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Architects and Engineers need a quality Time Billing Software solution that makes it easy to track time and get invoices produced. Our time tracking module is very simple and straight forward with just enough detail to give you quality reports. We track time to Projects, Phase and Activities. All time slips have an associated employee, classification (direct or indirect), and billing rate. This enables you to see how ane where time is spent on your projects. This time is also used to track project progress so you know how you are doing on your projects in real time.
To take care of your billing we have an integrated invoicing module that not only pulls data from your time slips but also allows you to bill Fixed Fee items, Reimbursable Items, and your Sub Vendors on a single invoice.
Having a tool like this makes billing a snap which means that you can get your invoices our quicker and easier. And getting invoices out sooner will enhance your cash flow.
When we built our solution we knew that it would be important to provide a product for both Mac and Windows environments. What we have created is cross platform compatible within the same office. So whether you are a Windows 7 user or a Mac OSX user, we have you covered. |
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There are many project management solutions developed for the Mac. But what if you are an Architect or Engineers? What are your choices for project management software? The answer is simple - Praesto by Base Builders.
Architects and Engineers have very specific needs when it comes to managing the projects and businesses. Trying to adapt a generic software package is time consuming, painful, and not very effective. What and AE professional really needs is an integrated tool that has been build by architects and engineers specifically for their needs. We have developed a cross platform solution that runs on Mac OSX and Windows XP or 7 and it includes everything an AE professional needs. We have integrated tasks, milestones, time tracking and billing, invoicing, correspondence and many other key functions requested by architects and engineers.
So look no further, explore our site and see what our Mac Project Management Software solution has to offer. You will be glad you did. |
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Billing software for architects and engineers using Macs is a rare find. We have created a complete package of business and project management tools that includes invoicing and billing.
Our solution, Praesto, is cross platform compatible letting it run on both Mac and Windows machines. Your projects can be set up and billed on either a fixed fee or hourly basis - you can even have a mix of fixed fee and hourly phases on the same project. So if you are looking for architectural billing software and you are on Mac or Windows you have found the right solution. Take a tour through our site and see for yourself. |
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We receive a ton of web traffic from people looking for engineering billing software to relieve the head ache of processing invoices. The good new is that if they dig around they find out that our project management software has integrated billing designed specifically for architects and engineers.
And truthfully they are usually looking for something more than just a billing solution. Usually they are also looking for time tracking and other project management functions. The beauty is that Praesto does all of this and more. So if you are in search of billing software for engineers you have found the best tool around.
So take the time to review our demo videos or give us a ring to schedule your personal demonstration.
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We would like to welcome our new clients from the United Kingdom. London architects and engineers who are looking for a tool to improve their bottom line dollars have put a smile on their face as they have embraced our project management software. Now we can not ignore our other european friends who have come on board as new clients from Spain, Germany, Italy, and other great locations.
All of these new clients have expressed a need to simplify the accounting, billing, time tracking, invoicing, tasking, and other activities required to mangage and architecture or engineering firm. Some of these firms are using Macs while others have Windows 7 and Windows XP computers. The nice thing about Praesto is the cross-platform integration. Praesto will even run on your iPhone and iPad - there's an app for that.
Now all we need to do is add a few clients in Ireland so we can have a good excuse to visit this great country. |
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The construction industry in the Houston area must be booming because we are adding a lot of new clients from the Texas coast. Several Architects and Engineers in the Houston area have joined the Base Builders family in the last few months. These new clients are telling us that they were looking for an integrated project management solution that was built specifically for architects and engineers. The key features that convinced them to buy our software include the integrating time tracking, billing (invoices), QuickBooks integration, and how Praesto helps them to stay on track with their budgets and deadlines.
So, if you are an architect or engineer in Houston, TX or anywhere else for that matter, you should take a hard look and your processes and then let us show you how Praesto can enhance and automate these processes.
Praesto has cross platform compatibility - Mac OSX, Windows 7, Windows XP, iPhone, iPad, iOS. You can run Praesto in an office with any combination of operating systems. |
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Praesto AE has been optimized to run on Mac OSX to help Architects and Engineers manage their projects. It is designed to work in a cross platform office as well, allowing equal access to Mac and Windows users. The key to our solution is how it provides project managers with the informaiton they need to make the best decisions for their work. Praesto tracks all the aspects of construction design projects that AE managers are looking for and several other key things that they did not realize they needed.
We receive huge accolades from our clients about the ratios that Praesto provides. You will see your fee as a percentage of construction costs, how much fee you receive per square foot or square meter, fee per hour spent on the project, hours spent per area, fee per drawing, hours per drawing, and your project multiplier - how much fee you received per labor dollar spent to produce the work.
These ratios contribute to our mac project managment software to make it a unique solution on the market place. |
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Billing software for architects does not need to be complicated. In fact the simpler the better. That is how we have designed Praesto - simple yet powerful. The key is having enough flexibility to allow for unique situation while maintaining an intuitive interface and process for creating your invoices.
Praesto is designed so that your fees are spread across project phases. Each phase can be set up as hourly or fixed fee and you can mix and match on the same project.
Then when it is time to do your billing you can combine fixed fee and hourly items on the same invoice. You can also include any reimbursable items and vendors as well. When you bill an hourly phase Praesto will present you with a list of time slips to include in the invoice - it doesn’t get much simpler than that.
Finally, Praesto will push your invoices and time slips into QuickBooks to keep your accounting pain free.
In a nut shell, Praesto give you an integrated project and business management solution that can be classified as architecture billing software but that classification misses so many other great features that Praesto beings to the table. |
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When we created Praesto our goal was to create the Best Project Management Software available. For it to be the best it had to have all the necessary features and be easy to use.
