Tracking your effective hourly rate helps you identify which clients are killing your firm's profitability. This report is essential for firms that bill their clients on a fixed-fee model.

To see the Effective Hourly Rate report in action, view the video below:

This report can be viewed in a couple different places within Financial Cents.

You can find this data by going to Reports > Effective Hourly Rate. You can also view individual client's Effective Hourly Rate by going to the client profile > see the "activity" tab, as seen below:

To get the hourly rate, we take your time-tracked and divide it by monthly billings for each client. This will allow for you to see the effective hourly rate by month.

In order to get this calculation you will need to input your billing records in the activity section of the client profile. You can input one time billing records, or recurring billing records, as seen below:

This data will help you understand how much you are making and identify your least and most profitable clients. You can use this data to increase your engagements with unprofitable clients and boost your firm's bottom line.

*** Pro-tip: Most firms typically make between $70-150/hr

If your team tracks time in Financial Cents the time tracking information will automatically populate every month. You can also set up your monthly engagements to populate every month to automate this entire report. Most firms have to spend hours running this report every month in spreadsheets. This allows you to do it in minutes. You can learn how to set up your monthly engagements/ billings in this article.