Profitability

On this tab, you can track the profitability of the project.

To calculate the Profitability of projects, the system compares the planned income (based on project agreements) with actual costs (reported hours of employees + taxes + vacation pay + sick leave). For TIME & MATERIAL projects, profitability is calculated for the selected period, while for FIXED PRICE projects, the calculation is based on the milestones.

The tab contains a dashboard with a graphical representation of key project data:

Total hours

The total number of hours spent on the project (billable/non-billable)

Income

Profit (profit/expenses)

Forecast income

Projected income (income/loss) for a specific period

Below the page, there is a table with data for profitability calculation, grouped by employees, tasks, invoices, and expense types.

In this report, Revenue is calculated as the sum of all invoices. Hovering over the widget displays the profit, i.e., the company’s net income.

When hovering over the widget, the Profit is displayed, i.e., the company’s net income.

Group by Employees

Field

Description

Employee

The company employee

FTE

Full-time equivalent, where 1 = 100% of working hours (e.g., 1 month = 168 working hours, if the person worked 84 hours, FTE = 0.5)

Billable Hours

Hours for which the client pays

Non-Billable Hours

Hours that will not be invoiced to the client

Revenue, $

Actual income, i.e., the actual amount of invoices the client will pay for the employee’s working hours

Expenses, $

Actual labor costs for the employee

If an employee is involved in a project overtime and you need to exclude them from the profitability calculation, you should use the “This is overtime work” option when specifying the agreement.

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