Friday, March 13, 2015

How Much Are You Losing Because of Inaccurate Time Sheets?

A recent survey we conducted of IT Consultants indicates that 73% of consultants knowingly submit time sheets that do not accurately reflect the work they did.

Incorrect time sheets affect revenue in 2 ways:
  • Directly for time-and-materials projects by misrepresenting hours work and, therefore, billed to clients
  • Indirectly for fixed-fee projects when the data for those projects are used as the basis of estimates for future projects
Do you know how much revenue you are leaving on the table?


Sample:
Number of Billable Consultants on the team: 11
Bill Rate: $200.00
Billable Hours Missed per Time Sheet: 1
Time Sheets Submitted/Year: 48
Revenue Lost for Work Actually Performed: $105,600 (3% of available capacity)

Plug your data into this equation and do the math for yourself:

# of Consultants * Billable Rate/hour * # of hours missed each week * # of billable weeks/consultant

We want to hear from you!


  • Not a problem for you? What have you done to ensure accurate time sheets each week from your consultants?
  • If you are still struggling with this? What have you tried? Why have those things not worked?
Contact us at amulligan@sophity.com.

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