Full Sail Partners Blog (2)

09-12-24 DVP Effectively Manage Your Professional Services Firm Using Project Accounting - Banner

When thinking about standard business accounting – what automatically comes to mind? Income statements, balance sheets, departmental budgets, and the various aspects that make up those statements – right? These figures are, of course, very important to know and understand. But that is only part of the whole picture of the health of your professional services firm. How does your firm go about determining how those figures came to be, which projects were profitable, which weren’t, and why? These questions, and many more, can be answered by implementing project accounting for your firm.

First, What is Project Accounting?

Let’s start by comparing it to standard accounting, which most of us know. Standard accounting manages the financials using a company’s organizational structure – how divisions or departments track things like their G&A, labor, etc. compared to their budgeted amounts on a periodic basis. Project accounting goes deeper and looks closely at the different projects a professional services firm has undertaken, most of which regularly cross departments and might last months or even years.

Let’s say, for example, company X wants to undergo a new green initiative in its office. Standard accounting will keep track of costs for things like the smart electronics to manage lighting and HVAC or the newly hired “Green Officer.” However, what standard accounting doesn’t do is manage the costs for the actual project, i.e. how much did it cost you to achieve your final goal. 

But let’s take this a step further.  Let’s say you need to provide this service to a customer – you’re going to implement that same green initiative at a client site. 

Using Project Accounting, you could also manage, discover, and analyze things like:

The amount of time dedicated by project staff and management to build and maintain the project plan, including the phases of work and project hierarchies
Tracking of the contract budget/contract status/change orders and add-on services
Whether you are effectively utilizing your internal resources
Maintaining up-to-date project deadlines and the associated costs of meeting or not meeting those deadlines
How percentage of completion is managed and tracked to budget
If the project was budgeted correctly, and how what was learned from this project can be used to better manage projects going forward

Outgrowing Your Basic Accounting Solution?

Small professional services firms often rely on simpler accounting software solutions to manage their day-to-day business. One common example is QuickBooks. This product can often serve a company’s needs…for a while. However, these firms will soon find that they are outgrowing the software’s limited capabilities.

J. Carlton Collins, CPA details those limitations in his piece “Practical Advice for Companies That Have Outgrown QuickBooks”.

At a glance, those basic limitations can be summarized as:

Limited accounting system features
Limited database performance

For various reasons, the limited accounting functionality and database performance provided by these simpler software products can actually be appealing to these smaller companies initially. But at some point, growing firms will discover that they need accounting software that can grow along with their business. They will need more than limited features and performance.

Need Help While Gaining Growth?

Growth can be defined by many different metrics – for example, an increase in revenues, an increase in number of employees or customers, higher profits, and greater market share, just to name a few. Professional services firms experiencing this sort of growth will eventually need to take that step up to an accounting software solution that will provide them with both standard accounting, as well as project accounting capability.

Take, for example, this advice from Lindsay Diven, Marketing Manager at Full Sail Partners, in her article about “The Importance of Benchmarking in Measuring Business Growth”. She tells us that “by rigorously examining internal operations against recognized standards, firms can pinpoint critical deficiencies and implement strategic changes, ensuring survival and fostering growth in an ever-evolving marketplace.”

As Lindsay says, by utilizing some of the capabilities of a robust project accounting software system, you can start to:

Identify Efficiency Gaps
Enhance Competitive Advantage
Drive Strategic Planning
Improve Financial Performance

So, if your firm is expanding, and the sort of growth that we’ve identified above is important to the future of your firm, you should look to us here at Full Sail Partners to help you navigate the next step to support your firm’s growth.

Achieve Success Through Project Accounting

In the end, we are all working toward success for our professional services firm. And to most of us, success means growth – in whichever metric resonates the most with the ongoing health of your firm. So, to achieve that healthy firm growth means managing every minute, as well as every dollar, spent, through project accounting, to obtain that success.

09-12-24 DVP Better Manage Your Professional Services Firms Margins - Banner

Deltek Vantagepoint is a project-based ERP system. This makes it unique in that it is intended to not only track overall firm revenue and expenses, but also the revenue and expenses of many separate components, or the projects, that contribute to the overall profitability of the firm. Vantagepoint offers several ways to help identify which projects are contributing to, and which are detracting from a professional services firm’s profitability. Let’s explore a few of them.

Linked Promotional Projects

Can you easily see if a project with a $5,000 fee took your team $5,000 worth of time and expenses to win it? Deltek Vantagepoint offers the means to do so by using promotional projects. In the stages of the project lifecycle, when your professional services firm is pursuing new work, use linked promotional projects to track the time and expenses the pursuits require. This can help you calculate the return on investment (ROI) of your marketing spend.

Consider setting a budget for your promo projects to show staff that the expected maximum level of pursuit spend is dependent on the size of the project. To set the budget, you may want to think about the typical maximum that should be spent to win $1 of chargeable work and multiply that by the labor fee your firm is expecting if the project is awarded. Using linked promo projects can help you analyze the costs of pursuits, as well as the “all-in” cost of the job compared to the fee you were awarded. Analyze the data and perhaps you will find certain types of projects or certain clients are boosting or dragging down your overall profitability.

Contract Management

If your professional services firm struggles with tracking contract documents for projects, look to the contract management area for help! Making sure you have the signed agreements, and that you have them in time for billing, is crucial for efficiency and cash flow. The contract management area lets you customize the list of contract types and statuses and track the dates that contracts were sent and received. You can easily report on missing contracts to see where follow-up is needed. Unpaid invoices and the inability to bill for work due to missing contracts will negatively impact the bottom line!

Project Planning and Resource Management

Have you seen the latest project planning tools in Deltek Vantagepoint? Project Planning allows you to add generic or named resources to a project and schedule hours throughout the project schedule. A plan can be started at the time the in-pursuit project is added to Vantagepoint, and updated as the project scope and fee are developed. Planning can help build more accurate estimates for proposals and also serve as a communication tool during project hand-off from sales to the project manager.

