Glossary of Terms

This glossary provides a detailed list of terms and definitions related to BQE CORE. It is organized alphabetically to facilitate quick access to definitions. For ease of navigation, you can jump directly to a specific letter using the index below or search for a term from the browser search (Ctrl + F).

A

Accounts Payable

A/P represents money that the company owes to the vendors for products and services purchased on credit. Accounts Payable is a record of the outstanding bills to be paid and hence is a liability for the business. Both vendor bills and employee reimbursable expenses contribute toward A/P.

Accounts Receivable

A/R represents money that the company is to receive. This usually would be money owed by clients for products and services delivered to them. An invoice sent to a client for work done and with an amount due is a receivable. Anytime you make a sale, the unpaid amount adds to the A/R balance. The sum of all accounts receivable becomes an asset for the company.

Accrual

Accrual basis of accounting involves recording income when it is earned and recording expense when it is incurred. It recognizes revenue and expenses in the period transactions occur and hence tracks outstanding receivables and payable, respectively.

ACH

Automated Clearing House (ACH) is an electronic funds-transfer system run by NACHA (formerly the National Automated Clearing House Association) since 1974. ACH Transfer is a very popular payment method used to transfer funds between businesses. ACH transfers are made directly from the payer’s (your client’s) verified bank accounts. 

A-Code

These are legal codes used to describe how work is accomplished. These A-Codes (activities) represent the second field to be recorded (optionally) by timekeepers in the legal industry.

Actual Hours

A-Hours or Hours is the time taken to complete a task. Using this value, CORE calculates the cost of the time expended on a task:

Cost Amount = Actual Hours x Cost Rate

Aged Receivables

It represents the overdue invoices or outstanding amount per aging period (last 30, 60, 90 and 120 days). It shows the open invoice balances broken into aging periods based on invoice due date.

Aging

It is the number of days between invoicing a client and a specific date, usually today. You can age from the due date of invoice or transaction date.

All Contract Cost

Cost of all the contract expenses and fully loaded cost of all the contract services, whether billable or non-billable. It is calculated as:

Billed Contract Cost + Unbilled Contract Cost + Non-Billable Contract Cost

All Cost

Fully loaded cost of all contract and extra services and cost of all contract and extra expenses, whether billable or non-billable. It excludes WUD, taxes, and markups. It is calculated as:

Total Services Cost + Total Expenses Cost

= Billed Cost + Unbilled Cost + Non-Billable Cost

All Hours

All hours entered on a project or phase. It is calculated as:

Billed Hours + Unbilled Hours + Non-Billable Hours

All Services Cost

Fully loaded cost of all the contract and extra services, whether billable or non-billable, calculated as Actual Hours x Cost Rate. All Services Cost is calculated as:

Billed Services Cost + Unbilled Services Cost + Non-Billable Services Cost

Allocations

These are tasks assigned and to be completed on a project. Allocations can be assigned to resources (Employees or vendors) and resource groups.

Allowance

Number of allowances claimed by an employee at the federal, state and local level. You can increase the amount of tax withheld from a paycheck by reducing the number of allowances.

APCA Number

It is a 6-digit unique identifier of banks used for direct debit payments done via ABA files. Australian Payments Clearing Association (APCA), now known as Australian Payments Network Limited (AusPayNet), is the official issuer and custodian of BSB numbers and administers the payment systems in Australia. 

Auto Complete

It allows you to record longhand standard text and link it to a shorthand code. While typing, the shorthand codes expand to the predefined longhand descriptions.

Automatic Billing

Allows you to pre-define a billing schedule at the project level and have CORE process it automatically. CORE memorizes the schedule and frequency of billing but the amount can vary based on the contract type or billing rules set for the projects.

Average Collection Period

The average collection period measures the average number of days it takes for a company to collect payments from its clients after issuing an invoice. It is calculated as:

Accounts Receivable Balance / Total Net Sales x 365

Average Contract Value

The average contract value (ACV) is a metric that represents the average revenue a company earns per contract over a specific period. It can help predict future revenues by multiplying ACV by the number of anticipated annual contracts signed. It is calculated as:

Total Contract Value / Number of Contracts

B

Balance Sheet Account

These accounts provide information about the net worth of your business. Balance sheet accounts include cash, A/R, inventory, fixed assets, A/P and other liabilities.

Bank Reconciliation

Reconciliation of bank accounts is a process of matching the transactions shown on your bank statements and those recorded in the CORE accounts.

Benefit Period

This is the time frame for which the benefits earned units is analyzed. In other words, it is the period the employees must work in the company to earn a particular accrual benefit. Employees can earn x number of days, weeks, months or years based on company's HR policy.

Bill Amount

Billable amount of time entries that includes write-up/down.

Bill Rate

It is the default hourly rate that you charge a client for an employee’s time. CORE uses the Bill Rate to calculate the bill amount (Billable Hours x Bill Rate) for each time entry. Typically,

Bill Rate = Pay Rate x OHM x Profit

Bill Rate Multiplier

This is a number that is used to multiply against an employee’s standard bill rate to calculate the rate for the time entry.

Billable %

It is calculated as:

Billable % = Billable Hours / Total Hours x 100

Billable Expense

Expenses that can be charged or billed to a client by your company. Billable expenses might be incurred by employees on a project for which the company will be reimbursed (via an itemized invoice) by the client.

Billable Hours

Actual hours entered that are flagged as Billable. These are hours logged by employees that can be billed to the client. The status of time entries is billable and contract type of the projects is not Overhead or Marketing. It excludes WUD and non-billable hours. This billable time is not necessarily indicative of the service revenue.

Billable Utilization

This is the billability of the time spent on a project, irrespective of the billed status. Utilization calculations include extra time and regular time irrespective of billed status, with WUD. The calculations involved are:

Billable % = Billable Hours / Total Hours x 100

where Billable Hours are billable client hours and

Total Hours = Billable Hours + Non-Billable Hours + Overhead Hours + PTO Hours

Billed %

The percentage of the contract value that has been billed. It is calculated as:

(Contract Billed / Contract Amount) × 100

Billed Amount

Cumulative value of billed time and expenses includes WUD and markups, but excludes taxes, and extra time and expenses. It represents the actual project analysis.

Billed Amount = (Client Hours x Bill Rate x WUD) + (Units x Cost Rate x Markup %)

Billed Contract Cost

Cost of the contract expenses and fully loaded cost of the contract services flagged as billable that are billed. It is also referred to as Contract Billed Cost and is calculated as:

Billed Expenses Contract Cost + Billed Services Contract Cost

Billed Contract Value

Amount of contract services and expenses that are flagged as billable and have been billed, excluding WUD but including markup. It is also referred to as Contract Billed Value and is calculated as:

Billed Expenses Contract + Billed Services Contract Pre-WUD

Billed Cost

Cost of the contract and extra expenses and fully loaded cost of the contract and extra services that are billed. It is calculated as:

Billed Contract Cost + Billed Extra Cost

Billed Employee Services Contract Unloaded Cost

Unloaded cost of the contract services flagged as billable and that are billed (excludes overhead multiplier). This amount includes services performed by employees and contract employees but excludes services by outside consultants. It is also referred to as Contract Billed Employee Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Billed Employee Services Extra Unloaded Cost

Unloaded cost of the contract services flagged as billable that are billed (excludes overhead multiplier). It includes services performed by employees and contract employees but excludes services by outside consultants. It is also referred to as Extra Billed Employee Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Billed Expenses Contract

Amount of contract expenses that are flagged as billable and have been billed, including markup. It is also referred to as Contract Billed Expenses.

Billed Expenses Contract Cost

Cost of the contract expenses flagged as billable that are billed. It is also referred to as Contract Billed Expenses Cost.

Billed Expenses Extra

Amount of extra expenses that are flagged as billable and have been billed, including markup. It is also referred to as Extra Billed Expenses.

Billed Expenses Extra Cost

Cost of the extra expenses flagged as billable that are billed. It is also referred to as Extra Billed Expenses Cost. 

Billed Extra

Amount of extra services and expenses that are flagged as billable and have been billed, including WUD and markup. It is also referred to as Extra Billed. It is calculated as:

Billed Expenses Extra + Billed Services Extra

Billed Extra Cost

Cost of the extra expenses and fully loaded cost of the extra services flagged as billable that are billed. It is also referred to as Extra Billed Cost and is calculated as:

Billed Expenses Extra Cost + Billed Services Extra Cost

Billed Extra Value

Amount of extra services and expenses that are flagged as billable and have been billed, excluding WUD but including markup. It is also referred to as Extra Billed Value. It is calculated as:

Billed Expenses Extra + Billed Services Extra Pre-WUD

Billed Hours

Actual hours entered that are flagged as billable and have been marked billed or included on a final invoice.

Billed Margin

Percentage margin earned from billed services and expenses after subtracting the associated billed costs and cost of unbilled non-billable services and expenses. The calculations involved are:

(Contract Billed + Extra Billed - Billed Cost - Unbilled Non-billable Cost) / (Contract Billed + Extra Billed)

Billed Margin %

This represents the percentage margin earned from billed services and expenses, after subtracting the associated billed costs and cost of unbilled non-billable services and expenses. It is calculated as:

[Profit (Billed) / Gross Billed] x 100

(Contract Billed + Extra Billed - Billed Cost - Unbilled Non-billable Cost) / (Contract Billed + Extra Billed) × 100

Billed Margin All Costs %

This represents the percentage margin earned from billed services and expenses, after subtracting both billed and unbilled costs. It is calculated as:

[Profit (Billed All Cost) / Gross Billed] x 100

[(Contract Billed + Extra Billed - (Billed Cost + Unbilled Cost)] / (Contract Billed + Extra Billed)) × 100

Billed + Non-Billable Contract Cost

Fully loaded cost of the contract services and the cost of the contract expenses that are billed. It also includes the cost of non-billable contract services and expenses entered. It is calculated as:

Billed Contract Cost + Non-Billable Contract Cost

Billed + Non-Billable Cost

Cost of the contract and extra expenses, and fully loaded cost of the contract and extra services that are billed. It also includes the cost of non-billable services and expenses entered. It is calculated as:

Billed Cost + Non-Billable Cost

Billed + Non-Billable Services Cost

Fully loaded cost of the contract and extra services that are billed plus the cost of non-billable services entered.

