How to work out which jobs are making money with xero.com and deputy.com
Working out where you are making your money can be really tough if you have different staff working for different times on different projects, products or customers. You can allocate the revenue to a job, but how do you allocate the labour cost quickly and easily and have it flow through to the profit and loss statement that reports on each project/product/customer (‘project’)?
The only way you can do this is by tracking time and then calculating the labour cost for each project based on the allocation of time for each employee. Needless to say, tracking time and then performing the calculations can both be painful, difficult and time-consuming. Furthermore, many accounting systems then won’t let you perform the calculation, meaning manual spreadsheets are required. The end result is a lot of work and questionable calculations.
The beauty of the system lies in the quality of the software!
Fortunately, there is a solution. A combination of xero.com accounting software and deputy.com staff scheduling and timesheet software allows for:
- Easy capture of time spent on different projects, through the use of smartphone and ipad apps, using deputy.com
- The allocation of labour time and costs to different projects, through the integration of deputy.com and xero.com
Exporting is easy.
Once the time is entered and approved in deputy.com, a few clicks will see the timesheet exported to xero. Xero then creates a timesheet in its payroll system with time for each employee allocated between its tracking categories. In this case, the tracking categories would be the different projects. Once the timesheet in xero is approved and the payrun completed, the labour costs flow through to profit and loss reports using the tracking categories and voila, you can see profits by project.
The beauty of the system lies in the quality of the software, as deputy.com and xero.com are both easy to learn, simple to use and powerful. The recording and allocation of time between projects is quick and easy for all staff. Issues such as incorrect or incomplete recording of time can be fixed easily.
If you want to know more, check out xero.com or deputy.com or contact Morrison ABS for a free initial consultation on how these cloud based software packages can help your business.