Why annualise your costs?
Here at GoProposal we are big advocates of monthly billing. It is much better for your cash flow, and it shows your clients that you understand the best practices of cash flow management.
However, sometimes you may need to create a single payment for catching up on a previous years accounts, or you may need to provide an annual cost for a legacy client (get them over to monthly as quickly as you can!). You can still do this using GoProposal.
Annualising the costs
Initial set up
The first thing to check when annualising costs is to check that you have annualised costs enabled. This will be enabled by default when you first sign up.
To check this you will want to go to to your admin section, go to 'configure' then go to 'pricing tool set up' then 'annualised costs'. If the 'Enable Annualised Costs?' is checked then you will be able to choose this option in your proposal tool.
Discounts or price increases for annualised costs
In this section you will also be able to apply a price increase or a discount for every proposal you annualise.
You may want to increase the price if they are paying at the year end, or offer a discount if they are going to pay up front. You can select either option from the drop down meny and then apply a percentage of the overall cost as a discount or increase. Simply type in the percentage you want to apply in the 'Annualised Costs Price Increase/Discount' field.
Producing annualised proposals
In the calculation section
Whenever you produced a proposal, all you need to do to annualise the costs is click 'billing cycle'. In there if you choose 'Annualised Billing' your monthly costs will be multiplied by the number of months in your proposal period. On top of that any discount or price increase you have selected will also be applied.
PLEASE NOTE: When you expand the calculations to see all costs in this section, it will still present monthly totals in the individual services.
In the proposal
In the proposal document the headings and costings will automatically be updated to make sure it reflects the billing cycle you have chosen.
If you would like to learn more about the pricing options in GoProposal, check out our Pricing Types explained article!
If you have any questions, please reach out to us! 😃