Billed Services Cost + Non-Billable Services Cost

Billed Outside Consultant Services Contract

Amount of billed services contract for time entered by outside consultants only (excluding employees and contract employees). It is to be deducted from Billed Services when calculating Direct Labor Multiplier. It is also referred to as Contract Billed Outside Consultant Services.

Billed Outside Consultant Services Contract Unloaded Cost

Unloaded cost of the contract services flagged as billable and that are billed (excludes overhead multiplier). This amount excludes services performed by employees and contract employees but includes services by outside consultants. It is also referred to as Contract Billed Outside Consultant Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Billed Outside Consultant Services Extra

Amount of billed services for extra time entered by outside consultants only (excluding employees and contract employees). It is to be deducted from Billed Services when calculating Direct Labor Multiplier. It is also referred to as Extra Billed Outside Consultant Services.

Billed Outside Consultant Services Extra Unloaded Cost

Unloaded cost of the contract services flagged as billable that are billed (excludes overhead multiplier). It excludes services performed by employees and contract employees but includes services by outside consultants. It is also referred to as Extra Billed Outside Consultant Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Billed Services Contract

Amount of contract services that are flagged as billable and have been billed, including WUD. It is also referred to as Contract Billed Services.

Billed Services Contract Cost

Fully loaded cost of the contract services flagged as billable and that are billed. It is calculated as Actual Hours x Cost Rate and includes services performed by employees, contract employees and outside consultants. It is also referred to as Contract Billed Services Cost.

Billed Services Contract Value

Amount of contract services that are flagged as billable and that have been billed excluding WUD. It is also referred to as Contract Billed Services Value.

Billed Services Cost

Fully loaded cost of the contract and extra services flagged as billable that are billed. It includes the overhead multiplier (calculated as Actual Hours x Cost Rate). It is calculated as:

Billed Services Contract Cost + Billed Services Extra Cost

Billed Services Employee Unloaded Cost

Unloaded cost of the contract and extra services flagged as billable that are billed (excludes overhead multiplier). It includes services performed by employees and contract employees but excludes services by outside consultants. It is calculated as:

Billed Employee Services Contract Unloaded Cost + Billed Employee Services Extra Unloaded Cost

Billed Services Extra

Amount of extra services that are flagged as billable and have been billed, including WUD. It is also referred to as Extra Billed Services.

Billed Services Extra Cost

Fully loaded cost of the extra services flagged as billable that are billed. It is also referred to as Extra Billed Services Cost and is calculated as:

Actual Hours x Cost Rate

Billed Services Extra Unloaded Cost

Unloaded cost of the extra services flagged as billable that are billed. It excludes overhead multiplier. It is also referred to as Extra Billed Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Billed Services Extra Value

Amount of extra services that are flagged as billable and have been billed, excluding WUD. It is also referred to as Extra Billed Services Value.

Billed Services Unloaded Cost

Unloaded cost of the contract and extra services flagged as billable that are billed. It excludes overhead multiplier. It is calculated as:

Billed Services Contract Unloaded Cost + Billed Services Extra Unloaded Cost

Billed Time

Amount of billable time entries that are billed, including WUD. It is calculated as:

(Client Hours x Bill Rate x WUD)

Billed + Unbilled

It is the sum of Billed contracted service/expense amounts, including fixed fees and WUD (excluding tax, discounts, extra, and miscellaneous adjustments) and unapproved/approved service and expense amounts, including WUD but excluding extras and tax.

Billed + Unbilled Margin %

This represents the percentage margin earned from billed and unbilled services and expenses, after subtracting the associated billed and unbilled costs. It is calculated as:

[Profit (Billed + Unbilled) / Gross Billed + Unbilled] x 100

(Contract Billed + Contract Unbilled + Extra Billed + Extra Unbilled - Billed Cost - Unbilled Cost) / (Contract Billed + Contract Unbilled + Extra Billed + Extra Unbilled) × 100

Billed + Unbilled WUD

Total write-up or write-down on billed and unbilled time entries.

Billed WUD

Total write-up or write-down amount on billed time entries. Expense markup is not included here. A negative WUD (write-down) is displayed in parenthesis and indicates that your employees are spending way too much time on a project than what you can bill.

Billed WUD = Billed Amount - Billable Amount

Break-Even Multiplier

The Break-Even Multiplier determines the multiple of labor costs that must be billed to clients to cover all business expenses and thus break even financially. It helps companies understand the minimum amount they need to charge per hour of labor to cover their full business expenses, including both direct salaries and indirect business expenses, without making a profit or incurring a loss. It is calculated as:

Net Expenses / Direct Labor Costs

BSB Number

Bank State Branch (BSB) is a 6-digit routing number that represents a bank code used to identify a branch of an employee's bank account needed to pay salary to the employee via a direct deposit in Australia and New Zealand. The format of the BSB code is XXY-ZZZ. The first two digits (XX) specify the bank or financial institution where the money is being sent, while the third digit (Y) tells which state the branch is located in. The last three digits (ZZZ) specify the address of the branch.

Budget Amount

Total amount of the budget for a project or phase. It is calculated as:

Budget Services + Budget Expenses + Budget Miscellaneous

Budget Expenses

Total expense amount used from the budget on the project. It is equal to the value of billed expenses including markups and taxes, but excluding extra expenses billed. It is calculated as:

Budget Units x Cost x [(1+Markup)/100]

Budget Hours

Total hours that have been budgeted for a project/phase for the selected activity-resource combination. By default, the Budget Hours are the same as the Cost Hours. 

Budget Hours Remaining

Difference between the budgeted hours and spent hours. It represents the hours remaining in a budget. It is calculated as:

Budget Hours - Spent Hours

Budget Hours Spent %

Percentage of the total budgeted hours that have been utilized. It is calculated as:

(Total Actual Hours / Total Budget Hours) × 100

Budget Miscellaneous

Amount of the miscellaneous budget amount entered on the project or phase.

Budget Remaining

Difference between the budgeted amount and spent amount. It represents the amount remaining in a budget. It is calculated as:

Budget Amount - Spent Amount

Budget Services

Total service amount used from the budget on the project. It is equal to the value of billed services including WUD and taxes, but excluding extra services and fixed fee billed. It is calculated as:

Budget Hours x Bill Rate

Budget Spent

It is the total budget amount used to date. It is calculated as:

Total Service Amount + Total Expense Amount

Budget Spent %

Percentage of the total budget that has been utilized. It is calculated as:

(Total Service Amount + Total Expense Amount / Total Budget) × 100

Budgeted %

Percentage of the contract allocated as the budget. It is calculated as:

(Budget Amount / Contract Amount) × 100

Budgeted Profit

It represents the difference between budgeted charge amount and cost, excluding taxes. It shows the financial margin achieved on a project. It is calculated as:

Total Charge Amount - Total Cost Amount (for all service and expense items in the budget)
Budgeted Profit % = Budgeted Profit / Total Charge Amount x 100

Business Activity Statement (BAS)

Australia-based business owners and companies need the ability to run and manage Business Activity Statements (BAS) to report their taxes to the Australian Tax Office. It is a government form that needs to be filled and submitted to the tax authorities.

C

Cafeteria Deduction

An employee's cafeteria deduction percentage (%) and amount. This contribution toward a cafeteria plan can be used when you incur certain qualified expenses. These expenses are paid out of your pre-tax income, thus reducing your taxable salary.

Cash Basis

Cash basis of accounting is a method of recording transactions for income and expense only when actual cash is received or payments are made. So you record revenue only when a client actually pays for a product or service, and you record an expense only when it is actually paid by the company.

Cash Flow

It represents the cash being generated in the company on a regular basis. It shows all cash payments received including retainer payments. Cash flow looks at all deposits made, not just the payments on invoices and excludes write-offs, debit and credit type payments. 

Charge Amount

The total charge amount of a time entry or an expense entry, including write-up/down, markups and taxes. It represents the billable value of expense entries, whether they are billed to the client or not. 

For time entry, it is calculated as:

[(Client Hours x Bill Rate) (1 + WUD)] x [1+ (Tax 1 + Tax 2 + Tax 3)]

For expense entry, it is calculated as:

[(Units x Cost Rate) (1 + Markup)] x [1 + (Tax 1 + Tax 2 + Tax 3)]

Class

It is used by CORE to classify transactions involving jobs/projects, activities and expense items. Classes are transaction entities that are useful for tracking activities, grouping items and reporting. 

Classification

Job title or classification of a team member or employee. It allows you to set up a different title other than the default one. You can set up special fee schedule rates based on these job classifications or titles and they get reflected in the time entries, invoices, and reports of a project. 

Client Hours

Hours logged by employees that are billable to the client. These are used by the billing system in CORE to calculate the value of services toward a project being charged to the client. By default, client hours are the same as actual hours worked, but can be changed, if needed.

Client Investment

This represents the investment made by your business in a client. It is calculated as:

Open A/R + WIP

Client Retainer

It is an advance payment received from a client and is available for all the projects of that client. Client retainer is used up before the project retainer.

Client Retainer Available

It is the client retainer amount remaining or unused. 

