coretime.com
Return on Investment (R.O.I)
ROI measured in weeks not years
Through the effective introduction of coretime.com, users can make considerable savings, which in a very short space of time will more than recoup the cost of running the software. The benefits generated can be summarised as follows:
Efficiencies gained as a result of users inputting own time
We maintain that an inordinate amount of time is spent by staff collating timesheet entries using manual methods. Such efforts are time wasted that would otherwise be attributable to a client - i.e. lost chargeable time. The following example shows how significant this cost can be:
Set out below is an example of a small professional practice highlighting the effect that the introduction of maketimepay can have on its profitability.
Existing method of recording time
|
Standard Hrs. per day (Coretime) |
7.5 hrs |
|
No. of working days available |
260 days |
|
Bank Holidays |
8 days |
|
Annual leave |
20 days |
|
Sick Days (ave.) |
2 days |
|
Total available days |
230 days |
|
Standard hours available |
1,725 hours |
|
Average hourly cost |
€40 |
|
|
|
|
Total number of employees |
15 |
|
|
|
|
10 minutes per day, time recording |
150 minutes |
|
15 minutes per week completing cross tots etc, |
225 minutes |
|
20 minutes per week collating timesheet (administrator) |
20 minutes |
|
Weekly time spent - all 15 employees |
995 minutes |
|
This equates to a weekly cost of |
€663 |
|
Annual Cost |
€31,840 |
coretime.com
|
No of minutes spent recording time (10 min per day) |
750 |
|
Weekly cost |
€500 |
|
Annual Cost |
€24,000 |
|
Annual Saving |
€7,840 |
|
However, the extra time made available by coretime.com) can now be recorded against
chargeable projects.
|
|
Increased staff productivity
Productivity is that portion of the week spent on Chargeable Time.
coretime.comprovides a number of standard features within its solution to encourage employees to focus on chargeable rather than non-chargeable/unavailable time. By focusing an employee on chargeable time, the inevitable result is an increase in staff productivity, which is readily measured from within the program both via reports and through the use of graphics. We maintain that users can expect to increase productivity by as much as 15% within months of introducing our solution.
The example below shows the financial benefit of increasing productivity by just 5%.
|
Chargeable Hours available |
1,725 |
|
Average charge-out rate per hour |
€160 |
|
No. of Employees |
15 |
|
Potential Fee Income per annum |
€4,140,000 |
|
Fee Income per annum at 70% productivity |
€2,898,000 |
|
Existing recovery rate |
75% |
|
Total Fee Income |
€2,173,500 |
|
By increasing productivity by 5% results in additional revenue of |
+€155,250 |
Increased staff recovery
Recovery is the difference between W.I.P. recorded and the Invoice raised for that WIP.
With all staff accurately recording time and having the ability to record notes against their time/expense entries, Partners/Managers are in a position to readily identify time spent on activities not budgeted for or agreed with the client. This type of information enables the client to be pursued for additional fees, where appropriate, thus increasing recovery.
Using the sample data above:
|
Existing potential income at 70% productivity |
€2,898,000 |
|
Increase Recovery by 2% = additional revenue of |
€57,960 |
|
Now having increased productivity by 5%, AND increased recovery by 2% leads to additional revenues of €213,210 . |