The holiday season is in full swing and businesses are making their list of ways to boost revenue and checking it twice. Yes, it’s that magical time of the year accountants live for, when they can make a few key year-end moves to wrap up the fiscal year in a nice little bow and prepare for 2013.
BillQuick doesn’t require any year-end operational procedures; however, we do recommend that you take advantage of its powerful reports to help optimize your business for the New Year. Here are 5 year-end tips to consider:
Double Your Collection Efforts
As the year ends, many of us, including your clients, want to pay bills in advance to minimize on taxes. Do your clients a favor by running BillQuick’s Aging Report (accessed from the Reports menu) and start calling them to collect what they owe you and minimize their taxes. You will be surprised how effective it is when you remind them of the tax breaks.
Review Your Workload
Managers and principals need clear information about how much revenue remains to be billed for active jobs. The Work-in-Hand Report shows your future workload and is very helpful if you entered actual (or estimated) contract amounts for the hourly projects too. Not only does this report show the unbilled amount, it also displays the Work-in-Progress (WIP) that you can bill today. Run this report from the Reports menu>Company.
Review Staff Performance
The end of the year means it’s bonus time. Which employee deserves to get some extra cash or be crowned ‘Employee of the Year’? You need to find out who has the maximum billable hours and best effective bill rate. As a rule of thumb, the effective bill rate should be greater than the Pay Rate times Overhead Multiplier. To check staff performance, run the Staff Billing Report from the Reports menu>Analysis.
Update Rates for the New Year
With the increasing cost of doing business, it is important to review this information, and then increase employee default bill rates and cost rates as needed for 2013. Also, some fee schedules may need to be updated to reflect the new special rates. Run Employee Default Bill Rates from the Reports menu>Billing to list current bill rates for your employees. Next, print the current Service Fee Schedule Report from the Reports menu>Company. BQE recommends increasing your billing rates every year by 3% to 5% to cover the increase in costs.
Send a Gift Basket to Your Top Ten Clients
Review which clients paid the largest fees in 2012 by running the Client Billings – Top 10 Report (filtered for 2012) from the Reports Center>Analysis. We recommend sending them a personal note along with a nice gift basket.
Follow these tips to bring 2012 to a proper close and prepare your firm to hit the ground running in 2013.