Financial Management is a very important aspect of running any business.
There goes a lot of efforts in raising, investing money in your company, but more efforts are needed in understanding and managing how the money is being used or spent and which ways you can optimize it. Business operations and resources may have loopholes and leaks where money and time are being wasted. Evaluating every expense, cost and benefit can improve business sustainably. If you have just started a new company then there are many challenges to face and learn the basics, especially a company where services are largely matters of time spent delivering. To give a perspective here is a list of professional services companies.
Advertising, Creative & Media
Website Design & Development
Video & Animation
Writing & Blogging
Translation & Proofreading
Training and Workshops
Product Design & Development
BPO / KPO
Research & Analysis
Timepot helps you understand the pulse of your business by showing you where is your time and money being spent. Lean companies need to consistently measure their investment, operations and outcomes to keep the business moving forward. Timepot is not only about time tracking, but measuring financial results directly connected to employees, tasks, projects. In this blog, we will see how companies are using Timepot’s financial feature to their advantage. Here is a quick video that explains you what financial goals you can achieve with Timepot.
As you saw in the video there are key financial components based on which you can derive financial results. Let’s understand the financial components within Timepot.
1. Pricing and Currency
2. Income, Expense & Profit
3. Cost estimation
1. Pricing & Currency
Client projects are unique and so is the team and tasks that are involved in it. You may have one or multiple projects with multiple clients, remote employees, vendors and partners from different countries whom you charge or pay in multiple currencies. Timepot does all the math for you from collating work hours by each task to using the right currency exchange rates. There are three options on how to set your project price for each employee who will be working on it.
All three pricing options come with a feature to edit prices that are recorded and can be viewed in history. Every time you change price the latest exchange rate is calculated for currencies.
Let’s move onto understanding the pricing options and which option is best for you.
Option 1 – Hourly Price
This option is great for companies who work with remote employees or freelancers globally on long term basis. In this type of projects, you can add unlimited number of employees from different countries and set personalized currency and price for each employee. It becomes a tedious and time consuming task for your accounts or managers or project leaders to track and calculate work hours across different tools that they are using to execute projects.
This is why Timepot can be integrated with tools such as Gmail, Google Docs, Slides, Sheets, Jira, Trello and YouTrack. Tracking time and seeing work hours for these tools is as simple as eating a tasty pie.
Option 2 – Monthly Price
This option works for companies that pay a mutually agreed salary amount to employees for working on a monthly project. This option is good if you have already worked with employees on known prices and outcomes.
Depending on the nature of the service this monthly price of the employee may or may not include cost of work infrastructure or other operational expenses. This is something that needs to be worked out with the person preferring this type of pricing option.
Option 3 – Fixed Price
This option is suitable in cases where work hours or scope of work can’t be determined.
There are projects in which too many agencies or people are involved and work hours can be extended or added on actual basis. In such projects fixed price option is ideal. Here you can set value for the work in the desired currency. The advantage of this pricing model is that you can always enter estimated workload in hours. This helps you understand the income/expense ratio on the project.
The pricing models are flexible and the ones that are being preferred or used by all companies.
2. Income, Expense & Profit
Where is the money? That’s the million dollar question what every business owner asks at the end of the day looking at sales and income. The finance section gives you in depth insights on income and expense project, employee or task wise. This data helps you to understand which project or employee is bringing you more profit and which projects or employee is causing loss. The income, expense or profit can be viewed in multiple currencies. You can customize financial reports by adding or removing multiple employees or projects. A very interesting feature is that if you are paying to salaried employees then you can include or exclude holidays to measure your financials.
3. Cost Estimation
As your business flourishes and competition get tougher every business needs to come up with some innovative product features and pricing strategies. This is another area where Timepot’s finance section comes in very handy to rework your service delivery time and pricing. If you are providing a particular service to different clients which involves same set of tasks or employees then using the finance feature you can analyse not just how much time you spent executing a particular service but also how much did employee working hours cost you internally. This gives you a fair opportunity to negotiate hourly price and delivery terms with freelancer or employees and come up with a very competitive pricing models and service delivery time.
In Timepot’s finance section you can track income, expense, profits, employee salaries/wages and many more insights to scale up your business.