Billing Rates are used to charge time at different hourly rates based on the type of work being completed. For example, you might choose to charge out an apprentice at a lower rate than a tradesman. To achieve this in Tradify you can set up two Billing Rates, one for your apprentice and another for your tradesman.
Adding a new Billing Rate
To add a new Billing Rate, click on Settings, head over to Billing Rates and then select New Billing Rate. Add the relevant details and then select "Save".
Note: For the purpose of this video, we've left most of the options blank and instead listed a comprehensive overview of each option below.
Note: During the creation of the Billing Rate, the following fields will be available to edit.
Display Name - Use this field to assign a name to your Billing Rate. This appears on an invoice or quote under the relevant line item Item Code.
Description - Use to add a description for the Billing Rate. This appears on an invoice or quote under the relevant line item Description.
Note: If you've selected to use the Timesheet Notes as the Line Item Description (under Settings > Invoice) then the Timesheet Note will appear as the line item description on the invoice and/or quote.
Estimated Hourly Cost - Enter the cost per hour for the Billing/Labour Rate.
Important Note: The billing rate Hourly Cost is only used on Quotes. When invoicing timesheets and scheduled appointments, the Hourly Cost is derived from the Staff Member record.We recommend entering either an average hourly cost or the maximum cost of what you pay staff per hour so that the quote profit will display correctly. This Hourly Cost is also used to calculate the estimated labour cost on the job financial report and is not visible to anyone without Office or Admin access.
Tax Rate - Select the tax rate that applies to this billing rate. If left blank, Tradify will assign the default tax rate. For more details on tax rates, please see here.
Account Code - Select the account code that applies to this billing rate. If left blank, Tradify will assign the account code which has been assigned to "Sales of Labour" within your accounting integration settings.
Note: If you're not integrated with an accounting system, please leave blank.
Billing Rounding - This gives you the ability to set a rounding interval for your billing rate. For example, if you set your rounding to 60mins, Tradify will always round timesheet entries to the nearest hour when calculating Job charge out rates.
Billing Minimum - This gives you the ability to set a billing minimum.
Note: The billing minimum is only applied once to each billing rate on a Job. For example, if your billing minimum is 1 hour, but your combined labour on the Job equals more than 1 hour, then the billing minimum becomes invalid (as it's already over 1 hour).
Hourly Rate - Enter the Hourly Rate to be charged out to the customer for time entered on a Job using the billing rate.
- Let me enter the price later - Select this option if you wish to zero the Hour Charge Out Rate so this can be entered at the point of invoicing.
- Amounts include tax - Select this option if the Hourly Charge Out Rate is inclusive of GST.
- Archive this Billing Rate - Select this option to remove the billing rate for use/view.
Important Note: The Display Name, Description, Hourly Cost, & Hourly Rate (associated to your pricing levels) are all mandatory. If these fields are left blank, you won't be able to save the Billing Rate.
The only exception to this is if you set your pricing method to "Let me enter the price later" - in doing so will allow you to save without entering an Hourly Rate to your relevant pricing levels.
Setting your default Billing Rate
The default Billing Rate will be assigned to new Staff Member records as the default. This will then be used as the default billing rate when timesheet entries are created for the individual staff member.
To change the default Billing Rate, head over to Settings, click on Billing Rates and then select the drop-down under Default Billing Rate.
Deleting a Billing Rate
To delete a Billing Rate, head over to Settings, click on Billing Rates and then select X icon on the right-hand side of the rate you wish to delete.
Note: Billing Rates cannot be deleted if they have already been used on a Quote, Job, or Invoice. In this instance, it's recommended to use the "archive" function (covered in the following section).
Archiving a Billing Rate
Archiving a Billing Rate will subsequently remove it from being used or seen throughout Tradify. You will still have visibility of it within Settings and also within historical records, but it won't show as an option anywhere else.
To archive a Billing Rate, head over to Settings, click on Billing Rates, select the Billing Rate in question and then scroll to the bottom and select "Archive this Billing Rate". To finalise your changes, click the Save button.