While working with customers and implementing various projects, we pay a lot of attention to profitability, because none of us wants to work while losing money.
If we try to represent the profitability formula in the simplest way, it will look as follows: PROFIT = REVENUES OF THE PROJECT — (PRIME COST + EXPENSES).
The prime cost of the any professional business includes expenses for personnel, including direct taxes. Sometimes, it also includes a «specific fee» that is used to account for indirect costs such as the prime cost (management, marketing, sales, etc.). However, it still will be the prime cost of a man hour. We can get the information of the prime cost using information about labor contribution, i.e., through timesheets.
But what can we do with such expenses as subcontracts, assignments, or even payments for various materials (imagine that you have to buy a banner for an exhibition)? While accounting for such information using a different software solution, you won’t be able to benefit from useful information about the overall economics of your projects and customers, having no chance to perform a thorough and comprehensive analysis of the entire situation.
Timetta makes it possible to use the unified workflow of your company in order to create a request for expenses. All expense requests have to be approved in the very same manner as timesheets. Usually, such requests must be approved by the project managers (because they are responsible for the budget of the project) and the line manager. After acquiring the required approval, such a request will be forwarded to the financial managers who will finalize the process by compensating the employee, paying invoices from subcontractors, and sending invoices to the customers.