After the project is awarded, updating the plan frequently can immediately show pinch points in budgets and schedules. By continually updating the number of hours each resource will need based on work completed and project progress, you can see, for example, if you need to scale back the effort to better match the scope or if a schedule slip is going to cause the need for a change order. Plan updates may also help identify earlier on the issues caused by scope creep and allow you to more easily negotiate change orders to cover costs not originally included in the fee.

Resource Management takes the project planning data and “flips it” to present it by person as opposed to by project. Being able to quickly identify staff that is consistently over-scheduled, which can lead to resignation and cause expensive turnover costs, and then reassign work to under-utilized staff will help keep firm chargeability on track. In the consulting industry, chargeability drives profits!

Accurate Time and Expense Tracking

Analysis of project profitability relies on accurate time and expense tracking. Make sure employee cost rates whether it is a true payroll cost, or a blended cost rate, are recorded correctly in Deltek Vantagepoint. Check out resources like the Deltek Clarity survey to make sure your professional services firm’s billing rates are in line with industry standards, while also taking into consideration factors such as your client base and your geographical location.

Encourage employees to carefully record all time and expenses to the projects they are working on, even if it might cause the project to go over budget. If over-budget costs are “buried” in marketing and overhead, can you ever truly analyze the profitability of each project? Additionally, if your firm performs similar work across your client base and uses past projects as a starting point to budget new projects, you will consistently lose money if project costs are not accurate.

Project Review/Reporting/Dashboards to Compare Budgets and Actuals, and View AR Info

Deltek Vantagepoint offers many tools to help you analyze profitability. The Project Review area, in addition to the project plan, provides a convenient snapshot of project budget versus actuals. Train your project managers to look at project review and their project plans frequently to stay “in the know” about their projects.

Project Reporting shows everything from labor and expense charges by date, to revenue and projected profit. Determine what is important to your professional services firm, build reports that reflect it, save them for your project manager roles to implement consistency across PMs, and train them on what they are seeing. Remember, in the A/E industry most project managers are engineers or architects by nature, so don’t be remiss in assuming they know how to analyze the financial aspects of the projects!

Leverage the dashboard capabilities in Vantagepoint as well, to bring critical project data front and center. Take a look at the project manager dashboards that come with the system or build a dashboard that reflects the project information your firm wants PMs to focus on. By using a combination of charts, graphs, tables, and reports in your dashboard you can help PMs with different preferences for consuming the project data.

Deltek Vantagepoint Ensures Firm Profitability

As you can see, Deltek Vantagepoint offers many ways to help your professional services firm track and analyze project-related data. By using a combination of these options, your firm can more easily see which projects are helping and which may be hurting your overall profitability. By keeping your eye on the profits, you can make more informed business decisions that will help your firm outperform the competition.

Curious to see what else Deltek Vantagepoint can offer you? Explore the full potential of Vantagepoint here!

09-05-24 DVP Data Imports- No IT Required for DVP - Banner

Data entry can often be a tedious and error-prone task, especially when dealing with large volumes of information. Convincing IT to upload data into software systems can be challenging and time-consuming. Fortunately, for users of Deltek Vantagepoint, there's a more efficient solution: Data Imports. This feature, accessible from the Utilities menu, offers an intuitive interface for importing large amounts of Hub or transactional data while adhering to Vantagepoint's business rules for data entry.

Simplified Data Import Process for New Clients

For new Deltek Vantagepoint clients, the Data Import module provides a streamlined method for transferring information from previous systems. Whether you're migrating data from FoxPro, Oracle, or any other system capable of exporting data into an Excel or CSV file, Vantagepoint makes the transition smooth.

For example, if your accounting information resides in one system and project information in another, Vantagepoint's Data Imports are designed to handle this seamlessly. General ledger details and table information are uploaded separately, simplifying the process. With a basic understanding of Vantagepoint’s software configuration, preparing data files for import is straightforward and requires minimal training. This ease of use can significantly reduce the time and effort involved in migrating to a new system.

Enhancing Efficiency for Existing Clients

Existing Deltek Vantagepoint customers can also benefit from the Data Import module by adding new data to their current Vantagepoint instance or modifying existing information. For instance, if a firm is integrating new functionality that was previously unused, existing hub fields can be updated with data from an Excel file. Vantagepoint ensures that the imported data complies with business rules through a validation procedure, preventing any non-compliant data from being uploaded.

Moreover, transactional data can be uploaded into Vantagepoint via the Data Import module. Many clients utilize external applications to gather the information that must be uploaded into Vantagepoint. For example, subconsultants might use different systems to collect time or expense data, which then needs to be integrated into the Vantagepoint system. Instead of manual data entry, a CSV file can be used to upload this information. Vantagepoint verifies that the data adheres to business rules before it is posted in the Transaction Center.

Key Information About Deltek Vantagepoint Data Import

Whether uploading new data or amending existing records, the import process in Vantagepoint follows a consistent procedure. Currently, the data import functionality is split between Vantagepoint’s web app and the desktop app, with plans to eventually consolidate these functions. Users need to know where to go for each type of import. The web app supports importing data for Employees, Employee-related tables, Clients, Contacts, Generic Resources, and lists. Other imports, such as Projects, General Ledger, and transactional data, are handled via the desktop application.

To ensure successful data import, it is crucial to align the import data with Vantagepoint’s data structure. Data mapping should be performed prior to system validation. Once the fields that need to be mapped are identified, they should be matched with corresponding data in the import file. After mapping, selecting “Import” initiates the validation procedure. Any errors will be reported in a file and will not be imported. The import data can be validated multiple times to ensure accuracy before finalizing the import into the Vantagepoint instance.

Modern Advancements in Deltek Vantagepoint

Deltek Vantagepoint continues to evolve, incorporating advanced features to enhance user experience and efficiency. Recent updates include improved integration capabilities with other software systems, advanced analytics for better decision-making, and enhanced user interfaces for a more intuitive experience. Additionally, Vantagepoint's cloud-based platform ensures that users have access to the latest features and updates without the need for extensive IT involvement.

