Streamline Your Workflow with Our Billable Hours Invoice Template for Teams

Billable hours invoice template for teams

okay now that we have the cost rate so we've got pay rate what we're paying the person cost rate it's going to be what we're paying them plus what it actually costs to employ this person to work on the job site but then if I go and charge a customer for my cost rate it sounds like I'm not making any money so what what do I need to do to make that next leap to actually be profitable yeah you're absolutely right if you just go out and Bill at your cost rate you'll be making zero dollars on every hour the guy works um so if you think about uh it's like I don't know about you guys but the profit Constructors are in business to make it's in the name and we want to help all of our clients be profitable so that's why we're helping them break this down so um you want to think about now okay now you know just what that individual's hours are costing you also you probably have an office maybe you have a printer and you're buying printer paper for that you probably have an administrative uh support at least one person or maybe a whole support staff that's back in that office making sure that you know the calls that come in are dispatched correctly all of that stuff has to happen too but you're those are none of those are billable hours right so that's overhead so now we need to add that overhead to the cost rate we have to be able to pay all that stuff as well and then we also want to make a profit so we're going to add whatever that percentage of profit is that we desire to make as long as it's going to make sense in the market right it has to be whatever our cost is that the market can bear when you start to put your bids out yeah but you want to build your billing rate to be that top level of what that what the market will bear that also allows you to pay all the overhead and make a profit wow okay so let's say I'm a general contractor right I've got uh we do a little bit of electrician work we do a little bit of Plumbing we do some Framing and drywall and we you know subcontract foundation work and that type of stuff and I've been charging 35 an hour for labor but I can't seem to make ends meet what you're telling me is that it could be that difference right there most likely it is you really may not have calculated your cost rate correctly but you're probably also not making your billing rate what it should be to pay all those extra things yeah interesting