Does anyone use Time and Billing in Karbon and have mostly a fixed fee pricing structure?
If you do, how to determine job profitability in Karbon, or do you?
Our business is about 95% fixed fee. For us, having a billing rate in Karbon for each role is not useful in determining job profitability. Ideally, I would need to load into Karbon the loaded hourly rate for each employee (not just role).
Currently we track our time and billing in Xero’s PracticeManagement and we can get job profitability out of that system. We would rather use Karbon for Time and Billing since the it would reducing switching cost between the two app during the day.
I know that I could export the time data and dump it into a data analysis tool to determine job costing, but that requires a manual process and additional work that I don’t really want to do. Also, I would like to keep everything in Karbon if possible.
It’s still trying and testing for us but we have a couple of different things for fixed fee work. One example:
The fixed fee is added to Karbon (for reference and changed as and when needed, i.e. when the contract changes). Then also a budget is set in Karbon (highest limit or most money we want to spend doing this work)
Imagine you have a fixed fee service Bookkeeping/VAT on a monthly retainer, this may involve lower rate work (general Bookkeeping) and higher rate work (an accountant checking the VAT prior to submission). We split the fixed fee between time for a Bookkeeper (could be anyone on our team) and time for an Accountant (again, can be assigned to anyone from the team whose time is usually higher rate). This is how we make sure we are on top of the fixed fee. I hope it helps :)