Well, we think that we have succeeded. Praesto is very robust and still very simple to use. If you can buy a book on Amazon.com you can use Praesto with no problem.
See for yourself - you can use Praesto for 90-days with our 100% satisfaction guarantee to see if we succeeded in creating the best project management software around. Hundreds of Architects and Engineers around the world are enjoying the benefits of our world class software - join the movement and take your firm to new heights. |
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Yes, we do believe that we have the best project management software for engineers. If we didn't believe this we would get out of the business.
Just as significantly our clients must think so. A little while back we surveyed our client base and received a 76% response rate. 100% of the respondents said that they would recommend our project management software to a colleague or peer. That was a real eye opener.
Not only is it the best, it has the best backing of any software with our 90-Day satisfaction guarantee.
So if you are looking to take your firm to that next level of success look no further. Sign up today and make the next 12 months your best 12 months ever. |
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Of course we feel that we have the best project management software for architects. If we didn't believe this we would get out of the business.
But more importantly our clients must believe so. Just a few months ago we surveyed our client base and received a 76 percent response rate. 100% of the respondents said that they would recommend our project management software to a colleague or peer. That is pretty darn good.
Not only is it the best, it has the best backing of any software with our 90-Day satisfaction guarantee.
So if you are looking to take your firm to that next level of success look no further. Sign up today and make the next 12 months your best 12 months ever. |
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When I was running my engineering business one of my biggest challenges was keeping the workload balance distributed amongst the staff. I thought that time tracking software would be the answer, it was not. What makes this particularly hard is when employees, architects or engineers, do not take responsibility for their own workload.
Many employees assume that it is your responsibility to keep them working rather than their own responsibility to know what needs to be completed and do it. I cannot count the times that I had an employee walk into my office to tell me that they were out of work. And they always seemed to do this just as I was leaving the office for a job site visit. This meant that until I got back, they were going to be killing time and costing me money.
I am not alone. I have seen this happen in architecture and engineering firms around the globe (most of these firms were not using a project management software solution). But there is hope.
I discovered a way to eliminate this challenge, so here is the secret. Each Friday have everyone in your firm project which projects they plan to work on next week and how many hours they plan to spend on each job. This forces them to plan their own workload. Have them fill in a simple table with their projected hours.
You can then use these projected values in your Monday kick-off meeting. You may also observe that your staff will be looking for work on Friday rather than waiting until they run out sometime next week.
So start a new Friday tradition and have all of your employees plan their workload for next week. You will be astounded at how much better your weeks start to look. |
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Do we make the best project managment software? We would like to think so but being the best is very subjective. What one eningeer loves another engineer does not even notice. The key to being the best runs much deeper than just the product. Being the best runs through the company behind the software.
One way to determine the usefulness of a software package is by the ability of the company to stand behind what they sell. That is why we have always offered a 90-day 100% money back guarantee. We realize that we will not be the right fit for all firms. Different cultures and ways of approaching your eningeering practice will affect how well of a fit Praesto is.
To kick off 2010 we stepped our game up a few notches by introducing our 12 month success guarantee. It goes like this. Use Praesto for 12 months and if at the end of the first year you have not seen a positive impact on your operations, a positive impact on your bottom line, and at least two additional billable hours per month per user, and you are not confident with your progress, simply ask us to cancel your subscription. We will not only cancel your subscription but we will also cheerfully refund half of your first years subscription.
So, do we have the best project management software? Why don't you give us a shot and determine for yourself. What we do know is the have the strongest guarantee in the industry and possibly better than any software company has ever offered. |
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Engineers need to generate new business every year. But where do buyers of their services look when they need an engineer? Outside of the Architects and Public Works officials who use networks and relationship, most potential customers are searching online.
So whether you are a mechanical, electrical, civil, structural, or environmental engineer it makes no difference - you need to have an online presence. Here are the initial steps to getting found online. Create your web site. On this site it is important to tell the potential customer what it is that you do.
In telling your story it is important to strategically place keywords that your customers are searching for in the content. This will give you higher search rankings. You may include phrases such as - we do office building hvac engineering, structural engineering for home owners, commercial building civil engineering, wetlands environmental engineering, etc. You get the point. These search terms, also known as key words, need to match what your ideal customer is searching for.
To really move up in the search engines you need to develop a strategy for posting on blogs or sites such as ezines with links back to your site. If you do work in the seven western states you will want to enhance your key words with the names of the cities you work in like San Francisco, Seattle, Los Angels, San Diego, Phoenix, Tucson, Salt Lake City, Las Vegas, Denver, Albuquerque, Boise, Reno, and Portland. These cities should be included in your website content as well and the posts and links back to your site. Be sure and include your other key words in these posts as well.
Register your business with Google under the Local Business Center. If you miss this step you might as well close your doors. Just do a Google search for Google Local Business Center. Launch a regional AdWords Campaign. This will place your ads along the right hand side of the search results. This too will need to target your key words.
Once you have all this business coming in you will need an Engineering Project Management Software Solution to help you manage the new work load. Your best choice is Praesto by Base Builders. So visit Base Builders to get your firm running on all cylinders. Our software runs on both Windows and Mac platforms, see our website for more information. |
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Executive Overview The keeping of project records, including the preparation, assembly, and preservation of such records is considered to be one of the most important duties and responsibilities of architects and engineers. Diaries document work progress, project ideas, project conversations, and many other items that are sometimes thought to be insignificant at the time and yet prove to be very important later in the project. Entries into a diary can provide valuable information necessary to accurately reconstruct the events of the project. In maintaining these records, project personnel must be consistent in recording the events and activities on the project, particularly those relating to claims or potential claims. Daily diaries are the key to claims avoidance and mitigating damages.
