Labor Budgets allow you to plan the amount of hours and billable dollars your staff will generate during the year. This is helpful for forecasting labor revenue when people may work more than a standard work week. These labor budgets are then used in the Chargeability Reports and Widgets.
This also allows you to calculate revenue per employee in situations where you have employees that are strictly overhead and do not fill out time sheets directly to a project. For each budget, you can specify the total available hours, target billable hours and total billable dollars that a staff person is expected to generate each month.
Once you create a standard labor budget for a person, it is possible for the staff person to review their labor budget and make changes based on their availability during the year. Staff people can access their labor budgets from the Menu > My Settings. Once a person's labor budget has been reviewed, a manager can lock the budget so that it can only be viewed by staff members.
There are security rights which may prevent you from seeing people from other offices or departments. This way each department manager can enter a budget for each of his employees.
Add a Labor Budget
Go to Menu > Accounting > Labor Budgets.
Click on New.
Give the budget a Name.
- For example, using the year is a great way to label it.
Generating a Budget
You have two options at this point:
1. Create a default budget for all employees. This is the fastest way to create a budget, however it makes it so all employees have the same budget. You can then drill in to modify each person afterwards.
2. Create a budget for each person. This allows you to choose the personalized budget for each employee. This approach may be better if your employees are different billable percentages and you do not want to adjust the vales after you add them.
1. Create a default budget for all employees
After you save the initial budge name, a section appears below called Budget Defaults.
- In the Available Annual Hours, enter you yearly formulation (i.e. 2080).
- In the Target Billable %, enter the percent as a whole number for what should be billable across the board (i.e. 75).
Press Generate Budget.
- The column Target $ is generated based on the Employees > Hourly Rate.
- From here you can click on the Pencil icon to edit each person and adjust their details.
2. Create a budget for each employee
After you create a budget (or open an existing budget), click on the action of Add a Person.
The following screen will appear:
- Choose a Staff Person.
- Enter the Available Hours (i.e. 2080).
- Enter a Target Billable % as a whole number (i.e. 75).
- Enter a Standard Billing Rate (This pulls from the Employees > Hourly Rate to start off).
Then press the Allocate button to populate the Budget Hours section and shown below.
Reviewing your budget
Each employee can review their budget by going to Menu > My Settings > Legacy > Labor Budgets.
Enter your Comments and click Review Complete.
If your budget is Locked, then you would see something like this:
Locking a budget
As an administrator of this data, you can Lock each person budget. This will give the employee a read only view of the data from their My Settings (as shown above).