Charge Rates are used to monitor the status of Project-Phase Design Budgets on the Project page. To take advantage of this feature you must enter two pieces of information: one for each staff member, and one for each Project-Phase. Both have shortcuts.
First, for each staff member, add a charge rate. The shortcut: If you want, say, a 20% markup of your costs to be profit on projects, then divide each staff member's Standard Billing Rate by 1.2 to get the Charge rate.
Second, for each Project-Phase, add a dollars budget. The shortcut: after deducting expenses like consultants from each Project-Phase Fee, divide that net Fee by 1.2 to get your design budget (if you are using a 20% markup).
The Architects Financial Model lets you be more rigorous in calculating appropriate Charge and Billing Rates for your firm. See https://www.architekwiki.com/wiki/architects-financial-model
If you are planning on rate increases for the coming year, it should be executed as close to January 1st as possible. That way all your time entries for the new year will reflect the change.
LABOR RATES might be changing because of raises.
CHARGE RATES should increase if Labor Rates go up.
STANDARD BILLING RATES should increase if Labor Rates go up, but you might want to increase them in any event.
CUSTOM BILLING RATES, where you have implemented them, also might need to increase. Check Reference Guide No. BR-16.
Here are two articles that explain how to determine rates.
Feel free to email me with any questions by responding to this email.
Have you built a Financial Model for your firm based on this process?
MyCorbu recalculates your Overhead and Billing Overhead Factors for you each month.
Check it out here. On the Admin page, under the Staff heading click the button for "Staff Details & Billing Overhead Factor Calculations”. As you scroll down the page you will find a table of past calculations that you have entered using the form. In the form at the bottom, simply transcribe the values determined for you or enter your own values, and then add the percentage profit you plan for.
Month by month you will see how this key metric is trending. "Lower is better.”
As a user of MyCorbu you can get the app for 2/3 off. Look for the discount code. On your Admin page, under ’Staff’, click the “Staff Details and Billing Overhead Factor Calculations” button. Or use this link:
You can easily review the status of PTO for anyone as explained in this HELP article.
The individual can also determine their own status from their Timesheet page. The process starts by scrolling down on the Timesheet page to the 'Time Records By Date' table. Next type or copy/paste into the 'Search' box the name that your organization uses for the PTO Project-Phase, and click 'Search'.
Make sure the Filter is set for 'This Year'. At the bottom of the table is the total of PTO hours taken so far this year.
The final step is to click the Billable Ratio button at the top of the page. At the bottom of this view the PTO Allowance for the individual is shown. Simple math shows how much PTO remains.
Eventually Rates change. The Labor Rate and the Charge Rate increase due to raises. When they do, you can lock the past entries of everyone by 'freezing' them while making the change.
Check out the TOOLS Reference Guide BT-33, which is found in the Reference Guide on either the Bookkeeping Page or the Tools Page.
I have been reviewing HELP articles. This one explaining the use of Rates may be useful.
HELP on RATES (link)
Every project-based firm has a ratio of billable to non-billable hours that sets the threshold for profitability. See how to establish yours here.
MyCorbu calculates what is actually happening for you. The individual can see their ratio on their Timesheet page. The overall firm’s ratio is accessed from the All Time page. And Admins can access each staff member’s ratio. Go to Admin page > Staff Details button > ‘detail’ link in table.
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.
Now you can assign target Billable Ratios and view each staff member's Billable Ratio for six timeframes.
If you use the powerful Billable Ratio tools built into MyCorbu, tracking an individual's Billable Ratio is simple. Check out the new tools by going to the Admin Page > Staff Details button, which brings up a table of staff members.
Learn more at:
Improved Labor and Charge Rates
Behind the scenes, the Labor Rate and the Charge Rate can now accommodate change without affecting records that have already been entered. Access to these rates is by way of the renamed menu on the Admin Page, "Managing Rates and Reimbursements" (was "Auxiliary Data").
A 'History' field has also been added to this table so that it is convenient to document when Labor Rates change. This field can become a kind of personnel record.
Staff can no longer be deleted because of the damage to your historical time records that this would do. Make their User Status 'Inactive' instead. Use the new filter menu to remove them from the table view.
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