Option 1: Setting up Service Rates
If your Rates are the same regardless of the staff member that is working on a Service, or their Role at the agency, then you will want to set up Service Rates. Please review this article to learn how.
Step #1: Create Rate Categories
The first step is to create your Rate Categories. There is no limit to the number of Rate Categories you add. Perhaps you need one for Standard work, one for Non-Profit, and another for Rush work.
Begin by going to Admin > Rate and Staff Management > Rate Categories.
Note that access to the Admin area is user permission based. Speak to your in-house fp. Administrator to have your permissions changed.
You will land on the Manage Rate Categories page. I already have a few Rate Categories in place, but let's create another one to use for work with non-profit clients. Fields marked in blue are required.
- Type in a name for this new rate and optionally add in any description. This description would only be seen by your internal users - it would not display on Estimates or Invoices.
- Enter default costs and mark-up. These will apply to any new Expenses and Services that you create after the creation of this Rate Category. You will still be able to change these values, but these defaults will be in place to save you time.
- By default, new rates you add will be already marked as Active - meaning you can use them for creating new work immediately. Un-check the Active box as needed.
- Choose to make this rate your Cost Rate - aka, what it costs you to provide this work. To learn more about cost rates, please review this article: Setting Individual Staff Costs & Creating Cost Rate Card. You can also choose to make this rate the Default Rate. Meaning that this rate will be selected when you create new work in your system. You will be able to make a different selection as needed.
Click Save when ready.
Once you save your changes, the new Rate Category will be listed. To edit this rate, or any other, click on the name, and the top portion of the screen will populate and be editable.
Step #2: Enter the Rate Values Across Your Services & Expenses
All your Internal Services ($$/ hour), Internal Expenses ($$/ units sold) and External Expenses (percentage mark-ups) will be listed here, along with any of your active Rate Categories. Leave the default rate and mark-up values, or type in other values of your choice. Click Save (found at the bottom of the page) when done.
Step #3: Make sure that the System Preferences are Set Correctly
Choose the tab called Work. Double check that the Estimate By Roles and Role Rate tick boxes are not selected in the Work tab.
Click Submit - found in the bottom right of page - when done to save any changes.
Step #4: Confirm that All of the Individual Staff Override Rates are Empty
You will land on your Admin Staff List. From the list, click on the Rate button for any staff member.
Your new Rate Category, as well as any of your other Rate Categories will be listed here. The Rates in brackets are the Company Bill Out Rates you set in Step #2. The Rates in brackets will be the value of your staff Timesheets. You do not need to enter any Rates into the empty fields. The best practice is to leave all of these fields blank.
Click through each active Staff name from the left, to ensure the Staff Rate fields are blank. Use the Save button found in the bottom right of the page should you need to make any changes.
Note that the blank fields would be used if you were billing based on the Staff Rate. Learn about Staff Rates in this article as needed: Setting up Staff Rates
Step #5: Estimate at the Service Level
Create Estimates and Jobs using your preferred workflow. Build Estimate values by adding in hours (and expenses) which will multiply by your Service Rates.
And when we review Timesheet information for our staff, we can see that the total value of the Timesheet is the number of hours that the employee has worked multiplied by their applied billing rate - which is the Service Rate.