Labor budgets [in-depth guide] – Workamajig

Overview

Labor budgets enable the estimation of the number of hours & billable revenue that the staff will produce throughout the year. This helps forecast labor revenue when people may work more than a standard work week. These labor budgets are then used in the billable summary reports.

This also allows the calculation of revenue per employee in situations where an employee(s) that is strictly overhead and does not fill out time sheets directly to a project. For each budget, the total available hours, target billable hours & total billable dollars that a staff person is expected to generate each month can be specified.

There are security rights that may prevent the ability to see staff from other GL companies, offices or departments. This way each department manager can enter a budget for each of their employees.

Add a labor budget

Go to Menu > Accounting >Today accounting > at the top click> Labor budgets.

or Menu > Accounting >Today accounting > Views: Labor budgets> at top of page clickNew

Title: (required) Enter a descriptive name for the budget. NOTE: Including the year in the title helps organize labor budgets.

Calculate Available Hours By Month: When checked, this will auto calculate the number of working days in the months for the fiscal year specified. Two new options will appear when this is checked.

Hours Per Day: By default this will be 8.
Math is fun: Hours Per Day x Number of Working Days (Mon-Fri) in each of the 12 Months = Hours Per Year.
Fiscal Year: By default this will populate with the current year and fiscal starting month.

Employee available annual hours: enter total hours to be accounted for in the year by each employee (i.e. 2080).

Target billable %: enter the percent as a whole number as to what percent of the employee's time should be billable (i.e. 75). NOTE: this will be used to create the budget for all employees but can be adjusted on the individual employee level.

Click SAVE to create the labor budget

The new labor budget will be created and contain each employee and may be grouped by GL company/office/department.

Calculate Available Hours By Month Example

When checked, the setup will look like this.

This is what the drill down details will look like after you use the Calculate Available Hours By Month option.

Managing the budget

Once created, you can adjust the labor budget in the following ways:

Edit budget: click ...More > Edit budget

The panel allows you to:

Edit title of the labor budget

Active: check/uncheck to make the labor budget active/inactive for billable summary reporting.

Click SAVE

Add person: click ...<More > Add person

Person: select an employee from the drop-down list

Billable hours: enter in total yearly hours

Target billable %: enter in whole number percentage

Hourly rate: enter in hourly billable rate for the selected employee

Click SAVE

Edit budget

When creating a new budget, the system will set the 'available hours' and 'target percentage' the same for each employee.

To edit the individual employee annual details, click into the fields to update the available hours, target %, target hours, hourly rate, annual cross, and comments fields.

To edit an individual employee’s monthly detail, click on the employee’s name. This will open the Month detail panel. In this screen, the available hours, target %, target hours, and total gross for each month can be updated.