2009 August Edition

Message from Doris: What’s new with BillQuick 2009?

DMC values and works with a balanced set of software companies in delivering consulting solutions to the A&E community. One of those relationships is with BQE, the makers of BillQuick. We choose vendors based on the software’s ability to solve for project accounting and do so at the value point the client is asking for. It is hard to ignore small business packages such as QuickBooks and MYOB, which have a large and happy client base. That is why we also service those software. Despite happy customers, in my opinion, neither small business solutions effectively solve for the project costing/invoicing needs of the A&E industry. BillQuick offers a scalable and affordable solution for those who love or wish to return to a smaller but robust software.

There are many reasons small and even midsize firms utilize lower end packages. Cost is certainly a factor, but it is mostly the ease of use and the number of accounting people who are able to support the back end accounting. What BillQuick offers is an extension and merger with QuickBooks (and other software). BillQuick manages time and expenses, invoicing and project costs while also synchronizing invoices, accounts payable, customers, vendor bills and other data with QuickBooks.

In response to client feedback, BillQuick 2009 offers many new features:

• Dashboard with key financial reporting.
• 100+ invoice formats and 300+ reports, with extensive filters, and all customizable.
• Expanded integration with QuickBooks.
• Outlook integration for converting appointments, tasks and emails into time entries.
• Retainage and Cost Plus contract handling.
• Linking files to projects, expenses, time, customers, vendors bills and more.
• Enhanced purchase orders.
• Workflow automation as a network service, including SMTP support.

BillQuick also offers a web-based edition, including Mobile smart phone supports. You have a choice of database - Microsoft Access, SQL Express or SQL server. The software’s hardware requirements are reasonable, even if a new server is a must. BQE’s customers range from a five-man firm to multi-office firms with thousands of users.

DMC is helping clients find ways to budget and plan for the phasing out of legacy accounting systems. Even though we are more than happy to support our clients on any application, we prefer preventing urgent repair. We maintain clients who have not upgraded in many years. Alternatively, it is more reasonable to look at solutions sooner rather than later. And the right strategy is to find the software that works the way you run your business. Understanding how technology should serve your needs gives you control over when to upgrade and change.

Learn more about at BQE.com or contact us directly at 617-383-6090.

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Did You Do a Mid-Year Review? by BillQuick

In these economic times, professional firms cannot afford to put off review of operations. In case you have not done your review, BQE Software offers 5 suggestions.

Aged A/R, Days Receivables Outstanding

Most firms watch aging closely with an Aged A/R report (AR Aging.pdf). Many BillQuick users prefer the Days Receivables Outstanding report (Days Receivable Outstanding Report.pdf).

Knowing the age (in days) of each invoice highlights the risk to the investment you have in a client (also see the next report). The longer a receivable is outstanding, the greater the probability it will not be paid in full (or at all). What is a normal pattern depends on your clients, but be cautious. Information from these reports may lead to such changes as late fees, raising fees, or up-front or scheduled payments. BQE recommends using the Agent Workflow Automation module to schedule these reports for daily or weekly delivery to project managers and executives.

WIP Reconciliation, WIP + A/R by Project

Your investment in clients and projects includes A/R as well as unbilled time and expenses (work in progress (WIP) inventory). The WIP Reconciliation Summary by Project report (WIP Reconciliation Summary By Project.pdf) shows the contract amount, flow of services and expenses, billings and closing WIP. To view the total investment, check the WIP + A/R by Project report (WIP AR By Project.pdf). These reports help managers gauge risk. Excessive WIP and A/R increases the carrying cost to the firm, impacting profitability. To reduce the risk, bill WIP and do not delay invoices. Stay on top of collections. Also, keep this information top of mind with project and senior managers with scheduled weekly reports. In addition, many BillQuick users report that synchronizing billing as well as collections calls with clients’ bill paying cycles often result in faster payment. Finally, if an investment is above your comfort level, let them know you need their A/R cleaned up. For future projects, you may require a retainer or prepayment.

One last review item: If a small group of clients represent a significant portion of unbilled WIP and receivables, you face a significant risk. What if they went bankrupt? To reduce this risk, develop and execute a “rainmaking” plan to acquire new clients and projects and spread the risk.

Work in Hand

BillQuick’s Work in Hand report (Work In Hand.pdf) lists every project. You see the contract amount, service and expenses charged to date, billed to date, paid to date, outstanding amounts due, and unbilled WIP. If you are over-contract on a project, it’s highlighted.

The key question is how many more months can you keep your managers and staff busy with billable work? A quick way to gauge your Months Work in Hand “pipeline” is to divide the total unbilled contracts by your typical monthly billing amount. If it’s less than 3 months, execute an intensive rainmaking plan. Six months is better, but the more projects being done for more clients (to reduce risk), the better off you are. Once the rainmaking engine is running, you can maintain a steady stream of new jobs. You may surprise yourself and add staff and other resources to handle growth.

Profitability – Billed and Unbilled

An Income Statement is after the fact information that may come too late. And it shows only billed activity. The profitability of unbilled hours and expenses is equally important.

In BillQuick you can view client profitability by invoice on the Gross Margins report (Client Gross Margin By Project Billed Activity.pdf). The report shows billed activities and expenses, the cost of the billed items, profit/loss amount, and gross margin percentage. For longer running projects, include the past 6, 12 or more months to gain insights like how profit margins may be slipping or improving.

For project managers (and their bosses), the Project Profitability report (Project Profit Summary Billed And Unbilled Activity.pdf) acts as a reminder that project quality and timely completion are not more or less important than completing work at a profit. In many firms, project manager compensation is partially determined by profits.

Staff Performance, Staff Profit Report

The Staff Performance report (Staff Performance.pdf) compares billable and non-billable hours recorded by each employee. It also breaks out marketing, overhead, vacation, sick and holiday time. Viewing this information, your key question is whether utilization is acceptable given current circumstances. Equally important, you need to know whether each employee is doing profitable work. The Staff Profit Report (Staff Profit Report.pdf) includes billed and unbilled activity to help you track this critical information.

If capital reserves are tight, the utilization rates, effective earning rates, and realization per hour in these reports may point to layoff candidates. But layoffs should always be the last resort. You know what it took to hire and develop your people. Do you want to have to do it all over again? Layoffs could put you at a competitive disadvantage.

Instead, BQE Software recommends that you invest in your people. While they may not generate as many billable hours as desired, those hours must be productive. Use available hours for training and cross-training. This might be custom BillQuick training that focuses on getting the most out of the software to help fulfill their responsibilities. It might include technical and professional skill development. We encourage you to develop your people’s management skills too. In short, make them ready for the economic upturn so they can take your firm to a new level.

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