During a WorkflowMax implementation it is important to identify early on the people who will need access and the type of access they will need. This informs not only the people that should be involved in the set up and review of the solution but also the training they receive, and method of delivery. We’ve got more tips on delivering the right training here.We find that the topic of treatment of contractors comes up frequently. The objective of this article is to avoid the common mistakes people make when setting up contractors in their WorkflowMax.
It’s important contractors are set up correctly in your WorkflowMax from the beginning of any given job as it can be difficult or time consuming to rectify retrospectively. A contractor can either be set up as a staff member or as a supplier or both. The risk of choosing the wrong method for a particular contractor is the double-recognition of job costs and the misrepresentation of job, job category or customer reporting.
Regardless of the legal interpretation of a contractor vs employee (leave that to finance and payroll) we want to provide the greatest management information throughout the course of our project including job profitability. Here we ask three important questions:
1) Does the contractor currently complete a Timesheet for you?
If your contractors currently complete a paper or excel based Timesheet for you then you’re better off having them created as a staff member. We find this works best where the person is ‘one of the team’ but their legal relationship with you is that of supplier. This sort of person might be working for you for long periods of time across multiple jobs or just one project.
2) Does the contractor send you and invoice per job?
If this persons time is received on some basis via an accounts payable invoice then we don’t want to be double handling this job cost in both our job management system and our accounting system. What is important here is that these invoices are itemised by job or invoiced by job. This is the only way to properly allocate job costs to the correct jobs. We find this works best where the contractor is more intermittent or one-off.
3) Would they complete a Timesheet for you if you asked them to?
You might find that your contractors dislike the paperwork involved in invoicing you each month and remembering what they worked on for how long. They might see the benefit in you providing a system that not only lets them know what you want them working on and when but enables them to capture time from a mobile device across multiple jobs.
With the above questions answered you have the information to decide how to set up and train your contractors if required.