Training

If you have any immediate questions relating to any of our products please feel free to contact us via our contact page or alternatively click on our live sales desk icon on the left to talk to an FMRC representative (Mon-Fri 9AM-5PM EST).

For enduser questions asked a lot, please choose from one of the sections below to read in our FAQ's:

1. Targeting training for success in Professional Service Firms
2. How to improve debtor management
3. Need help with Data Entry?
4. How do I add notes and information from an Industry Profile to the analysis section of my BBS report?

1. Targeting training for success in Professional Service Firms

   Following the results of a recent survey, Benchmarking.com.au approached the five best performing firms to find out what delivers success in:

   1. conversion of work-in-progress (WIP) into billings;
   2. conversion of billings into receivables; and
   3. growth in billings of all fee earners.

   One common theme in the answers from these high performing firms was the importance of management training for all fee earners. In large part, these firms attribute their success to the fact that their key employees had a thorough knowledge of how their efforts impacted on the performance of the firm and how this in turn would benefit them.

   
   Fee earners in high performing firms understand that they can directly influence the performance of their team, the firm and, ultimately, their careers. The fee earners are given an "entrepreneurial education" in firm management, whereas less successful firms reserve management training solely for partners.

   
   Progressive practices are training their people early, therefore changing the intention and attitude of employees by emphasising why management hygiene is important and not just how to do it.

   What Training is Beneficial?

   Young fee earners within professional service firms will benefit from an understanding of the operations of the firm. This involves the management of work in progress, pricing practices including an analysis of cost of production, debtor management and practice development strategies.

   Many firms have found that when their key fee earners have an understanding of the operations of the practice, they are more likely to behave with the mindset of a business owner than that of a business resource. Some possible areas for training may be:

   1. How an individual's activity relates to cash collected
   2. How budgets are set and the break-even fees required
   3. How various matters are priced and what determines hourly rates
   4. Costs associated with operating the practice
   5. Time recording methodologies
   6. Billing policies and procedures

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2. How to improve debtor management

   Debtor management remains an issue in many professional service firms. A recent Benchmarking.com.au survey indicated that many firms achieve best practice performance in their ability to attract work, do the work and bill the work, but under perform when it comes to timely debtor management.

   Our Research shows on average Australian firms have the equivalent of 70 days of full production locked up in "debtors outstanding." The best performers in our benchmarks have managed to reduce this to 45 days.

   Debtors typically fall into two categories, those that don't want to pay and those that can't pay.

   Clients that cannot pay should be moved off the books.

   Debtor issues are usually driven by the bill being higher than the client's expectation, creating a situation where the client may be surprised or frustrated, often delaying the payment process.

   Left to their own devices clients develop their own price expectations. They are often shocked when their expectations do not accord with reality. All fee earners should discuss the following with their client to avoid misunderstanding:

   - articulate payment terms regularly
   - discuss fee structure and billing practices annually
   - always itemise fees to ensure client understanding and avoid disputes
   - if asked to do something unusual or additional to a particular client's typical annual job, discuss the likely fee.

   For fee earners to pre-empt a negative client situation, communication is omnipotent:

   - If a bill is adding up for a client, call them, don't wait for the follow up call in three weeks time as it will be too late. Call them and forewarn them the fees have accrued, and possibly elude to a different billing cycle for this period to reduce the impact of one large bill by offering a number of smaller bills
   - Bill monthly or quarterly to reduce client shock
   - Record all time and bill it
   - The key relationship holder will have the greatest level of success when making debtor calls

   All fee earners should understand that:

   - Debtor management is a key task within their role
   - Fee earners are accountable to the success of the firm (refer to the article on ‘Targeting Training for Success' within our March newsletter)

   Training fee earners towards professional debtor management will ensure sound billing practices and ultimately improve client relationships and satisfaction, whilst decreasing bad debts.

    

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3. Need help with Data Entry?

   This Quick Tip provides some definitions and working examples to assist you in completing a benchmarking project within the BBS. The two sections we have selected for review are:

   1. Company Details
   2. Personnel

   Definitions and working examples are provided to give you a good understanding of these key areas within the Data Entry section of the BBS.
   For assistance as you navigate through the BBS use the help icons which are represented by a question mark . These icons can be hovered over with your mouse to bring up the help text or can be clicked to expand the text (refer to the screen shot below).

