Fixed Fee Revenue Projections
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Take the guesswork out of business planning with fixed fee work revenue projections. Fixed fee refers to the amount that’ll be billed to the client for the work you do or the services you provide. Now you can project the revenue you’ll bring in each month based on your fixed fee projects or tasks.
First, we’ll show you how to select the fixed fee revenue projection in resource allocation. Then, we’ll explain how to run a report with fixed fee projections.
NOTE: This article assumes that you’re familiar with the Task Editor. Also, instead of “tasks,” your firm may refer to these units of work as “budget items,” “phases,” “work items,” or “engagements.” It’s easy to update the lexicon settings in BigTime to accommodate your firm’s needs.
Select Fixed Fee in Resource Allocation
After you’ve added fee budgets to your tasks in the Task Editor, click Allocations...Edit Allocation.
Then, click Save. Doing so will open the “save allocation budget” window. Now, click the red triangle, under “revenue recognition model,” and a picklist will populate. Select Fixed Fee (% of Overall Budget).
Click Save to save your selection.
Next we’ll create a report with fixed fee projections.
Create a Report with Fixed Fee Revenue Projections
Navigate to your Report Center, and then follow the steps below.
- Scroll down in the Report Center window, until you see several options under Allocation Reports. Click on the hyperlink Allocation by Month/Project in order to see your projected fixed fee revenue by month.
- Customize your report. Click Customize, near the top-right corner of your window, and select Customize from the picklist.
NOTE: Learn more about customizing a report in this article.
Add “allocated fees” as columns for the months that you want BigTime to make projections for.
To do this, click on the column titled Allocated (M1). This will generate additional options within the column so you can customize it. At the top of this column, select Allocated Fees (M1).
Allocated Fees, in a fixed fee revenue projection model, takes the budgeted fees per task, and separates the fees according to the number of hours that are allocated each month. For example, a task budgeted for $10,000 over January and February: 80 hours are allocated in January and 20 hours are allocated in February. Thus, $8,000 in revenue will be projected in January and $2,000 will be projected in February.
- Click Save to save your change.
Follow this same process for the remaining columns, but select “allocated fees” with the corresponding number (M2, M3, M4, and so on).
- Click Create Report, located near the top-right corner of your window, to generate your report.
A new window will pop up that’ll allow you to title the report and select where you’d like to publish it. After you’ve made your selections, click Publish Report, which will cause another window to pop up.
- Click Edit Report Settings to adjust the allocation period. Since the report is projecting into the future you may need to modify the month and date of the report. You can type a numeric date into the textbox or select a date and year from the calendar that populates, once you place your cursor into the box.
- Click Run Report once you’ve made your selections.
In the image above, we can see how much revenue our staffers, Jason and Ben, are expected to bring in each month for the next three months. This type of information is helpful when planning for future work and staying on budget.