yet, but you should totally read, listen and follow.

#1 Brian de Haaff – CEO, Aha!

Who: Brian writes about personal and company growth and the adventure of living a meaningful life.  He finds inspiration and new ideas everywhere and all the time.

Why: Brian has topped the writers column about management and culture at LinkedIn. He did it with articles such as: Why this CEO will never hire another Salesperson and How smart Bosses manipulate Employees.

#2 Justin Bariso – Founder, INSIGHT

Who: Justin writes weekly on the topics of leadership, communication, and how you can find valuable business lessons…well, pretty much everywhere. How he measures success in writing: “If I inspire others to think, I’ve been successful. Of course, it’s nice if my writing helps pay the bills as well.”

Why: His most-popular post is Starbucks’ CEO Sent a Remarkable Email to Employees Yesterday. Here Are 2 Takeaways. One takeaway: “If you see an opportunity, pounce on it. Think it through, but don’t overanalyze”.

#3 Carson Tate – Founder, Working Simply

Who: Carson writes about productivity strategies that can help individuals work simply and live fully, whether that means reducing sloppy emails, improving daily planning — or just making time for adult recess. Most proud of writing What burning out taught me about prioritizing my work.

Why: Likes writing because: “I shared a very personal moment in my own journey to find simplicity and balance. I heard from numerous readers who shared their own struggles … it was humbling and inspiring.” Her favorite comment on a post: “As we mature, we realize that many things are important but not equally important. Prioritize based on your values. The strongest person at the negotiating table is the one who can stand up and walk away.”

#4 Dustin McKissen – CEO & founder, McKissen + Company

Who: He writes about the intersection of our personal and professional lives. That includes articles on topics such as the time he had to fire his brother; what he learned while living and sleeping in his car; and how he discovered that he couldn’t “work” his way through the emotions surrounding his mother’s death.

What: He is most proud of his article The Amazing Skillset of a Stay-at-Home Parent.

#5 Suzy Welch – Co-author, The Real Life MBA

Who: She covers: “The good, the bad, the ugly, the uncomfortable, the complicated, the crazy, and the wonderful of getting ahead…or put another way, the here’s-how-it-really-works of career management.”.

Why: Most-popular post: Three (Unprofessional) Ways to Get Ahead at Work. Her favorite interview question: “What did you do to prepare for this interview?” Why she likes it: “It offers, I think, an ‘a-ha!’ for both parties in the interview process — the person doing the questioning, and the candidate him or herself.”

#6 Louis D. Lo Praeste – Global business consultant, Quodfatum

Who: He writes about political and social commentary, about the times we live in, the economy, and what more enlightened leadership might look like. He says: “I’m controversial at times, funny I think, and generally very blunt.”

Why: Post he’s proudest of: “An Open Letter to my Fellow Men struck a cord with a lot people because I took on sexual harassment from the male perspective.”. Morning habit: “I take a hot towel from the water I heat to make pour-over coffee and wipe the sleep from my eyes and face, read the Economist Espresso briefs, drink my coffee and write at least 1500 words. Everyday. Sometimes it’s rubbish, sometimes it’s decent. Try the towel method; it’s very refreshing.”

#7 Gary Frisch – Founder, Swordfish Communications

Who: Corporate scandals and the responses to them. Recent controversies he analyzed: Why Volkswagen’s apology fell so flat; why the recent Starbucks’ red cup outrage was more like a Christmas gift.

Why: Favorite post: Why Olive Garden Has Earned My Loyalty. Why he likes it: “It highlighted something positive about a popular company … and so rarely do I get to use the phrase ‘I feared the other tortellini was going to drop.'” How he comes up with story ideas: “Easy, I follow the news media. There’s never a shortage of topics and companies crying out for some Monday-morning quarterbacking.”

Hope you like it! And keep in mind – always feel free to contact us at if you need any help.

The Team

UIX improvements in Timesheets

We are relentless in releasing improvements to our current timesheets interface and adding new features for our clients. After adding tasks with commentscopying of projects, Jira add-on and many more, so now comes the next improvement. Not surprisingly it is in Submit Timesheet in Timesheets section where we now show the weekly total hours per project, per day and altogether. Here is an example how it looks:

Submit timesheet in Timesheets - now with total hours per week, per project and per day

Hope you like it! But you probably wonder what comes next? Well, it will be something you have asked us already and related to Timeoffs. Please feel free to contact us at if you need any help.

The Team