How to Bill your Clients for Work Days
In this topic, you will learn how to invoice your clients for work days instead of work hours with TMetric. Such a billing method will perfectly work for outstaffing and outsourcing companies to implement flexible billing on fixed-fee projects.
TMetric offers a wide range of features that will help you to correctly set up a fixed fee project for your company's needs. You will also learn the rules used to calculate Billable Amount in each particular case.
For example, you have a project where a client pays a fixed fee and your company's employees get paid on a daily basis. Each employee has their own daily fee. You want to invoice your client only for those days where there is at least some minimal activity. Billable Amount will be calculated based on the number of working days in a month.
TMetric allows you to easily create an outstaffing project, set a daily fee for each team member separately and bill a client by the work day while concurrently tracking work hours. Let's see how it works.
When creating a project, select a Fixed Fee billing type, set Project fee type to Compound. In the Recurrence drop-down, select Daily.
In the Team section, set a daily fee for each team member involved in the project.
In this case, Billable Amount will be calculated as follows:
- The number of billing periods is defined based on the selected time range and the existence of time entries within this time period. In the described case, it will be the number of working days.
- The number of working days is multiplied by the daily fee of each team member.
- The obtained values are summed up and the result will be displayed in Billable Amount.
Billable Amount for fixed fee projects is only displayed in the Projects Summary report. It represents the amount of money a client should pay you for the project. This amount will be also included in the invoice.