A useful monthly cost record tells you what a tool costs, what work it supports and whether anything has changed. It does not need to become a new reporting exercise for every occasional drafting task.
Start with the bills and the person who uses the tool. For a subscription used for several kinds of work, record those uses before trying to assign a cost to each output.
A worked cost record
For a fictional document-processing tool, suppose last month’s figures were:
Item | Amount |
|---|---|
Subscription and usage | £180 |
Acceptable documents completed | 400 |
Staff time checking and correcting | 10 hours |
Assumed value of staff time | £15 an hour |
Supplier spend per completed document is £180 divided by 400, or 45p. Adding £150 of staff time gives £330 divided by 400, or about 83p. Keep both figures labelled: one tracks supplier spend; the other includes the assumed value of staff effort.
Include time and charges spent on failed attempts in the cost total. Counting only successful attempts’ costs would make the process look cheaper than it is. For an annual subscription, show its monthly share for comparison and keep the actual payment and renewal date visible.
Investigate a change before acting
If cost per document falls, the tool may be working better, or fixed costs may simply be spread across more documents. Check volume, the mix of work and how thoroughly it was reviewed.
If cost rises, look for repeated attempts, new uses, extra connections or a supplier price change. Different causes need different responses. Paying more during a busy month may be reasonable if useful work grew faster than the bill.
For a tool used irregularly, a cost per item may be unhelpful. Review whether its occasional uses justify the subscription and whether another paid tool already covers them.
Before removing a seat
Check the contract, the work held in the account and anything connected to it. A seat unused last month might support a quarterly task. Cancelling access may not end an annual payment commitment.
Record the decision when you change or stop a tool, with the reason and the person handling it. The account checklist covers access and leavers. For a new proposal, use the first-year estimate before taking on the cost.
About Jay
I’m Jay Janes, a Practical AI Advisor and founder of Reformat Labs. I write about choosing useful work for AI, checking the results and supporting the people using it.