AzoftSpotlightHow to automate Web site Development Prize Accounting

How to automate Web site Development Prize Accounting

By Vasiliy Churanov on April 25, 2011

calc pic How to automate Web site Development Prize AccountingTo fasten and standardize Web site development Prize Accounting, we, some years ago, implemented a simple excel-table, that we use till now. May be you will also find it useful. Here is a short description of an accounting process:

Any development project is actually command time that we sell. It means a manager who makes business proposal needs an account of hours planned for certain kinds of works and work stages, that he calculates to money.  For this purpose we prepare a table (see an example below) where:

1. We create a typical team (manager, art-director, designer, technical director, programmer, maker-up, content-manager, tester). You can significantly broaden the structure (it depends on the project difficulty), but I wouldn’t recommend you to reduce it.

2. We determine a rate for each role in the company. It is easily calculated proceeding from costs for one developer (salary + burden), divided to the amount of working hours per month.

3. Command members’ roles can be leading (manager, art-director, technical director) and operating (designer, programmer). Participation in project (time devoted) is calculated according to the role type. Leading roles' hours are calculated as % from the time spent by operating roles. E.g. manager – 15% from project hours amount. Art-director — 10% from design hours amount. Hours needed for operating roles are summed up from the costs for different works within the project.

4. We create a basis of works types (see in the table) for each development stage. E.g.: design (main page, inner page, photo processing etc.), programming (setting a standard CMS, the «FAQ» module, the «Catalogue of production» module etc.). Prepare a short description for each kind of works, implementation example and accounting in hours. It’s enough to make hourly accounting just once together with developers. Non-standard modules should be added to the calculation, and are estimated for each new project.

accounting(2) How to automate Web site Development Prize Accounting

 

5. Add coefficients — difficulty allowance. E.g. there can be allowance in case of higher working load, integration with a system of other developer, dynamical effects in interfaces etc. The coefficients allow us to built buffers for developers into account. Customer will understand it – no problem.

6. Then we make a table that clearly demonstrates for a customer what he gives money for.

accounting(4) How to automate Web site Development Prize Accounting

C – Difficulty coefficient

W1-W7 – development weeks (you can use days or months)

Shared team – 0,1
Customer graphics 0,1
Using 3D – 0,1
Dynamic make-up – 0,1
System integration – 0,1
High working load – 0,1

Now the manager only has to transform the data to a beautiful application (he can do it very well) with stages description, your advantages in comparison with other developers, and send it to the customer. Such estimation approach presupposes some automation, it always spares time on the first stage and customers tend to like it. This method enables the customer to see the prize structure and to understand that the prize can’t be reduced by 4 times if you simply delete some modules.

You think that by such estimation it’s impossible to get a site cheaper than $ 5 000, don’t you? Yes, you’re right. Even in regions. When you use qualified developers team and if it's not a template project, the commerce prize can rarely be cheaper.  Such method was developed by calculation of the projects prize for such companies as ICOM and TWINS.

Note that such method mustn’t be used when estimating the development of typical and template sites.


You can contact Vasiliy Churanov, the author of this post, at vs@twinscom.ru


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