The Data Import module now supports more sophisticated data validation and error-checking mechanisms, reducing the risk of data inconsistencies and ensuring compliance with business rules. The integration of artificial intelligence (AI) and machine learning (ML) algorithms helps in identifying patterns and anomalies in data, providing users with actionable insights and predictive analytics.

Practical Tips for Mastering Data Imports

Data Import in the Vantagepoint application does not require extensive knowledge of databases or programming. However, practice and perseverance are key to mastering this tool. Full Sail Partners recommends practicing on a test database when learning to use the import feature. This approach allows users to familiarize themselves with the process without the risk of affecting live data.

For additional support, Full Sail Partners offers comprehensive training on the Data Import module. This training covers everything from basic data preparation and mapping to advanced troubleshooting techniques. By leveraging Full Sail Partners’ expertise, users can gain confidence in their ability to efficiently manage data imports, ensuring smooth and accurate data integration.

Data Imports Feature Ensures Efficiency for Vantagepoint Users

Deltek Vantagepoint's Data Import module is a powerful tool that simplifies the process of uploading and managing large volumes of data. Whether you are a new client migrating from a different system or an existing client looking to enhance your data management capabilities, the Data Import module offers a robust solution. With its user-friendly interface, comprehensive validation procedures, and continuous advancements, Vantagepoint ensures that your data entry process is efficient, accurate, and aligned with your business needs.

For more detailed guidance and training on using Deltek Vantagepoint’s Data Import module, consider reaching out to Full Sail Partners. Their team’s expertise can help you maximize the potential of Vantagepoint, enabling you to achieve next-level productivity and efficiency in your data management processes.

08-29-24 DVP Why Your SMB Firm Should Consider Taking Your ERP to the Cloud - Banner

Gartner corroborates that 85% of organizations will go for a cloud-first approach by 2025. Is your professional services firm in this 85%? If not, what’s holding you back? And what does it mean to have a ‘cloud-first approach’? A ‘cloud-first approach’ means information is loaded, stored, and accessible from the internet. If your firm hasn’t evaluated taking your ERP (Enterprise Resource Planning) system to the cloud, here are 5 key things to consider:

1. Easy Access:

With a cloud-based ERP system, your team can access essential project data from any location, at any time. This real-time accessibility allows for seamless collaboration, ensuring everyone is working with the most up-to-date information, no matter where they are. By eliminating the need for physical proximity, the cloud enables faster decision-making and more responsive project management.

2. Affordability:

Moving your ERP system to the cloud eliminates the need for costly upfront investments in hardware. Instead of paying for servers and infrastructure, your professional services firm benefits from reduced IT maintenance costs, as the cloud provider handles system updates and monitoring. This pay-as-you-go model also offers flexibility, allowing your firm to scale its resources as needed without breaking the bank.

3. Fast and Easy Updates:

Cloud-based ERP systems ensure that updates are handled automatically by the provider, meaning your firm always has access to the latest features and improvements. This eliminates the need for time-consuming manual upgrades, keeping your system up to date without disrupting your business operations. Regular updates also ensure better performance and security, keeping your software running smoothly.

4. Security:

Cloud providers offer robust security measures, including encryption, continuous monitoring, and automatic updates to protect your data from cyber threats. Your professional services firm can rely on their expertise to ensure that the latest security patches are applied without delay. With data backed up in multiple locations, you can rest easy knowing that your information is safe and recoverable in case of a disaster.

5. Competing With Larger Firms:

Cloud-based ERP systems level the playing field by providing smaller firms access to the same powerful technology that larger organizations use. The cost savings from reduced hardware and maintenance allow smaller professional services firms to invest more in growth and innovation. Cloud technology also provides the flexibility to scale resources quickly, helping your firm stay competitive in an evolving marketplace.

Ready to Make the Move to the Cloud?

Many professional services firms, small and large alike, are benefiting from taking their ERP to the cloud as it is keeping them competitive, lowering overall operating costs, and allowing their employees to focus on their primary job rather than maintaining an on-premises system.

Deltek Cloud has over 19 thousand SaaS customers that are using 17 different products with more than 1.8 million cloud users in over 50 thousand databases with an uptime of 99.98% in 2023, and those numbers are continuing to grow in 2024. Can your professional services firm afford to ignore the advantages of the cloud? It’s time to put yourself on an even playing field with other organizations regardless of size and resources.

Still Require More Convincing?

Worried about the downtime involved in moving to the cloud? 99.9% of customers are able to make the move from their on-premises system to Deltek’s cloud environment over the weekend ensuring business hours aren’t interrupted.

Worried about data loss? Deltek keeps daily backups in 2 different time zones and a transaction log backup every 15 minutes!

But don’t just take my word for it, here is what one client, Kathy Krol-Ramirez, from Parikh Consultants, had to say:

“Change is hard. Most of us never want to disrupt things that are going smoothly. However, I realized that upgrades and backups could be easier in the cloud and my IT guy was very thankful to not have to handle the program in-house. Now my staff has the latest update with 24/7 access.”

With hackers coming at us from all angles at all hours, why take the risk? Why put your professional services firm's data, and your lifeline, at risk. Can your firm afford 24/7 security and server monitoring? In Deltek’s cloud, there is a dedicated team of security experts that monitor your data 24 hours a day, 7 days a week, 52 weeks a year with security safeguards that typically exceed any on-premise solutions.

One More Compelling Reason to Move to the Cloud

Need one more compelling reason to move to Deltek’s cloud? Vantagepoint! While being in the cloud is not required to move to Vantagepoint, it does offer many conveniences during your upgrade process. This includes a Vantagepoint preview environment using your professional services firm’s data that is not only created by the Deltek Cloud Operations team but is managed and maintained by them. Which means no need to invest in additional hardware or time to manage and maintain it.

Don’t wait and continue to fall behind the curve and jeopardize your firm's success. Reach out to your account manager today to find out if Deltek’s cloud makes sense for your professional services firm.

08-22-24 DVP Clarity Report Finance Trends - Banner

This year’s Annual Deltek Clarity Architecture & Engineering (A&E) Study delves into how firms are navigating challenges to boost their operations and drive progress. It takes a close look at the evolving dynamics of labor costs, the strategic shifts in where firms are investing their resources, and the innovative financial approaches they’re adopting. Let's examine these findings to understand how they’re shaping the future landscape of the A&E industry and what they mean for firms aiming to thrive in this changing environment.

Top Financial Challenges

This year’s top financial challenges for A&E firms mainly centered around finding and retaining qualified staff, increasing profitability, and managing succession planning and ownership transitions. These issues remained mostly consistent with last year's challenges, though managing growth saw a slight decline in importance, dropping from 46% to 38%, thus moving it out of the top three challenges.

Retaining qualified staff, while still the foremost challenge, saw a reduction in the number of firms ranking it as their primary concern, decreasing from 65% to 59%. The focus on boosting profitability gained prominence, with a 9% increase to 54%, reflecting its rising priority among firms.

Meanwhile, the importance of enhancing project leaders' financial knowledge also diminished, indicating a shift in strategic focus towards more immediate financial pressures and long-term organizational sustainability.

Stability in Labor Costs

In 2023, total labor costs per employee among A&E firms showed remarkable stability, with only a modest increase of $345. This slight uptick reflects adjustments in labor-related expenses and inflation, aligning with the changes in firms' headcount levels from the previous year. Notably, the impact varied significantly across firm sizes with:

Small firms experiencing the most substantial increase, with labor costs rising by over $3,000 per employee.
Large firms seeing a dramatic increase of more than $9,000 compared to 2022.
Medium-sized firms remaining relatively stable, with minimal changes in labor costs or employee numbers.

These variations underscore the nuanced approaches A&E firms are taking to manage labor costs while maintaining competitive compensation structures.

Marginal Increases in Gross Wages per FTE

Gross wages per full-time equivalent (FTE) is calculated by dividing the total labor expenses by the current number of full-time employees. This number remained relatively stable this past year, registering a marginal increase of less than one percent compared to the previous year. This contrasts with the notable five percent surge observed in 2022. Key segments such as high performers, small firms, large firms, and engineering firms experienced slight increases in gross wages per FTE, highlighting the importance of tailored compensation strategies to retain and engage staff.

Understanding these wage trends is crucial for firms to ensure that labor cost increases are effectively balanced by topline revenue growth, thereby improving labor multiplier metrics.

Shifts in Asset Investments

The study reveals a significant shift in firms' asset investment strategies. Net fixed assets per employee decreased by six percent, indicating a strategic move away from traditional fixed asset investments like infrastructure, hardware, and software. Instead, firms are increasingly allocating resources toward on-demand operational expenses for software and technology solutions. This shift is particularly evident in:

Large firms and architecture firms reported significant declines in net fixed assets per employee.
High-performing firms and engineering firms which maintained stability or showed slight improvements.

This trend reflects firms' adaptation to changing market demands and their focus on leveraging new tools to enhance competitiveness and drive growth.

Current Ratio: A Mixed Bag

The overall current ratio can be found by dividing current assets by current liabilities. A&E firms saw a slight decline in this, decreasing by 0.18 points. This decrease suggests firms' increased efficiency in managing current assets and liabilities, possibly by accelerating accounts receivable collections. Notably:

High performers, medium-sized firms, and engineering firms experienced the most noticeable declines in current ratio.
Small and large firms reported increases, indicating diverse strategies across different firm sizes.

Despite these variations, the current ratio decline does not necessarily translate into reduced liquidity but rather reflects strategic management decisions aimed at optimizing operational efficiency.

Debt-to-Equity Ratio: A Slight Increase

The median debt-to-equity (D/E) ratio is determined by dividing total liabilities by stockholders’ equity. This ratio rose slightly from 0.61 to 0.66 in 2023. This increase suggests that firms continue to leverage debt strategically to achieve higher returns. High performers, medium-sized firms, large firms, and both A&E sectors reflected this overall trend. This cautious yet confident approach to financial management positions helps firms navigate current economic challenges.

A Decline in Return on Equity

Found by dividing pre-tax income by stockholders’ equity, and then multiplying it by 100, the overall return on equity (ROE) for A&E firms declined by 4.5 percentage points to 19.1% in 2023. This decline was the most pronounced among small, medium-sized, and architecture firms, which faced challenges in generating profit growth commensurate with gains in shareholders' equity. In contrast, high performers, large firms, and engineering firms reported flat or improved ROE relative to the previous year.

Increased Focus on Firm Valuations

An interesting trend identified in the study is the increased focus on firm valuations. More firms (up by 1.5 percentage points) completed firm valuations within the past two years, with large firms and engineering firms showing the most significant increases. Additionally, 52.6% of firms without a recent valuation plan to complete one within the next 12 months, up by 3.2 percentage points. This trend underscores the growing importance of firm valuations in the context of merger and acquisition activities, strategic positioning, and financial health management.

Top Financial Initiatives

A&E firms have identified several key financial initiatives to address their greatest challenges over the next three years:

Training project managers on financial management (+3 points): This initiative reflects a shift towards enhancing project management capabilities to optimize operational efficiency.
Business process improvements (steady): Emphasizing streamlining processes to improve overall efficiency.
Better forecasting (+7 points): Highlighting the importance of financial planning and resource allocation to navigate market uncertainties.

Other notable initiatives include better management of growth, organizational changes, and increasing spending on talent acquisition and retention, although these saw declines compared to the previous year.

More To Look Forward To

The 45th Annual Deltek Clarity Study provides valuable insights into the financial trends and challenges faced by A&E firms in 2023. As firms navigate a complex economic landscape, strategic management of labor costs, asset investments, and financial metrics become crucial to sustaining profitability and securing long-term growth. By focusing on tailored compensation strategies, leveraging new technology solutions, and enhancing financial acumen, A&E firms can better position themselves to thrive in an evolving market.