   

    

   1. Company Details

   The company details page relates to details about the business you are completing the benchmark for, and the information is separated into Contact Details and Your Business sections.

   Contact Details: this information will appear on your benchmarking report and will also form the name of the benchmark file.

   Firm Name or Identifier - This relates to the firm you are completing the benchmark for, and the business name entered here will appear on the report
   
   Who Completed This Form - Refers to the accountant or analyst entering the data, as does all the contact information, and allows your client to contact you to discuss the report as required.
   
   Year End Result - Is the financial year of the information that you are entering into the system. For example, end of financial year 2008.

    

   Your Business

   All Owner Working Hours - is the average number of hours that all working owners have worked in the financial period. This is calculated as an average using the following equation:
   
   All owner working hours in an average week x 46
   
   The hours in a week are multiplied by 46 to allow for 4 weeks holidays and 2 weeks of sick leave

   

   2. Personnel

   The personnel page contains all of the personnel related information you will need to input into the BBS. There are a number of items in here that you may not be able to obtain immediately from your client, however this information is important to successfully complete your benchmarking report.
   
   Here are some simple definitions:
   
   FTE = full time equivalent
   
   Total Remuneration inc Super = The total wages and superannuation paid to the type of employee, for example, fee earner, apprentices/trainees, accounts/management etc.
   
   Charge Hours = the average total charge hours worked by the type of employee, for example, fee earner, apprentices/trainees, accounts/management etc.
   
   Average Charge Rate = the average dollar fee that this employee type charges per hour for their work
   
   Fees Rendered = the total dollar value that this employee type generated for the year
   

   How to calculate an FTE

   Some employees may have only worked for part of the year or worked part time. In these cases, the full time equivalent is less than 1.0.
   
   For example, if a person worked 500 hours in the 12 months ending June 2009, and for that position type 1800 hours is expected to be full time, then the FTE is 500/1800 = 0.28.
   
   We hope this quick tips article is of assistance to you when using the data entry section of the BBS. If you require any further information about data entry please feel free to contact us on 02 9262 5564 or enquiries@benchmarking.com.au

    

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4. How do I add notes and information from an Industry Profile to the analysis section of my BBS report?

   In this tool tip we will review the following two areas of the BBS and Industry Profiles:

   1. Scribble Pad (BBS)
   2. Performance Differentiators (Industry Profiles)

   By utilising these two areas of the BBS, you will be able to quickly add some key points to your next BBS report.

   1. Scribble Pad is a tool within the BBS that can be used to add notes to a BBS report. To activate the Scribble Pad, you will need to open an existing benchmark file from the dashboard or create a new benchmark file and then click on the pencil symbol located in the tool bar, as displayed below.

   

   Once you've clicked the pencil symbol, a Scribble Pad will slide out from the right side of your screen. This Scribble Pad can be used in the same way a Microsoft Word document allows typing, pasting, and various other editing functions.

   

   All information entered into the Scribble Pad will appear in the analysis section of the BBS report, as displayed below.

   2.Performance Differentiators are held within each Industry Profile and outline strategies for improvement across all areas of a business including (but not limited to): gross profit, COGS (where applicable), expenses, debtor management, and personnel.

   

   Performance differentiators can be inserted into a BBS report through the Scribble Pad tool. Here's how:

   1. Open the Industry Profile that relates to the industry that you have created a benchmark for. For this example the Architects Industry Profile will be used, as I have created a benchmark file for an architect business.

   2. Highlight the section that you would like to copy by clicking your left mouse button and dragging down on the page. Then right click your mouse and click "Copy" or alternatively press Ctrl+C to copy the text.

   

   You now have the relevant text copied and ready to paste into your Scribble Pad. Open your Scribble Pad by clicking on the pencil symbol within the BBS, then paste the text into the Scribble Pad. To paste text, simply right click your mouse and then click "Paste", or press Ctrl+V after clicking inside the Scribble Pad text box.

   

   Now that your text is inserted into the Scribble Pad, complete any required spacing and formatting, then the BBS report is ready to print. To print a full BBS report you will need to validate and lock your benchmark file (for tips on validation and locking, please click this link), then press the print button within the tool bar, as seen below.

   

   All text entered into the Scribble Pad will automatically be saved and flow through to your BBS report once printed, as displayed below.

   

    

    

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