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Setting up a Budget for a Bookkeeping Engagement in BillQuick

When you are using value pricing in a bookkeeping engagement, your income is based on a set monthly figure. When you are setting up a budget for a bookkeeping engagement you have to look at the costs very carefully. In this example what we have is pretty simple, but we do want to outline the tasks that need to be completed each month.

Setting up a Budget for a Bookkeeping Engagement in BillQuick

A budget in BillQuick operates independently of any particular engagement. In other words, you can set up a budget once and use it on many engagements across many clients. This way whenever I get any client in and I am setting them up on my “Blue” pricing plan, I can use the same budget because the same tasks cost, and billing rates apply.

As you are setting up a budget for a bookkeeping engagement in BillQuick, especially for the first time, you will need to think about the different tasks that need to be completed each month. You will also need to think about tasks that are completed in a particular month (eg) 1099s in January. You will need to set up activity codes for each of these tasks. Like any well designed software, BillQuick will let you add new activity codes while you are setting up your budget.

An important thing to note about the budget screen. There are 2 rate columns and 2 amount columns. The ones called “Cost” are just that. The other rate, just called “Rate” and the other amount, just called “amount” are the billing rate and amount. This is what your customer will be charged for the budget item. In a flat rate scenario like we’re setting up this information is irrelevant, but you should set it up with all of the information just in case for some reason you decide to take on a client with hourly billing. Then you can use this budget for either scenario.

If you are setting up a budget for a bookkeeping engagement in BillQuick then you want to set up an engagement for the year. So think in terms of (eg 2015 Monthly Bookkeeping). This way each year you would set up a new engagement. When you are doing a flat fee (value priced) engagement then you may want to set the budget up with the cost and bill rate the same.

For monthly recurring tasks I would recommend setting up each month as it’s own budget item is that if you want to use the resource allocation area of BillQuick, having a separate budget item for each account and for each month will make this work much better.

In the video on setting up a bookkeeping engagement in BillQuick I will walk you through what this might look like including lots of important tips and tricks based on settings in BillQuick that will make all of this very easy to manage.

 

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