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Estimating FAQs
Summary: Answers to frequently-asked questions about estimating jobs with Clients & Profits. Estimating is a fundamental feature in Clients & Profits. Estimates are an integral part of job tickets and their tasks. Besides being presented for your client's approval, a job's estimate is used throughout Clients & Profits in various reports which allow you to compare estimate amounts to actual job costs and billings. Entering estimates is an important step to more meaningful reporting and job analysis. You can automate invoicing a client for the estimate as well.
Q. Does every job have to have an estimate?
No, but it's a good business practice. The estimate represents an agreement between you and your client. It gives clients a summary of what will be included on the job. An estimate helps you avoid forgotten tasks and missed costs that could cut into your profits. With a written estimate, there should be no surprises on the job for either you or your client. Unless the job is one of those that's in-and-out of your shop in a day or two and is routine and predictable, your shop could be at risk for unbillable costs without signed job estimates.
Q. What's the best way to calculate an estimate?
When estimating a new job, review similar jobs that your agency has completed to help determine how much the job will cost. Examine past jobs to determine why a job went over estimate, and then prepare a better estimate for the new job. Remember that good estimating can take time, but the financial gains will be worth the effort.
Q. How do I create an estimate without opening a job ticket?
You can't, you need to add a job ticket before creating an estimate. If an estimate is only a bid or proposal, then give the new job ticket a status code that reflects the nature of the estimate. If an estimate was sent to the client, but not accepted, then close the job and give it a status note such as "Closed, Never Approved" or "Canceled, Never Started." You then will have a record of the estimate in the database. If the client ever changes their mind and decides to go ahead with the job, you won't have to recreate the job from scratch. Just reopen the job ticket.
Q. When should the estimate be completed?
The estimate should be prepared and signed by the client before work on the job begins. Of course, this may not always happen. An estimate should be signed before you spend any money with vendors or before a significant amount of your staff's time has been invested in a job. It is a process of training your staff and training your clients. Make sure that everyone involved understands your agency's workflow policy.
Q. How can I keep people from adding time or costs to a job when the estimate has not been approved?
Use status codes. Set up a status code for jobs with unapproved estimates. The status code's alert should be set to either warn users or stop users when they try to add costs to the job. A message such as "See this job's AE before continuing" can be added as the status code's warning.
Q. Why can't Clients & Profits calculate an estimate amount automatically from the job's planned time and expenses?
It can. Clients & Profits has a built-in estimate calculator, called the Estimate Worksheet. While editing an estimate amount, click on the Worksheet tab (on the right hand side of the window). You are able to input estimated hours and outside costs. As you tab through the worksheet, the correct billing rate or markup appears, creating estimate amounts. When you tab, amounts are copied to the main Estimate window.
Q. What is budget amount used for?
It reflects the amount that you expect to spend in outside hard costs on a job. The budget amount is used on Purchase Order and Cost alerts that compare actual to budgeted costs. It is also used on some Profitability reports that show Projected Gross Margin.
Q. Can additional job tasks be added from the Estimate window?
Yes. If a task isn't on the job, then add it by clicking on the "Add Task" tool bar button in Estimate window and follow the prompts. You don't have to return to the job ticket window to add a task.
Q. What is a group number?
The group number on a task controls how an estimate sub-totals and impacts the order of how the tasks appear on the job ticket window, in the Estimate window, on the printed Estimate itself and on various job reports. The group code can be edited by double-clicking on a job task in the job ticket window. The group name can be edited in the Groups window (go to the Setup > Groups).
Q. How do I show sales tax on estimates?
Sales tax is calculated based on estimate amounts for each job task. Each task has a sales tax setting, either taxable or non-taxable, for up to three different sales taxes (or tax rates). Sales tax settings are copied from the Task Table to the job ticket every time a new task is added. A job task's sales tax settings can be edited by double-clicking on the task. The sales tax rate (percentage) is pulled from the client account. When the estimate is printed, you'll see asterisks to the right of the amounts indicating taxable job tasks.
Q. We usually give clients several options to choose from when preparing the estimate; how can we show these options?
You can print up to three separate columns on each estimate. Label the three columns in the estimate window accordingly (e.g., "5,000", "10,000", "25,000" or "2-color", "4-color", "6-color" etc.) then enter estimate amounts in each column. When you print the estimate, you have options to print one specific estimate column, all three estimates columns with one combined total amount, or all three estimate columns with individual column totals.
Q. Is there an easy way to copy the amounts from one column to the next?
Yes. Click into the column you want to copy to the next column, then click the "Copy Amounts" link. This function copies all of the amounts into the next column where they can be edited. However, this function does not copy the information entered into the Estimate Worksheet, but it will copy the hours as well as the amounts from one column to the next.
Q. We gave a client three different estimate amounts to choose from, and they chose the third column's estimate. How do we get this estimate to show up on the Job Ticket window and Job Summary reports?
After a client makes their choice, open the Estimate window. Then use the Final Estimate pop-up menu at the upper right of the window to select the job's authorized estimate. This will show through to the job ticket window and on reports. This setting does not impact the printing of an estimate, which is controlled via the print estimate window.
Q. We go through several revisions on a estimate before the client approves it. How can we keep track of these different versions?
Clients & Profits can track the various revisions to a job's estimate. A job starts with an original estimate. When changes are made to an estimate that reflect a new revision, choose "New Revision" from the "Show Est Rev" pop-up menu. Each time the estimate is revised, you can save it as a "New Revision" if you wish to track the changes made. If not, just edit the original estimate and click Save.
Q. Do we give the estimate revision a number?
No. New revisions are automatically numbered.
Q. Can we review prior revisions of an estimate?
Yes. Prior revisions can be viewed at any time by selecting the revision number from the "Show Revision" pop-up menu. This estimate will be seen in a "view only" format. To edit a prior revision, it must be made the current estimate as well by clicking the toolbar button to the right of the pop-up menu which prompts asking if you want to make the selected estimate the current estimate.
Q. Can we make any revision the current estimate?
Yes, including the original estimate. You may choose a prior revision, the original estimate, or any future revision you add will be the current one.
Q. Is there an easy way to erase the estimate and start over?
Yes. In the Estimate window, select the "clear amounts" toolbar button, which will clear the estimate and budget amounts.
Q. We have several jobs we need to create that have almost identical estimates. Is there a quick way to prepare them?
Yes, use the cloning feature to add the jobs. Add the first job and set up the estimate. When you add each of the similar jobs, choose the Clone Job button from the toolbar. Make the necessary changes to the specifications of the new job and select the option to also clone "Estimates, worksheets, budgets." As well, estimate amounts can be added to the Job Templates. Add each of the jobs using the same Job Template.
Q. We have several jobs for one project. Can we print all the individual estimates as a single document?
Yes. A project estimate includes a sub-total for each job in the project, and a grand total for the project. When you print the estimate, choose "Project" instead of "Job Number" from the pop-up menu and enter the Project name.
Q. We want our creatives to be able to look up Job Tickets and review estimates, but not make any changes. How can we be sure they don't edit the estimates?
Ensure that their access privileges for jobs are set up correctly. The "User can do job estimates + job specs" checkbox in the Jobs access area should not be selected.
Q. What should we do when a client makes a change after signing off on the job's estimate?
You can revise the estimate and print out a new copy of the estimate for the client to sign -- or, better yet, add a change order. You'll add a change order each time the client makes a change, even if it doesn't cost anything. The change order only shows what the client wants changed, not the job's original estimate. It includes signature lines to document the client's approval of the change. It also ensures, if there are additional costs, the client is not blindsided when the job is billed.
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