It’s officially a new year! While tackling your usual year-end tasks, don’t forget to review these sometimes overlooked items: Timekeeper Rates, Timekeeper Profitability Figures, Client and Task Based Billing Budgets, and General Ledger Budgets!
Timekeeper Rates
It’s a new year and you want to increase your timekeeper rates, but how can you make the change happen for all applicable timekeepers on a specific date?
Tabs3 Billing makes it easy to seamlessly update timekeeper rates. You can specify the new rates and the effective date for the change, and the software will then automatically use the new rates for any applicable fees saved for that date or later. Transactions entered for a prior date will use the old rates.
To easily determine current timekeeper rates, run the Timekeeper List (From the Quick Launch, search for and select “Timekeeper List”).
To update rates and set an effective date for the new rates
Tip: Once you are certain fees will not be entered for dates prior to the new rates, use the Move Rates button in the Timekeeper file to easily move rates from the New Rate 1-6 fields to the Hourly Rate 1-6 fields.
If any time was entered with old timekeeper rates prior to updating the Effective Date of New Rates and New Rate fields, and the transactions are still in work-in-process, you can use Change WIP Transactions (In the Quick Launch, search for and select “Change WIP Transactions”) to change transactions all at once. (Note: Because Change WIP Transactions can make changes to a large number of transactions in the software at one time, we strongly recommend making a backup prior to using this feature.)
Timekeeper Overhead
If you run the Timekeeper Profitability Report, or you plan to start, you may want to review and update the profitability figures (overhead) set up for each timekeeper. Firms typically update a timekeeper’s overhead when their salary or benefits, such as insurance, change. Accurate overhead ensures the Timekeeper Profitability Report reflects true realized profit for each timekeeper.
To easily determine current timekeeper overhead, run the Timekeeper List (From the Quick Launch, search for and select “Timekeeper List”), making sure to select the Overhead Amounts check box.
To update a timekeeper’s overhead
Tabs3 Budgets
Now that your firm’s timekeepers are squared away, consider reevaluating any budgets you currently have set up for your clients and adjust as necessary.
Client Budgets
Setting up client budgets, and keeping them updated, helps ensure you are not spending more time than desired on a client’s matter. You can optionally select to display a warning when a fee or cost transaction is added if the budgeted hours or amount for the client has been exceeded.
To easily determine current budgets set up for each client, run the Client Budget Report (In the Quick Launch, search for and select “Client Budget Report”).
To update a client’s budget
Task Based Billing Budgets
Like client budgets, it is a good idea to review how much you have budgeted for task based billing clients’ activities and expenses. You can optionally display a budget exceeded warning when more than the amount entered for the phase or task is saved.
To easily determine current task based billing budgets for each client, run the Task Code Budget Report (From the Quick Launch, search for and select “Task Code Budget Report”).
To update a client’s task based billing budget
General Ledger Budgets
Budgets for your general ledger expense accounts are a must, and Tabs3 General Ledger (GL) makes it easy to set up budgets for a new year!
To easily determine current budgets for each account, run the Budget Report (In the Quick Launch, search for and select “Budget Report”).
To update budgets in GL
It’s easy to overlook these periodic maintenance items. Be sure to schedule some time to make sure rates, overhead figures, and budgets are all current!
When a timekeeper’s rate changes, it can be tricky to make sure that all fees are entered correctly before and after the change. Tabs3 takes the stress out by providing the ability to change rates automatically based on the date of the fee.
The Effective Date of New Rates field in the Timekeeper file can be used to automatically switch to a new rate as of a specific date. Fees dated prior to the specified date will use the previous rate, whereas fees dated on or after the specified date will use the new rate. The How Can I Change the Rate for Future Billing video walks you through this process and provides an example of how it works.
Watch this two-minute video here:
Training Videos can be accessed at Tabs3.com/videos. You can also access the videos while in the software by selecting Help | Training Videos.
Did you know that you can set a timekeeper’s rate to change as of a specific date? This means that the software will automatically apply the correct rate based on the fee’s date, allowing you to continue entering time like normal. For example, let’s say you want to change a timekeeper’s rate from $250 to $275, effective on March 1st. In this scenario, any time entered with a date prior to March 1st will automatically use the $250 rate, and any time entered with a date of March 1st or later will automatically use the $275 rate. This helps make it easy to change rates and have them billed correctly.
To set the effective date for new timekeeper rates
Note: New rates can also be configured in Rate Tables by editing each table.
Is it time to review billing rates? The Client Rate Report allows you to print a list of clients, along with their default billing rates. Additionally, fee and cost rate tables, timekeeper level rates, and the client’s billing rate code can be included. This report is especially useful when reviewing rates or if you need to change the hourly rate for one or more timekeepers.
The Client Rate Report training video walks you through running the report, and then reviews the generated report.
Watch this two-minute video here:
Training Videos can be accessed 24 hours a day, 7 days a week, at Tabs3.com/videos. You can also access Training Videos while in the software by selecting Help | Documentation and then clicking the See also link for Tabs3 and PracticeMaster Training Videos.
Most offices have standard hourly billing rates that they charge clients. Of course, there are also those clients whose rates differ from the standard rates, but what options are there for customizing rates?
The How Rates Work video discusses customizing client rates via the Rates tab in the Client file. The Rate Tables, Timekeeper Level, and Billing Rate Code options are discussed. Additionally, this video provides a recap of how Tabs3 determines the default hourly billing rate that will be used when adding a fee.
Watch this seven-and-a-half-minute video here:
Training Videos can be accessed 24 hours a day, 7 days a week, at Tabs3.com/videos. You can also access Training Videos while in the software by selecting Help | Documentation and then clicking the See also link for Tabs3 and PracticeMaster Training Videos.
Although Tabs3 Billing has the option to change fee rates via the Change WIP Transactions program, cost rates cannot be changed using this program. As a work-around, you can accomplish the cost rate change by creating a user activated WorkFlow in PracticeMaster. This type of WorkFlow runs only when initiated by a user, which means you can choose to run it for only the costs you want to change. The WorkFlow will change the Rate of the selected costs, recalculate the amount, and then automatically save the costs.
Tip: Once the WorkFlow has been created, it can easily be changed for future scenarios. For example, if you need to adjust cost records to a different rate, simply edit the existing WorkFlow for the new scenario.
To create a WorkFlow in PracticeMaster to change the rate of existing costs
To run the WorkFlow, simply open the Cost file, select the desired cost records, and then select the WorkFlow from the WorkFlows group of the Quick Clicks pane. All of the selected costs will be updated with the new rate and recalculated amount.
This was the first month of Working with WorkFlows! Did you find this article helpful? Have any article suggestions? Leave us a comment below!