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S2 E23 Figuring Out What to Charge Based on Your Time and Expense

AUDIO

VIDEO

NOTES:

1.It’s important to look at the data to see what projects actually cost, as opposed to an estimate.

2. Give every project a number and all your clients a client code. This allows you to separate out all the expenses for a particular client project, and you can run reports to see the data. 

3. This type of recording also means you can track how much time is being spent on each project. Then, you can review the cost of those hours and the expenses and look at them in comparison to the fee being charged. It may surprise you to see how many hours go into some of the projects you complete!

4. Knowing these numbers lets you know your value. It allows you to set goals for yourself or for your team. It lets you understand how important it is to budget your time, and see where you are coming up on fee-based projects or those that are billable hour projects. 

5. Part of the journey to profitability is not just tracking the time, but budgeting the time. It also allows you to look back and see the data on a past project when you start to work on something new, and gives you a good idea of how you need to plan. 

6. There are other considerations in how to do billing, including things that are needed to run your business but not necessarily an expense to a specific project.

7. If you can base things on data, real information, real hours, real expenses, it’s more fair for everyone. It’s more fair for the client and it’s more fair for you.

 

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todd@rumbledrum.com

joe@rumbledrum.com

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