Client Retainer Available = Client Retainer Received - Client Retainer Used

Client Retainer Available % = Client Retainer Used / Client Retainer Received

Closing Date

It is a lock-down date that prevents unauthorized or accidental editing of your accounting data and transactions (time, expenses, invoices, payments, etc.) in CORE for the period you have closed. This keeps your books secure for potential audits and is especially useful for DCAA compliance. 

Cloud Feeds

These are automatically created list of transactions that are sent from your financial institution (say bank, credit card, and investment accounts) or cloud server to your company electronically. It allows you to automatically import your bank and credit card account transactions, called feeds, from your bank or financial institution into CORE. 

Collections

It is a major part of working capital management in a business, which includes methods, procedures and techniques to collect money from your debtors (clients).

Combo Box

Type of drop-down where you can select predefined options as well as enter new values. The combo boxes are self-populating and editable drop-downs.

Comp Time

It is the extra time logged to a project beyond the standard working hours. Compensation time is banked time in hours that you can use in future. It is typically calculated for non-exempt employees.

Contract Amount

Amount of the contract for a project or phase, including services and expenses. It represents the total consideration for a project (billable and non-billable Service Amount + non-billable Expense Amount). You can include or exclude billable expenses and taxes in this amount. 

Contract Billed

Contract Billed represents the amount of contract services and expenses that are flagged as billable and have been billed, including WUD and markup. It is also referred to as Billed Contract and is calculated as:

Contract Billed = Billed Expenses Contract + Billed Services Contract

Contract Billed %

Percentage of the contract value that has been billed. It is calculated as:

(Contract Billed / Contract Amount) × 100

Contract Billed Extra

Amount of extra services and expenses that are flagged as billable and have been billed, including WUD and markup. It is calculated as:

Billed Expenses Extra + Billed Services Extra

Contract Billed Remaining

Amount of the contract that is not yet billed. It is calculated as:

Contract Amount - Billed Contract

Contract Billed + Unbilled

It is the sum of billed contracted service/expense amounts, including fixed fees and WUD (excluding tax, discounts, extras, and miscellaneous adjustments) and the unapproved/approved service and expense amounts, including WUD but excluding extras and tax.

Contract Employee

Contract employee is like an employee who might be working in your office or outside, but is not a part of the office payroll. Such employees are given a 1099, not a W2.

Contract Expenses

Total expense amount used from the contract amount on the project. It represents the amount spent on the expense part of the contract amount. It is equal to the value of billed expenses including markups and taxes, but excluding extra expenses billed. It is calculated as:

Contract Amount - Contract Services

Contract Remaining

Amount of the contract not yet used (Contract Unused). This factors in both billed and unbilled services and expenses, excluding extra time and expenses. The Contract Remaining calculations subtract billed (and unbilled) portions of contract from the portions of services and expenses. These amounts include WUD but do not include taxes or discounts applied to the invoices. It is calculated as:

Contract Amount - Billed Contract - Unbilled Contract

(Billed + Unbilled) + Remaining = 100% (Contract Amount)

Contract Services

Total service amount used from the contract amount on the project. It represents the amount spent on the labor or service part of the contract. It is equal to the value of billed services including WUD, but excluding taxes, extra services, and fixed fee billed. It is calculated as:

Contract Amount - Contract Expenses

Contract Unbilled

Amount of contract services and expenses that are flagged as billable and have been entered but not yet billed, including WUD and markup. It is calculated as:

Unbilled Expenses Contract + Unbilled Services Contract

Contract Used

Amount of billable contract services and expenses that have been billed or not yet billed. It is calculated as:

Contract Billed + Contract Unbilled

Contract Used %

Displays the percentage of project completion based on contract amount usage. It is calculated as:

(Contract Billed + Contract Unbilled) / Contract Amount × 100

Cost + Fixed Fee Contract

These are billing arrangements where you bill direct costs (time and expense) plus a fixed fee (profit) to the client. CORE adds a portion of the fixed fee to the net bill before generating the invoice. It is calculated as:

Fixed Fee Amount = Billable Amount x (Fixed Fee / Contract Amount)

Cost + Percentage Contract

These are billing arrangements where you bill direct costs (time and expense) plus a percentage of the costs (profit) to the client. CORE adds the profit percentage to the net bill before generating the invoice until the project is complete.

Fixed Fee Amount = Billable Amount x Fixed Fee %

Cost Amount

Cost of time or expense entries, irrespective of their billable status. The entries can be billable or billed and so the cost amount is before any WUD, markups and taxes. It is calculated as:

(Hours x Cost Rate) for time entries

(Units x Cost Rate) for expense entries

Cost Plus Billing

This type of billing adds a profit margin or management fee to the bill amount. If you are a professional services firm that works for federal or state agencies, you might use Cost Plus contracts.

Cost Pool

Cost pool or cost center is a set of costs that are incurred on a specific group of activities, expenses or any business center. It can be a group of accounts presenting the costs of your goods and services. It represents different expense categories.

Cost Rate

In case of labor, it represents the fully-loaded cost of an employee. This rate should include the salary, benefits and overhead portion for the employee. It is calculated as:

Cost Rate = Pay Rate x Overhead Multiplier

In case of expenses, it is the per unit cost of an expense. If the expense is not per unit, then it can be a flat amount. The total cost is automatically calculated as:

Units x Cost Rate

Credit

Depending upon the type of transaction and account, credit represents a decrease to an asset or expense account, and an increase to a liability, income and equity account. When you create a journal entry, you specify the account to be credited. The total of the credits and debits must be balanced. 

Credit Memo

It informs clients that their outstanding balance with a company is reduced. You can create credit memos to enter project credits or refund retainers.

Culture Code

Language settings of a country, say for the United States, it is en-US, meaning US English. This setting also determines the decimal character and thousand separator for the currency.

Currency Multiplier

It denotes the current exchange rate for the foreign currency you want to use. If you enter a multiplier in CORE, it accordingly re-calculates the charge amount in your home or local currency.

Local Currency = Foreign Currency Amount / Currency Multiplier

Custom Fields

Custom fields are customized fields added to track extra characteristics and attributes of various items and profiles in different screens. They can support any data type (Plain Text, Numeric, Currency, and Decimal) and any type of UI.

Custom Labels

Custom labels represent the lexicon or terminology used throughout BQE CORE, including reports. Using the custom labels, you can change the terminology of the screens, such as screen title, field labels and masks. You are not limited to what you can type, except for character count or length.

D

DCAA

Stands for Defense Contract Audit Agency. It performs audits for the Department of Defense and for providing accounting and financial advisory services to DoD components responsible for procurement and contract administration.

Debit

Depending upon the type of transaction and account, debit represents an increase to an asset or expense account, and a decrease to a liability, income and equity account. When you create a journal entry, you specify the account to be debited. The total of the credits and debits must be balanced. 

Deduction

These are pre-tax payroll deductions from the employee's salary, such as 401(k) contribution, insurance premiums, etc.

Defer Payment

The employee's deferred payment deduction percentage (%) and amount. It means that a portion of an employee's salary is paid at a date after which that income is actually earned. The primary benefit of this is the deferral of tax to a date when the employee actually receives the income.

Direct Deposits

Direct deposit is a safe and popular payment method offered to employees. You can pay employees by directly depositing their pay into their bank account instead of issuing a physical paycheck.

Direct Disbursement

Some companies do not use A/P and hence do not enter vendor bills. They pay bills by writing checks called direct disbursements.

Direct Labor Multiplier

It represents the amount of services billed by employees only, thus excluding outside consultants divided by the unloaded cost of those services. This is an industry standard metric. It is calculated as:

Gross Billed Employee Services (Employee) / (Billed Employee Services Unloaded Cost + Non-Billable Employee Services Unloaded Cost)

Direct Labor Rate

This is calculated by taking the salary of an employee and dividing by 2,080 (number of hours in a year). So if you pay an employee $50,000 a year, the Direct Labor Rate is $24.04 in that case.

Discount

Discount refers to a reduction in the bill or invoice amount after adding taxes to it. On the A/R side, you can apply a discount to an invoice prior to processing it. On the A/P side, you can receive a discount on a vendor bill, thus reducing the amount due for payment. 

Double-Time

Double-time is typically twice the employee’s hourly pay rate for hours worked over 52 each workweek. For the first 12 hours of overtime after regular 40 hours, employee gets paid overtime rate.

E

Earning Units

The time span of a benefit that an employee earns after completing the specified term. This is the type of units earned within the evaluated period and is applicable when accrual method is based on the calendar. So you can earn accrual benefits in terms of x number of hours or days per benefit period.

eChecks

Electronic check payments move funds electronically between banks using their routing and account numbers.

Effective Bill Rate

It provides information about the total billable hours logged by an employee and those billed to the client. Effective bill rates of employees are based on a percentage of standard bill rates that is actually collected. It reflects discounts. write-downs, and write-offs. It is calculated as:

Effective Bill Rate = Billed Amount / Total Hours Billed

Effective Cost Rate

The total cost of the hours billed to the client. It represents the fully loaded cost of an employee working on a project. It is calculated as:

Effective Cost Rate = Cost Amount / Total Hours Billed

EIN

Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, (FEIN). It is used to identify a business entity, trust, estate, etc. In the USA, it is a 9-digit number used on tax filings.

Employer ID

This is a US company's unique employer identification number assigned by the IRS. It is also known as the Federal Employer Identification Number (Federal ID) or the Federal Tax Identification Number (Federal Tax ID).

Entry Amount

Amount of time entries that excludes write-up/down.

Equity

It refers to the total assets that a company owns minus its total liabilities. You can view all equity transactions and their details in its register. It is calculated as:

Equity = Total Assets - Total Liabilities

Estimate

It is a proposed task list with estimated service hours, expense units and computed amounts for each. For many professional services firms, the estimate is what they send to the client as part of their bid or proposal.