What Should be Recorded While I would like to say everything I realize that is not realistic. You should attempt to enter summaries for all conversations, job site visits, meetings, and the like. Basically any event where information is exchanged. Here are some ideas of things that you probably want to track.
Phone conversations -- anytime you have a conversation with the project owner, one of your consultants or perhaps your client there is a very good chance that you want to document the highlights of that conversation. Creative ideas -- if you come up with a new idea for the project take the time to write it down. Later when you share this idea with other team members you can reference back to this diary entry. Meetings -- now if formal meeting minutes are being taken then this is less important. However you may want to at least jot down the fact at a meeting was held. Directions or Instructions -- any directions or instructions that you have shared with a consultants, the owner, or perhaps the contractor should be recorded. Site visits -- most likely you will be creating an observation report that summarizes findings from your site visit, in that case you may just want to make note of the fact that a site visit was conducted. If you are not generating an observation report then it would be a good idea to record and unique findings that may have been observed.
As you can see most of these are common sense items. The key is to capture your institutional memory so that it can be recalled at a later date. It is amazing how many people seem to come down with amnesia when disputes arise.
Elements of a Quality Entry Probably the most important piece of information is the date. Every entry needs to be date stamped. You also want to record the name of the person or persons related to the entry. If you can note something of interest such as the weather or location it is very helpful. Personal opinions, outside of your professional judgement, and editorial comments should most likely not be included. If your diary is not specific to a particular project then the project information such as the name of the project and number should also be included. Just the facts ma’am. This may be a famous movie quote but its message is pertinent to the diary. Keep the diary entry as factual and accurate as possible.
The Hand Written Diary Hand written diaries work very well. They are especially convenient when traveling to job sites or project meetings. Handwritten notes should contain all of the elements mentioned above. One of the best features of a hand written diary is the ability to draw a sketch - a picture is worth a thousand words. One of the shortcomings of a handwritten diary is the inability to search for entries based on criteria. If you needed to locate any notes or entries discussing the project’s backflow preventer, it will you take a great deal of time to scan through the pages. This is where an electronic diary has an advantage.
Electronic Diaries Electronic diaries are great and there are several software tools designed to record diary entries. The challenge is that they may not be as portable as your written document. Or if the diary is traveling with you on your laptop, it may not be accessible to the remainder of the design team back in the office. There are some great advantages to the electronic diary. Automatic date and time stamps record when entries were made and categorizing of entries into groups such as phone calls, meetings, conversations, etc. make it very handy when searching through records. Electronic diaries are also searchable on the content. In a matter of seconds you can find every entry that has a keyword that you are looking for. You should look for a system that is intuitive, priced right, and sharable over your network. To gain real value you need a tool that has realtime access by your entire staff for recording, searching, and printing of diary entries. Make sure that what ever solution you chose, that it is optimized for your operating system - Mac, Windows, iPhone or iPad.
Integrated Solution The best version of an electronic project diary will be one that integrates with your project management software. Or better yet, one that is an internal component of your project management software. This type of electronic project diary can automatically link entries to projects, companies, staff, and contacts. It can be shared over your network and can serve as a repository for critical project information. When you integrate your project diary with this type of linking you have a very powerful tool.
Conclusion You can not afford to not keep a diary. Everyone in your organization needs to be logging their information. Your diary may have the one thing you need when call in for a deposition. A simple record of who said what when can be the difference between a successful project and an errors and omissions claim.
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 Accounting Mistake Made by
Architecture and Engineering Firms
Executive Overview Few architects or engineers have taken any accounting courses and even fewer have taken the time to earn an MBA. So when it comes to the accounting side of running our business it most likely is not our strong suit. We also tend to rely on our accounting software to do the dirty work for us.
Since the huge majority of Architecture or Engineering firms are small businesses they have chosen to use the number one small business accounting software, QuickBooks. According to surveys done by PSMJ nearly 80% of AE firms in the United States are using QuickBooks. When QuickBooks creates the accounts for a new company using the template for Architects and Engineers it fails to set up what is needed and the mistake is already made. Read on to discover what the mistake is, why you should care, and how to correct it.
Only One Account for Payroll Expenses When QuickBooks sets up the Chart of Accounts it creates a single expense account for all of your payroll expenses. The challenge with this is you can’t separate your direct costs from your indirect costs (overhead). With this set up there is no way to calculate three critical factors: Overhead Rate - the number of dollars of overhead for every dollar of direct labor. Billing Multiplier - net revenues divided by direct labor Utilization Rate - direct labor divided by total labor
Second Account for Overhead Payroll You will need to create a second expense account to track indirect labor payroll costs. These include all of the other payroll expenses including Taxes, Benefits, Holiday, Vacation, PTO, Medical, etc. But don’t stop there. You also need to include overhead labor for Marketing, Business Development, Continuing Education, Accounting, Administration, etc. The labor costs for these activities are overhead. Once you have a second account set up you will be able to generate your critical factors. Depending upon how you manage your fees and whether or not you have sub-consultants you may elect to have your Direct Labor be a Cost of Goods Sold rather than an Expense.
The Importance of Net Fee Calculating and utilizing your net fee enables you to measure all of your projects on an even playing field. It also allows you to look at national averages and compare your firm to others regardless of discipline. You see, if you have sub-consultants for most of your projects as part of your gross fee and you calculate your profit as a percentage of the gross fee you are misleading yourself to believe that your profit percentage is rather low. Then you have a project where the sub-consultants contract directly with the owner so your gross fee is much less and you will see a much higher net profit percentage. By removing the sub-consultants and reimbursable items from the equation you get a much more accurate view of your performance. This also allows for firms who have a great number of sub-consultants to compare their ratios to firms who have few sub-consultants or none at all.
