In the consulting business, your hours are your inventory: lose track of them and they are wasted. If you hit your budget and reimbursable expenses, however, you will move more inventory.
Everyone wants a more profitable company with fewer headaches, happier customers and no surprises. Often some of the most mundane areas of business execution lead to the highest levels of achievement when done right. This is true for consultancies—automating your time and expense collection can help you achieve this higher level of profitability in several ways. Here are the top seven:
Lower Costs and Increase Profits
1. Understanding Your Costs
If you don't know your costs, you don't know where you’re profitable, so you can't steer your company towards success. In today’s knowledge economy, project accounting is the best way to understand production costs, but few companies do it well. Consultancies already know the importance of tracking hours better than most companies do, so it should come as no surprise that a thorough, efficient method of time tracking is essential to running a profitable consultancy.