What’s the Difference Between Cost Rates and Bill Rates?
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Sometimes users confuse cost and bill rates, so this article will explain the differences. It’ll also direct you to articles that’ll explain how to use and find each rate type in BigTime.
Cost rate refers to how much an employee costs the company. For example, Zack charges $100 per hour, and his cost rate is $25. That means it costs the company $25 for each hour he bills. Cost rates determine the profitability of your staffers and jobs, or projects.
Cost rates are specific to each staffer, and they need to be added and updated on an individual basis. Make sure the cost rate is accurate for each staffer before they submit their timesheet, since cost rates are applied when an entry is submitted.
This article provides more detail about accessing and using cost rates in BigTime.
Bill rates refer to the hourly rate your company uses to charge your customers for your services.
Create up to five different bill rates for each staffer, as seen in the image above. It’s common for staffers to have multiple rates, such as a “standard rate” and a “discounted” one. You’ll want to add the appropriate rates for each staffer that joins BigTime.
NOTE: Update the lexicon settings in BigTime to change the rate title, such as “standard rate” or “discounted rate.” Reference this video to learn how: Video Tutorial: Setting Up Bill Rates at the Staff Level.