Toggl’s Post

"I had no idea we were losing money on these projects!" 🤯 A lot of times we find that businesses properly factor in overhead costs and the costs for materials and other expenses... ...and maybe they even know exactly how much they're spending on payroll each month, but... ...they have no idea how long each project is taking their team to complete, and sometimes they're losing money on a project after paying their employees' hourly wages + taxes! 😬 Using project tracking to account for team income, expenses & hours allows businesses to respond appropriately by: ✅ Retraining the team to be more efficient ✅ Adjusting their pricing ✅ No longer offering the service altogether When's the last time you looked at team time per project, and how it affects your profit margins? #ProjectManagement #ProfitLoss #TimeTracking #BusinessEfficiency #payrollmanagement #ProfitMargins

🔴 𝐈𝐂𝐘𝐌𝐈: 𝐅𝐎𝐑 𝐂𝐎𝐌𝐌𝐈𝐒𝐒𝐈𝐎𝐍 𝐑𝐀𝐓𝐄 𝐂𝐀𝐋𝐂𝐔𝐋𝐀𝐓𝐎𝐑 𝐈𝐍 𝐄𝐗𝐂𝐄𝐋 https://lnkd.in/gyYA8KFx GRAB THIS WORKBOOK FOR FREE HERE:  https://lnkd.in/gpUjtU24 Did you miss my incredible 'Commission Rate Calculator' training? No worries! Here's a quick recap: I revealed how to effortlessly calculate commissions using an incredible commission rate calculator template and application. The training covered: • Unlimited Commission Types • Flat & Incremental Commissions • Up To 10 Tiers Per Commission • Handling Unlimited Employees • Managing Unlimited Payrolls • Accessing a Mini-Dashboard Don't fret if you missed it! You can still watch the replay and stay tuned for more exciting content and training updates. 👉 WATCH IT HERE: https://lnkd.in/gyYA8KFx #CommissionRateFormula #CommissionRateCalculator #CalculateCommissions #EmployeeCommissions

It's essential to recognise when to seek help and outsource tasks where someone else's expertise excels or there is a more cost effective or better use of your time. This week, I obtained three new boiler quotes, a very mundane adult purchase but mine is probably ready to go on antiques roadshow and being in the middle of a renovation, something we needed to tackle. Consulting with a more experienced individual shed light on why one quote was nearly £4,000 more than the others - yet the product being installed was the same. It was agreed the larger quote was just their profit margin being much bigger. Ultimately, the decision hinges on the return on investment for me - will I get what I need from the boiler installation costing so much less than the one costing so much more but the same end product? Which product suits my needs and budget now? I’m having more and more conversations with accountants and bookkeepers who have identified diminishing value in their software, particularly in accounting and payroll systems (who just like the boiler situation need to meet their needs but without unnecessary increases in price) or feeling like the return on investment isn’t there for them. If you resonate with this and have software cost challenges, let's have a conversation and see if I can help. #outsourcing #expertise #software #accounting #payroll #value #investment

Hourly billing, while common in many industries, does have its drawbacks. 1. Encourages Inefficiency 2. Punishes Expertise and Efficiency 3. Creates Conflicts of Interest 4. Lacks Transparency 5. Focuses on Input Rather Than Output I prefer value-based pricing, which may better align with client needs and encourage efficiency and collaboration. Are you a fan of hourly billing?

Hourly billing vs. Value-based pricing...

Monday's money tip: Creating a budget that works for you is the only budget that you'll stick with. Here are a few steps to either get you started or tweak what isn't working: 1. Track your spending by either doing a look back at the last 30 days or start fresh. 2. Tag expenses as either fixed or variable. 3. Ask yourself if your spending is in line with your top priorities. 4. Create your budget by assigning an allowance to each expense. Be realistic so you don't set yourself up to fail. (I can not emphasize enough to automate, automate, automate where ever you can!) 5. Breaking expenses down into weekly amounts can make it easier or set it up by your payroll cycle. Do whatever works for you. 6. Track your progress on a weekly basis at a time that works with your schedule. The most important tip - remember to celebrate your progress! (free budget tool in comments👇)

Common time management advice is to “know your hourly rate”. The idea is that if you know how much an hour of your time is worth, you can make better decisions with your time and money. This is a fine starting point, but there are different hourly rates—your time is worth different amounts depending on who you are and what you are doing. #HourlyRate #TimeManagement #IncomeAnalysis #GrossHourlyRate #NetHourlyRate #BusinessDelegation #StartupTime #WrapUpTime #TradeOffRate #FixedIncome #ElasticIncome #CappedIncome #PersonalFinance #ExpenseAnalysis #DecisionMaking #Savings #TimeEquivalent #OverheadEffort #CostAnalysis #IncomeCalculation #IncomeTypes #PersonalFinanceTips #Budgeting #FinancialDecisions

I spoke with a #construction GC yesterday about their incentive pay plan. It was full of interesting ideas. See below and borrow a few for your organization. 1. Deferral, part 1. They pay out bigger bonuses, but they defer a portion over time. So what might have been a $10k bonus is now $50k, but it's paid out over four years. It's a performance and retention bonus. 2. Deferral, part 2. They allow employees to "invest" the deferral into new projects. So even if that employee is not working on every project, they can participate in the profits it generates. It's their way of paying interest on the deferred comp. 3. Multipliers. Completing the project on-time and under budget are objectives 1a and 1b. But the bonus tied to that project can be increased by a number of multipliers, such as safety-related incidents. They are actually quite happy with the program, it has significantly lowered employee turnover. Their main complaint is the manual administration, which is handled by an outside bookkeeper in a spreadsheet. We showed them how Arbenova can improve communication and increase transparency. A good bonus is also a clear bonus! ___ I'm Anders Gustafson. I write about auto repair, incentives and building meaningful businesses in the trades. Follow me + hit 🔔 to stay tuned.

Not sure what hourly rate to charge for yourself or your team in service work? Here’s a quick 3 step process that you can use… First, calculate how many hours that you’re going to be billable for the year. After subtracting holidays, bad weather, rescheduled work, and all that other non-billable time, you might only be billable 200 days per year. Now, you’re likely not going to be charged out for a full 8 hours for those days, from the time between jobs, or rescheduled work. So, let’s say on average you’re billable 5 hours per day. Over 200 days, that’s 1,000 billable hours per year. With an offsider, that’s going to be 2,000 hours. Next, you need to calculate your overhead cost basis, like software, insurances, phones, accounting, and rego. Let’s say for your business, it’s $50,000 over the next 12 months. Let’s also say that you want to pay yourself and your offsider $100K each + super… AND you’d also like to make $50,000 on top in net profit. All up, that’s $320,000 that needs to be made over those 2,000 billable hours… or $160/hour. Now, if you’re charging for call outs, or putting a mark-up on your materials (which you should be), then you’ll be able to bring that hourly rate down.

Are cash flow gaps hindering your company’s growth plans? You're not alone. Many organisations grapple with business expenses, payroll obligations and delayed growth strategies due to bad debts and overdue client invoices. To help you manage these challenges, we published an eBook with insights for handling cash flow issues and how payroll finance can support your growth strategy. Download your copy here … https://buff.ly/3U7uEXM  #CashFlow #PayrollFinance #BusinessGrowth #APositive}