Expense Account

This account is used to track expenses associated with your products and services. Assigning expense account to items and transactions helps keep track of the expenses incurred on the services, and generate profit & loss reports. It is required for accounting and data integration with your accounting software.

Expense Item Tax

Tax charged on the expenses incurred on the project. It is the sum of Tax 1, 2 and 3 for expense entries.

Expense Per FTE

Net Expense per Full-Time Employee (FTE) measures the average amount of expenses incurred by a business for each full-time equivalent employee. It is calculated by dividing the company's total net expenses by the number of full-time employees. It is calculated as:

Net Expenses / Number of FTE

Extra Billed

Extra Billed represents the amount of extra services and expenses that are flagged as billable and have been billed, including WUD and markup. It is calculated as:

Billed Expenses Extra + Billed Services Extra

Extra Expenses

It is the expense incurred on a project beyond that specified in the contract and is in addition to the contract amount. CORE does not evaluate extra expense entries.

Extra Time

It is the hours worked on a project beyond that specified in the contract and is in addition to the contract amount. CORE does not evaluate extra time entries.

Extra Withholding

You can increase the amount of tax withheld from a paycheck at the federal and state levels. Use extra withholding on one type of income (such as payroll) to avoid paying estimated tax on another type (such as interest).

F

Fed ID

Federal ID is the federal tax identification number, also known as Employer Identification Number (EIN) issued by Internal Revenue Services (IRS). It’s a 9 character long code, usually alphanumeric, used to identify a business. If it is a sole proprietorship, it can also be the owner's social security number. 

Fee Schedule

It allows you to create unique fee structures and special rates for projects that override the default employee, activity and expense rates. It is commonly used for hourly-based rather than lump sum billing.

Financial Budgets

These are company-wide or department-wide budgets for the upcoming fiscal year. Financial budgets are high-level estimations and internal calculations useful for predicting and allocating the income and expenses of a business. They allow you to define cost and revenue benchmarks that can be used for running comparison reports and setting up budget-related notifications.

Financial Year

Twelve-month time period used to define the accounting or fiscal year. It is typically a period for which the financial budget is being created. Fiscal year can be different from the usual calendar year. 

Fixed Asset

These are items that a company purchases and owns. These could be vehicles,computers, office machines, buildings, etc. that depreciate over time. This can affect the worth of the business and the amount of taxes owed.

Fixed Billing

In a fixed contract, a client is billed a fixed portion of the total contract amount over a number of months. The project's contract type is fixed but the bill amount can be the same or vary in each billing cycle.

Fixed Contract

These are billing arrangements with fixed contract amount agreed upon by the client and your company. You can bill the contract in full, by the hour or in incremental flat amounts.

Fringe Benefits

These are HR benefits that include health insurance, educational assistance, stock options, etc. Fringe benefits can be taxable or nontaxable.

FUTA

This is the federal unemployment tax paid by employees as required by IRS. This tax has an annual wage limit.

G

Gantt Chart

It is a graphical representation (bar chart) of a project's schedule in terms of the duration of tasks against a timeline. Gantt charts illustrate the start and finish dates of the allocated tasks for a project.

General Journal

It is a record of transactions where the total amount in the Debit column equals the total amount in the Credit column. Each amount is assigned to an account. Using a General Journal, you can edit transactions recorded in your accounts.

General Ledger

G/L is where all your account information – sales, purchase, inventory, cash flow, etc. – is recorded and available. All the financial statements (income statement, balance sheet, etc.) are drawn from the G/L only.

Gross Billed

Amount of contract and extra services and expenses that are flagged as billable and have been billed, including WUD and markup. It does not include taxes, discounts or miscellaneous adjustments. It is also referred to as Billed and is calculated as:

Billed Contract + Billed Extra

Gross Billed Contract

Amount of contract services and expenses that are flagged as billable and have been billed, including WUD and markup.

Billed Expenses Contract + Billed Services Contract

Gross Billed + Unbilled

Amount of services and expenses that are flagged as billable, including WUD and markup. It is calculated as:

Gross Billed + Gross Unbilled

Gross Billed + Unbilled Contract

Gross amount of contract services and expenses that are flagged as billable, including WUD and markup. It is calculated as:

Gross Billed Contract + Unbilled Contract

Gross Billed + Unbilled Services

Gross amount of services that are flagged as billable, including WUD. It is calculated as:

Gross Billed Services + Unbilled Services

Gross Billed Services

Amount of contract and extra services that are flagged as billable and have been billed, including WUD. It includes services performed by employees, contract employees and outside consultants. It is calculated as:

Billed Services Contract + Billed Services Extra

Gross Billed Services Employee

Amount of contract and extra services that are flagged as billable and have been billed, including WUD. It includes services performed by employees and contract employees only (excludes outside consultants). It is calculated as:

Billed Services Contract - Billed Outside Consultant Services Contract + Billed Services Extra - Billed Outside Consultant Services Extra

Gross Billed Value

Amount of contract and extra services and expenses that are flagged as billable and have been billed, excluding WUD but including markup. It does not include discounts or miscellaneous adjustments. It is also referred to as Billed Value and is calculated as:

Billed Contract Pre-WUD + Billed Extra Pre-WUD

Gross Margin (Billed)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of the billed portion for a project and includes contract and extra services and expenses. It is calculated as:

[Net Profit (Billed) / Net Billed] x 100

Gross Margin (Billed All Cost)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of the amount that has been billed versus all the services and expenses entered. It is calculated as:

[Net Profit (Billed All Cost) / Net Billed] x 100

Gross Margin (Billed Contract)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of the billed contract portion of a project (both services and expenses) and excludes all extras. It is calculated as:

[Net Profit (Billed Contract) / Net Billed Contract] x 100

Gross Margin (Billed Contract All Cost)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of the billed contract portion for a project (both services and expenses) and excludes all extras versus the cost of all services and expenses entered to date-billed, unbilled and non-billable. It is calculated as:

[Net Profit (Billed Contract All Cost) / Net Billed Contract] x 100

Gross Margin (Billed + Unbilled)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of all services and expense entered to date on the project. It is calculated as:

[Net Profit (Billed + Unbilled) / (Net Billed + Unbilled)] x 100

Gross Margin (Billed + Unbilled Contract)

Gross profit that includes discounts and miscellaneous adjustments on invoices (using the Net Billed and Net Profit metrics). This margin represents the profitability of the billed and unbilled contract services and expenses portion for a project versus the cost of all contract services and expenses entered to date-billed, unbilled and non-billable. It is calculated as:

[Net Profit (Billed + Unbilled Contract) / (Net Billed + Unbilled Contract)] x 100

Gross Profit (Billed)

Profit made by the difference between the net amount of contract and extra services and expenses that have been billed (including WUD, markup, discount and miscellaneous adjustments) and the fully loaded cost of those billed and non-billable expenses and services. It is calculated as:

Net Billed - (Billed + Non-Billable Cost)

Gross Profit (Billed All Cost)

Profit made by the difference between the net amount of contract and extra services and expenses that are flagged as billable and have been billed (including WUD, markup, discounts and miscellaneous adjustments) and the cost of all contract services and expenses (including extra), whether billable or non-billable. It is calculated as:

Net Billed - All Cost

Gross Profit (Billed Contract)

Profit made by the difference between the net amount of contract services and expenses that are flagged as billable and have been billed (including WUD, markup, discounts and miscellaneous adjustments) and the cost of the billed contract services and expenses and the cost of non-billable contract services and expenses entered. It is calculated as:

Net Billed Contract - (Billed + Non-Billable Contract Cost)

Gross Profit (Billed Contract All Cost)

Profit made by the difference between the net amount of contract services and expenses that are flagged as billable and have been billed (including WUD, markup, discounts and miscellaneous adjustments) and the cost of all contract services and expenses, whether billable or non-billable. It is calculated as:

Net Billed Contract - All Contract Cost

Gross Profit (Billed + Unbilled)

Profit made by the difference between the net amount of all contract and extra services and expenses that are flagged as billable (including WUD, markup, discounts and miscellaneous adjustments) and the fully loaded cost of all contract and extra services and cost of all contract and extra expenses, whether billable or non-billable. It is calculated as:

(Net Billed + Unbilled) - All Cost

Gross Profit (Billed + Unbilled Contract)

Profit made by the difference between the net amount of contract services and expenses that are flagged as billable (including WUD, markup, discounts and miscellaneous adjustments) and the cost of all contract services and expenses, whether billable or non-billable. It is calculated as:

(Net Billed + Unbilled Contract) - All Contract Cost

Gross Unbilled

Amount of contract and extra services and expenses that are flagged as billable but not yet billed, including WUD and markup. It is calculated as:

Unbilled Contract + Unbilled Extra

Gross Unbilled Value

Amount of contract and extra services and expenses that are flagged as billable but not yet billed, excluding WUD but including markup. It is also referred to as Unbilled Value and is calculated as:

Unbilled Contract Pre-WUD + Unbilled Extra Pre-WUD

Gross Wages

Salary or wages earned by an employee, including regular wages, overtime wages, bonuses, commissions, paid-time-off, etc. before taxes.

GST

Goods and Services Tax (GST) is a value-added tax charged on the sale of goods and services. The GST is paid by the consumers. It is also known as Value-Added Tax (VAT) in some countries. In CORE, it can be represented by the main service and expense taxes, MET and MST.

H

Hours

Actual hours worked on a project. The same number of hours is automatically carried to the Client Hours field. If you export CORE data to a payroll system, these actual hours are used as the basis for payroll or job cost reports.

Hourly Contract

This type of billing has no fixed contract amount. Typically, billing is based on time and expense entries recorded and approved for the project. The invoice amount is the total of the bill amount for time entries and charge amount for expenses after any adjustments made during the billing process.

