WorkflowMax is described as having the ‘closest integration’ with Xero for a reason; combine both systems and they immediately become one.
WorkflowMax is known for its ability to make project management a breeze, while Xero has long mastered the art of digital accounting.
If your business uses one of these systems, it will benefit significantly from integrating the other. Here’s why.
Split profit by job or income stream
Reviewing your end of year profit as one lump sum doesn’t give you insight into how that money is made.
With WorkflowMax connected to Xero, you can break down your profit by income stream (see next point) or even individual jobs.
So, that big project you took on for Client A last month? Turns out it was less profitable than Client B’s project which took you half the time!
Insight like that is worth its weight in gold.
Stop taking on work that isn’t profitable
How profitable is each service or product you offer? It might sound like a daft question, but it’s all too easy to fall into the trap of churning out products and services without considering the impact they’re having on your bottom line.
By reviewing your profit by income stream (see above), you can assess exactly which areas of your offering bring in the most net profit and those which are more costly than you think.
It’s eye-opening but provides a true picture of how your business is performing.
Chase profit – not turnover
The old adage “turnover is vanity, profit is sanity” is as relevant as ever.
Turnover is always the greater number, but it often skews a firm’s view of its performance.
Big turnover numbers might hide poor profit margins or even losses. With WorkflowMax and Xero integrated, you’ll become adept at chasing profit, simply because it’s far easier to surface within the easy-to-use reporting suite.
Finding your charge-out rate
If you’re billing by time, you’ll know how important it is to have accurate timesheets.
WorkflowMax enables staff to track their time via a variety of methods. Most importantly, they can attach their logged hours to specific tasks within a job.
Over time, this will provide vital insight that enables you to see how often people work beyond the allotted hours for a job. If that happens regularly, you either have a productivity issue or your charge-out rate isn’t high enough.
See how profitable your time is
Working out your charge-out rate is made far easier with the data provided by WorkflowMax and Xero. But how profitable is the time you’re charging for?
By combining the two systems, you can view the estimated hours for a project against the hours worked. And, because you can break down profit by job, WorkflowMax and Xero will reveal how profitable (or not) your time is.Again, the figures revealed by these systems might not always be palatable, but if there are profit killers hidden within your business, they need surfacing before the problems become insurmountable.
Once you know how profitable your time is you can either rejoice and crack on, or make changes to ensure the team and the business itself is properly rewarded for its hard work.
Workflow Max and Xero work brilliantly together. They excel within their own areas of expertise, but combined, they provide a true picture of how profitable your business is.
If you’d like help setting up Workflow Max please speak to one of the team.