08-15-24 DVP Timesheets - Banner The necessity to turn in timesheets every two weeks is never at the forefront of your employees' minds. They are focused on their day-to-day tasks. Some employees stay ahead of the game and create their timesheets as they go. Others are swamped with their workload and struggle to keep them current and completed on time. However, it is essential in nearly every industry to keep the circle of business moving and income coming in. So features are needed to make the timesheet process seamless and most efficient.

Poor timesheet management inherently leads to inefficient processes later. Miscoding timesheets may cause imprecise reports and incorrect invoices. It could also require additional time to correct and transfer time to the proper projects. Most importantly, incorrect timesheet entry affects the cash flow of your company, due to delaying the processing of client invoices.

In Deltek Vantagepoint, the process has been simplified and made more user-friendly for the end user. To start, timesheets should be entered daily and submitted on time. Secondly, project managers must always ensure they are reviewing the timesheets. Timesheets should then be corrected before they are posted to the project.

Features of Timesheets in Deltek Vantagepoint to Improve Efficiency

Accurate and efficient timesheet management policies and procedures are necessary and should be incorporated into your culture. This, along with daily entries and strict deadlines for timesheet submissions. Fortunately, Deltek Vantagepoint has a variety of tools to help assist project managers in this process.

Floor Checks can help you ensure that your employees complete their timesheet entries on time. You can do a floor check to review the status of time entries for your employees for a specific period or day. This will show the employees’ expected hours versus the actual hours that were entered. Additionally, there is email functionality available, so you can email your employees directly and let them know to complete their timesheets. You can enable notifications within the system or create email templates for the reminders.
Unposted Labor Report is a standard project report that shows all timesheet data in unposted transaction entry files and all timesheets that are in progress, submitted, or approved but not posted. This enables project managers to see what has been charged to their projects before they are posted. It is preferred to correct the timesheets before they are charged to the projects.
Project Reports with Unposted Time can be included in project reports by using the unposted time option. Project managers can then see the labor that is charged to their projects throughout the time period.
Line-item Approval allows project managers to have control over their project labor costs to make sure labor is posted to the correct project. It allows project managers to only see their projects when in the approval stage. Vantagepoint will let you know if only part of the line items subject to line-item approval have been approved, yet others have not been approved or have been rejected.
Timesheet Audit Trail allows you to see if there has been a change made to the timesheet after it has been saved or submitted. You can make timesheet comments required, or just track the change without additional explanation. Audit trails can be used to track billing transfers. You may find the timesheet audit trail in employee reporting.
Copy from Prior Timesheet option allows you to copy projects you have previously or frequently charge time to. You can select this option once in your current timesheet. This option saves you from having to create your project list repeatedly for frequent projects. Timesheet comments are also saved in a drop-down box to select from. So, if you have used the same comment previously, you may select that option versus having to write the same thing repeatedly.
Deltek Time & Expense for Vantagepoint app is now available to access your timesheets when you are on the go. Not in front of your computer? No problem. You can capture expenses from anywhere and upload receipts immediately. Approvers may also approve timesheets and send reminders to employees via the mobile app. Keeping up with your timesheets has never been easier!

Get Your Timesheets Done with Deltek Vantagepoint

With all of these amazing features in Deltek Vantagepoint at your fingertips, timesheet management is within your grasp. Keep the circle of business moving, and that income coming in. Start with daily timesheet reminders, and eventually, you will develop a plan that makes timesheet management best practices part of your firm’s culture.

08-08-24 DVP Red Flags Theres an Accounting Problem - Banner

Why are the month-end financials so vital to professional service firms? Why does the finance team have deadlines? Understanding the importance of accurate and timely financial reports across all roles in a professional service firm is vital to the organization's health. Let us understand the “what” behind the “why” of the deadlines imposed on us by our friendly finance and accounting professionals. Finance and accounting professionals are often the rule enforcers, the data junkies, and the last group of people we want to disrupt because their head might just pop off their necks. I know, because I was once in that hot seat, constantly “encouraged” to produce accurate reports and metrics, and close the books as soon as possible. Forget about taking a vacation during the first two weeks of the month. Anyone else with me?

So, before we dive into the tools available for our finance friends, I hope that non-finance team members will take a few minutes to read this article and have a better understanding of why monthly financials are so vital to everyone in an organization.

We plan our lives; we plan our projects but how do we measure that success? It all comes down to the actuals. The actual results of our planning and hard work in every aspect of our lives are how we determine what decisions we are going to make in the future. Logically, the actual financial results of a firm will help drive future decisions, right? So, the next time your finance and accounting friends ask you to submit your timesheet, submit your expense report, review a subconsultant invoice for your project, and review a client invoice for submittal know that they are doing their part to prepare the data necessary for accurate and timely reporting for EVERYONE in the firm. The data gathered and reported on for that financial period may impact your future as well.

Let us work together to find a better solution to close those books faster, provide better project metrics, and help the firm make quick and accurate decisions.

Now, moving on to some tips and tricks for our finance friends to help them leverage the most of their Deltek Vantagepoint system. Part of the monthly close process is to ensure that one can document and justify the balances on the financial reports. If your process involves ticking and tying to a manual spreadsheet, STOP! Deltek has tools that can help you!

To assist accounting departments at professional services firms with verifying commonly used balances, Deltek has created some useful tools. There are two such tools in Vantagepoint that accountants can use to monitor activity and know when to raise the red flag to address accounting problems. So, what do these tools look like and how do they benefit accounting?

Financial Analysis Report

The File Reconciliation Report (Utilities/Analysis/GL Reconciliation/File Reconciliation Report) provides a big picture of the general ledger from the standpoint of the firm’s income statement and balance sheet vs. the supporting sub-ledger reports. Deltek Vantagepoint has implicit entries that happen automatically in transactions based on configurations as well as explicit entries that occur by user entry in the transactions.

For example, when entering an AP (Accounts Payable) voucher, the user selects the expense account (explicit entry) for the voucher but does not select the Accounts Payable account (implicit entry) – the Accounts Payable account is captured in the AP Liability code (which is set Settings/Cash Management/Accounts Payable/Liability Accounts).