Hourly Not to Exceed Contract

It is a fixed type of a contract based on time and expense entries but with a ceiling. HNTE involves automatic checking of time and expenses so that it does not push the project total over the contract amount.

HST

Harmonized Sales Tax (HST) is a combined tax that replaces the provincial sales tax and GST (Goods and Services Tax). E.g., in Quebec, Canada,

HST = QST + GST

I

Ideal Pay Rate

Ideal pay rate is the rate you should be paying your employees to achieve the target profit percentage. It is calculated as:

Ideal Pay Rate = Utilization % / (OHM x Target Profit %)

Income Account

Account that tracks any income or revenue from your products and services. You can track both income and expenses for vendor services using this account. Assigning income account to items and transactions helps keep track of the income from your services, and generate profit & loss reports. It is required for accounting and data integration with your accounting software.

Indirect Cost

Indirect costs are expenses that cannot be directly charged to a project or client. Such costs include overheads and administrative expenses like employee health care premiums, office rent, accountants fee, office stationery supplies, etc.

Internal Hours

These are hours logged by employees with activity as vacation, sick, holiday or comp time.

IOLTA

IOLTA stands for Interest on Lawyer Trust Accounts. A Bank IOLTA account is a checking account that earns interest on the funds in the account. The interest is given to the state's IOLTA board because attorneys cannot keep the interest earned on the client's money. 

J

Job Costing

It is a process or system of calculating the costs incurred on a project or job. It involves tracking expenses and incomes separately for each project and arriving at its profitability.

Joint Invoice

It is a consolidated or combined invoice where you can group phased projects or separate projects with the same client on a single invoice for billing purposes. In case of phased projects, joint billing groups the phases based on a common parent project. 

L

L-Code

Litigation codes are used in adversarial matters including litigation, arbitrations, and regulatory/ administrative proceedings in the legal industry.

Lead Source

A lead source is the primary source through which leads and prospects find out about your company. It refers to the common avenues your company collects the leads from. The source could be advertisements, trade shows, Internet or search engines such as Google, word-of-mouth, emails, conferences, resellers, etc.

LEDES

Stands for 'Legal Electronic Data Exchange Standard'. It is a standard file format used by the legal industry for the electronic exchange of information. It codifies a uniform data output from legal time-and-billing systems for export to electronic billing systems.

M

Main Expense Tax (MET)

Tax applied to the expense amount on invoices. It takes into account the taxes (namely Tax 1/2/3) associated with the expense items.

Main Service Tax (MST)

Tax applied to the labor or service amount on invoices. It takes into account the taxes (namely Tax 1/2/3) associated with the service or activity items.

Manual Invoice

A manual invoice created for projects that might not have time or expenses logged against them. It is useful when you want to build an invoice based on other records or want to enter historical invoices and payments.

MAPI

Messaging Application Program Interface (MAPI) is a Microsoft Windows program interface that enables you to send emails from within a Windows program, such as, Microsoft Outlook or Eudora.

Margin

In general, profit margin is the difference between the revenue and cost. It is calculated as:

Margin = Billed Amount - Cost Amount

Margin % = Total Margin / Billed Amount x 100

Margin (Billed)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed portion for a project and includes contract and extra services and expenses. It is also referred to as Project Margin (Billed) and is calculated as:

[Profit (Billed) / Gross Billed] x 100

Margin (Billed All Cost)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the amount that has been billed versus all the services and expenses entered. It is also referred to as Project Margin (Billed All Cost) and is calculated as:

[Profit (Billed All Cost) / Gross Billed] x 100

Margin (Billed Contract)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed contract portion for a project (both services and expenses) and excludes all extras. It is also referred to as Project Margin (Billed Contract) and is calculated as:

[Profit (Billed Contract) / Gross Billed Contract] x 100

Margin (Billed Contract All Cost)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed contract portion for a project (both services and expenses) and excludes all extras versus the cost of all services and expenses entered to date-billed, unbilled and non-billable. It is also referred to as Project Margin (Billed Contract All Cost) and is calculated as:

[Profit (Billed Contract All Cost) / Gross Billed Contract] x 100

Margin (Billed Services)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed services portion for a project and excludes expenses but includes contract and extra services. It is also referred to as Project Margin (Billed Services) and is calculated as:

[Profit (Billed Services) / Gross Billed Services] x 100

Margin (Billed Services All Cost)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed services portion for a project and excludes expenses) but includes contract and extra services versus the cost of all services entered to date-billed, unbilled and non-billable. It is also referred to as Project Margin (Billed Services All Cost) and is calculated as:

[Profit (Billed Services All Cost) / Gross Billed Services] x 100

Margin (Billed + Unbilled)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of all services and expense entered to date on a project. It is also referred to as Project Margin (Billed + Unbilled) and is calculated as: 

[Profit (Billed + Unbilled) / (Gross Billed + Unbilled)] x 100

Margin (Billed + Unbilled Contract)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed and unbilled contract services and expenses portion for a project versus the cost of all contract services and expenses entered to date-billed, unbilled and non-billable. It is also referred to as Project Margin (Billed + Unbilled Contract) and is calculated as:

[Profit (Billed + Unbilled Contract) / (Gross Billed + Unbilled Contract)] x 100

Margin (Billed + Unbilled Services)

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the billed and unbilled services portion for a project. It excludes expenses but includes contract and extra services versus the cost of all services entered to date-billed, unbilled and non-billable. It is also referred to as Project Margin (Billed + Unbilled Services) and is calculated as:

[Profit (Billed + Unbilled Services) / (Gross Billed + Unbilled Services)] x 100

Marketing Contract

It is a contract type assigned to projects not yet secured while you make efforts to pursue it. You can record non-billable time and expense entries for it.

Markup %

It determines the percentage increase or decrease in the cost of an expense to determine the charge amount. You can even enter a negative markup (MU) to reduce the charge amount. You can enter the markup as an amount or s percentage, not decimal. 

Mask

It is a sequence of letters, numbers and punctuation used for entering formatted data. Telephone numbers, social security numbers, postal codes and tax identification numbers are common examples where masks are used.

Minimum Bill Rate

It is the bill rate of an employee producing the target profit per hour. It is calculated as:

Minimum Bill Rate = (Cost Rate x OHM x Target Profit %) / Utilization %

Minimum Hours

Minimum number of hours to work on an activity. This value is automatically passed on as the billable hours in the time entry screen. This is useful if you bill day rates.

Multiplier Achieved

The billing multiplier achieved measures the ratio of the revenue generated from billable work to the direct labor costs associated with that work. It reflects how much a company is able to bill for each dollar spent on direct labor. It is calculated as:

Net Revenue / Direct Labor Costs

N

Net Billed

Amount of services and expenses that are flagged as billable and have been billed, after deducting discounts and miscellaneous adjustments. This amount excludes taxes and retainer applied. It is calculated as:

Gross Billed - (Discount + Miscellaneous Adjustment)

Net Billed Contract

Amount of contract services and expenses that are flagged as billable and have been billed, after deducting discounts and miscellaneous adjustments. It is calculated as:

Gross Billed Contract - (Discount + Miscellaneous Adjustment)

Net Billed with Tax

Amount of services and expenses that are flagged as billable and have been billed, after deducting discounts and miscellaneous adjustments. This amount includes item and main taxes but excludes retainer applied. It is calculated as:

Net Billed + Tax

Net Billed + Unbilled

Amount of services and expenses that are flagged as billable and have been billed and not yet billed, after deducting discounts and miscellaneous adjustments from the billed portion. This amount excludes taxes and retainer applied. It is calculated as:

Net Billed + Gross Unbilled

= Net Billed + Unbilled - All Cost

Net Billed + Unbilled % = (Net Billed + Unbilled - All Cost) / (Net Billed + Unbilled) × 100

Net Billed + Unbilled Contract

Amount of contract services and expenses that are flagged as billable, after deducting discounts and miscellaneous adjustments from the billed portion. It is calculated as:

Net Billed Contract + Unbilled Contract

Net Margin - Billed

Displays the net margin earned from billed services and expenses, after subtracting the associated costs (both billed and unbilled non-billable costs). Net Billed includes billed amounts after deducting discounts and miscellaneous adjustments, excluding taxes. It is calculated as:

Net Margin = Net Billed - Billed Cost - Unbilled Non-Billable Cost

Net Margin % = (Net Billed - Billed Cost - Unbilled Non-Billable Cost) / Net Billed × 100

Net Margin - Billed All Cost

Profit margin of a project/phase. It excludes discounts and miscellaneous adjustments on invoices. This margin represents the profitability of the amount that has been billed versus all the services and expenses entered. It is calculated as:

[Profit (Billed All Cost) / Gross Billed] x 100

Net Margin - Billed + Unbilled

The net margin earned from both billed and unbilled services and expenses, after deducting all associated costs. It is calculated as:

Net Margin = (Net Billed + Unbilled - Total Costs) / (Net Billed + Unbilled) × 100

where Net Billed includes invoiced amounts, after deducting discounts, adjustments, and excluding taxes.

Net Pay

Salary or wages of an employee after deductions and taxes. It denotes the employee's take-home pay.