Conclusion None of these very important indicators can be calculated if you have only one payroll expense account. These numbers are the life blood of your firms and should be studied carefully and often. Keep your project managers in the know so they are aware of where their projects stand. To stay up on these reports you will need to routinely export your numbers out of QuickBooks and into a spreadsheet where you can run the calculations. While this can become tedious, it is necessary. Our practice and project management software, Praesto AE, integrates with QuickBooks does this work for you.
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Managing Expenses for Architects and Engineers
Executive Overview
Managing a successful Architecture or Engineering firm is more complicated than drumming up new business, generating revenues, and hiring the “A” team to fulfill contracts. You also have to manage the finances and unless your firm is large enough to employ a CFO and/or an accounting team, the burden of managing the income and expenses rests solely with you, the firm principal. In tough economic times we may not be able to increase our revenues but we can manage our expenses. Managing architecture expenses and engineering expenses is much more than paying your bills on time. The goal should be to reduce your expenses without jeopardizing your operations. This paper discusses the basic exercises you can do to locate areas where you may be able to cut your expenses ~ you can always find five percent.
Annual Review of Vendors This is the first place that you will want to look. One of the things that we did at our firm and we encourage you to do, is to take a hard look at who you spend money with on an annual basis. The best way to do this is to create a report that lists each of your vendors and the total dollar amount you spent with that vendor. Don’t worry about the category of the expense at this point, just the amount per vendor. Now that you have this list, sort it by dollar amount with the greatest amount at the top. Go through this list one by one and ask the following questions - be sure to give honest answers. Is this vendor the only provider or might there be an equal competitor who could provide a better price? Is this vendor giving us their best price or can we negotiate better rates with this vendor? What are the payment terms with this vendor and can we get better rates? Is this a service that we can get by without or do in-house? These are tough questions that you need to ask even if one of the vendors is your best friend. You owe it to the share holders of your practice to get the best deal. Now the work comes. You need to pick up the phone and call any vendor that you think just might give you a better rate and ask for it. It never hurts to ask. Let them know that times are tough and you are doing everything you can to keep the doors open. Yes you understand that times are tough for them too, but if you are not able to cut your expenses then they may loose all of your business when you close the doors. Not every vendor will be able to cut their prices, but I am sure that you will be able to find at least a five percent decrease overall. Why did I ask you to sort the list by dollar value? Because I want you to start at the top of the list as this is where you will have the greatest gains. If you have a vendor that you spend $500 a year with and you get a 50% discount that is great but it is only $250. However if you have a vendor that you spend $100,000 a year with and you get a 3% discount that is an annual savings of $3,000. Get the point? Start with the place where you have the most to gain.
Caution - There are Pitfalls Some of your vendors may go to bat for you from time to time. They may also go the extra mile to help you meet an important deadline. So when you go asking for better rates, make sure that you ask nicely and be respectful. Also evaluate the total value of the relationship. The last thing you need to do is get left out in the cold over a few dollars.
Employee Health Benefits I believe that your good employees are your greatest asset and that many employees stick around because of the wonderful work environment you provide along with your benefits package. However, for small businesses these can be a real burden. With the way that health insurance rates have gone up over the past decade it is a wonder that we can afford to provide this benefit at all. So what can you do without just plain cutting health insurance all together? The first thing you can do is have the employee participate in the cost. Depending upon your location and employment pool you will have to make some judgement calls. We had our employees pay 20% of the employee and 100% of additional family members. In our early days we paid 100% of the employee and 50% of the additional family members. When we modified the employee portion, 10% of our employees dropped the coverage because they had coverage from their spouse. (We did offer a one time pay increase to help cover the employee portion) I am not advocating putting your employee’s finances in jeopardy, but you need to take a hard look at what your company can afford to pay for. Nearly 30% of the workforce has secondary coverage from a working spouse, by making a small copay in your plan you can have a significant cut in your expenses. You always have the right to share a portion of the savings in a bonus plan. This is not about taking away from the employee, but about making your company lean so you can accommodate economic changes.
The second thing that you can do is review your existing plan and rates. When we went looking for group coverage we found the best coverage/rate combination came from joining our local builders association. Where we failed was in not continuing to look around on at least an annual basis. Five years later we discovered that by moving to a PEO (Professional Employee Organization) where our employees were actually employed by the PEO and leased back to us we were able to save over 25% on the family plans and around 12% on the individual. The PEO also became our HR department and managed our payroll so we were able to consolidate from the existing vendors we had been using. Just because a vendor had the best rates last year does not mean that they will have the best rates this year. Shop around. Monitoring Staff Salaries Just as you did with the vendors you need to do the same with your staff. Now we want to look at what each employee is costing the company - you included. Labor is the greatest cost to AE firms which makes it imperative that we look here. I know that this is not fun and this is one of the hardest tasks to take on.
As you review each of your employees ask yourself the following: If this employee left, would we need to replace them? Can the remaining staff pick up their work load? Is this employee a bad apple that needs to get pruned? If an employee would not be replace if they were to leave it may be time to let them go. The format of your staff compensation can have a huge effect on your firms viability. At our firm nearly twenty percent of an employee’s compensation (benefits not included) came from our bonus program. This program was tied to profits. It helped us keep our monthly nut down and gave great upside potential to our staff if the firm performed well.
Conclusion Remember that it is your money and you have the right to spend it how and where you want. Make sure that you are getting value for every dollar you spend. Make it an annual process to review all of your expenses by vendor and expense category to make sure that the dollars you are spending are returning the best value.
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Cash Flow Acceleration for Architecture and Engineering Firms
Executive Overview
Managing a successful Architecuture or Engineering Firm is more complicated than drumming up new business, generating revenues, and hiring the “A” team to fulfill contracts. You also have to manage the finances and unless your firm is large enough to employ a CFO and/or an accounting team, the burden of managing the income and expenses rests solely with you, the firm principal. Understanding the nuances of your company’s cash flow is imperative, because if this area is not properly managed it can cause even the healthiest of companies to falter and possibly fail. The firm principal needs to become a deft hand at understanding the ebb and flow of the firm’s cash, and using a cash flow forecast can be an invaluable business tool to help you navigate these tricky financial waters. This paper discusses the basics of cash flow acceleration ~ getting your money in the door quickly.
Cash Is King
Having a strong cash flow is the lifeblood to the success of your business. In the architecture and engineering world we sometimes suffer from a decelerated cash flow process. Part of the problem is clients that routinely pay you on their own terms which leads you to having to float the money. Another part to the problem may be your own internal systems. The national average for collections by AE firms is 60 days. The challenge is that quite often you completed the work days, weeks or unfortunately maybe months before you actually send the invoice. This means that from the time that you have earned the value of the work to when you get paid is huge. The average time from when AE firms earn their fee and they collect on that invoice is 80 or more days. However during that time frame they still had to pay their employees and cover their overhead. Looking at the graphic above you can see the time line and cash flow. Since most of us pay our employees every two weeks, we have an average of seven days from the time your fee is earned until you have to pay the employee for the work done. What that means is that as an employee works on a project you continue to increase the earned value of your fee. Hour by hour, and day by day you are earning your fee. However you are not billing at the same pace as you are earning nor at the same pace as you are spending. (And you never will. It is totally unrealistic to think that your billing could keep pace with your earning. At least not on a daily basis.) Also illustrated in the graphic is the time from when you earn your fee until you actually invoice or Bill for your fee. Many firms only bill once a month, usually at the close of a month. By waiting until the close of the month to invoice for the work you’ve completed, you are extending or increasing the time between when you pay the employees and when you are going to collect. In most cases invoices don’t go out on the first of the month it usually takes a few days to get your invoices processed and out the door. If we take all these things into consideration, from the time the work is done until you actually send the invoices, it is about 25 days. Your goal should be to shorten this time so you can get paid quicker. A simple example if this is a project that just reached a milestone, perhaps it was the design development deliverable. And let’s assume the the design development drawings were completed and delivered on the 5th of the month. Are you going to wait until the end of the month look back to see what projects had milestones reached or plans issued and then process your billings? If you do this you’re having to float a lot of payroll and overhead cost waiting to get paid from your client. So what are we going to do to shorten the time this process takes? What steps can you take in your office to accelerate your cash flow? Let’s start first with how to accelerate your billing so your invoices can get into the hands our your clients. Then we will follow that up with how to accelerate your collections to get the money in the door.
Increase Billing Frequency
The first thing I want you to consider is not waiting till the end of the month to process your billing. If you’re billing is complicated and taking a lot of time to get out the door you need to find ways to simplify your process. One of the ways to help accelerate your billing process is to delegate the invoicing to your project managers. Make it your project managers responsibility to generate invoices and get them into the process so they can be delivered to the client. When I was a practicing principle at an electrical engineering firm we did our invoicing every Friday. Now, not every project got billed every Friday, but every project that had reached a milestone or had items that we could bill for did get billed. They key to this was having a simple system the enabled our project managers to know exactly where their projects stood and exactly what they needed to Bill on weekly basis. It only took our project managers in few minutes a week to generate their draft and voices and turn them over to our accounting department. The first step in accelerating your cash flow and getting dollars in the door is to delegate the invoice creation process to your Project Managers. Cut the Bureaucracy and Information Secrecy Another symptom that we see plaguing AE firms is the inability to get the information gathered so the billing can begin. You need to have a system that provides real time information to your project managers about the status of their projects; the hours worked, milestones met, and fee schedules. Your project managers should not have to wait for accounting or an HR department to generate reports so that they can produce an invoice. You need to get this information in their hands in a timely manner to expedite the invoicing process. A key to getting invoices out the door quickly is to provide your Project Managers with real time data so that they can stay on top of their billing. Get real-time information in the hands of your project managers so that at any point in time they know exactly where their project sits. They know the status of the project, how many hours have been worked, the fee structure, the status of the project, the last milestone reached on the project. With this information in hand they should be able to generate an invoice for the project in a matter of minutes and have that forwarded to accounting. Now that the invoice is out the door, let’s work on getting the dollars in! Accelerating the collections process can be quite simple. It all starts with communication. And that communication should be between your project manager and client. Now we’re not talking about pesky collection phone calls asking for money. What we are talking about is making your billing process a part of the conversation. Here are a few examples of what your project managers can proactively do to keep your firm top of mine mind when your clients are paying their bills.
