Most architectural firms must use cash accounting for tax purposes. Only what you receive or paid is counted.
The downside of cash accounting is that you don’t know how you are doing until later so it is a poor choice for management.
Accrual accounting counts income when you invoice it and expenses when you get the bill. This is what you need to manage.
MyCorbu lets you choose which you want. If you want accrual, there are Receivables and Payables tables to assist in converting Accrual to Cash.
The simple formula for financial management is: “The hours that you get paid for have to generate enough revenue to cover ALL the firm’s expenses plus a profit.”
On the Admin page is a new link to tools to help you incorporate this model into your bookkeeping.
More help is coming in the weeks ahead.
One of the benefits of architectural bookkeeping is getting instant feedback from your data.
The table of Project-Phase Budgets on the Projects page always shows you how many hours and dollars have been logged. If you have set a design budget, you know what percent complete the Project-Phase deliverables should be.
Similarly, by opening the Project Financial Status Reports from the Bookkeeping page, you can see in one line per project how income and expenses look. Click the Details link at the end of the line to dig deeper into the time and money attributed to the Project.
Invoices are treated more robustly in MyCorbu now. The big change is how Invoices are entered as a transaction. And how they make use of the Fees feature.
Take a look at the HELP article to get an overview of how this improvement can work for you.
During the Beta testing period of January, pick a project to familiarize yourself with this helpful feature. Or take Fees for a Test Drive here.
Entering and tracking your Fees in MyCorbu is straight forward. From the Bookkeeping page click the Fees button to access the Fees page.
From there you can “Add a Fee”.
Once your Fees are recorded, they appear in the table where you can report on their percentage of completion.
Learn more about Fees here: https://www.mycorbu.com/help/fees
Tracking your Project Fees is now possible with MyCorbu. The easiest way to see how it works is to visit the 'Test Drive' account. The Fees feature is found by clicking the FEES button found near the top of the Bookkeeping page.
Until recently the recommended way to track PTO in MyCorbu was useful but complicated. The new process involves just one Project-Phase and setting PTO Allowances annually.
Read about PTO Tracking here.
Custom Project Billing Rates can be set for every Project. Custom Rates can be changed, but require attention to ‘Resetting/Freezing’ to make the change complete.
Learn all about it here and in the Reference Guides.
MONITOR BILLABLE & NON-BILLABLE
The Budget for a Project-Phase can be either billable or non-billable so you can monitor the status of overhead projects like marketing.
If a Project-Phase is BILLABLE, the "Spent JTD" value represents the total Charge Cost associated with the hours assigned to the Project-Phase.
If a Project-Phase is NON-BILLABLE, the "Spent JTD" value represents the total Labor Cost associated with the hours assigned to the Project-Phase.
In either case the "Complete" percentage represents the Spent JTD value divided by the Budget.
Add A File To A Transaction
When Bookkeeping launches in the next week or so there will be a feature that hasn't been mentioned before now - FILES. You may add a file to your expense or income transactions by simply uploading it. This will allow you to keep your bills and invoices right with your transactions for easy reference.
Determining Proj. Fin. Status
MyCorbu's Bookkeeping feature allows you to determine the financial status of your projects with just a couple of clicks. A new blog post describes where the results can be found in the upgraded version.
Beta Testing Starts Soon
I have finished the planning for the 'Transactions' bookkeeping feature for TIME. I started building it three days ago and it is going pretty well. No gotchas so far.
I will be looking for Beta testers to try it out in a week or two. Send me an email if you are interested. You don't have to be a TIME user.
NEWS will be a communication tool for keeping you informed of:
NEWS will be emailed to you once a month on the 7th.
If you open an article in your browser, you will be able to Comment or ask Questions. I try to respond to Comments as soon as possible. Of course you can always reach me at rwolnitzek at architekwiki dot com.
540 Beaumont, Fort Wright, KY
VM: (859) 444-4560
Developed by Architekwiki | A Resource For Architects
© 2016-2020 Architekwiki
© 2016-2020 Architekwiki