This is a transcript of a video created by Natasha Klebba, CPA & Principal at IFI Professionals.
Hi, my name is Natasha Klebba. I am frequently asked about, how can a company produce utilization and profitability reports out of a system. Now, Sage Intacct has this fantastic module, called Projects. It goes hand-in-hand with Time and Expenses, and if you're entering your timesheets into a system, let's just say Upland PSA, a KeyedIn, or directly into Sage Intacct, we can capture your labor hours, apply a cost to it, determine your utilization and your billable capacity, and produce these incredible reports and dashboards for you to make informed decisions from.
Now, I personally, over here at IFI, I use these reports so that I know, how are my people performing? Is somebody overburdened or under-burdened? Does somebody need work. Is somebody spending too much time on a task that they shouldn't necessarily be working on? So all this information is right at my fingertips. Now, behind me I have an image of a demo environment that I use, and it has very minimal information, but these will show you your billable hours, your non-billable, what are you working on, what projects are you working on, who it is you're costing.
One of the other things that I like to do is I break apart somebody's actual cost that they're spending on a project, burdened cost generally, versus the salary that's coming in, because with professional services, most of the people are salary versus hourly, but we can manipulate the system or the numbers to actually determine, what is that person's hourly rate. If they worked 50 hours on a project, I'm going to be able to capture the true cost of what that project is running versus, hey, they're maxed out at this amount and that's all that I care about from my P&L perspective. I actually want to see the true, meaningful picture of, what does it really cost to produce this project.
Now, so Intacct is fantastic with these reports. I get to break it apart any which way. Intacct has it where a task is a dimensional transaction. So if you don't know what dimensional activity is, or looking at things dimension-based, say you have a customer, a customer can be a dimension. You can produce a set of financial statements or look at your revenue based off of your customer. You could see, from a customer perspective, a little mini P&L, as long as you bring that customer along for the ride on all your various transactions.
So you can produce beautiful dashboard reports like this, send them out, schedule them. This is more of a project-based report, and then we can have the ... Well, actually, this is more of the utilization report. You can run little P&L's by each of your projects, and you can even use conditional formatting, so if something is out of whack, you could easily see it, because it's going to pop at your eye because it's a different color.
So the reports are fantastic. They're easy to use. They're real-time. They're giving you live data, and we always like to have your people report their time weekly, so if not ... some, actually, I've seen post daily, so that you can get accurate real-time reports that you can drive your business with. That's what's so powerful.
So if you have any questions, want to understand more about projects, labor costing, utilization, how to trigger revenue or invoices based off of milestones or percentage of completion, please, give me a call. Thank you.
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