Let’s say you run a small architecture firm and you’re looking to grow. With multiple employees, clients, and projects to juggle, determining where your profit is coming from can sometimes feel like navigating a maze. You have to download reports, manually calculate profit per project, and go back into your books to confirm Costs, Expenses, and Income. Instead of building up your business, you’re stuck drilling down into data.
To help, FreshBooks has added the Project Profitability feature. It collects and displays all the data you need to make more informed business decisions—right from within your account.
Project Profitability is a reporting tool that tracks the performance of your Projects to see how profitable they are. It also helps you manage time and expenses being tracked to Projects by your Team Members, so you can make better business decisions.
Profitability is calculated by subtracting your Costs (Team Member Costs and Expenses) from your Income (the amount you invoiced for a project). The Project Profitability widget collects all this data and gives you a visual breakdown of Income, Costs, and Profit—so you can see which projects are making you money and which aren’t.
Viewing your Profitability Graph is easy, and takes just a few steps!
Here’s what it looks like in-app:
The Project Profitability widget is only visible to Owners and Admins, and is available on Premium and Select Plans. Interested in using it? Upgrade your account here.
With the data collected, Project Profitability can help you determine:
There are 2 reports you can run that give you a more detailed view of every project’s profitability:
The Profitability Summary Report allows you to view a summary of a client’s profitability across all their projects. Here’s what it looks like:
The Profitability Details Report gives you a breakdown of the Services and Expenses tied to a project, so you know exactly how much you’re spending and making. Plus, you can compare items across projects to identify trends. Here’s what it looks like:
Team Cost Rates are how much you pay your Team Members. Setting these rates helps you better manage profitability on projects, by balancing the money you spend against the money you make.
To set your Team Cost Rates, either:
Once entered, a Cost Rate is used on all Projects. Updating a Cost Rate will only apply to future time entries on active Projects. For a more in-depth breakdown of this, check out this blog post.
If you have any questions about Product Profitability, a team of Support Rockstars is ready to help you out. Contact them here.