Introduction

Consultancies are often challenged when it comes to managing contracts, invoicing and revenue recognition as well as analysing customers, projects and employees.

Typically, these organisations sell a host of services – usually consulting hours, but also courses or standard services. Some customers purchase prepaid hours (like a ticket coupon), while others purchase entire projects on a fixed-price basis.

Getting an overview of the company's contracts, the number of hours left on a prepaid hours contract or which projects are in need of renegotiation with the customer can be very difficult. Often, the result is a delayed reaction resulting in lost revenue. Even more difficult is attaining a reliable forecast. How much of your revenue is booked, and how big is your cash flow?

In this white paper, we take a closer look at the characteristics of the most common contracts used in consultancies and offer a few classic examples of how TimeLog can help these companies organise their contract work.