This tutorial will take you through viewing the profitability of a job, by setting up user billing rates and item types as well as utilising certain reports.
- Set up internal employee cost (This is the hourly cost of each resource to the company as well as the default task billing rate).
- Follow this Tutorial to set up Employee Costs:
- Hover the mouse cursor over your name.
- Click on Invite and Manage Users.
- Find the user who you wish to edit.
- Click on the Edit icon for that user.
- Set the employees hourly cost. ***Note***The hourly user cost can be marked up to take into account general office costs. so it could be salary per hour plus 20% for a fixed amount for instance.
- Set the employee's default billing rate (Employee Markup - billable to the client).
- Billing rates are setup by adding 'Item types' - (click the link to watch a video on how to create Item Types).
- Create a New Cost Estimate
- You have the ability to create tasks directly from the CE.
- If external suppliers are used, you can generate Purchase Order.
- Once the job is complete create a Tax Invoice.
- You will notice that the status for the TI is Issued.
- Once the TI has been paid you can edit the TI and change the status to Paid.
- To view a Profit and Loss report on this project head to the reports section click Accounts and then Individual Project recon. ***Note***You also get to the recon directly from the job dashboard report link.
- Choose your project from the dropdown menu.
- Click Include "Employee Costs".
- Click the magnifying glass icon.
- Expand the gray bars to view the results.
- The results displayed on the right of the page (see below) Gives you a breakdown of:
Expanding Revenue will display all Cost Estimates and Tax Invoices.
Expanding Costs will display all Purchase Orders / Supplier Invoices.
Expanding Expenses will display any Expenses such as Travel / Food / External Printing that occurred on this job.
Expanding Task Time will give you a breakdown of each Task including User Costs and Task Billing rates along with Time Break Downs.
Action Point:
Here is a list of things you must check on profitability:
- Does the invoiced amount match the cost estimate?
- Were the external expenses more than budgeted for?
- Did people go over on time estimated?
- Were the resources used on the job priced correctly?
- Was there a sufficient markup on the cost of the resources used to the billing rate of the task?
Next step:
Learn how to save your popular searches
See how to use data tables