The problem
Fixed-fee consulting projects drift: an extra workshop, another round of comments on the report. Without tracking, the overrun only shows at the end, if at all. If 2 projects a month quietly run 8 hours over, that's 16 hours, worth $1,064£800€952A$1,536C$1,504 at $67£50€60A$96C$94 an hour, given away.
What the AI does
Harvest is time tracking and invoicing software. Staff log hours against projects from a browser, desktop or phone, budgets update as time is tracked, and invoices can be raised from tracked time and copied to Xero or QuickBooks Online. You set each project's budget in hours, check the budget report weekly, and when a project passes about three-quarters of its budget with work left, you go back to the client with a change request before doing the extra.
A worked example
A small consultancy in Milton Keynes, the founder and 2 associates, runs about 5 fixed-fee projects at a time. Everyone tracks time in Harvest against project budgets, and the founder reviews them every Friday.
Before
About 16 hours a month of overruns across 2 projects, unnoticed and unbilled
After
Overruns spotted mid-project; change requests recover about half: 8 hours a month
What it's worth
About $532£400€476A$768C$752 a month recovered: 8 hours of agreed extra work billed at an assumed $67£50€60A$96C$94 an hour, counted in full because consulting time is almost all labor. Harvest Teams is $9 (about $9£7€8A$13C$13) a seat a month billed annually or $11 (about $11£8€10A$15C$15) monthly, so 3 seats is about $27£20€24A$38C$38 to $33£25€30A$48C$47 a month.
How to set it up
- Set up each fixed-fee project in Harvest with a budget in hours based on your quote.
- Ask everyone to track time daily against the project and task, from phone or browser.
- Check the budget report every Friday and flag any project past about three-quarters of its budget with work still to do.
- Raise a change request with the client before doing work outside the agreed scope.
- At the end of each project, compare actual hours with the quote and adjust how you price the next one.
What goes wrong
- Tracking only works if everyone does it daily. Weekly guesses hide the overruns you're looking for.
- Clients resent change requests that arrive at the end. Raise them as soon as scope changes.
- Harvest's profitability reporting is on Enterprise only; Teams shows hours against budget, which is enough here.
- Harvest is priced per seat, in dollars; the free plan covers 1 seat and 2 projects.