A company's budget consists of several partial budgets, out of which the company's main budget (Target). The starting point for creating budgets includes forecasts, with which the objective is to anticipate the development of the company's sales, invoicing and expenses.

The target is usually created for a calendar year, and the future predictability narrows down as the turn of the year approaches. During the year, many things can change, and your company can anticipate situations and create month-by-month forecasts to support the budgeted target.

You'll learn (to):

  • Define the goal to track
  • Additional settings for goals
  • How to create a goal on an account card
  • How to track goals in Reports

Plans & Permissions

Plans: Free CRM, Sales CRM, Project Management, ERP

Permissions: Accounts and Goals

Table of contents:

1. Defining goals from the settings and additional settings

1.1 Net Profit and Gross Profit

1.2 Actual budgeted project margin and gross margin

1.3 Commitment, get a second target (advanced setting)

1.4 Project Types budgeting (advanced setting)

2. Creating goals on an account card

2.1 Creating a target

2.2 Add commitment as a second target

2.3 Adding forecasts

2.4 Tracking goals on account card

3. BI-reporting for goals tracking

3.1 Quarterly goals view

3.2 Monthly goals view

3.3 Account and project-specific goals reporting

1. Defining goals from the settings and additional settings

Before goals can be created on an account card, you must define the desired goals to track in the settings: there are four options.

On Taimer, gross margin and project margin can be tracked based on the budgeted costs in billing and the cost estimate.

In the Goals to track setting, the desired goals to track are selected from the dropdown menu. You can choose one or multiple goals to track out of the four options.

NB: each goal is budgeted and tracked separately.

1.1 Actual gross margin and actual project margin

In tracking actual gross and project margin, the target vs (invoicing - bills, expenses, and travel expenses) is tracked. The formulas separate the margins from one another.

The amount of income that remains in actual gross and project margin calculation

In project margin calculation, all real-time costs of a project (hourly own cost, bills, expenses and travel expenses) are taken into account. In tracking the gross margin, hourly own cost (your own work) is not taken into account.

Formulas for actual project and gross margin:

  • Actual Project Margin: Budgeted costs – bills, expenses, and travel expenses. Gross Margin includes hourly own costs accrued from time entries.
  • Actual Gross Margin: Budgeted costs – bills, expenses, and travel expenses. Gross Margin does not include hourly own costs accrued from time entries.

NB: Invoicing means all invoices with status "Sent", waiting and draft invoices are not included.

1.2 Estimated gross and project margin in a cost estimate

In tracking estimated gross and project margins, the budgeted costs in cost estimates of won projects are tracked. Therefore, actual invoicing or costs are not taken into account in these estimates.

The amount that remains in estimated and budgeted gross and project margin calculation:

  • Estimated project margin: all budgeted costs in a cost estimate (hourly own cost, bills, expenses and travel expenses).
  • Estimated gross margin: In the cost estimate, hourly own cost is not taken into account, which is defined in the Types dropdown menu in the cost estimate row.

Formulas for estimated and budgeted project and gross margin:

  • Estimated budgeted project margin: All budgeted costs in a cost estimate.
  • Estimated budgeted gross margin: All budgeted costs in a cost estimate except for hourly own cost.

The expense types of a cost estimate are: hours, bills, services, products and expenses.

1.3 Additional setting: Commitment to a second target

Some companies might need one more level on top of the target for making annual budgets. This level is separate from the annual target and can be used to incentivise management, for example. A binding budget is usually larger than the annual target of a company.

1.4 Additional setting: Advanced tracking of Project Types

You can also choose to follow up on sales to a deeper level, by creating project types. With Taimer, you can even create budgets for each project type.

First add project types, after which you can choose which project types to budget and track.

2. Creating goals on an account card

The selected goals to track will appear under the Goals tab of the account card. On the right side, you can select different goals to track.

NB: A target will be selected for each goal to track.

2.1 Creating a target

On the left, click on "Edit Target" above the Target column and you get to add a target. Select the active months, add a value and click "Split evenly", after which click "Save" and the target has been added and is active.

2.2 Add commitment to a second target

A binding target, when added, works the same way as the Target column. A binding level is separate from the annual target and can be used to incentivise management, for example. A binding budget is usually larger than the annual target of a company.

2.3 Adding a forecast

The original numbers of the target can be used for creating a forecast, or based on the actual numbers.

In tracking and reporting, both target and forecast can be tracked.

Add a forecast by clicking the green button on the right-hand corner of the Goals tab.

Name the forecast, add the numbers and save.

  • NB: You can add new forecasts freely.

Now both the target and the most recently saved forecast are visible on the account card.

2.4 Goals tracking on the account card.

  • Actual: The row shows the selected target and the real-time status of the goal.
  • Cumulative target: The sum is accumulated from the start of the fiscal year.
  • Total: the total sum of all months.
  • Month-to-Date: the sum accumulated from the first month of the fiscal year to the current month.

Related articles:

Goals Insights

Did this answer your question?