The areas covered in the File Reconciliation Report are:

YTD Revenue: Accounts (Set in Configuration/Accounting/System Settings) Settings/Accounting/Chart of Accounts/Type) = Office Earnings Report (My Stuff/Reporting/Office Earnings)
YTD Reimbursable/Direct Expense: One report that can be used is the Project Detail to total direct and reimbursable expenses.
YTD Indirect Expenses: One report that can be used is the Project Detail to total the indirect and expenses.
Accounts Receivable: Accounts (Set in Settings/Billing/Accounts Receivable) = Open Accounts Receivable (My Stuff/Reporting/AR Aged)
Accounts Payable:  Accounts (Set in Settings/Cash Management/Accounts Payable/Liability Accounts) = Open Vendor Balances (My Stuff/Reporting/Voucher Ledger or Voucher Schedule)
Unbilled Revenue: Accounts (Set in Settings/Accounting/Revenue) = Office Earnings Report or Project Earnings Report (My Stuff/Reporting/Office Earnings or Project Earnings)

The reports listed above can be run to verify the balances of the sub-ledger, and the File Reconciliation Report will provide a professional services firm with a quick snapshot to know if there is a problem immediately. It is recommended to review this report as part of month-end processing, although it can be reviewed at any time during the month.

Upon viewing this report for the first time, looking for the differences in AR (Accounts Receivable), AP (Accounts Payable), Revenue, and Unbilled and when the out-of-balance initially began is the first step. There are several reasons an out-of-balance can occur - for example, making a journal entry directly to a GL account that is linked to an AP Liability Code. Once red-flagged by this report, working with a knowledgeable system consultant to determine which entries caused the out-of-balances and learning how to correct them is advisable.

Bank Reconciliation

Another critical month-end activity is reconciling the bank account. Depending on your financial department structure, you could choose to use the Bank Reconciliation tool more frequently than waiting until the month-end. If you do not have systems in place to prevent fraud in your bank accounts, it may be beneficial to review and use this tool weekly or daily. Vantagepoint allows a professional services firm to create ‘Bank Codes’ for every bank account used by the firm. Each ‘Bank Code’ is linked to a single general ledger account number to track and report transactions for the bank code.

The bank reconciliation process allows for the user to ‘clear’ transactions as they ‘clear’ in the bank. The transactions in the bank reconciliation are only those entered via a cash transaction type (Cash Receipt, AP Disbursement, Cash Disbursement, AP Vouchers, AP Payment Processing, or Expense Payment Processing). The reviewer will know if the transaction type is a ‘cash’ transaction type as they will be asked for a ‘bank code.’              

Any transaction entered against a General Ledger account that is linked to a Bank Account code that is not a cash transaction, for example, a journal entry, will not be available in the Bank Reconciliation feature and could cause a difference from the reconciled bank balance to the general ledger account balance if not added to the misc. tab of the bank rec.

When working through the bank reconciliation process each accounting period it is recommended to compare the “reconciled GL balance” on the printout of the bank reconciliation to the balance sheet GL account that is tied to the bank code. The calculations on the bank reconciliation report are:

Beginning Balance (which should agree to the Bank Statement ending balance from the prior month.

+ Cleared Deposits
- Cleared Payments
Calculated Balance – this should agree to the Bank Statement ending balance
+ Uncleared Deposits
- Uncleared Payments
Reconciled GL Balance – This should agree to the GL account balance on the Trial Balance and Balance Sheet

If the reconciled GL balance does NOT tie to the trial balance, research is needed to find the entries that caused the out-of-balance and correct them.

An out-of-balance between the reconciled GL and balance sheet can happen and can still show that the bank reconciliation ties to what was deposited and paid from the bank. This is because the reconciled GL is a calculated balance of cash transaction types and not a balance from all transactions being entered against the GL account. Internal processes should be set up so that all cash-related transactions are entered via a cash transaction type.

Close Efficiently and Effectively

Accounting departments at professional services firms need to have efficiency in their month-end closings. Having a published monthly close calendar will help the entire organization stay on track with timely reporting both on a financial and project reporting level. With both the File Reconciliation Report and Bank Reconciliation tools offered in Deltek Vantagepoint, accountants can quickly identify red flags in their accounting processes.

For more tips and tricks on how to streamline your financial close reach out to one of our friendly financial consultants. One of the most valuable investments a firm can make is ensuring the entire firm gets the most out of its ERP system. Deltek Vantagepoint provides real-time data to help all members of an organization manage their projects, financials, opportunities, resources, and more. Give yourself a break, it is ok not to know what you do not know; Full Sail Partners is here to help!

08-01-24 DVP Retainers - Banner

Retainers play a crucial role in project-based financial management, especially for firms in the architecture, engineering, and environmental consulting industries. Properly managing these prepayments or overpayments can streamline billing processes and improve month-end reconciliation processes. Deltek Vantagepoint offers powerful tools to handle retainers efficiently. Here's an overview of how retainers can be managed within the system, illustrating key concepts and steps without delving too deeply into the technicalities.

Understanding Retainers

At its core, a retainer is a prepayment made by a client before the commencement of services. It can also include overpayments or duplicate payments. These funds need to be accurately recorded and managed to ensure they are applied to the correct projects so they can be applied appropriately to future invoices or refunded when necessary.

Preparing and Managing Retainer Invoices

In Deltek Vantagepoint, setting up a retainer involves a few strategic steps. It starts with enabling the necessary functions in Billing Settings. This ensures that retainers can be linked correctly and can be invoiced effectively. Additionally, a General Ledger account, typically a liability, should be utilized specifically for retainers.

Recording Retainer Payments

When a client makes a payment towards a retainer, it must be recorded accurately within the system. This involves entering the cash receipt details and linking them to the correct project. Whether it's an overpayment or a prepayment, these funds are added to the retainer bucket by selecting the retainer box. This box is the true link to the retainer feature making the amount available to be applied to future invoices.

