EFF Factor‘s approach is different when it comes to efficient management of the firms in the service sector and was explained in the previous article.
EFF Factor allows the user firm to set it’s profit target and provide other components of basic data to generate a budget, which can provide not only a guide but also enormous information to monitor the performance of the whole firm.
The components to create the budget provided by the firm are:
Capacity of the firm – The working days and working hours for everyone, provided in an innovative and effortless manner.
Overheads – Estimated total costs other than direct costs.
Employee data – Costing and billing rate for everyone.
The most important component in this whole scheme of things is the billing rate and EFF Factor offers guidance for the same. (see 5 steps to smart price fixing link)
Thus, based on the annual capacity of the people in the firm, to deliver service, with other components, Eff factor creates a simple but very useful guide – budget for the year in this format
Sales – Direct cost= Gross profit – overheads = Net profit
As EFF Factor believes in monitoring on real-time basis, it also offers the budget till the current date in the same form but based on capacity in terms of hours till the current date.
This highlights the fact that, your capacity needs to be utilized on day to day basis, otherwise you could be loosing the race. (please see Are you driving your firm at the right speed link).
One may recall the period of lockdown where time available could not be used for productive activity affecting incomes of virtually everyone.
EFF Factor profitability monitor also compares actual performance in terms of billable work done and actual billing and offers detailed analysis of deviations on daily basis – real time basis.
So why wait? Get set & go with EFF Factor.
Contact – For free Eff factor price simulator for better understanding of smart fixing of billing rates and for demo of Eff factor especially The Profitability Monitor.
Please contact us on +919892128838 or mail us on contact@efffactor.com for more details
