We completely renovated the Booked Fees dashboard to bring you the all-new Fees dashboard. Now, recruiters can filter their Booked Fees versus their Actual Fees in a single dashboard.
❓ BOOKED versus ACTUAL FEES: what's the difference?
BOOKED FEES: Bookings are a forward-looking metric that typically indicate the value of all Placement fees. These include all Permanent Placements, Retainers and the total contract value of all Contractors / Temps signed with a Client when a consultant makes a Placement / booking.
The Booked Fee for a contractor works like this. Say the contractor has a 6-month contract making $15.00 profit / margin per hour for the consultant. In the Job, the consultant sets the hours to be 8 per day / 22 days per month. The calculation of the Booked Fee for the contractor is as follows: (($15.00 x 8) x 22)) x 6 = $15,840.00 profit / margin for the 6 months of the contract.
The Booked Fees metric allows your business to see the potential future fee outcome when consultants make a Placement / booking. Contract recruiters often get overlooked when they first start, as their fees need time to build while they grow their Contract / Temp base. Showing recruiters their Booked Fees can focus them on ensuring the contract lengths are as long as possible, while maximizing the profit / margin to ensure the highest Booked Fees.
ACTUAL FEES (a.k.a. REVENUE): Actual Fees apply to all approved invoices sent to Clients. Actual Fees are generally what commissions and bonuses are paid on, and what the business recognizes in their P&L. For example, when a Perm placement starts, an invoice is issued to the Client. This amount is then recognized as revenue in the company P&L.
For contractors, once the contractor has rendered their service to a Client and an approved Timesheet is received (which provides the company a guarantee of receiving payments for the service), then an invoice is issued to that company so that Revenue (Actual Fees) can be recognized.
Upon the approval of a timesheet, Vincere creates two invoices: a Sales invoice (this is sent to the Client) and a Purchase invoice (this is what is paid to the Contractor / Temp). The difference between these invoices is the Actual Fee (Revenue) for that contractor.
Who should care about Booked Fees?
Booked Fees (Bookings) help at various stages of growth. Many early-stage recruiting businesses don’t entirely follow accounting best practices. They can treat bookings as the source of truth, in terms of revenue that can potentially be generated for their business.
Booked Fees also help in understanding the market demand of roles (increasing / decreasing margins), the average fee size they get per Placement / booking, and most importantly, they can help build Goals / KPIs for scaling the business later.
For recruitment sales teams, bookings help in deciphering revenue flow. Bookings are an indicator of sales growth - so the sales team’s primary metric should be bookings.
While the sales team looks at these metrics to understand if they are targeting the right kind and quality of customers, Booked Fees is one of the better metrics to evaluate sales success, as it estimates the revenues that are won by sales, including non-recurring Perm placements and Retainers.
The relationship between Booked & Actual Fees is extremely important. It'll give you the insights you need to operate efficiently and fuel growth.
NOTE: Booked Fees is a relatively new concept in recruitment. For years, software and SaaS companies have based their sales metrics / targets on Booked fees. Now more recruiting business are running their weekly / monthly / quarterly targets based on Booked rather than Revenue (Actual) Fees.
Release Highlights 👇
1/ Report on Booked Fees OR Actual Fees
By choosing Booked Fees, you can see all booked revenue vs the target on the date a Placement was made.
If you’d like to see the actual revenue generated through your approved & sent invoices vs the target, then filter by Actual Fees. This way, you’ll be tracking past and current performance on the actual fees being invoiced.
Note 📢 You can filter by Booked Fees or Actual Fees on every report in the Fees dashboard.
2/ View revenue by Date Type Filter
To better track revenue, you can use the Date Type filter in the Actual Fees report. Select between Invoice Date or Period Ending Date (the last day of the approved timesheets).
The Period Ending Date filter gives a precise accounting of fees by timesheet to help record generated revenue by payroll time, not calendar time.
3/ Monitor Timesheet / transaction profits
In the Fee report, check out the Fees / Profit column in the data table to view an instant breakdown of profit associated with every approved timesheet.
4/ View Profit Splits
Now, the Fee table also shows Profit splits for every approved timesheet and invoice. Instantly see which consultants are contributing to which Placements, without having to consult any other reports.
5/ Track Fees with the Date Filter
We’ve added a Date Filter to the Fees report, making it easier for you to measure performance over time.
You can track fees performance:
6/ Compare consultants’ Actual Fees performance
We’ve updated the Leaderboard to show what consultants have brought in with Actual Fees. Take a look at this chart to understand every person’s performance vs targets.
7/ View Fees Data by Placements (Booked Fees) or Invoices (Actual Fees)
Now you can break down the Fee Data dashboard with more relevant info by filtering for Booked Fees or Actual Fees.
Drill down by Booked Fees to get all data from Placements, while the Actual Fees filter will tell you everything about fees from approved invoices.
8/ Track Job Flow with the Date Filter
We’ve added a Date Filter to the Job Flow report to let you view trends over time.
Spot Job Flow trends by time frame: