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I run a business.
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I run a business. - June 4, 2009, 11:23 AM

Type of business is not relevant. And fwiw, things are looking great this year.

Now, I need some opinions.

I have 2 "areas" within my business. We'll call them Area 1, and Area 43.

Area 1 is a day-to-day operation, in that it's always open.

Area 43 is an irregular operation, in that it's only in effect on predetermined days.


Got it so far? Great.


In order to maximize productivity, efficiency, and thus profitability, I setup my staffing structure allowing complete cross-utilization of staff amongst my 2 departments.

More specifically, I have staff that must be everyday, and remain for a predetermined amount of time. This occurs regardless of client influx. No clients does not dictate staffing need.

(For the record, that's not black and white, but you get the point)

I designed my operation plan as above, and staffed up with people capability of handling the daily multitasking. During non-peak hours in Area 1, my staff are preparing goods and services for the next day that Area 43 is in operation.

Remember, Area 1 must be operational daily. Remember this, you will be quizzed.

Area 43 was operational yesterday. This is a seperate department, mind, and is a direct-controlled billing operation. Fixed costs, fixed time, etc.

While preparing my financial report for yesterday's Area 43 operations, I am instructed to bill any and all labor spent on preparation Area 43 operations performed by Area 1 staff while working in Area 1.

My questions is: WHAT THE FUCK?

My logic: Utilization of Area 1 staff is not only brilliant, but vital to Area 43 profitability and success. Regardless of Area 43 operations, Area 1 will be billed labor for any given day.


Thoughts?


Right up the 1 hole.
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June 4, 2009, 11:31 AM

i concur...it doesnt make sense that you should bill area 1 for work they did for area 43 since area 1 was already being billed on their normal schedule. since their work for area 43 was part of their normal billable hours their should not be extra pay to them since no extra hours were worked.
fix: make area 1 billable on a cross billing type platform thus preventing the billable hours from occuring on multiple jujitrons in the sectors of billable service hours. your z49.o-5 platform shoudl not be affected from this conversion.........................
I HAVE NO CLUE WHAT THE HELL IM TALKING ABOUT


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June 4, 2009, 11:34 AM

Quote:
Originally Posted by sasha00311 View Post
i concur...it doesnt make sense that you should bill area 1 for work they did for area 43 since area 1 was already being billed on their normal schedule. since their work for area 43 was part of their normal billable hours their should not be extra pay to them since no extra hours were worked.
fix: make area 1 billable on a cross billing type platform thus preventing the billable hours from occuring on multiple jujitrons in the sectors of billable service hours. your z49.o-5 platform shoudl not be affected from this conversion.........................
I HAVE NO CLUE WHAT THE HELL IM TALKING ABOUT


ironically - my "thoughts" were his sig line.....

just turn everything into Area 51 and keep it all a super secret
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June 4, 2009, 11:40 AM



I was reading it going, "um...i don't have a z49.o-5 platform.."

Dick.


Right up the 1 hole.
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June 4, 2009, 11:41 AM

I'm on a boat


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June 4, 2009, 11:43 AM

What you should have done is LLC them each as seperate entitiy's, sub your labor from area one to area 43 and bill them for the hours worked thus deducting the hours from area 1's books as area one labor and thus adding it as contracted labor income from area 43.


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June 4, 2009, 11:43 AM

Quote:
Originally Posted by Oneway View Post

just turn everything into Area 51 and keep it all a super secret
making statements like that.........you wouldn't happend to be employed by the government would you???
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June 4, 2009, 11:51 AM



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June 4, 2009, 11:52 AM

Quote:
Originally Posted by GUZZLER View Post
What you should have done is LLC them each as seperate entitiy's, sub your labor from area one to area 43 and bill them for the hours worked thus deducting the hours from area 1's books as area one labor and thus adding it as contracted labor income from area 43.

Thanks, Craig.

Unfortunately, that isn't possible. I don't own the business, just run it. Effectively I have my own program within a larger entity. One which is supposed to be in my complete control.

Thanks though.


Right up the 1 hole.
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June 4, 2009, 12:02 PM

What I want to know is...WHERE THE HELL WERE YOU MEMORIAL WEEKEND?? I've been meaning to ask that question in the MARRC thread but I keep forgetting so this works just as well.


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June 4, 2009, 12:02 PM

isn't 42 the answer?


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June 4, 2009, 12:05 PM

Quote:
Originally Posted by mrscastle228 View Post
What I want to know is...WHERE THE HELL WERE YOU MEMORIAL WEEKEND?? I've been meaning to ask that question in the MARRC thread but I keep forgetting so this works just as well.

Area 43


Right up the 1 hole.
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June 4, 2009, 12:10 PM

Quote:
Originally Posted by Woody View Post
Area 43


Ok...as you were...


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June 4, 2009, 12:11 PM

While the pay to Area 1 workers is consistent, who their time is billed to is apparently separate.
If Area 1 employees are required to work say 10 hr day/6 days a week at $10 hr they each make $600 a week.
However if Area 1 only uses their time for say 8hr on 2 of those days, Area 43 gets the bill of their labor.

If this is say a food business with Area 1 work going to one contract and Area 43 going to another I can see where the billing would need to be straight.


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June 4, 2009, 12:25 PM

I realize that the problem is simple.. but some of the circumstances are not. Without divulging too much information, as it seems you aren't able to, what is the need for the seperate billing. Seperate books? Seperate "companies" within a business? I know you have your reasons, just trying to get details to help give you an informed answer.


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