Setting The Expectation
First, let the client know what to expect by letting them know that an invoice will be coming and explain what you plan to invoice. Take the time to ask the client if they see any challenges with what you intend to invoice. What you’re doing here is getting the client to agree that your invoice is timely and should be paid. Once they have agreed that your invoice isn’t going to be for the wrong amount, they have made an indirect commitment to pay that invoice. And nobody wants to go back on their word. The key to this is making this part of the normal day-to-day conversation with your clients. When your client calls to discuss your project take the time to say “Hey, I’m going to be sending out our next invoice this Friday. Do you see any challenge with us billing this amount?” What you have done if you set the expectation in the client’s mind that didn’t receive an invoice and be expected to pay. And you’ve done so in a very friendly casual manner. Another option that you can do depending on the size of the client which are dealing with and whether they have a lot of bureaucracy, or perhaps you’re dealing with a public agency, is to ask them if they have a prior approval process for invoices. So once again in the conversation of the project asked the question: “Do you have a prior approval process that we need to participate in for our invoicing?” Make sure that your invoice has been received You do not want your invoice to land in pile on your clients desk, so he next thing you want to do is ask your client if they have viewed your invoice. And again we want to do this in our regular project conversation. It might go something like this; “Charlie, have you received our invoice for project XYZ?” If the answer is yes then you might follow up with; “Do you see any challenges with it or is the amount of okay?” What these questions to is again get the client to concur with you that the invoice is fine. Once they have agreed with you that the invoices right, by default they have agreed to pay it. So now we have cleared with the client the right to send an invoice, we’ve made sure that they received the invoice, and we’ve asked them if there was anything wrong or incorrect about the invoice. However this doesn’t necessarily mean they were going to get paid. We may need to bring on additional tactics.
Dealing With Slow Payers
If the clock is ticking for a while and it appears that the client may be late in paying the invoice, it may be time to open up the conversation again. This could be as simple as asking a few questions. The next time you’re having a conversation with the client about the project you might ask them if they were able to process the invoice. If they haven’t yet processed the invoice you now have at least put yourself top of mind as a vendor that wants to be paid. If they have to processed the invoice, politely ask them if the check is in the mail.
Keep an Open and Friendly Dialogue
As a project manager you need to keep a friendly open dialogue with your client. And one of the last things you want to do is to have the issue of money get in the way of that relationship. One way to stay on top of your collections without hurting the relationship is to play the role of messenger. In other words rather than saying “Where’s my money?”, you might say something to the effect of “Our senior partner is wanting to put our cash flow projections together. He asked me when I thought we might receive payment from you. I don’t want to embarrass either of us so I was wondering if you could let me know approximately when we might be receiving a check?” This is a very effective tool in getting the client to commit to when they plan to pay you. Another variation on this is to have the book keeper or accounting department called a client and say “I’m updating my cash flow forecast and I was wondering…” What we are doing here is we are asking questions of the client rather than making demands of the client. Yes it’s true that “when am I going to get paid?” is a question but it’s not in the same tone as the examples shared here. when clients are truly in arrears If you have a client that is getting out there at 120 days or more, perhaps it’s time to get a little more aggressive on the collections process. The key is to remember is that you need to be making your collections an ongoing topic in your conversations with your clients. Not to the point that your overbearing or over anxious about getting paid, but just so that they understand that it is a priority of yours. That you are thinking about it. One of the things that we did in our practice was to have our office manager put the blame on the principles while asking for commitments on when a client would be giving us a check. One of her favorite questions to ask was “are you going to be able to pay your invoice or should we start accruing interest according to the contract?” Now we all know that actually collecting the interest is another point altogether. However it does tend to get their attention and motivate them to pay your invoice. Something else to keep in mind is that your clients are going to pay the vendors that are asking for their money much sooner than the vendors that are not. If your client has six consultants to whom they owe money and you are the only one asking for payment, who do you think is going to get paid first?
Bonus - Ask for Extended Terms on Vendor Payments
Now that we’ve accelerated the collections process to help with our cash flow we may want to decelerate our payment process. If you have the vendors such as blue printers or anybody who supplies you with a product or service, you have the right to ask for extended terms. Your blueprint company may have a standard practice of net 15, or net 30. But this does not mean that you can not ask for more favorable terms such as net 60. Especially if you are paying for reimbursable blueprinting. You do not want to pay for that blue printing to the vendor until you have been paid by your client.
Conclusion
Between accelerating your billing and collections process, and getting better terms on your accounts payable, you can make huge improvements to your cash flow situation. Now is the time to take a critical look at your billing processes and find ways to simplify your invoicing so you can bill your clients in a timely manner.
Operating Systems
Praesto has cross platform compatibility - Mac OSX, Windows 7, Windows XP, iPhone, iPad, iOS. You can run Praesto in an office with any combination of operating systems.
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AE Project Management Software
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Time tracking or Time slips, are an indispensable portion of architectural project management software. And not only is time tracking important but knowing how that time was spent and what was accomplished with that time is just as important.
So you need to track more than just the number of hours spent on a project so that the project manager can see where and how time is being spent. A high quality time tracking module in a project management software solution will allow you to not only track the time by the project but also the phase of the project and the activity being performed by the architect or engineer.
When tracking activities in your engineering time tracking software or module, you should track names such as meetings, production, administrative, design, engineering, errands, staff meetings, etc..
Entering this data and tracking the activities into project management software is just the first step. Your software must also report on this data, and it would be advisable to have a software solution that can report and show you activity by person, activity by phase, activity by billing rate, and when it is totaling these numbers up it should include the direct cost, the indirect cost or overhead, the total burden cost, the total of your billing rates, and finally the total cost plus targeted profits.
One of the best project management solutions with integrated time tracking is Praesto. Our integrated solution handles all of the items discussed above.
One other thing that we alluded to was that the time tracking software must also track your billing rates for the individuals entering their time. Those individuals should be able to see lack from various billing rates based on the activity and or role that they are fulfilling.
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AE Project Management Software
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Engineering time tracking software is a must for all engineering firms. Architecture time tracking software is a must for all architecture firms.
Time tracking or Time slips, are an indispensable portion of project management software. And not only is time tracking important but knowing how that time was spent and what was accomplished with that time is just as important.
So you need to track more than just the number of hours spent on a project so that the project manager can see where and how time is being spent. A high quality time tracking module in a project management software solution will allow you to not only track the time by the project but also the phase of the project and the activity being performed by the architect or engineer.
When tracking activities in your time tracking software or module, you should track names such as meetings, production, administrative, design, engineering, errands, staff meetings, etc..
Entering this data and tracking the activities into project management software is just the first step. Your software must also report on this data, and it would be advisable to have a software solution that can report and show you activity by person, activity by phase, activity by billing rate, and when it is totaling these numbers up it should include the direct cost, the indirect cost or overhead, the total burden cost, the total of your billing rates, and finally the total cost plus targeted profits.
One of the best project management solutions with integrated time tracking is Praesto. Our integrated solution handles all of the items discussed above.
One other thing that we alluded to was that the time tracking software must also track your billing rates for the individuals entering their time. Those individuals should be able to see lack from various billing rates based on the activity and or role that they are fulfilling.
Engineering time tracking software is a must for all engineering firms. Architecture time tracking software is a must for all architecture firms.
Cross platform compatibility - Praesto runs on Mac OSX, Windows 7, Vista and XP, iPhone, and iPad
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AE Project Management Software
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Project management software really needs to incorporate many different pieces to add true value to an architecture firm or an engineering firm. a project management software solution needs to incorporate detailed project tracking fields for your data. These fields may include things such as your client is the date the project was started with the Project manager is well understand that this is important because it's the simple basic information that every project has.
Where good project management software solutions differentiate themselves is in the customizable and specialty tracking fields for instance you may want to track project categories such as was it a retail center or a church, was the project and educational facility, a banking facility, or an office building. If you segment your projects by categories such as this you can then run valuable profitability reports and see which of these categories is your most and least profitable.
You may also want to track things such as you'd do delivery method of the project. As the architect or engineer for the project you will want to know whether it was a design build, design assist, or plants back plan spec, period. So by differentiating your projects by delivery method you can then see which of these methods generates your greatest amount of profits
Another valuable piece of information that you should track on all the projects you manage is the funding source. Publicly funded projects may be funded federally, by a state, county, city, or possibly school district. Privately funded projects may be funded by an owner, a developer, or other private entity at a joint partnership. And began if you track this information on your projects you can run reports to see which of these wonder more profitable segments.
Another important way to track your projects despite region. He reaches will vary but maybe you want to look at the northern part of the state versus the southern part of the state, and compare those to the Eastern and Western projects. Another option might be if you're in Northern Nevada to look at your lake toddle projects, compared to your rule Nevada projects, compared to Northern California projects, compared to those in the Truckee Meadows.
Regardless of your engineering discipline or your architectural expertise tracking these details to your projects will give you the ability to look deep inside your firm and nowhere are making money. If you don't know which sectors are making money for your firm, your profit centers, how would you know where the best place is to spend your marketing dollars? |
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News -
AE Project Management Software
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Project management software really needs to incorporate many different pieces to add true value to an architecture firm or an engineering firm. a project management software solution needs to incorporate detailed project tracking fields for your data. These fields may include things such as your client is the date the project was started with the Project manager is well understand that this is important because it's the simple basic information that every project has.
Where good project management software solutions differentiate themselves is in the customizable and specialty tracking fields for instance you may want to track project categories such as was it a retail center or a church, was the project and educational facility, a banking facility, or an office building. If you segment your projects by categories such as this you can then run valuable profitability reports and see which of these categories is your most and least profitable.
You may also want to track things such as you'd do delivery method of the project. As the architect or engineer for the project you will want to know whether it was a design build, design assist, or plants back plan spec, period. So by differentiating your projects by delivery method you can then see which of these methods generates your greatest amount of profits
Another valuable piece of information that you should track on all the projects you manage is the funding source. Publicly funded projects may be funded federally, by a state, county, city, or possibly school district. Privately funded projects may be funded by an owner, a developer, or other private entity at a joint partnership. And began if you track this information on your projects you can run reports to see which of these wonder more profitable segments.
Another important way to track your projects despite region. He reaches will vary but maybe you want to look at the northern part of the state versus the southern part of the state, and compare those to the Eastern and Western projects. Another option might be if you're in Northern Nevada to look at your lake toddle projects, compared to your rule Nevada projects, compared to Northern California projects, compared to those in the Truckee Meadows.
Regardless of your engineering discipline or your architectural expertise tracking these details to your projects will give you the ability to look deep inside your firm and nowhere are making money. If you don't know which sectors are making money for your firm, your profit centers, how would you know where the best place is to spend your marketing dollars?
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AE Project Management Software
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Solid project management processes are the lifeblood of an architecture firm. That is why architecture firms need to use project management software and practice management software. Integrated Architectural Project Management Software solutions provide architects with the tools they need to increase their profits and enhance their bottom line. Studies have shown that firms using integrated practice management software or integrated project management software will capture up to four billable hours per employee per week. This makes architectural project management software very affordable, in fact it will pay for itself.
We have spent years working with architects to develop industry-specific practice management software. Our software solution written specifically for architects puts the information they need at their fingertips. We give architects the ability to run very important reports such as job costing reports, time and billable activity reports, invoicing and Accounts Receivable reports, all in an integrated project management software solution. Whittier a first-year architect or a firm that has been in business for decades our software solution will help you bring efficiency and effectiveness to your firm.
