Time-Billing helps keep track of the time spent on different tasks and keep track of how corporate resources used for customers or work were used internally. Recorded time and expenses can later be billed to clients on sales invoices, if you so wish. Timed activities can be added to a worker's payment if you use payroll. Time-Billing can be utilized to manage administrative tasks and overhead costs for your company in an efficient manner.
Purpose Of Time-Billing
You can generate bills for your clients using time-billing based on the tasks and calendar events in the comprehensive work report or in the particular project view. It's simple to bill for your time by choosing the pertinent actions and turning them into an invoice to deliver to the client..
There are two ways to use time-billing:
Based on how much time you and your team actually spend on project-related activities, you should bill the customer.
In addition to the actual duration, use billable time (if you wish to track both). This makes it simple to specify which component of the job the client will receive an invoice for. This can be done both on a task and time entry level.
Time-Billing Best Practices
Here are a few best practices to follow during Time-Billing
- Create projects and track your time for each one.
- After finishing an activity, use tasks to track your time.
- Make a profile of the company you're working with for each assignment.
- Spreadsheets should be replaced with time billing software for automatic data flow.
It is simple and quick to distinguish between actual and billable time when you identify the tasks that should be designated as billable hours. Configure distinct hourly rates for different projects, users, or tasks to enable the time billing software to automatically create appropriate invoices.
Importance & Benefits Of Time-Billing
Businesses that primarily sell time, like accountants and lawyers, as well as those that offer both time and items, should use time billing (such as interior designers and mechanics).
You can select billing rates based on the activity, such as consulting at $40 per hour and photocopying at 10 cents per copy. Moreover, you can establish billing rates depending on an employee's or client's hourly charge-out rate. For instance, the charge-out cost for subcontractor Acme Industries might be $80 per hour, whereas the hourly consulting rate for employee John Smith might be $60. Similar to this, because My Town Realty is a regular customer, they may be charged at a rate of $50 per hour.
An activity may or may not be charged. If you wish to keep track of expenses like entertainment that are often not charging to the client, having the option to track non-chargeable activities can be helpful.
Activities can be listed on activity slips either individually or in groups. After that, you can create time billing invoices that are prepared for delivery to your clients. The actions on a single time billing invoice may also include any goods you have sold to clients. When you make an activity slip, you can also note the hours that an employee spends on a particular task and subsequently factor those hours into the worker's compensation.
You can filter time billing reports to only display the data you need. These reports keep track of how you and your team spend your time and how profitable that use of time is.