BillQuick allows you to define an unlimited number of bill rates and cost rates. Besides the default rates, special rates can be defined in a fee schedule, which is then assigned to a project. In fact, the same fee schedule can be assigned to multiple projects for which special rates are negotiated. Further, BillQuick applies the correct rates to the entries automatically as you enter your time and expenses.
This whole system, called a Rate Hierarchy, eliminates the need to check rates before billing your clients, saving dozens of hours per billing cycle and days every year. These hours can be turned back into billable and productive hours, resulting in more time to manage projects and grow your business. Now let’s get into some details…
Bill and cost rates can be defined at three levels:
- Employee and Vendor (default rates)
- Service Fee Schedule (special rates)
- Activity (alternative rates)
1. Default Rates
Every employee and vendor is required to have a default bill and cost rate. The cost rate is based on the person’s pay rate and an overhead multiplier. The overhead factor can be as fully or lightly loaded as you want.
BillQuick automatically applies these default rates when a special rate is not found for the employee (or vendor) and activity charged to a project.
2. Service Fee Schedule Rates
When appropriate, you can set up a fee schedule and then assign it to a project (or multiple projects).
In a service fee schedule, you define how much to charge for a person who carries out a billable activity. So if your employees work on multiple tasks at different rates, just define a bill rate for each task. For example, a principal performing high experience tasks might be billed at $300 per hour, but when the same principal works on a lower-level task, you can bill that at $100 per hour.
When setting up a fee schedule, you often have multiple people who can carry out a task or you might have multiple activities that have the same value. The powerful Group feature in BillQuick handles such situations with ease. Just choose a group of employees and bill them at the same rate for a particular activity. Or, choose an employee for a group of related activities (for example, engineering calculations, tax services, etc.) and bill that work at the same rate. You can also choose an employee group-activity group combination.
3. Activity Rates
A third option for determining rates is ‘activities’.
On the Activity Codes screen, you have the option of specifying a bill rate and cost rate for each activity. This rate applies to whoever charges the activity to a project.
As for service fee schedule, you must tell BillQuick to consider these rates when it automatically applies the bill rate and cost rate to a task being charged by an employee or vendor.
Your setup choices determine what rates apply to a time entry. BillQuick uses this Rate Hierarchy to determine which bill rate and cost rate to apply.