Because our project management software solution integrates with QuickBooks, QuickBooks Pro, and QuickBooks Premier, Praesto is the perfect fit for small and medium-sized architecture firms. Architects and engineers around the world are improving and increasing their bottom-line profits using our project management solution, Praesto.
Our project management solution started out as a simple job tracking project list. It quickly grew to a complete task management and document management tool. In subsequent releases we added integrated time tracking, invoicing, and other business management tools. With our robust notes taking and task management modules you have a very complete electronic diary and/or electronic object diary.
No architect or architectural firm should try to practice architecture without an integrated project management software solution or practice management software solution. |
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AE Project Management Software
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Solid project management processes are the lifeblood of an engineering firm. That is why engineering firms need to use project management software and practice management software. Integrated Project management software solutions provide engineers with the tools they need to increase their profits and enhance their bottom line. Studies have shown that firms using integrated practice management software or integrated project management software will capture up to four billable hours per employee per week. This makes engineering project management software very affordable, in fact it will pay for itself.
We have spent years working with engineers to develop industry-specific practice management software. Our software solution written specifically for engineers puts the information they need at their fingertips. We give engineers the ability to run very important reports such as job costing reports, time and billable activity reports, invoicing and Accounts Receivable reports, all in an integrated project management software solution. Whether a first-year engineering a firm or one that has been in business for decades our software solution will help you bring efficiency and effectiveness to your firm.
Because our project management software solution integrates with QuickBooks, QuickBooks Pro, and QuickBooks Premier, Praesto is the perfect fit for small and medium-sized engineering firms. Engineers and architects around the world are improving and increasing their bottom-line profits using our project management solution, Praesto.
Our project management solution started out as a simple job tracking project list. It quickly grew to a complete task management and document management tool. In subsequent releases we added integrated time tracking, invoicing, and other business management tools. With our robust notes taking and task management modules you have a very complete electronic diary and/or electronic object diary.
No engineer or engineering firm should try to practice engineering without an integrated project management software solution or practice management software solution.
Sometimes we are asked about the specifics of various engineering disciplines such as civil engineering, structural engineering, a logical engineering, mechanical engineering, acoustical engineering, geotechnical engineering, and other disciplines. Praesto has been used by firms around the world in nearly every engineering discipline including structural, mechanical, electrical, environmental, civil, geotechnical, and acoustical. So whether your firm is large or small of a single discipline or multidiscipline our project management software solution is the right choice for you. |
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News -
AE Project Management Software
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Integrated Project Management Software solutions provide engineers with the tools they need to increase their profits and enhance their bottom line. Studies have shown that firms using integrated practice management software or integrated project management software will capture up to four billable hours per employee per week. This makes engineering project management software very affordable, in fact it will pay for itself. Solid project management processes are the lifeblood of an engineering firm. That is why engineering firms need to use project management software and practice management software.
We give engineers the ability to run very important reports such as job costing reports, time and billable activity reports, invoicing and Accounts Receivable reports, all in an integrated project management software solution. Whether a first-year engineering a firm or one that has been in business for decades our software solution will help you bring efficiency and effectiveness to your firm. We have spent years working with engineers to develop industry-specific practice management software. Our software solution written specifically for engineers puts the information they need at their fingertips.
Because our project management software solution integrates with QuickBooks, QuickBooks Pro, and QuickBooks Premier, Praesto is the perfect fit for small and medium-sized engineering firms. Engineers and architects around the world are improving and increasing their bottom-line profits using our project management solution, Praesto.
Our project management solution started out as a simple job tracking project list. It quickly grew to a complete task management and document management tool. In subsequent releases we added integrated time tracking, invoicing, and other business management tools. With our robust notes taking and task management modules you have a very complete electronic diary and/or electronic object diary.
No engineer or engineering firm should try to practice engineering without an integrated project management software solution or practice management software solution.
Sometimes we are asked about the specifics of various engineering disciplines such as civil engineering, structural engineering, a logical engineering, mechanical engineering, acoustical engineering, geotechnical engineering, and other disciplines. Praesto has been used by firms around the world in nearly every engineering discipline including structural, mechanical, electrical, environmental, civil, geotechnical, and acoustical. So whether your firm is large or small of a single discipline or multidiscipline our project management software solution is the right choice for you.
Our software is cross platform running an Mac OSX, Windows XP, Windows 7. |
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News -
AE Project Management Software
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Integrated Project management software solutions provide architects with the tools they need to increase their profits and enhance their bottom line. Studies have shown that firms using integrated practice management software or integrated project management software will capture up to four billable hours per employee per week. This makes architectural project management software very affordable, in fact it will pay for itself. Solid project management processes are the lifeblood of an architecture firm. That is why architecture firms need to use project management software and practice management software.
Our software solution written specifically for architects puts the information they need at their fingertips.We have spent years working with architects to develop industry-specific practice management software. We give architects the ability to run very important reports such as job costing reports, time and billable activity reports, invoicing and Accounts Receivable reports, all in an integrated project management software solution. Whittier a first-year architect or a firm that has been in business for decades our software solution will help you bring efficiency and effectiveness to your firm.
Architects and engineers around the world are improving and increasing their bottom-line profits using our project management solution, Praesto. Because our project management software solution integrates with QuickBooks, QuickBooks Pro, and QuickBooks Premier, Praesto is the perfect fit for small and medium-sized architecture firms.
Our project management solution started out as a simple job tracking project list. It quickly grew to a complete task management and document management tool. In subsequent releases we added integrated time tracking, invoicing, and other business management tools. With our robust notes taking and task management modules you have a very complete electronic diary and/or electronic object diary.
No architect or architectural firm should try to practice architecture without an integrated project management software solution or practice management software solution.
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