Doing consulting work?  Use this report to learn how many billable hours each employee has worked.
Click to see the *best* consulting timesheet



Consulting firms are very concerned with employee utilization because they must account for as many client billable hours as possible.  Either you are spending your time making the client happy, or you are spending time billing hours for their jobs.  You must utilize your time effectively.  That is the only way to stay competitive and make money, and it is the topic of this short video.

Let's say your consultants are scheduled to work a normal 40-50 hours per week.  They are assigned to work for one or more clients.  They have all the tools for the job, and everything is set to make money for your company.  Several months go by... the clients are happy... you are billing hours... and receivables start coming in.  Nice!  Now let's take a look at how effective the consultants have been with their time...  Are they billing as many hours as they can?  Or are they doing in-house work or admin stuff.  Or are they surfing YouTube for funny videos?

To find out, you run the Utilization report.  Shocker!!!  Half the consultants are only logging 30 hours of billable time.  The other 10 hours are either non-billable or admin work.  Yikes!  You can't make a business doing that.  (As a side note: some well-known consulting firms require engineers to log 50 hours of billing time per week!)  Furthermore, you see that their effective billing rate is less than $75 per hour because of all the non-billable time they are spending on stuff.

The point of this report is to reveal the percentage of billable verses non-billable hours, to calculate the effective billing rates you are getting, and simply to see how many hours consultants are working compared with their schedules.  Click, click, click, and it's all there in black and white.  Yikes!

The good thing is that you can use this report to improve.  You can inch your way back to profitability.  Compare your outgoing salaries to incoming client receivables.  Bill more hours.  Work more client jobs.  Do whatever it takes to get the effective billing rates you need to stay alive.

Want another cool feature?  See View, Project Revenue.  It shows the projected revenue over the next 12 months.  You can use this to predict dips in business that you can fill with new jobs.  A simply thing like that could save your consulting business!

Also see: Video: Budget Costing, Video: Customizing Invoices, Video: Scheduling Reports


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