Applying Retainers to Future Invoices

One of the key benefits of managing retainers in Deltek Vantagepoint is the ease with which they can be applied to future invoices. When invoicing for services rendered, all or a portion of the retainer can be applied to reduce the amount due. This is done in the “More Calculations” section of Billing Terms, under “Additional Fees.” Like Cash Receipts, when retainers are applied to future invoices, the trick is to select the retainer box in Add-ons and the corresponding General Ledger Account. This step helps maintain a clear and accurate financial record for both the firm and the client.

Refunding Retainers

There are scenarios where a retainer may need to be refunded. Perhaps the project was canceled, or the client overpaid significantly and there are not enough future billings to utilize the full amount. Deltek Vantagepoint allows for this by facilitating the removal of the retainer amount through Cash Receipts, utilizing the retainer check box, and then processing a refund through the accounts payable system. This ensures that all transactions are cleanly recorded, and the client's funds are returned appropriately.

Reporting Retainer Balances

Deltek Vantagepoint has several areas where a project-based firm can manage retainer balances, allowing for easy reconciliation of the retainer general ledger account, as well as a quick review for managers and billers to know how much retainer remains for a project. There is a standard report called “Retainer Ledger” that shows a comprehensive review of all transactions related to a project. Additionally, retainer balances can be shown on Project and AR-related dashparts, reports, or on the Invoices tab in the Project Hub.

Why Partner with Full Sail Partners?

Navigating the complexities of Deltek Vantagepoint, especially when dealing with retainers, requires a thorough understanding of the system and its capabilities. This is where Full Sail Partners can be invaluable. Our team of experts provides personalized consulting services, guiding you through the intricacies of setting up, managing, and optimizing your retainer processes.

By partnering with Full Sail Partners, you can ensure that your financial management practices are streamlined and efficient, allowing you to focus on delivering exceptional services to your clients. Whether you need help with initial setup, ongoing management, or training your team, we are here to support you every step of the way.

Leverage the Full Capabilities of Deltek Vantagepoint

Managing retainers in Deltek Vantagepoint is essential for maintaining accurate financial records and ensuring smooth project execution. While this overview provides a glimpse into the process, the expertise of Full Sail Partners can help you fully leverage the capabilities of Deltek Vantagepoint, ensuring your firm's financial health and client satisfaction.

Reach out to Full Sail Partners today to learn more about how we can assist with your project-based firm’s Deltek Vantagepoint needs, from initial setup to advanced financial management and everything in between. Your success is our priority, and we are here to help you navigate the complexities of project-based financial management with confidence and ease.

07-18-24 Deltek Clarity - Business Development - Banner

To help your firm address the evolving challenges in the architecture and engineering (A&E) industry, we’ve gathered key insights from the 45th Annual Deltek Clarity Architecture & Engineering Industry Study. This analysis of business development trends reveals the strategies successful project-based firms are using to navigate issues such as increased competition, project complexity, and talent acquisition hurdles. We'll also highlight the importance of adapting marketing strategies to the digital landscape, the benefits of strategic collaboration, and the growing role of technology in enhancing efficiency. By leveraging these insights, firms can position themselves for sustained growth and long-term success in a competitive market environment.

Optimistic Growth Forecasts

First, let’s start with the good news. The study reveals an encouraging trend, with firms projecting a net revenue growth of nearly 11% year-over-year. Despite the backdrop of shifting challenges, this growth signifies a positive outlook within the industry. However, achieving this growth comes with its own set of hurdles. One of the prominent challenges identified is the increasing competition within the A&E sector, fueled by globalization and the entry of new market players. With more firms vying for projects, differentiation becomes crucial for sustaining growth and profitability. Additionally, the study underscores the growing complexity of projects, driven by evolving client demands, regulatory requirements, and technological advancements. As projects become more intricate, firms must adapt their processes, workflows, and skill sets to deliver innovative solutions while meeting quality standards and deadlines. Moreover, talent acquisition and retention emerge as critical concerns for firms aiming to scale operations and expand market reach.

Adapting Marketing Strategies

A&E firms must adapt their strategies to fit an evolving digital landscape to keep up with consumer behavior. While traditional methods like print media and trade shows are still relevant, firms are increasingly focusing on digital marketing and content creation. They use thought leadership content to establish themselves as industry leaders and strategically leverage social media to engage clients and showcase their projects, enhancing their brand presence and generating leads.

This shift in marketing strategies underscores the importance of integrating traditional and digital approaches. Firms must be agile, continuously evaluating the effectiveness of their efforts and staying updated with the latest trends and tools. In doing so, they can ensure their marketing initiatives are not only relevant but also impactful in reaching their target audience.

Win Rates and Collaboration

Win rates for A&E firms remained stable year-over-year, with the overall capture rate experiencing a slight increase to 48.7%. These metrics underscore the importance of strategic networking and prospecting in securing new business opportunities. It’s important to note that the win rate measures the number of proposals submitted to the number of proposals awarded, capture rate measures the total dollar value of the proposals submitted compared to those awarded. Firms are increasingly focused on finding suitable teaming partners and leveraging their networks to source and close new projects. This emphasis on collaboration and relationship-building extends beyond traditional boundaries, as firms seek to form alliances with complementary service providers, subcontractors, and industry peers.

By expanding their network of collaborators, firms can access new markets, capitalize on emerging opportunities, and mitigate risks associated with project delivery. Furthermore, the study highlights the growing significance of client relationship management in driving business development success. With client expectations evolving rapidly and competition intensifying, firms must prioritize client satisfaction, retention, and loyalty to maintain a competitive edge in the market. This requires a proactive approach to understanding client needs, anticipating challenges, and delivering value-added services that exceed expectations.

Diversification Strategies

A notable trend identified in the study is the emphasis on diversifying project portfolios. While revenue from top clients grew, A&E firms are recognizing the importance of expanding their client base to reduce the risks associated with consolidated revenue across a few key clients. This diversification enhances resilience in the face of economic uncertainties, market fluctuations, and industry disruptions. It also enables firms to adapt to changing market dynamics, capitalize on emerging trends, and seize opportunities in more niche segments or emerging markets.

