When the financial success of a Project needs to be estimated, let our Profitability overview help you.
The Profitability overview can be found within the Project info page, where you can keep track of your Budget, Planned income, Cost and Profit.
1. First we need to set the internal hourly rate (more on this topic) by going over to the People section, where we can show the rates per all users,
2. In our case it is Mike Johnson, whose internal rate has been set to 100 USD/h, which is done by clicking on the ''Not set'' section, which pops up the internal rate screen,
3. Once we set the internal hourly rate, we need to make sure that the Job type rate has been set too. That is why we need to go to the Project/Edit Project to check the job types or create the new ones,
4. In our case we have created Design job type at 200 USD/h,
5. As we have both rates set, we can now move on to tracking the time, and in our case we have added 1 hour of design time,
6. We have also added a fixed Expense amount of $500,
7. Now that we are all set, let's focus on the Project info to check the current standing. This is where we can see the result of:
Income: 700 usd (1h x 200usd/h + 500 usd)
Cost: 100 usd (1h x 100usd/h)
Profit: 600 usd (700usd - 100usd)
NOTE: This data can be seen by Owner and Member+ (with the option to work with invoices and estimates) users only.
The Profitability section consists of the following elements (in detail):
Income: Potential income, if all the billable hours and expenses are charged.
Income = [(Billable Hours * Job Type Hourly Rate) + Billable Expenses]
Cost: Your project's internal costs. (For example, your employee's wage)
Cost = [(All Tracked Hours (both billable and non-billable) * Employee's Internal Hourly Rate) + Non-Billable Expenses]
Profit: The difference between Income and Cost.
Profit = [Income - Cost]
All this is best suited for projects without a predefined budget, for now. We're currently working on making it possible to turn a predefined budget into Income.
Note: This feature is only available with the GetPaid bundle.