Net Profit Margin

Net profit margin indicates the percentage of revenue that remains as profit after all expenses, including direct costs, operating expenses, owner salaries and labor expenses, have been deducted. It is calculated as:

(Net Revenue - Net Expenses) / Net Revenue x 100

Net Realization Rate

Percentage of potential revenue that was converted or realized into actual revenue. It excludes discounts and miscellaneous adjustments. It is calculated as:

(Net Billed / Gross Billed Pre-WUD) x 100

Non-Billable

Represents the total value or amount of time and expenses categorized as non-billable. It is calculated as:

(Client Hours x Bill Rate) + (Units x Cost Rate)

Non-Billable Contract Cost

Fully loaded cost of the contract services and cost of the contract expenses that are flagged as non-billable. It is calculated as:

Non-Billable Services Contract Cost + Non-Billable Expenses Contract Cost

Non-Billable Cost

Fully loaded cost of the contract and extra services and cost of the contract expenses that are flagged as non-billable. It is calculated as:

Non-Billable Contract Cost + Non-Billable Extra Cost

Non-Billable Expenses Contract Cost

Cost of the contract expenses that are flagged as non-billable. It is also referred to as Contract Non-Billable Expenses Cost.

Non-Billable Expenses Cost

Cost of the contract and extra expenses that are flagged as non-billable. It is calculated as:

Non-Billable Expenses Contract Cost + Non-Billable Expenses Extra Cost

Non-Billable Expenses Extra Cost

Cost of the extra expenses that are flagged as non-billable. It is also referred to as Extra Non-Billable Expenses Cost.

Non-Billable Extra Cost

Fully loaded cost of the extra services and cost of the extra expenses that are flagged as non-billable. It is calculated as:

Non-Billable Services Extra Cost + Non-Billable Expenses Extra Cost

Non-Billable Hours

Actual hours entered that are flagged as non-billable. These are hours logged by employees that cannot be billed to the client. The status of time entries is non-billable and contract type of the projects is not Overhead or Marketing. It excludes internal hours (vacation, sick, holiday or comp time) and WUD.

Non-Billable Services Contract Cost

Fully loaded cost of the contract services that are flagged as non-billable. It is also referred to as Contract Non-Billable Services Cost and is calculated as:

Actual Hours x Cost Rate

Non-Billable Services Cost

Fully loaded cost of the contract and extra services that are flagged as non-billable. It is calculated as:

Non-Billable Services Contract Cost + Non-Billable Services Extra Cost

Non-Billable Services Extra Cost

Fully loaded cost of the extra services that are flagged as non-billable. It is also referred to as Extra Non-Billable Services Cost and is calculated as:

Actual Hours x Cost Rate

Non-Posting Account

Accounts that do not affect the income, expense and balance sheet accounts. They include transactions like purchase orders, sales orders, or pending invoices.

NSF

Non-Sufficient Funds (NSF) is used for bounced checks and is treated as a debit payment. If you record a bounced check with insufficient funds in the Payment screen, that reduction in fees or expenses gets reflected in the Payment Disbursement screen in the form of negative entries. This offsets the previous disbursement for the original payment.

O

Open Accounts Receivable

Outstanding amount on invoices, yet to be paid by a client. Open A/R is calculated as:

Net Billed with Tax - Write-Off - Paid with Tax - Retainer Applied

Overhead Contract

A contract type used for internal work done on projects that track company overheads and administrative costs. It is non-billable and might include meetings, office maintenance, birthday parties, etc.

Overhead Hours

All hours logged by employees on projects where the contract type is Overhead or Marketing. It excludes internal PTO hours (sick, vacation, holiday or comp time).

Overhead Multiplier

Estimated multiplier used to increase the unloaded cost rate of an employee to cover the overhead expenses of the business related to that employee. It also determines the ideal bill rate of an employee. It is calculated as:

Overhead Multiplier = Cost Rate / Pay Rate

OHM = Overhead Expenses / Direct Labor Cost

where Overhead Expenses include both direct and indirect expenses.

Overtime

It is the extra time worked on a project exceeding the daily or weekly Standard Hours. Overtime entries have their OT flag checked. According to FLSA, overtime is any time worked beyond 40 hours in a workweek.

Overtime Bill Rate

It is the bill rate charged for time worked by the employee beyond the standard daily or weekly hours. CORE uses this OT bill rate to calculate the bill amount for overtime entries (Billable Hours x OT Bill Rate).

Overtime Pay Rate

The employee's default hourly pay rate for overtime. It represents the most common rate that the company pays the employee per hour of overtime work. Overtime is typically one and a half times the employee’s hourly pay rate for hours worked over 40 each workweek.

Owner

Owner is a special administrator who creates the CORE account and has full security permissions. The owner can add more users and companies to the account.

P

Paid

Total payments made by a client, excluding retainers, credits, write-offs and taxes.

Paid with Tax

Total payments made by a client, excluding retainers, credits, write-offs but including taxes.

Pay Rate

It is the default hourly rate paid to an employee for work done. For a salaried employee, it is calculated as total salary divided by hours worked per year (say 2,080 hours). It is usually kept confidential and not displayed anywhere. It is calculated as:

Cost Rate = Pay Rate x Overhead Multiplier

Pay Rate Multiplier

A number that multiplies against the employee’s standard pay rate to come up with a cost rate.

Payment Term

The terms under which your client has to pay an invoice or you have to pay the vendor bills, These terms specify the period within which the invoice or bill has to be paid in full. E.g., Net 30 means a bill or an invoice has to be paid within 30 days after the invoice/bill date.

Payroll Taxes

Payroll taxes deducted from employee salaries and wages include federal income tax, Social Security, Medicare, state income taxes, state disability income tax (SDI), state unemployment tax, local income taxes, etc.

Percent Billable

The total percentage of contract amount that is billable.

Percent Complete

Percent Complete is the subjective determination of how far along a project or task is. You can update this % Complete value based on how complete the project or task is. For projects, you can calculate this percentage based on the contract amount used or spent, and then bill the client accordingly.

Percent Complete Billing

You can calculate this percentage based on the contract amount spent and then bill the client accordingly. Percent Complete billing supports both single project and joint invoicing. You can bill project phases using % Complete values from each phase.

Percentage Contract

It is a contract type based on a certain percentage of cost or settlement amount.

Phase

A phase is a subgroup of services provided as part of a larger group of services called a project. It is a child project of a parent project.

Phased Billing

Billing wherein you can bill one phase or all phases of a project on a joint invoice. It includes completed and not-yet-started phases.

Posting

Process involving distribution of an invoice to a client by mail, email or by hand. Posting essentially finalizes the invoices. After posting invoices, you cannot change anything about them except the memo.

Profit

Represents the profit for the company. It is not affected by the billable status of entries. It is calculated as: Profit = Billed Amount - Cost Amount

Profit % = Total Profit / Billed Amount x 100

Profit (Billed)

Profit made by the difference between the gross amount of contract and extra services and expenses that have been billed (including WUD and markup) and the fully loaded cost of those billed and non-billable expenses and services. It is calculated as:

Gross Billed - (Billed + Non-Billable Cost)

Profit (Billed All Cost)

Profit made by the difference between the gross amount of contract and extra services and expenses that have been billed (including WUD and markup) and the fully loaded cost of all contract and extra services and cost of all contract and extra expenses, whether billable or non-billable. It is calculated as:

Gross Billed - All Cost

Profit (Billed Contract)

Profit made by the difference between the gross amount of contract services and expenses that are flagged as billable and that have been billed (including WUD and markup) and the cost of those billed contract services and expenses and the cost of the non-billable contract services and expenses entered. It is calculated as:

Gross Billed Contract - (Billed + Non-Billable Contract Cost)

Profit (Billed Contract All Cost)

Profit made by the difference between the gross amount of contract services and expenses that are flagged as billable and that have been billed (including WUD and markup) and the cost of all contract services and expenses, whether billable or non-billable. It is calculated as:

Gross Billed Contract - All Contract Cost

Profit (Billed Services)

Profit made by the difference between the gross amount of contract and extra services that have been billed (including WUD) and the cost of those billed services plus the cost of non-billable services entered. It is calculated as:

Gross Billed Services - (Billed + Non-Billable Services Cost

Profit (Billed Services All Cost)

Profit made by the difference between the gross amount of contract services (including extra and WUD) that are flagged as billable and that have been billed and the fully loaded cost of all contract services, whether billable or non-billable. It is calculated as:

Gross Billed Services - All Services Cost

Profit (Billed + Unbilled)

Profit made by the difference between the gross amount of all contract and extra services and expenses that are flagged as billable and the fully loaded cost of all contract and extra services and cost of all contract and extra expenses, whether billable or non-billable. It is calculated as:

(Gross Billed + Unbilled) - All Cost

Profit (Billed + Unbilled Contract)

Profit made by the difference between the gross amount of contract services and expenses that are flagged as billable (including WUD and markup) and the cost of all the contract services and expenses, whether billable or non-billable. It is calculated as:

(Gross Billed + Unbilled Contract) - All Contract Cost

Profit (Billed + Unbilled Services)

Profit made by the difference between the gross amount of services that are flagged as billable (including WUD) and the fully loaded cost of all the contract services, whether billable or non-billable. It is calculated as:

Gross Billed + Unbilled Services - All Services Cost

Profit Per FTE

Net Profit per Full-Time Employee (FTE) measures the average amount of profit generated by a business for each full-time equivalent employee. It is calculated by dividing the company's total net profit by the number of full-time employees. It is calculated as:

Net Profit / Number of FTE

Progress Billing

When you are ready to bill but have not entered all the time and expenses yet, you might want to send progress invoices to your client and later associate your time and expenses to that invoice. When progress billing your clients, CORE adjusts the difference in the value of time or expense entries by generating a write-up/down or markup. 

Project Retainer Applied

Retainer payments applied or used on a project or phase.

Project Retainer Available

Retainer amount remaining or unused on a project or phase. It is also referred to as Project Retainer Balance. It is calculated as:

Retainer Received - Retainer Applied

Project Retainer Received

Retainer payments received from clients on a project or phase. It is an advance payment received from a client but is available for a particular project only. It is to be used prior to the client retainer.