Harnessing Technology for Efficiency

As staffing challenges persist, A&E firms are turning to technology to enhance their efficiency. The Deltek Clarity study reveals that 46% of firms now utilize formal business development processes, with a slight uptick among small and large firms. This indicates a growing recognition of the importance of technology-driven solutions in navigating the competitive landscape.

With an 86% surge in awarded contracts driven primarily by large firms, there's a clear correlation between technology adoption and business success, particularly with AI. Despite this, there's a consensus among industry experts, including Megan Miller, CPSM, Director of Product Marketing at Deltek, that firms are only scratching the surface of AI's potential. While AI holds promise for streamlining marketing operations and enhancing BD outcomes, there's a pressing need for deeper exploration and integration of these technologies to unlock their full potential in the A&E industry.

Future Outlook and Recommendations

Looking ahead, project-based firms are advised to challenge themselves to be more selective in their pursuits, focusing on projects with the highest likelihood of success. The rise in proposal volume underscores the importance of refining go/no-go criteria and leveraging formal business development processes to prioritize opportunities effectively. Additionally, the study emphasizes the growing importance of content marketing and thought leadership in shaping firms' market positioning and visibility.

By addressing key challenges, leveraging technology, and adopting strategic initiatives, project-based firms can navigate growth opportunities and position themselves for long-term success in a competitive market environment. Need to hear more? Take a look at this year's Architecture & Engineering Industry Study now!

07-18-24 Marketing Strategies - Banner

Consumers. Buyers. Clients. Users. Customers. You want them, you need them, regardless of the business you own. But does the type of business you own affect how you market to them? Absolutely! Marketing for service and project-based firms can be a tricky task, requiring a blend of formulaic approaches and individual creativity. What you’re marketing makes all the difference.

Defining Your Business Type

Understanding the nature of your business is crucial to crafting an effective marketing strategy. Different types of businesses—whether they offer tangible products, intangible services, complex projects, or a mix of both—require tailored marketing approaches to reach and engage their target audiences effectively.

Product-Based Firms: These organizations offer tangible products to their customers—items that can be packaged and placed on a shelf. Marketing for these firms is often straightforward and follows textbook examples taught in marketing classes nationwide.
Service-Based Firms: These organizations primarily offer people, processes, or expertise. Since you can't package people or put a process on a shelf, marketing must be approached differently.
Project-Based Firms: Similar to service-based firms, these organizations manage and deliver projects, often involving complex coordination of resources and expertise. Marketing for project-based firms needs to highlight the firm's ability to deliver successful projects, meet client needs, and provide specialized expertise.
Hybrid Firms: These businesses offer a mix of products and services. Marketing efforts must be tailored to each target market segment, emphasizing both tangible and intangible offerings.

Tailoring Your Marketing Strategy

When marketing a product, you let the product speak for itself, showcasing how it solves customer problems. This can be done through demonstrations, videos, or testimonials showing the product in action. Marketing for service and project-based firms is a bit different, yet fundamentally similar. Services and projects solve problems too, but you need to highlight client stories and testimonials. Here’s how:

Client Testimonials: Just as with products, services, and projects solve problems. Share success stories from your clients, showcasing how your services or projects have positively impacted their businesses. For example, platforms like Google and Trustpilot use client reviews to market professional services.
Client Feedback Tools: Gathering feedback from your clients is essential. Tools like the Client Feedback Tool from Client Savvy allow you to collect regular and periodic feedback from clients about their engagements. This feedback can provide constructive criticism and highlight your strengths, both of which are invaluable for refining your services and enhancing your marketing efforts.

The Power of Client Retention

One significant advantage of service and project-based firms is the potential for high client retention. Happy clients not only contribute to your marketing efforts through word-of-mouth but also ensure a steady revenue stream. Here are some compelling statistics:

A 5% increase in customer retention can increase a company's profitability by 75% (Bain & Co.).
80% of your company's future revenue will come from 20% of your existing customers (Gartner Group).
Attracting new customers costs five times more than retaining existing ones (Lee Resource Inc.).

Leveraging Client Relationships in Marketing

Happy clients are your secret weapon in marketing your services or projects. Their satisfaction can lead to long-term relationships and a healthier bottom line. Here are some strategies to leverage these relationships:

Case Studies: Develop detailed case studies that highlight how your services or projects have met client needs and solved their problems. These case studies can be powerful tools for showcasing your expertise and success.
Client Engagement: Regularly engage with your clients through newsletters, updates, and personal check-ins. Keeping the lines of communication open helps maintain strong relationships and encourages repeat business.
Client Testimonials and Reviews: Actively seek and share positive testimonials and reviews from your clients. Highlighting client satisfaction through various platforms can build trust and attract new customers.
Client Appreciation Events: Host events to show appreciation for your clients. These can be virtual webinars, in-person workshops, or networking events. Such initiatives can strengthen your relationship with clients and provide additional value.
Social Media Engagement: Feature your clients on your social media channels. Share their success stories, tag them in posts, and engage with their content. This not only highlights your collaboration but also broadens your reach through their network.
Educational Content: Provide clients with valuable content that addresses their pain points and interests. This could be in the form of blogs, whitepapers, webinars, or how-to guides. Educating your clients not only helps them but also positions your firm as an industry leader.
Surveys and Feedback: Regularly ask for feedback through surveys to understand client needs and areas for improvement. This proactive approach shows clients that you value their opinions and are committed to enhancing their experience.
Partnership Programs: Develop partnership programs with your clients, where you can collaborate on joint marketing initiatives or co-host events. This creates a win-win situation and strengthens the professional bond.

By implementing these strategies, service and project-based businesses can effectively leverage client relationships to enhance their marketing efforts and drive long-term success.

Harnessing Client Feedback for Strategic Insights

Marketing for service and project-based firms requires a nuanced approach that leverages client feedback, highlights successful engagements, and emphasizes the value of long-term relationships. Tools like the Client Feedback Tool can help you gather valuable insights, tailor your marketing efforts, and ultimately boost client retention and satisfaction. By focusing on your clients' stories and continually improving your services based on their feedback, you can create a powerful marketing strategy that drives growth and success.

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