Why doesn Clients & Profits allocate overhead automatically?
Not all shops allocate overhead the same way. The way agencies and design studios determine client profitability depends on their client mix, their business model, and their billing practices. Some will allocate overhead based on billings, the gross income of the agency, or one of a couple of formula’s based on hours. Since there are multiple allocation methods, Clients & Profits provides you with the opportunity to choose the allocation method that best reflects the way your agency uses overhead for the servicing of it’s clients. The AAAA guide dealing with overhead allocation is: The AAAA’s Guide to Individual Client Profitability.