Proposal Amount

Total amount quoted on a proposal, which includes services, expenses, subtotals, discounts and taxes. If proposal is created from a quote, then proposal amount is taken from the quote amount.

PTO

Personal Time Off is time taken off from work for personal commitments and emergencies. It gives employees a set number of days off to be used at their discretion. It is calculated as:

PTO = Vacation + Holiday + Sick + Comp Time

Purchase Orders (POs)

Purchase orders are used to make initial offers and requests to sellers or suppliers indicating the type, quantity and agreed price for the products and services you want to buy. Generally, a purchase order is used for buying stock items and tracking inventory purchases. 

Purchase Tax

Tax paid by the company on an expense item and is subtracted from the charge amount to avoid double-taxation for the client. CORE uses the Purchase Tax/HST Rate to segregate the actual cost of an expense and its tax amount (Cost Amount = Net Cost Amount + Purchase Tax Rate). 

Cost (with Purchase Tax) = Amount without Purchase Tax / (1 + Purchase Tax Rate / 100)

Q

QST

QST stands for Quebec Sales Tax and represents the provincial sales tax in Canada. It is the cumulative amount of service and expense line taxes. In CORE, it can be represented by the item taxes, Tax 1/2/3.

R

Realization Rate

Realization measures the percentage of the billable value a company creates that is then invoiced and collected by it. It represents the percentage of potential revenue that was converted or realized into actual revenue. It excludes discounts and miscellaneous adjustments. The realization percentage looks at the total revenue realized from the billed hours. It is calculated as:

(Gross Billed / Gross Billed Pre-WUD) x 100

or Net Revenue / Value of Billable Hours

Reconciliation

Reconciliation of accounts refers to the process of ensuring that two sets of records for the same account are in agreement. It is a standard accounting procedure to reconcile your accounts to ensure there is no discrepancy between your bank registers in the accounting system (say CORE) and actual bank statements. This is done by making sure the balances match at the end of a particular accounting period.

Recurring Amount

Recurring contracts involve billing a fixed amount, called recurring amount, after a specified number of days. The project is billed for that amount irrespective of how much time or expenses are spent on it.

Recurring + Expense Contract

These are recurring contracts but with expenses not included in the recurring amount charged at a defined frequency. Expenses are added on top of the recurring amount.

Recurring + Hourly Contract

These are contracts where you bill a fixed amount after a set number of days plus additional amount based on the time and expense entries incurred on the project.

Recurring Billing

It involves pre-defining amount billed to the client on a set frequency such as weekly, biweekly, monthly, quarterly, and so on. The billed amount is the same regardless of the hours expended.

Recurring Contract

A contract type used if you have to bill a fixed amount after a specified number of days, irrespective of the time and expenses spent on a project.

Recurring with Cap Contract

It is a recurring contract type where you bill a fixed amount after a specified number of days, but the total consideration for the project has a ceiling.

Register

It is a record of all activity that affects an account's balance. Registers are available for balance sheet accounts (such as bank, A/R, A/P, retainer, credit card, equity, liability, asset, and more), but not for non-balance sheet accounts (such as, income and expense accounts).

Regular Time

Time entries logged by employees where the OT flag is not checked.

Reimbursable Expense

These are expenses incurred by the employees and then reimbursed by the company. They might be charged or billed to the client later or via vendor bills.

Resource Schedules

These are week-by-week or month-by-month hours assigned to resources to execute a task allocation. They represent the work scheduled for those resources (employees and vendors)

Retainage

It is a percentage of the Net Bill amount that is unpaid or retained by clients until they sign off on a project. The clients pay the total or accumulated retainage amount later—when the project is over or until they verify the quality and completeness of the project. CORE computes the invoice amount as:
Amount Due = Services Billed + Expenses Billed + Taxes – Applied Retainer – Discount – Retainage

Retained Earnings

These are the profits of a company that are put back into business.

Retainer

It is a partial fee paid in advance by a client for professional services and is typically required in the legal and IT consulting industry. This money is a liability because you owe the service to the client.

Retainer Balance

Retainer amount remaining or unused on a project or phase. It is the retainer amount that is available to use. It is calculated as:

Retainer Received - Retainer Applied

Retainer Invoice

It is a request of prepayment for services made to a client. Retainer is not a receivable of the company but rather a liability when received.

Return on Investment

Return on Investment (ROI) denotes the profit or loss generated on an investment compared to the money invested. ROI is calculated as the ratio between the net profit and cost of investment that results from an investment.

RFI

An RFI is a request for information that is used in the construction industry to clarify project issues and fill in details such as specifications, plans, drawings, contracts, etc. Creating and sending RFIs is a standard business procedure that enables you to gather information about potential suppliers and make bidding decisions based on that. They can be used along with a Request for Proposal (RFP) or Request for Tender (RFT).

RFP

Request for Proposal is a standard business procedure that enables you to gather information about potential suppliers and make decisions based on that for your projects.

Revenue Per FTE

Net Revenue per Full-Time Employee (FTE) is used to assess the efficiency and productivity of a company. It is calculated by dividing the company's net revenue by the number of full-time equivalent employees, including all people working for the business (owners, principals and non-billable staff like office managers, marketing staff, etc). It is calculated as:

Net Revenue / Number of FTE

S

SaaS

Software as a Service is a licensing and delivery model for cloud-based software products where a company hosts and manages the software solution for a subscription fee.

SaferPayments

The SaferPayments program helps you take steps to comply with the PCI DSS and protect your business. It is a payment protection solution that offers simplified PCI compliance, fraud protection, and data breach prevention – with security tools, services, and expert support that helps businesses uncover risks, complete their PCI attestation, and reduce liability.

SDI

State Disability Insurance (SDI) is a tax withholding that is required in some states in USA. The tax is paid by employees and the money supports them financially if they are disabled while having a job.

Service Item Tax

Tax charged on the services rendered on the project. It is considered part of the project's contract amount and is the sum of Tax 1, 2 and 3 for time entries.

Service Tax %

This tax is applied to the labor or service amount charged to the client for all project invoices.

Service Tax Payable

Default account for the service tax payable in CORE. All the transactions involving service item taxes (Tax 1/2/3) can be posted to this current liability account, unless overwritten.

SIC

Standard Industrial Classification (SIC) codes are 4-digit numerical codes assigned by the government of USA to business organizations to identify their primary business or line of work.

Smart Fields

Smart Fields can be inserted in emails as a placeholder that CORE automatically replaces with the actual value when sending out emails. The smart field can be the ID, Name, Company, custom fields, etc., depending on the screen selected.

SMTP

Simple Mail Transfer Protocol is an Internet standard for sending emails across Internet Protocol (IP) networks. SMTP is completely independent of the email client that you use.

Spent Amount

Total amount spent on a project or phase, excluding write-up/down and taxes. It represents the total amount used on a project. It is calculated as:

Spent Services + Spent Expenses

% Spent is calculated as the percentage of the Contract Amount / Budget Amount spent on the project.

Spent Expenses

Amount of the expenses spent on a project or phase, including markup. It is calculated as:

Spent Units x Cost x [(1+Markup)/100]

Spent Hours

Actual hours entered or recorded for a project or phase, whether billable or non-billable. It represents the total hours used on a project. It is equal to the value of approved billable and non-billable time. It excludes extra time. 

Spent = Billable Time + Non-Billable Time

Spent Services

Amount of the hours spent on a project or phase, excluding write-up/down. It is calculated as:

Spent Hours x Bill Rate

Spent Units

Total expense units used on a project. It is equal to the value of approved billable and non-billable expenses. It excludes extra expenses. 

Spent = Billable Expenses + Non-Billable Expenses

Split Billing

Common in the legal industry, split billing is wherein the invoice is split into various parts to divide work and invoicing among multiple clients. All the time and expense entries are logged to the primary project, but later the billing is split between the clients of the two or more projects. The line item taxes and main taxes are included in the split billing percentage set at the project level.

SSL

Secure Sockets Layer (SSL) should be used if you want to protect the confidentiality and security of data transmitted between your email program and the servers.

Staff Workload

Employees' scheduled hours minus actual hours worked.

State Disability Insurance

If your company is in a state that collects state disability insurance (SDI) based on employee wages like CA, HI, NJ, NY, and so on, this tax can be paid by the company, employee or both.

Statement

It is a periodic account summary sent by a company to its customers who have account transactions during the billing period. It summarizes information regarding invoices, adjustments and payments for a project or client.

Submittal

It might be a material sample, shop drawing, product data, etc. that is required to be approved by the architects and engineers to verify the quality and quantity of products used in a construction project.

SUTA

All states require employers to pay state unemployment taxes for their employees. Each state has an annual wage limit for this tax.

T

Target Profit

This is a profit percentage you would like to achieve for each employee in your company. It is used to determine the ideal bill and cost rate of employees and vendors (contract employees) and can be set up in Settings.

Target Utilization

It represents the efficiency percentage goal. An employee's billing efficiency or performance is measured against this threshold. It is calculated as:

Target Utilization = Billable Hours / Required Hours

Task Allocation

Assigning expenses and tasks to employees or a team on project basis to ensure tasks are completed within the deadlines. Task allocation helps manage resources and forecast revenue.

Tax ID

This represents a company's tax identification number.

Total Amount Used

It is equal to the amount of billed services and expenses, excluding WUD, markups, and extra time and expenses.

Used = Client Hours x Bill Rate x (1 + Taxes/100) + [Units x Cost Rate]

Total Budget

It represents the sum of the charge amount of budgeted services and expenses. It is calculated as:

Total Charge Amount of Budget Services + Total Charge Amount of Budget Expenses + Miscellaneous amount

Transaction Date

Transaction Date in A/R reports is the combination of Invoice/Payment Date in UTC. Transaction Date in A/P reports is the Invoice Date in case of invoices, Payment Date in case of payments, and Vendor Bill Date in case of vendor bills. Transaction Date in A/P Aging reports is the combination of Vendor Bill Date/Bill Payment Date. The Transaction Date is not the same as the Created On date and can be changed.

Trust Fund

A trust fund is a legal entity that holds assets like money, property, stock, etc. on behalf of another person or organization. It allows you to keep your assets in a trust fund that is managed by a third party (trustee), say a lawyer. Law professionals typically use interest-bearing trust fund accounts to hold retainers or settlement money for their beneficiary clients. 

U

Unbilled

The value of billable, but unbilled time and expenses associated with all projects. It includes values in draft invoices, WUD, markups, and extra time and expenses, but excludes taxes. It includes the values of active projects only. It is calculated as:

Unbilled = (Unbilled Hours x Bill Rate) x (1 + WUD%) + (Units x Cost Rate) x (1 + Markup%)

Unbilled Contract

Amount of contract services and expenses that are flagged as billable and have been entered but not yet billed, including WUD and markup. It is also referred to as Contract Unbilled. It is calculated as:

Unbilled Expenses Contract + Unbilled Services Contract

Unbilled Contract Cost

Cost of contract services and expenses that are flagged as billable and have been entered but not yet billed. Cost of services is fully loaded cost and includes the overhead multiplier (Actual Hours x Cost Rate). It is also referred to as Contract Unbilled Cost. Unbilled Contract Cost is calculated as:

Unbilled Expenses Contract Cost + Unbilled Services Contract Cost

Unbilled Cost

Fully loaded cost of contract and extra services and cost of contract and extra expenses that are flagged as billable and that have been entered but not yet billed. It is calculated as:

Unbilled Contract Cost + Unbilled Extra Cost

Unbilled Expenses

Amount of contract and extra expenses that are flagged as billable and have been entered but not yet billed, including markup. It is calculated as:

Unbilled Expenses Contract + Unbilled Expenses Extra

Unbilled Expenses Contract

Amount of contract expenses that are flagged as billable and have been entered but not yet billed, including markup. It is also referred to as Contract Unbilled Expenses.

Unbilled Expenses Contract Cost

Cost of the contract expenses flagged as billable that are entered but not yet billed. It is also referred to as Contract Unbilled Expenses Cost.

Unbilled Expenses Cost

Cost of the contract and extra expenses flagged as billable that are entered but not yet billed. It is calculated as:

Unbilled Expenses Contract Cost + Unbilled Expenses Extra Cost

Unbilled Expenses Extra

Amount of extra expenses that are flagged as billable and have been entered but not yet billed, including markup. It is also referred to as Extra Unbilled Expenses.

Unbilled Expenses Extra Cost

Cost of the extra expenses flagged as billable that are entered but not yet billed. It is also referred to as Extra Unbilled Expenses Cost.

Unbilled Extra

Amount of extra services and expenses that are flagged as billable and have been entered but not yet billed, including WUD and markup. It is also referred to as Unbilled Extra and is calculated as:

Unbilled Expenses Extra + Unbilled Services Extra

Unbilled Extra Cost

Cost of the extra expenses and fully loaded cost of the extra services flagged as billable that are entered but not yet billed. It is also referred to as Extra Unbilled Cost. It is calculated as:

Unbilled Expenses Extra Cost + Unbilled Services Extra Cost

Unbilled Hours

Actual hours entered that are flagged as billable but not yet marked billed and included on a final invoice.

Unbilled Services

Amount of contract services (including extra) flagged as billable and have been entered but not yet billed. It is calculated as:

Unbilled Services Contract + Unbilled Services Extra

Unbilled Services Contract

Amount of contract services that are flagged as billable and have been entered but not yet billed, including WUD. WUD factors in the WUD multiplier and any difference between actual hours and client hours. It is also referred to as Contract Unbilled Services. It is calculated as:

(Bill Rate x Actual Hours) + [Bill Rate x Client Hours x WUD Multiplier] + [Bill Rate x (Client Hours - Actual Hours)]

Unbilled Services Contract Cost

Fully loaded cost of the contract services flagged as billable that are entered but not yet billed. It is also referred to as Contract Unbilled Services Cost and is calculated as:

Actual Hours x Cost Rate

Unbilled Services Contract Unloaded Cost

Unloaded cost of the contract services flagged as billable that are entered but not yet billed. It excludes overhead multiplier. It is also referred to as Contract Unbilled Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Unbilled Services Contract Value

Amount of contract services that are flagged as billable and have been entered into CORE but not yet billed, excluding WUD. It can also be referred as Contract Unbilled Services Value. It is calculated as:

Bill Rate x Actual Hours

Unbilled Services Cost

Fully loaded cost of the contract and extra services flagged as billable that are entered but not yet billed. It is calculated as Actual Hours x Cost Rate and includes services performed by employees, contract employees and outside consultants. Unbilled Services Cost is calculated as:

Unbilled Services Contract Cost + Unbilled Services Extra Cost

Unbilled Services Extra

Amount of extra services that are flagged as billable and have been entered but not yet billed, including WUD. It is also referred to as Extra Unbilled Services.

Unbilled Services Extra Cost

Fully loaded cost of the extra services flagged as billable that are entered but not yet billed. It is also referred to as Extra Unbilled Services Cost and is calculated as:

Actual Hours x Cost Rate

Unbilled Services Extra Unloaded Cost

Unloaded cost of the extra services flagged as billable that are entered not yet billed. It excludes overhead multiplier. It is also referred to as Extra Unbilled Services Unloaded Cost and is calculated as:

Actual Hours x Pay Rate

Unbilled Services Extra Value

Amount of extra services that are flagged as billable and have been entered but not yet billed, excluding WUD. It is also referred to as Extra Unbilled Services Value.

Unemployment Insurance

This insurance is a government-mandated program that is administered by the federal government (FUTA) and the State of California (SUI). It provides you with a limited income replacement when you are out of work through no fault of your own for a period of up to 26 weeks.

Unit Cost

This is the per unit cost of an expense. If the expense is not per unit, it can be a flat amount. The total cost is automatically calculated as Units x Cost Rate.

Used Amount

Total amount used on a project. It is equal to the amount of billed services and expenses, excluding WUD, markups, and extra time and expenses. It is calculated as:

Used = (Client Hours x Bill Rate) x (1+ Taxes / 100) + (Units x Cost Rate)

UTC

Coordinated Universal Time is the standard by which the world regulates clocks and time. It follows a 24-hour time format and does not consider daylight saving time.

UTF-8

UTF stands for Unicode Transformation Format. It is a character encoding format that can be as compact as ASCII (if the file is plain English text) but can contain unicode characters as well. It uses 8-bit blocks to represent each character that is encoded. 

Utilization Rate

It measures the percentage of an employee's available working hours that are spent on billable tasks, as opposed to non-billable activities like administration, training, or internal meetings. It represents the comparison between the billable and non-billable value of time entries logged by an employee and is based on the target billable hours. It is calculated as:

(Billable Hours / All Hours) x 100

Utilization % = Billable Hours / (Billed Hours + Unbilled Hours + Non-Billable Hours) x 100

Utilized

This is the billability of the time spent on a project, irrespective of the billed status. Its calculations include extra time and regular time with WUD. The calculations involved are:

Billable % = Billable Hours / Total Hours x 100

where Billable Hours are billable client hours and

Total Hours = Billable Hours + Non-Billable Hours + Overhead Hours + PTO Hours

V

Vendor

In general, it includes contract employees, contractors, subcontractors, consultants, agents, brokers, suppliers or other outsourced people. Vendors provide a service for which you owe them money, but they are not on the payroll of your company.

Vendor Bill

It is an invoice received for products and services that your company purchases from an outside party or vendor. A vendor bill is regarded as an A/P invoice (expense) and is usually preceded by a purchase order.

Vendor Credit

It is generally issued when you receive a credit or an advance from a vendor. You can pay off the vendor bill using a vendor credit. It debits the A/P account and credits another account of your choice.

Void Invoice

It is an invoice archived for backup, which might be reviewed later by managers. Void invoices remain in the database but are not editable.

W

W2

W2 is a payroll tax form issued by employers and stating how much an employee was paid in a year. It shows wages and taxes withheld for the year for an employee.

Withholding

It refers to the payroll taxes and deductions subtracted from the employee's gross pay.

Work-in-Progress (WIP)

Total value of billable, but unbilled time and expenses associated with all the projects of all your clients. It includes values in draft invoices, WUD and markups, but excludes taxes. It includes the values of active clients only.

WIP = Unbilled Amount of time entries + Unbilled Amount of expense entries

where Unbilled Amount of time entries = (Bill Rate x Client Hours) x (1 + WUD%)

Unbilled Amount of expense entries = Total Charge Amount = (Units x Cost Rate) x (1 + Markup %)

Write-Offs

Amount of write-offs and credits applied to an invoice. A write-off is an accounting expense because it represent a reduction in income due to unreceived payments.

Write-Up/Down (WUD)

WUD represents the increase or decrease in the value of services. It affects the bill amount and not the cost amount of the entries. A WUD multiplier can modify the bill rate of entries directly and a WUD can also create a difference between client hours and actual hours. Bill amount difference from both these WUD are used to calculate the final WUD value for a project or invoice. It is calculated as:

[Bill Rate x Client Hours x (WUD Multiplier - 1)] + [Bill Rate x (Client Hours - Actual Hours)]

Y

Year-Over-Year Revenue Growth

Year-Over-Year (YoY) Revenue Growth measures the percentage change in a company's revenue from one year to the next. It is a key indicator of the company's growth trajectory and performance over time. It is calculated as:

(Net Revenue in Current Year - Net Revenue in Previous Year) / Net Revenue in Previous Year